The 2013 update from ZhenFund on the state of China's technology startup ecosystem. Last time we outlined the 3C's 2E's in understanding the differences between China and Silicon Valley. This year we focus on some of the positive trends we see developing in the startup ecosystem.
Technopreneurship and the Early Stage Ecosystem in China in 2013Chris Evdemon
20 slides about everything you should know on the state of the Chinese internet, the start-up community and resources available to entrepreneurs in China in 2013.
Angels, VCs and Fundraising in China 2010Chris Evdemon
This presentation explains the current status in China's early stage ecosystem, in terms of angel investors and venture capital. It also provides aspiring entrepreneurs with some advice on the local fundraising process.
Provides insights and a ‘stepping stone’ to daring Singaporean and other foreign start-up companies with innovative products / services that want to get in the Chinese mainland market.
Technopreneurship, Incubation and Angel Investments in ChinaChris Evdemon
An introduction to mainland China's current situation in terms of an early stage technology companies ecosystems - what's there and what's missing? What does a technopreneur need to do to prepare?
2017 HONG KONG STARTUP ECOSYSTEM TOOLBOX V2.0 WHub
W Hub has teamed up with the key players of the startup scene to create the ultimate Hong Kong Startup Ecosystem Toolbox.
Key Findings:
- Why choose Hong Kong to startup
- Exponential growth with 2,500+ startups
- Growing, diverse ecosystem (you would be surprised)
- Gap in funding
- Recent exits, IPO and money raised
- Community builders (62)
- Government support, universities, co-working spaces, incubators and accelerators
- Resources (talent corner, competitions and events)
Technopreneurship and the Early Stage Ecosystem in China in 2013Chris Evdemon
20 slides about everything you should know on the state of the Chinese internet, the start-up community and resources available to entrepreneurs in China in 2013.
Angels, VCs and Fundraising in China 2010Chris Evdemon
This presentation explains the current status in China's early stage ecosystem, in terms of angel investors and venture capital. It also provides aspiring entrepreneurs with some advice on the local fundraising process.
Provides insights and a ‘stepping stone’ to daring Singaporean and other foreign start-up companies with innovative products / services that want to get in the Chinese mainland market.
Technopreneurship, Incubation and Angel Investments in ChinaChris Evdemon
An introduction to mainland China's current situation in terms of an early stage technology companies ecosystems - what's there and what's missing? What does a technopreneur need to do to prepare?
2017 HONG KONG STARTUP ECOSYSTEM TOOLBOX V2.0 WHub
W Hub has teamed up with the key players of the startup scene to create the ultimate Hong Kong Startup Ecosystem Toolbox.
Key Findings:
- Why choose Hong Kong to startup
- Exponential growth with 2,500+ startups
- Growing, diverse ecosystem (you would be surprised)
- Gap in funding
- Recent exits, IPO and money raised
- Community builders (62)
- Government support, universities, co-working spaces, incubators and accelerators
- Resources (talent corner, competitions and events)
Why Thailand is a Great Place to Build and Launch Your StartupArdent Capital
Deck by aCommerce CEO, Paul Srivorakul on Thailand's growing startup ecosystem and possible opportunities for entrepreneurs looking to enter Southeast Asia.
TVCA’s Thai Startup Founders Survey 2016 explores the background and opinion of 30 founders/co-founders of technology startup companies based in or focusing on Thailand market on various topics including the founders’ background, company profile and their opinion on the Thailand ecosystem in general.
South East Asia and Malaysia (Deep Dive) Startup Ecosystem 2016 - An OverviewERIC TAN
- How was 2016 like for South East Asia (SEA) startups? Who were the active players in the scene?
- A deeper dive into the Malaysian startup scene.
So what? and what's next?
The Ecosystem of Early Stage Investment in China - presentation to BPI France...Bruno Bensaid
An overview of early-stage investment ecosystem in China (incubators, accelerators, new tech zones, Early stage VCs and angel investors), as well as some examples of successful French startups in China as of Q3 2015
A crash course on Korean Startup Ecosystem based on a presentation given on Startup Korea Roundtable event held at D.CAMP on 28 April, 2015.(For any errors or correction request, please contact hahn.ryu@dcamp.kr. Special thanks to Startup Alliance and G3Partners.
Innovation is everywhere - Malaysia Innovation Ecosystem and Startup SceneInnovation is Everywhere
Malaysia is a rather small country in populous South-East Asia, with 29 million inhabitants, North of Singapore and south of Thailand, with a "peninsular" part and half the island of Borneo (shared with Indonesia).
Malaysia has been early to invest a lot in high technology and has a Silicon Valley of its own since 1997. Is infrastructure enough to create conditions for innovation?
In this presentation, we share the milestones of Malaysia as an innovation ecosystem, we identify their best practices (in particular the neat organization of the Global Entrepreneurship Summit in Kuala Lumpur) and assess their strengths and weaknesses.
Read more about us as we roam the world to explore the emerging markets startups scenes, from Iran to Chile, from China to Nigeria.
Reach us at: martin@innovationiseverywhere
Innovation is Everywhere
Peering into Thailand's Startup Ecosystem by Ardent Partner Tee SuraphongchaiArdent Capital
Ardent Capital Partner and Head of Ventures, Tee Suraphongchai, examines Thailand's Startup Ecosystem including why Thailand, a market overview, an analysis of the current Thai startup ecosystem, and growth and future opportunities.
Interested in starting a company in China? Here's a quick report on China through the lens of a Silicon Valley serial entrepreneur.
This 15 min guide by Bowei Gai aims to cover the basics of Chinese market size, opportunity, key players, competition and infrastructure.
Interested in starting a company in Pakistan? Here is a quick 15-min guide for everything you need to know to get started.
This guide is provides an overview of the Pakistan market size, key players, opportunity then dives into topics such as costs of operation, rules/regulations and even local culture.
Pakistan Startup Report is a guide written by local volunteer entrepreneurs and investors. If you are interested in creating such a report for your own country, please contact hello@worldstartupreport.com. Please also consider making a donation to help create more of these free reports for other countries in need.
Thanks for reading!
Dr. Kai-Fu Lee's Talk on Innovation with Chinese characteristics. Videos
(Part 1) https://freeflowapp.com/v/et97qv (Part 2) https://freeflowapp.com/v/5uyqyg
US venture arm, www.ideabulb.vc
China venture arm, www.chuangxin.com
More on Kai-Fu Lee,
http://en.wikipedia.org/wiki/Kai-Fu_Lee
Deep Dive into VC Funding in China- Click VenturesFrederick Ng
Where VC Funding is going in China? Sectors where VC funding is going? What do you need to know about partnering or investing in a Chinese Fintech company?
Why Thailand is a Great Place to Build and Launch Your StartupArdent Capital
Deck by aCommerce CEO, Paul Srivorakul on Thailand's growing startup ecosystem and possible opportunities for entrepreneurs looking to enter Southeast Asia.
TVCA’s Thai Startup Founders Survey 2016 explores the background and opinion of 30 founders/co-founders of technology startup companies based in or focusing on Thailand market on various topics including the founders’ background, company profile and their opinion on the Thailand ecosystem in general.
South East Asia and Malaysia (Deep Dive) Startup Ecosystem 2016 - An OverviewERIC TAN
- How was 2016 like for South East Asia (SEA) startups? Who were the active players in the scene?
- A deeper dive into the Malaysian startup scene.
So what? and what's next?
The Ecosystem of Early Stage Investment in China - presentation to BPI France...Bruno Bensaid
An overview of early-stage investment ecosystem in China (incubators, accelerators, new tech zones, Early stage VCs and angel investors), as well as some examples of successful French startups in China as of Q3 2015
A crash course on Korean Startup Ecosystem based on a presentation given on Startup Korea Roundtable event held at D.CAMP on 28 April, 2015.(For any errors or correction request, please contact hahn.ryu@dcamp.kr. Special thanks to Startup Alliance and G3Partners.
Innovation is everywhere - Malaysia Innovation Ecosystem and Startup SceneInnovation is Everywhere
Malaysia is a rather small country in populous South-East Asia, with 29 million inhabitants, North of Singapore and south of Thailand, with a "peninsular" part and half the island of Borneo (shared with Indonesia).
Malaysia has been early to invest a lot in high technology and has a Silicon Valley of its own since 1997. Is infrastructure enough to create conditions for innovation?
In this presentation, we share the milestones of Malaysia as an innovation ecosystem, we identify their best practices (in particular the neat organization of the Global Entrepreneurship Summit in Kuala Lumpur) and assess their strengths and weaknesses.
Read more about us as we roam the world to explore the emerging markets startups scenes, from Iran to Chile, from China to Nigeria.
Reach us at: martin@innovationiseverywhere
Innovation is Everywhere
Peering into Thailand's Startup Ecosystem by Ardent Partner Tee SuraphongchaiArdent Capital
Ardent Capital Partner and Head of Ventures, Tee Suraphongchai, examines Thailand's Startup Ecosystem including why Thailand, a market overview, an analysis of the current Thai startup ecosystem, and growth and future opportunities.
Interested in starting a company in China? Here's a quick report on China through the lens of a Silicon Valley serial entrepreneur.
This 15 min guide by Bowei Gai aims to cover the basics of Chinese market size, opportunity, key players, competition and infrastructure.
Interested in starting a company in Pakistan? Here is a quick 15-min guide for everything you need to know to get started.
This guide is provides an overview of the Pakistan market size, key players, opportunity then dives into topics such as costs of operation, rules/regulations and even local culture.
Pakistan Startup Report is a guide written by local volunteer entrepreneurs and investors. If you are interested in creating such a report for your own country, please contact hello@worldstartupreport.com. Please also consider making a donation to help create more of these free reports for other countries in need.
Thanks for reading!
Dr. Kai-Fu Lee's Talk on Innovation with Chinese characteristics. Videos
(Part 1) https://freeflowapp.com/v/et97qv (Part 2) https://freeflowapp.com/v/5uyqyg
US venture arm, www.ideabulb.vc
China venture arm, www.chuangxin.com
More on Kai-Fu Lee,
http://en.wikipedia.org/wiki/Kai-Fu_Lee
Deep Dive into VC Funding in China- Click VenturesFrederick Ng
Where VC Funding is going in China? Sectors where VC funding is going? What do you need to know about partnering or investing in a Chinese Fintech company?
2019 southeast asia internet trends report a primer english finalChris Tran
Our 2019 report follows in Mary Meeker's esteem tradition what is going on in the Tech & Internet scene for Southeast Asia. We are delighted in our first education to share a comprehensive coverage of 1) key trends for the region, 2) new rules re business strategy 3) sector and company overview with a run down on who the top investors are and a country by country analysis, please enjoy.
Open U Talk from the Institute of Financial Technologists of AsiaNicole Kuo
Founder of Institute of Financial Technologists, Mr. Paul Pong's, talk for MBA students at the Open University of Hong Kong. Outlining opportunities and effect from Chinese depositary receipt and weighted voting rights. Also urging the needs of lack of fintech talents in the industry!
From our local office at Beijing, we are glad to release an introduction to the Chinese Internet Market.
With the chinese economy still growing fast, the internet market has experimented an incredible growth in recent years. And what is more promising, every analysis foresee what is seems to be an unprecedented boom for the years to come.
This presentation examines trends and innovations in financial services (focusing on banking, insurance, credit cards).
In the last few years, the financial services industry has undergone a digital evolution. Now, it is time for a digital revolution, due to growing disruptive "Fintech" start ups and their innovative models.
China is the second-largest source of “unicorns” in the world. We expect most China unicorns to come from the Auto, FinTech, Internet, Healthcare and Tech Hard-ware sectors. Hong Kong and China exchanges are getting ready for the next big wave. Following the US, China is the second-largest source of “unicorns” (commonly defined as start-up companies with valuations of >US$1 bn).
A primer on the Fintech market in India, with infographics on the market landscape, size and evolution paths. Includes estimates on penetration levels of digital banking and category specific growth expectations.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
2. 2
Disclaimer
The
material
in
this
presenta/on
has
been
prepared
by
ZhenFund.
This
informa/on
is
given
in
summary
form
and
does
not
purport
to
be
complete.
Informa/on
in
this
presenta/on,
including
forecast
financial
informa/on,
should
not
be
considered
as
advice
or
a
recommenda/on
to
investors
or
entrepreneurs.
This
presenta/on
may
contain
forward
looking
statements
including
statements
regarding
our
intent,
belief
or
current
expecta/ons.
Readers
are
cau/oned
not
to
place
undue
reliance
on
these
forward
looking
statements.
ZhenFund
does
not
undertake
any
obliga/on
related
to
ac/ons
resul/ng
from
this
presenta/on.
3. • Market opportunity, a macro perspective
• Startup ecosystem challenges and opportunities
– New sources of capital (angels, cross-border, government)
– Venture capital/private equity
– Public markets and exit opportunities
– BAT + Q: the internet giants
– Customer acquisition challenges
– Copycats and intellectual property
– Developer services and infrastructure
– Remaining challenges
3
Content
4. 4
China by the numbers
1.35 billion people 70% urban by 2025
7.5% GDP growth over next 10 years,
driven by domestic consumption
2nd largest consumer
market after the US
5. 5
Source: Strangeloop; McKinsey, www.internetworldstats.com/
China 2015
- - - - 780 MILLION INTERNET USERS
China 2012
- - - - 564 MILLION INTERNET USERS
(42% penetration rate)
United States 2012
----245 million internet users
India 2012
---137 million internet users
~75% internet users access through mobile
China has the most internet users globally
6. 6
$445bn
$270bn
Online
retail
volume
(2015E)
Shipping costs comparatively low
• 44% of China’s population will shop online in 2015,
representing 375mm customers
• E-commerce projected to reach 16% of retail sales by 2020
China
US
Singles day in 2012 for Taobao and Tmall
alone generated more than $3bn in sales,
triple US Black Friday 2011 sales
$3bn
Source: Alizila.com “China’s Internet is Giant Shopping Mall” Infograph
China’s e-commerce volume to surpass US in 2013
7. 7
$10bn +
Mobile gaming projected to
grow 50% YoY through 2015 to
hit ~$3.5bn USD in revenue and
455mm players
Source: Economist “Ours, all ours” Apirl 6th 2013, Data from Morgan Stanley 2012 China Gaming Industry Report, Analysys International
China is the world’s largest online gaming market
8. 8
Travel Advertising Film
Luxury Grocery Cosmetics
Source: Worldwatch, Guardian.co.uk, Wikipedia CNBC, China.org.cn
…and will soon be the #1-2 market globally for:
9. 9
China produces 70% of the world’s smartphones…
…and is also the #1 market for smartphones,
• 29% of global shipments in 2013 (E)
• 354mm subscriber base (compared to 219mm in the US)
• 92% of Chinese 18-30 yo own smartphones
Source: Canalys.com Smart phone Market Shipment Forecast 2013 BRIC Countries, “China’s Communication Industry” by tech.163.com, “At
D11, It’s Clear, China beats U.S. in mobile and internet” Forbes.com 5/30/2013, Telefonica SA and Financial Times
Mobile & smartphone market opportunity
10. 10
China’s digital divide: mobile internet
Source: Analysys International, Morgan Stanley AlphaWise, Flurry Analytics, insidemobileapps.com, computerworld.com, Apple,
Stenvall Skoeld & Company analysis
• Android has 90.1% market share,
but Google Play is virtually absent
• Three key apps: WeChat, Mobile QQ,
and Taobao
• Many smartphone users do not
download apps themselves, rather
buy phones with apps pre-installed
by Shuaji 刷机 distribution
companies
• 40% of iOS install base in China,
but still majority Android
• Savvy customers download apps
directly from Apple or through
marketplace platforms like 91助手
• iOS developers can gain brand
awareness by engaging Shuabang
刷榜 companies to help them
climb app store rankings
Most developers are
focusing energy on these
users…
…but many future
opportunities are here!
Distribution still complicated
11. • Market opportunity, a macro perspective
• Startup ecosystem challenges and opportunities
– New sources of capital (angels, cross-border, government)
– Venture capital/private equity
– Public markets and exit opportunities
– BAT + Q: the internet giants
– Customer acquisition challenges
– Copycats and intellectual property
– Developer services and infrastructure
– Remaining challenges
11
Content
12. 50%50%
Insights from 309 Chinese angels who have done at least two deals and
committed > 1mm RMB in startup funding, representing 747 deals:
12
China’s angels 2012 by the numbers
Source: Cyzone.com 《中国天使投资报告》创业邦研究中心2012.12出品
Background
72% of angels
were previously
founders
Mostly
men
88% are
male
Sectors
Mobile internet, e-
commerce, and
consumer services
are the top three
areas for investment
Involvement
76% of
angels take
board seats
Round Size
60% of their portfolio
startups raised < 3mm
RMB (~$500k) in their
angel round
We see this
investment
strategy declining
as Chinese angels
become more savvy
Geography
Beijing dominates angel
deals in China,
representing 22% of all
deal value and 30% of
overall deal volume, 2-3x
higher than any other
province
Ownership
For 20% of deals,
angels took more than
50% of the company
13. 13
China’s angels are on the rise
Source: www.stepvc.com 创业接力天使和清科研究中心 《2012年中国天使投资与天使孵化研究报告,清科研究中心
2012.09,www.zdbchina.com, Cyzone.com 《中国天使投资报告》创业邦研究中心2012.12出品
Angels by type
Individual
Angel Fund
Angel + Incubator
Angel Teams
60% of angels will
exit by selling
shares to VC’s
50% of angels
reporting returns of
30%+
18% report returns
of 200%+
190
(70%)
15
(6%)
61
(22%)
6
(2%)
14. Chinese investors are going global and many leading Silicon Valley investment
brands have a presence in China, increasing potential for cross-border
collaboration and deals
14
Cross-border deals
Multiple Chinese VC funds and
incubators have a presence in SV
Key leading VC’s and US angels
already have funds or reps in China
15. • Provide cash, tax, and office incentives for
startups or talented post-graduates to
register for business within their province,
city, or city district
• Many programs operated in conjunction with
Torch tech parks and incubators
15
Government funding
• The Torch Program:
– Reportedly companies housed in 89 national
high tech industrial zones accounted for
7.1% national GDP in 2010
– 500+ tech SME incubators nationwide,
claims to have incubated Lenovo, Huawei,
Suntech and graduated 16k companies
– State Council established Innofund reports
investments of ~9bn RMB in 15,000+
projects since 1999, with 100 domestic IPO’s
from portfolio
National government
Local and national government have two key KPI’s:
Increase GDP & Corporate Taxes
to that end, A LOT of money is being made available to technology startups
Source: www.ctp.gov.cn
Provincial, city, district level
governments
16. 16
Government funding
Caveats
• High turnover rate. Discontinuity of services and support when
officials rotate to other posts or are promoted
• Focus on hardware rather than software. Tangible KPI’s such as
brick and mortar or registered capital are primary focus
• Lack of experienced advisors. Officials in charge of programs may
have no experience running businesses
• Bureaucratic. Application and reporting requirements burdensome
to startups
17. Major VC/PE funding cool down in 2012
17
992 1,269 1,178 1,777
3,247
4,210
2,701
5,387
11,725
177
253 228
324
440
607
477
817
1401
0
200
400
600
800
1000
1200
1400
1600
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Inv ($mm)
# deals
Investments in China’s VC/PE Market from 2003 – 2012, estimated 40-50% decline in 2012
Source: Zero2IPO Research Center, December 2011, www.zdbchina.com, Zero2ipo’s China VC/PE Review H1 2012, Zero2IPO “M&A Outlook 2013”
18. Factors affecting capital deployment
18
Source: Wall Street Journal “Fears of an IPO Flood in China” April 16, 2013
• Macroeconomic and political climate
(major CCP leadership change in 2012)
• Poor performance of some Chinese
internet stocks on US markets,
increased investor scrutiny
• Exit bottleneck in domestic public
markets
• Smarter money less willing to burn
cash on market land grabs (i.e. group
buy and e-commerce sites)
19. Reasons for optimism in 2013
19
• One of two Chinese internet IPO’s in the
US in 2012, YY, had strong performance
on the NASDAQ and paved the way for a
more receptive capital market in 2013
• LightintheBox (ZhenFund portfolio
company) June 2013 NYSE IPO
• Alibaba Group mega-IPO in the works
• 新三板 New Third Board to expand the
over the counter (OTC)market for SME
shares domestically, four pilot zones and
140 listings to date, however, listing
costs are high for startups (~1mm RMB)
and liquidity is low
21. But M&A market is improving
Internet giants moving on larger scale acquisitions, but primarily only
in larger category leaders
21
Q2 2011
Baidu invests $306mm in
Qunar
Q2 2013
Baidu acquires PPS for
$370mm
Q3 2012
Suning acquires Redbaby for
$66mm
22. 22
BAT + Q: China’s internet giants
SEARCH E-COMMERCE/
PAYMENTS
SOCIAL/
GAMING
TOOLS
NASDAQ (BIDU)
2012 revenue = $3.58bn,
primarily advertising
70% search market
share
Struggling to transition
to mobile search, profit
margins falling
HKSE 1688
~$175bn transaction
volume in 2012 (Tmall
B2B and Taobao C2C)
~$40bn 2012 revenue,
primarily from
advertising
5% of all Chinese retail,
80% market share e-
commerce in China
47% Alipay market
share for online
payments in China,
700mm registered users
Now owns 18% of Sina
Weibo microblog
(48mm DAU)
HKSE 0700
2012 revenue = $6.98bn,
primarily from value
added services/gaming,
(also non-trivial e-
commerce revenue)
~800mm QQ social
network users and
400mm WeChat mobile
social network users
(200mm MAU)
21% online payments
market (Tenpay)
NYSE: QiHU
2012 revenue =
$239mm, primarily
advertising and online
games
Major portal destination
Baidu’s emerging rival in
search (15% market
share)
23. 23
Online customer acquisition in China
<- Major social platforms are open, reducing customer
acquisition cost
Social graph information not 100% open to developers ->
<- SEO is transparent and mature
SEO algorithms change frequently->
<- Email marketing is an established customer acquisition
channel
Email marketing historically less effective, difficult to get
on ISP white list for email providers->
Chinese startups face unique challenges acquiring customers online:
<- Mobile app distribution channels fairly concentrated
(Apple and Google Play)
Shuabang services distort Apple store rankings, Google Play
blocked, Android distribution fragmented ->
24. China’s copycat phenomenon, key factors
24
1 Growing available capital –investors and
internet giants willing to fund copycats
2 Low hanging fruit – cheap and easy to copy
pure internet/mobile products, wide open
spaces in the market lead to land grabs fueled
by investor money ex: Groupon, Tumblr,
Pinterest, and Path etc clones
3 Risk aversion - Domestic VC’s and foreign
capital markets more receptive to Chinese
start ups with direct corollary in the US.
Copying a model perceived as less risky.
4 Foreign companies often delay too long before
tackling the Chinese market
25. Copying products designed to solve US customer needs is no guarantee of
mainstream success in China, many copycats will fail, no breakout success
stories for some of the most high profile consumer internet brands*
Copycats don’t always work…
Successful professionals and
business leaders less open to
sharing contacts online
Leisure micro-blogging and design-focused
UGC not yet mainstream activity for Chinese
netizens
*For Pinterest genre, excludes companies like Mogujie and Meilishuo, originally e-commerce sites with Pinterest UI integrated later
Wow.taobao.com
www.duitang.com
Huaban.comDiandian.com www.woxihuan.
com
12
26. 26
…but foreign entrants shouldn’t discount them!
Launched in June 2011 Netease’s 有道云笔记 (Youdao Yunbiji) at 8mm users
reportedly larger than Evernote’s 4mm Chinese user base
Youdao even mimics Evernote’s marketing tactics, using similar wording on their
Weibo account. Copycats are still an issue!
27. Copycat mitigation strategies
12
• Focus on your strengths
– The exterior of pure web and mobile products can be easily copied, but core
competencies (customer service, offline resources, advanced IP/tech) are the key to
success, expect copycats but don’t be discouraged
• Avoid internet giant territory
– Don’t go after categories and products that can be easily copied by BAT + Q, they
have thousands of engineers and millions in cash at their disposal, focus on niche/
vertical markets or businesses with strategic offline resources
• Pick your battles
– Focus on serving the customers who do enjoy using your product or service, rather
than conquering the “mass” market
• Make it a local effort
– Get a Chinese investor on board, have a local connection that can pull strings for
you when issues arise
– Empower local staff
• Shorten the chain of command for decision making
• Give local GM’s a stake in the business
28. On dealing with copycats
12
”Our business is a slow business, so it has to take a lot of time by gaining users’ trust
and having them be comfortable with using our product. It’s more of a trust business”
- Evernote China’s GM Amy Gu on rivals in China
“At the end of the day, it’s still too attractive a market to pass up on.”
– Flipboard Product Director for Greater China Alvin Tse
“We took something from the music industry, which was to stop treating the
customers as users, and start treating them as fans… piracy may not be a bad
thing. It can get us more business at the end of the day.”
– Mikael Hed, Rovio CEO, on piracy in China
“Be patient. I think that approaching the market too aggressively, you can make
some mistakes. I think it's best just to be patient and focus on delivering a high-
quality experience to Chinese players, and when there are challenges or roadblocks
then you just have to take them one at a time and deal with them.”
– Mike Morhaime, President and Co-founder Blizzard Entertainment
29. IP protection is improving
29
“This is a long-term effort … we want the indigenous brands to
work together to protect IPR, because if you do not participate
today, tomorrow you are the victims.” -‐
Jack
Ma
• 4/2013 Baidu wins suit
against Qihoo for illegally
accessing and indexing
Baidu’s Baike content, the
damages were small (450k
RMB), but positive sign for
IP protection in China
Source: TechinAsia http://www.techinasia.com/china-search-qihoo-360-baidu-market-share/
30. Startup services: US versus China
30
: Extensive services make startups more
efficient and cheaper to operate
Large companies gaining traction for IaaS
services, but many corollaries for US startup
services do not yet exist, are fragmented, or still
face UI issues
CRM and advertising
Data hosting and management
Payments and analytics
Developer communities and game services
?
?
31. 31
Internet Speed
China’s top startup cities 2X+ slower than US average
Average US internet speed ~ 7.4mb/s
Source: ChinaCache http://mashable.com/2012/09/28/china-broadband-speed/
32. Ongoing Challenges: Lack of Trust
32
“The
culture
of
Silicon
Valley
encourages
people
with
diverse
skills
and
experiences
to
meet
and
trust
each
other
and
take
a
chance
together.”
-‐
Victor
Hwang
• General trust level in society
dropped from 62.9/100 in
2011 to 59.7 in 2012
• Only 30% of people trust
strangers met on the street
• 64% trust public media
• 57.5% trust NGO’s
• 52% trust businesses
CHEATING IS PERCEIVED AS
THE NORM
Trust
in
Chinese
society
hit
an
all-‐Jme
low
in
2012.
-‐
The
Blue
Book
of
Social
Mentality
VS
Source: http://chinadigitaltimes.net/2013/02/trust-among-chinese-drops-to-record-low/
34. 34
• One of China’s leading angel funds
• ZhenFund believes in one principle above all
others: Integrity,
• Money with values 创业及自由
• Founded by Xu Xiaoping in 2006, current
fund a collaboration with Sequoia Capital
China
• Investment size: Up to $500k USD
• 100+ portfolio companies in China
• www.zhenfund.com for more
• Contact: zhenfund@zhenfund.com
34
Who are we? ZhenFund 真格基金
35. China’s angel funds
35
Est. 2006, $30mm USD Invest in people,
high deal volume, cross-border deals
Est. 2008, Incubate + ideate, hands on,
consumer internet
Est. 2009, Incubate + Seed + VC, large
professional staff, hands on, Beijing and
Shanghai locations
Est. 2010, general focus on early stage TMT
investments
Legend Star, Est. 2008, 400mm RMB fund, 21
person team, incubate with focus on technology
Global venture capital firm doubles as one of the
most active institutional angels in China
Established angel funds in China offer a variety of investment styles and
funding amounts for local startups
36. China’s Angels
36
Edward Tian Charles Xue Li Kaifu Xu Xiaoping Lei Jun
• Many prominent angels are members of China’s “Angel
Committee” 天使会, but co-investment still rare, the Silicon
Valley party round hasn’t yet made it to China
• China’s top angels primarily investing through fund entities
Cloud Valley Innovation Works ZhenFund Shunwei Capital
39. • Q3 2004 Baidu acquires hao123 (50mm RMB)
• Q3 2010 Shanda acquires Ku6 (share swap and $37.2mm), Eyedentity
($95MM), Mochi Media ($80mm)
• Q3 2010 Tencent acquires Comsenz (valued at >$10mm)
• Q1 2011 Sina acquires 19% share Mecox Lane ($66mm)
• Q1 2011 Baidu invests in Anjuke (led $50mm round)
• Q2 2011 Tencent's strategic 16% stake in eLong ($84.4mm)
• Q2 2011 Baidu invests majority strategic stake in Baidu ($306mm)
• Q4 2011 Tencent strategic 4.6% stake in Huayi Brothers (450mm RMB)
• Q3 2011 Sina acquires 9% stake in Tudou ($66.4mm)
• Q3 2011 Baidu strategic 40% stake in Fanshu.com (47.6mm RMB )
• Q4 2011 Renren acquires 56.com ($80mm)
39
M&A/Strategic Investments (through 2011)
40. • Q2 2012 Ctrip acquires ⻜飞常准 (20mm RMB)
• Q3 2012 Tencent investment in Caixin (undisclosed)
• Q3 2012 Renren invests in Social Finance ($46mm)
• Q3 2012 Tudou-Youku merger ($1bn)
• Q3 2012 苏宁易购 Suning acquires Redbaby 红孩子 ($66mm)
• Q1 2013 Baidu announces plan to make strategic investment in Kingsoft
• Q2 2013 Baidu to acquire PPS for ($370mm)
• Q2 2013 Alibaba takes 18% stake in Sina Weibo ($586mm)
40
M&A/Strategic Investments (2012-2013)
41. E-commerce
• Alibaba (Aliexpress)
• 360buy (JD Express)
• LightintheBox
Mobile
• Tencent (WeChat)
• Dolphin Browser
• UCWeb
• Kingsoft
41
Chinese companies going global
Made in China for global export, B2C
Tencent hoping WeChat will fuel global growth, US
base in Palo Alto
Based in Wuhan with 50mm global user base
Offering products made in China for global customers
25% of 400mm users outside China
JV in Japan and eyeing US markets
42. 42
Google Play Vacuum
• Android represents 90.1% of the OS market in China, but Google
Play is virtually absent
• Multiple 3rd party android marketplaces vying for user attention
43. 43
43
China’s Internet Giants want to do it all Source: CIC
Source:
CIC