global technology trends & startup hubs 2014

GLOBAL TECHNOLOGY TRENDS & STARTUP HUBS 2014 From Silicon Valley to London To Seoul

January 22, 2014 SparkLabs Global Ventures 1

•  General Technology Trends •  Mobile Industry Trends •  Startup Trends •  Global Startup Hubs •  Startup Snapshots of Global Hubs : Silicon Valley,

NYC, London, Stockholm, Berlin, Tel Aviv, Beijing, and Seoul.


CONTENT


General Technology Trends


Smart cars Bendable UHD TV Wearable devices

Internet of Everything

Hot Trends at CES 2014

Smart watch Curved OLED TV

Continuing Evolution of Technology


•  IT industry is expected to grow 4.7% and 3.6% in 2013 and 2014 respectively

•  Mobile devices are recovering the slow demand of PCs and TVs

Source: Gartner, SA, OECD, SparkLabs Global

IT industry market growth VS OECD GDP growth Revenue breakdown by electronic devices (global)

Source: DisplaySearch, Gartner, SA, SparkLabs Global

Global IT Industry Growth Exceeding OECD GDP Growth in 2014

24% 22% 22% 22% 21% 18% 17% 15% 14%

44% 47% 45% 46% 44% 39% 35%

30% 28%

32% 31% 33% 32% 33% 37%

40% 43% 43%

0% 0% 0% 2% 5% 8% 12% 15%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013F 2014F

TV PC Handset Tablet PC

15.3

13.3

4.4 4.7

3.6 3.0

1.8 1.4 1.2 2.3

0

3

6

9

12

15

18

2010 2011 2012 2013F 2014F

(%)

Axis Title IT OECD GDP


•  Global PC and TV demand will show a small recovery in 2014

•  Major IT products demand growth: PC -9.8%(2013) → -3.4%(2014F), LCD TV 1.0% → 5.4%, Home appliances 3.0% → 3.0%

•  Global mobile phone demand growth will increase from 3.6% in 2013 to 5.3% in 2014

Demand growth of major IT categories

Source: DisplaySearch, Gartner, SA, SparkLabs Global

(20)

0

20

40

2008 2009 2010 2011 2012 2013F 2014F

PC (-3.4%) LCD (5.4%) Handset 5.3%) Home Appliances (3.0%)

(%)

Annual Demand Growth of IT


Mobile Industry Trends


Mobile Devices is Still the Major Demand Driver in 2014 Smartphone demand will continuously grow along with decreasing price 1)  Smartphone penetration still remains below 60% in emerging markets (Latin America, Asia, Middle East) 2)  LTE smartphone penetration hovers below 30% 3)  Replacement demand for feature phone users are accelerating 4)  The estimate-beating demand for mobile payment, shopping and banking services. Global smartphone shipments are expected to grow 24% YoY to 1.2 billion units and the penetration is expected to reach 71% in 2014. Global smartphone market breakdown by price range Global handset/smartphone shipment & ASP

Source: Gartner, SA, OECD, SparkLabs Global Source: Gartner, SA, OECD, SparkLabs Global

0

500

1,000

1,500

2,000

2007 2008 2009 2010 2011 2012 2013F 2014F

(Units mn)

Global handset Global smartphone

0 0 0 0 0 1 12 14 16 4 6 6 9 18 19

25 26 27 54 47 40 38 31 30

21 22 22

42 48 53 54 51 51 42 38 35

0

20

40

60

80

100

2006 2007 2008 2009 2010 2011 2012 2013F 2014F Low($36-99) Middle($100-190) High($191-299) Premium(over $300)

(%)


Smartphone Market in 2013 & 2014 LTE smartphone penetration trends Market share of LTE phone in 2013

Smartphone penetration by region Smartphone penetration timeline

Source: SA, SparkLabs Global Source: SA, SparkLabs Global

0%

20%

40%

60%

80%

100%

North America

Western Europe

Asia Pacific

Central & Latin

America

Central & Eastern Europe

Africa Middle East

0% 1%

13%

28%

38%

0%

10%

20%

30%

40%

0

100

200

300

400

500

2010 2011 2012 2013F 2014F LTE phone

(Unit mn)

60%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007 2008 2009 2010 2011 2012 2013F 2014F

Samsung, 40%

Apple, 20%

LG, 11% HTC, 3%

Motorola, 5%

Pantech, 4%

Nokia, 1%

Sony, 2%

Others, 14%


Mobile Application Growth •  Usage of mobile application is accelerating along with increased consumption of

smartphones

•  The chart below shows the growth in events tracked since May of 2008, which reflects the growth of the app economy

•  App usage steadily increases over the course of the day and ultimately peaks in the evening unlike TV which remains low then has a dramatic jump in the evening

Source: Flurry Analytics

Worldwide mobile application events (billion) Average time spent on iOS devices (U.S. only)

Source: Flurry Analytics


Startup Trends


New Startups by Category (U.S. & China)

•  Charts below shows category breakdown of new startups in U.S. and China in 2012

•  Mobile category took the largest percentage in U.S. startup market and second largest percentage in China market in 2012

Source: Media, SparkLabs Global

U.S. new startups by category (2012) China new startups by category (2012)


27%

25% 13%

9%

7%

5%

4%

3%

2% 1%

1% 0%

3%

E-commerce

Mobile web

Social media

Web tools

Games

Multimedia

Media/Information

Web sales

Search engines

Blogs/Forums

Payment/Donation

NGOs

Other

27%

17%

15%

13%

8%

6%

4% 4%

4%

2% Mobile

Personal

Social Marketing

Shopping

Social Personal

Kids

Education

Gaming

Travel

Health


Investment in Mobile Companies Increases

•  Charts below shows category breakdown of U.S. angel investment

•  Internet and mobile sector increased by 4.9% and 3.3% respectively from end of 2012 to 3Q13, while healthcare sector decreased by 2.2% in the same period


U.S. angel investment trend in 2012 U.S. angel investment trend in 3Q13


31.90%

20.90% 13.30%

6%

3.80%

5.30%

4.50% 14.20%

Internet

Healthcare

Mobile & telecom

Industrial

Electronics

Consumer product and services Services

Others

36.8

18.7

16.6

6.2

4.1

4.1

3.1 10.4

Internet

Healthcare

Mobile & telecom

Software(non-internet/mobile)

Industrial

Consumer products & services

Energy & utilities

Others


•  Companies receiving seed financing exclusively from Seed VC funds are almost half as likely to raise follow-on financing as those raising seed financing from larger VC funds

•  In the graph below, Seed VC investments or those seed investments in which a VC participated had a higher rate of receiving follow-on investment than seed investments which were strictly participated in by angel investors

•  For seed rounds with VC participation, the rate at which companies received follow-on investment was 46.7% while seed rounds comprised only of angels had follow-on rates of 35.4%

Percentage of Seed Deals Receiving Follow On

Source: CB Insights

Follow-on Investment Rate in Seed VC Investments by Investor type

Source: CB Insights

Seed Deals Receiving Next Funding


Global Startup Hubs


GLOBAL HUBS

Silicon Valley

New York

London Berlin

Stockholm

Seoul Tel Aviv

Beijing


What defines a leading global startup hub?

•  Engineering Talent

•  Entrepreneurs / Mentors

•  Technical Infrastructure

•  Funding Ecosystem & Exits

DEFINITION

•  Startup Culture

•  Legal & Policy Infrastructure

•  Economic Foundation

•  Government Policies & Programs

GLOBAL HUBS


Population of Top 8 Global Startup Hubs *population by metro area

1.  Silicon Valley 7.1 Million

2.  New York City 19.8 Million

3.  London 13.6 Million

4.  Stockholm 2.1 Million

5.  Berlin 4.2 Million

6.  Tel Aviv 3.4 Million

7.  Beijing 19.3 Million

8.  Seoul 25.7 Million

Startup Snapshots of Silicon Valley


SILICON VALLEY

Startup Snapshots of Silicon Alley


NEW YORK CITY

Startup Snapshots of London


LONDON

Startup Snapshots of Stockholm


STOCKHOLM

Startup Snapshots of Berlin


BERLIN

6Wunderkinder

Startup Snapshots of Tel Aviv


TEL AVIV

Startup Snapshots of Beijing


BEIJING

Kaixin001

Startup Snapshots of Seoul


SEOUL


Thank you!

www.sparklabsglobal.com

global technology trends & startup hubs 2014

Technology

angel investment

seed vc investments

shows category

seed investments

silicon valley

largest percentage

investment

growth