Chris Evdemon presented an overview of the Chinese internet market and opportunities for investment. Some key points:
- China has over 338 million internet users, growing at 25% annually compared to 3% in the US.
- Major opportunities exist in e-commerce, mobile internet, and cloud computing given China's rapid technology adoption.
- New entrepreneurs are emerging from China's top internet companies and gaining experience to start their own ventures.
- The Innovation Works model combines idea selection, project incubation, funding, and support to help startups succeed.
- A $100 million fund is committed to finance portfolio companies emerging from the incubator.
International Business Environments and Operations 16th Global Edition test b...
Overview of the Chinese Internet and Opportunities for Innovation Works
1. Chris
Evdemon
( )!
Investments
&
Business
Development
Manager!
November
2009
1
Innovation Works Confidential and Proprietary
2. Overview of Chinese Internet Users
Millions of Chinese Internet Users
( : )!
338
Data Source: CNNIC, iResearch & Pew Internet
3. Differences in User Demographics
Average age in China: 25 Average age in the U.S.: 42
% of new users each year: China 25% - U.S. 3%
4. Waves in the Chinese Internet
Technology companies
Baidu, Tencent, Shanda
Web portals in late rose from the ashes of
1990’s created the dot-com bust .
first boom.
We anticipate a recovery in 2010,
building base for an explosive third
wave which will be propelled by e-
commerce, Mobile Internet, Cloud
Computing and globalization.
First Wave Second Wave Third Wave Mature Market
Sina $1.81B! Baidu $12.2B!
Sohu $2.39B! Shanda $3.23B!
Valua9on
of
Listed
Companies
NetEase $5.50B! Giant $1.78B!
Tencent $24.1B! Perfect World $1.89B!
6. Three Major Future Opportunities
e-Commerce!
Mobile Internet!
Cloud Computing!
7. Great Potential of Chinese e-Commerce
2008 Per-capita
Online
Shopping
Amount
USA! $1,059!
CHN! $63!
Internet
penetra9on
Mone9za9on
of
in
China
is
just
about
Chinese
Internet
is
1/3
that
of
the
US
1/16
that
of
the
US
50x
poten9al
Data Source: CNNIC, iResearch & eMarketer
10. Mobile Internet Has Arrived
Millions of Chinese Mobile Internet Users
155
In 2009 3G licenses were issued to:
• CMCC (TDS-CDMA)
• CUTC (WCDMA)
• CT (CDMA2000)
Data Source: CNNIC
12. Evolution of Mobile Internet
News Entertainment & SNS Utilities & e-Commerce
13. An Ecosystem of Mobile Opportunity
OEMs/ODMs
SoQware
&
Services! Devices
&
Hardware
Users
Ads
Users
14. Cloud Computing - A “New Software” Industry
SoQware
installa9on
/
upgrading
shiQing
from
the
user
to
the
cloud.!
Business
model
shiQing
from
expensive
upgrades
to
ads-‐sponsored.!
IT
management
shiQing
from
end-‐user
to
cloud-‐services.!
15. Future of Cloud Computing
Google
App
Engine! Amazon
Cloud! Calendar! ERP
&
CRM!
Online
Gaming! Finance
/
Banking! Blogging
/
IM
/
Email!
16. New Gaming Industry
In
1998,
sales
of
gaming
soQware
were
only
about
$10
million
in
China.!
Online
gaming
is
now
a
$20
billion
industry.!
17.
18. Incubation / Angel Funds in U.S. & China
Angel
Funds
in
U.S.
$28.0
Billion
Avg.
Investment
Size $300K!
$19.2
260K
Ac9ve
Investors!
Billion
Incuba9on
/
Angel
Funds! Venture
Capital! Success
Exit!
?
Angel
Funds
in
China
$7.3
Billion
S9ll
at
an
early
stage
19. What can Angel Investors do?
Mike Markkula:!
• Ex-Intel manager
• Invested $92,000
• Secured a bank loan of $250,000!
• Brought his business expertise
• Brought in Apple's first president
Andy Bechtolsheim:!
• Co-founded Sun Microsystems
• Wrote a cheque ($100,000) to
"Google Inc." prior to the company
even being founded
20. “Innovation Works” Model
Innova9on
Works
“Google 20%” model +
“Idealab” model +
Localization for China
Select the best ideas,
entrepreneurs and
engineers, and combine
Idea Selection them optimally into start-up
“dream teams”.
22. Portfolio Company Financing
Innova9on
Works
has
a
$100m
fund
commieed
to
funding
the
start-‐ups
that
come
out
of
the
Incubator.
Portfolio Company
Founding /
IW Incubator Founders
Seed Stage
Angel IW Incubator & Fund
Stage
Series A
IW Incubator IW Fund Other VC Founders
23. Project Development Plan
2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4
...….
Formation / Seed Stage Angel Funding Series A Funding
24. Thank You! !
Find this presentation at:
http://www.slideshare.net/evdemon
and connect at:
http://t.sina.com.cn/1648204271