The Tech Rush � Back to China

The Low Down •  Who am I? •  How big is it really? •  Where is the action? •  Who are the major players? •  What are the trends? •  Who are the new players? •  What does the funding market look like? •  Is there innovation in China? •  How do I jump in?  

Who is Jason Lim?

http://jaezen.flavors.me/ Forbes.com/sites/jlim @jaezenlim

How big is it really?�

The BIGGEST!

618 M Internet Users (from 591 M)

500 M Mobile Internet Users (from 460 M)

302 M Internet Shoppers (from 242 M)

300 B US$ E-Commerce Sales (from 209 B)

13.5 B US$ Online gaming revenue (up 246%)

 

Source: 2013 CNNIC, iResearch

Where is the action?

Beijing

Shanghai

Shenzhen

Chengdu

Tech Temple by Infinity Ventures

Who are the major players?�

B.A.T

•  ~80% Mkt Share •  $57 B Mkt Cap •  Robin Li (98th richest

in world)  

•  Alibaba, Taobao, Tmall, Alipay

•  2x Amazon •  3x eBay •  80% of all China

online sales •  $7.9 B 2013 Revenue •  Set to be biggest IPO

since FB with a $168 B valuation

•  Jack Ma (122nd richest in world)

•  QQ, Q Zone, WeChat •  $126 B Mkt Cap •  $9.9B 2013 Revenue •  More cash in bank

than FB & Google •  Pony Ma (Richest

man in China Tech)

What are the trends?

Online Gaming

60% (33% mobile) Penetration 266M Gamers playing at least 2 hours/month 73% Male Action RPG/1st Person Action 64% spend money each month – virtual goods Tencent/NetEase Biggest Players

Online Videos

80% penetration 450 M Online Viewers & 5.7 B Hours/month $1.9 B Revenue in 2013 73% revenue from ads 76% prefer online compared to TV Youku/Tudou and Sohu Biggest Players

Social Networking

91% penetration (US 67%) 597 M active users 30% are 26-30 y.o 38% make buying decisions based on SNS 113M Weibo MAU (Twitter: 213 MAU) 396M WeChat MAU (WhatsApp: 450 MAU)

E-Commerce

242 M online shoppers (more than US) $181 B 2013 B2C Ecommerce Sales Because its cheaper 61% 18-30 y.o 68% buy clothes & accessories Tmall, JingDong biggest players $5.75B Taobao & Tmall Singles Day 2013

Who are the new players?�

•  “Apple of China” •  Cheap Android •  Smart TV •  3 years old •  $10B valuation •  15 M units •  Sold 150K units in 10

mins on Weixin •  Lei Jun

•  Android app distributor/content discovery

•  3 years old •  >200 employees •  Raised $120M Series

B •  Incubated by

Innovation Works

•  Taxi app •  2 years old •  350k bookings/day •  100M users •  900K rego drivers •  178 cities •  Backed by Tencent

Xiaomi Wandoujia Dididache

What does the funding landscape look like?

•  Incubators: –  Innovation Works –  China Accelerator –  HAXL8R –  TiSiWi

•  Angels: –  ZhenFund –  TaishanXD –  Pre-Angel

•  VCs: –  Sequoia –  IDG Accel –  GSR, KPCB, DCM, Matrix

•  200 new funds –  95% RMB –  5% USD

•  US$6.9B invested •  1,148 investments

–  50% early stage –  20% internet companies

•  230 exits –  33 IPO –  76 M&A

•  Most depressed state since 2010 –  Backlog of exits –  Slower economy –  OS investment slowed

Source: Zero2IPO

WHO IN 2013

Is there innovation in China?

Source: Wipo.net

•  BEFORE : copy > innovate •  NOW: design > make •  Fast path to revenue – Meilishuo •  SNS by verticals – Douban •  BGI – Human genome DNA sequencing •  CooTek – TouchPal Smartphone keyboard now

used in Mercedez cars and Sony cameras •  3rd largest applicant of patents •  ZTE – 2nd highest number of patents

YES!

How do I jump in?

Proceed with Caution

•  Watch and learn – Webbehindthewall.com – Technode.com – Techinasia.com

•  Meet people at events/meet-ups •  Get a Chinese partner •  What is it like to live there •  Visas