Barclays HyperConnected World ConferenceJune 2014

Internet Changes Everything

The Inter

“The Internet isn’t really a technology. It’s a belief system”

Internet’s share of GDP is bigger than Health or Education

It’s changed how we experience culture

It’s changing our social life

It’s changing how we work

It’s changing politics

And the mobile Internet changes everything all over again…

In fact mobile will grow more than 100% in the next 5 years

Internet has changed our attitude to the ownership of technology

How we work with and leverage talent…

How we think about our homes and property

Even whether we need to own a car…

Freemium is the business model of the Internet

Open Source

Freemium is the business model of the Internet

SaaS

Freemium is the business model of the Internet

Free to Play

10 year S&P lifespan by 2020

Which can be extremely disruptive to established businesses

Every FTSE sector will be impacted

Innovation can create enormous value in a very short time

1978 1981 1987 1995 1995 1997 1999 1999 2005

and $1.4tn in new market value

creating 440k new jobs

with $545bn in new annual revenue

serving >1bn customers

Source: HIS Global Insight

21% US GDP

And in Europe we are starting to build waves of similar dimensions

So are we asking the right questions as investors?

What can we learn from early stage funding in terms of calculated investment risks?

£1.7tn in market cap and >6m staff

How does the FTSE think about it’s > £40bn IT spend?

How digital is the FTSE’s talent pool?

Ironically, FTSE can also be learning from government

Some key lessons

1. Be Open – Source, Standards, Data, Innovation2. Buy (from) small innovative companies3. Enforce and invest in digital learning4. Be transparent - sunlight is the best disinfectant

If GDS can do it….

@indexventures@cape

But there is so much cash out there….

$266bn FTSE100($5k per UK citizen)

$85tn global AUM($12k per human)