This document discusses several technology and investment trends: - The global middle class is growing rapidly, especially in Asia, fueling growth in tech markets. - Five major tech companies (Alphabet, Amazon, Apple, Facebook, Microsoft) dominate the industry and continue to invest heavily in R&D. - Investment in artificial intelligence is increasing significantly worldwide as applications grow across industries. - The mobile industry continues strong growth, with smartphone shipments projected to exceed 2.35 billion units in 2018. - Asia surpassed the US in total venture capital funding in Q2 2017 for the first time, led by large deals in China.

2. • General Technology Trends
• Mobile Industry Trends
• Investment Trends
• Top Ten Startup Hubs 2017
CONTENT

3. Global Technology Trends

4. Asia’s Rapidly
Rising
Middle Class
The global middle class is
expected to grow to 4.9 billion
people by 2030 and two-
thirds will be in Asia.
OECD defines “middle class” as
households that spend $10-
$100 per person each day. In
2009, there were 1.8 billion
people in this middle class.

5. Continued Domination by “Big Five” in Tech
PWC’s Strategy& analyzes a “Big Five”
in tech: Alphabet (Google),Amazon,
Apple, Facebook, and Microsoft:
“Just since 2011, these companies
have grown revenues by
US$287 billion, while, taken together,
the Next 20 have seen their revenues
shrink.When it comes to enterprise
value, the contrast is even more
dramatic: In that period, the Big Five
created more than $1.5 trillion in
enterprise value, while the Next 20
combined created only a third of that. ”

6. Continued Domination by “Big Five” in Tech
“The Big Five continually
reinvest much of their profit in
research and development.
Together, they have averaged
$44 billion per year in
innovation spending since
2011. In fact, they represented
five of the top 11 spenders on
R&D in 2016 across all
industries.”
- PwC’s Strategy&

7. AI Global Revenues 2017
International Data Corporation (IDC) states that revenues for AI
(artificial intelligence) across the globe will reach $12.5 billion in
2017, which is a 59% increase over 2016.
Corporate investment should grow over the next several years with
a compound annual growth rate (CAGR) of 54.4% through 2020
with AI spend hitting more than $46 billion.
IDC projects that consulting services attached AI implementations
will hit $3.5 billion in 2017 along with $1.9 billion spent on
related hardware.

8. AI Global Revenues 2017

9. Worldwide IT Spending Forecast
Overall worldwide IT spending is projected to increase by 2.4% to $3.477 trillion.The largest growth
sector is enterprise software with a 7.6% increase over 2016 to $351 billion. In 2018, this growth
continues to increase by 3.5% in the overall sector to $3.598 trillion.
2016 2017 2018
Source: Gartner
in $ billions of dollars

10. Mobile Industry Trends

11. The Worldwide shipments of PCs, tablets and smartphones are predicted to exceed 2.35 billion units in
2018 from 2.3 billion units, an increase of 2.0 percent from 2017, according to Gartner, Inc.This would
be the highest year-over-year growth since 2015.
Global Smartphone Shipments (in billions) Global Smartphone Shipments (in billions)
Source: BI Intelligence, SparkLabs Global Source: BI Intelligence, SparkLabs Global
0
1
2
3
4
2006
2007
2008
2009
2010
2011
2012
2013E
2014E
2015E
2016E
2017E
2018E
2019E
2020E
Smartphone Market Rebounds in 2018

12. Global Connections by Technology (in millions) Smartphone Users and Penetration Worldwide (in millions)
Smartphone Penetration by Country (Top 10) Smartphone Shipments by Region (in billions)
Source: GSMA Intelligence, Google our mobile planet, SparkLabs Global Source: eMarketer, CCS Insight, SparkLabs Global
0
2000
4000
6000
8000
10000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2G 3G 4G
1311.2
1639
1914.6
2155
2380
2561.8
32.4
38.4
42.9
46.4
49.5 51.7
34.3
25
16.8
12.6 10.4 7.6
0
20
40
60
80
100
0
500
1000
1500
2000
2500
3000
2013 2014 2015 2016 2017 2018
Smartphone Users % of Mobile Phone Users % Change
67%
68%
68%
69%
70%
72%
74%
75%
80%
85%
0% 20% 40% 60% 80% 100%
Taiwan
Norway
UK
Denmark
China
Spain
Hong Kong
Sweden
South Korea
Singapore
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2012 2013 2014 2015 2016 2017 2018
North America
Western Europe
Asia-Pacific Developed
Asia-Pacific Emerging
China
India
Eastern Europe
Middle East and Africa
Latin America
Smartphone Market in 2017

13. Regional Share of Smart Devices and Connections Global Growth of Smart Mobile Devices and Connections
Source: Cisco VNI Mobile, SparkLabs Global Source: Cisco VNI Mobile, SparkLabs Global
74%
59%43%
35%
34%
12%
North America
Western Europe
Central and Eastern
Europe
Asia Pacific
Latin America
Middle East and Africa
• By the end of 2020, North America will have 95 percent of its installed base converted to smart
devices and connections, followed by Western Europe with 86 percent smart devices and connections.
• The share of smart devices and connections as a percentage of the total will increase from 36 percent
in 2015 to more than two-thirds, at 67 percent, by 2020, growing nearly threefold during the forecast
period
64% 56% 49% 43% 37% 33%
36% 44% 51% 57% 63% 67%
0%
20%
40%
60%
80%
100%
2015 2016E 2017E 2018E 2019E 2020E
Nonsmart Devices Smart Devices
Smartphone Market in 2017

14. Source: IDC
Smartphone Market in 2017
23%
15%
10%
7%
5%
40%
Samsung
Apple
Huawei
OPPO
vivo
Others
Worldwide Smartphone Shipments Market Share Q1 2017
Samsung and Apple's market share remained the same while Huawei, OPPO and vivo all increased by 20% or
greater. Samsung’s 23% market share equated to 79.2 million smartphones shipped out in Q1 2017. Apple’s 15%
market share meant 51.6 million smartphones, and Huawei’s 10% meant 34.2 million smartphones.

15. Investment Trends

16. “Entrepreneurship ecosystems are developing all over
the globe – but no place is like Silicon Valley
where ideas, ambitions, capital and experience
still come together in a unique, catalytic way that
fosters the creation of exceptional startups.”
Jeff Clavier,
Founder & Managing
Partner of Uncorked Capital
On Silicon Valley
Uncorked Capital (formerly
SoftTech VC) is one of the original
seed VC firms in Silicon Valley,
having closed 175+ investments
since 2004. Jeff and his team have
backed successful startups like
Mint , Kongregate, Milo, Wildfire,
Fitbit, Eventbrite, Sendgrid,
Postmates, and others.

17. Asia Overtakes U.S. in VC funding
For the first time,Asia overtook the U.S. in total venture capital invested during Q2 2017. $19.3 billion
was invested in Asian companies while in the U.S. $18.4 billion.
Source: PwC / CB Insights MoneyTree™ Report Q2 2017

18. China Leads Q3
2017 VC Deals
Five out of the top ten largest venture capital
deals in Q3 2017 were from China with 4
from Beijing and 1 Shanghai.
This included US$2 billion raised by Toutiao
(content aggregation platform) and US$1.6
billion raised BAIC BJEV (electric vehicles).

19. ICOs vs VCs

20. Public Blockchain Assets Outperform All
Others

21. AR/VR funding continued to
increase in 2017. The VR Fund
reported that there was a 79%
increase in funding over the
same period last year. So far in
2017, total investment across
the globe as hit $2.3 billion.
AR/VR Funding Growth Continues in 2017

22. Startup Survival Rate From Round To Round
Bay Area vs. U.S. Average New York City vs. U.S. Average
Boston vs. U.S. Average Los Angeles vs. U.S. Average
Source: Mattermark, SparkLabs Global Source: Mattermark, SparkLabs Global
0%
25%
50%
75%
100%
Seed A B C D E F
USA Average New York City
Series
0%
25%
50%
75%
100%
Seed A B C D E F
USA Average Bay Area
Series
0%
25%
50%
75%
100%
Seed A B C D E F
USA Average Boston
Series
0%
25%
50%
75%
100%
Seed A B C D E F
USA Average Los Angeles
Series

23. Startup Survival Rate From Round To Round
Seattle vs. U.S. Average Chicago vs. U.S. Average
All Other Cities vs. U.S. Average
Source: Mattermark, SparkLabs Global
Source: Mattermark, SparkLabs Global
0%
25%
50%
75%
100%
Seed A B C D E F
USA Average Seattle
Series
0%
25%
50%
75%
100%
Seed A B C D E F
~Other~ USA_Average
0%
25%
50%
75%
100%
Seed A B C D E F
Chicago USA_Average
Series

24. Top Ten Startup Hubs 2017

25. Silicon Valley
New York
London
Shanghai
Stockholm
Seoul
Tel Aviv
Beijing
Los Angeles
Boston
Top Ten Startup Hubs 2017

26. What defines a leading
global startup hub?
• Engineering Talent
• Entrepreneurs / Mentors
• Technical Infrastructure
• Funding Ecosystem & Exits
• Startup Culture
• Legal & Policy Infrastructure
• Economic Foundation
• Government Policies & Programs
Top Ten Startup Hubs 2017

27. Population of Top 10
Global Startup Hubs
* population by metro area
Top Ten Startup Hubs 2017
A view of San Fransokyo from Disney's 'Big Hero 6'
Image Credit: Walt Disney Animation Studios
1. Silicon Valley
7.4 Million
2. Tel Aviv
3.4 Million
2. Beijing
24.9 Million
4. Stockholm
2.1 Million
4. Los Angeles
18.7 Million
6. New York City
20.2 Million
7. Shanghai
34 million
7. Seoul
25.7 Million
9. Boston
8 Million
10. London
13.6 Million
We welcome Shanghai as a new member!

28. Unicorns of Top 10
Global Startup Hubs
Our definition of a “unicorn” was:
• Private company valuation of $1 billion+
• Private company acquired for $1 billion+
• IPOed during 2010 to present with a
current market capitalization of $1 billion
or greater
(Sources: CB Insights, Crunchbase, Yahoo! Finance, and Google)
1. Silicon Valley
56 Unicorns
2. Beijing
25 Unicorns
2. Tel Aviv
3 Unicorns
4. Stockholm
3 Unicorns
4. Los Angeles
11 Unicorns
6. New York City
15 Unicorns
7. Shanghai
13 Unicorns
7. Seoul
4 Unicorns
9. Boston
6 Unicorns
10. London
9 Unicorns
Top Ten Startup Hubs 2017

29. “Silicon Valley is the best place in the world to scale a
startup. Once a startup hits product-market-fit, it should
absolutely have a presence in the Valley to
benefit from the knowledge and resources about
scaling.”
Ben Casnocha, Silicon Valley-based
entrepreneur and author
On Silicon Valley
Ben is Co-author of the #1 New
York Times bestselling career
strategy book “The Start-Up of
You: Adapt to the Future” (with
Reid Hoffman). At 14, he was
Founder of Comcate, an e-
government technology firm.

30. 30 Unicorn Startups who went public (IPO)
SILICON VALLEY
Pandora Trulia Palo Alto Networks Infoblox Lending Club Hortonworks
Linkedin Facebook ServiceNow Marketo Zendesk Fitbit
Fusion-­io Workday Exact Target Fireeye GoPro Nutanix
Zynga Splunk Guidewire Software Box New Relic
Unicorn Startups that went public

31. 56 More Unicorn Startups in Silicon Valley (non-IPO)
SILICON VALLEY
Uber Airbnb Apttus Slack Automattic AppDynamics
Credit
Karma
Github Docker Zscaler
Lyft
Palantir
Technologies
Intarcia
Therapeutics
Bloom
Energy
Deem Kabam Jawbone Instacart 23andMe Wish
Prosper Pinterest Stripe Houzz
Good
Technology
Illumio
Pure
Storage
MuleSoft CloudFlare ForeScout
Tanium Dropbox Zenefits
Survey
Monkey
Proteus
Digital Health
MarkLogic DocuSign Deem EventBrite Glassdoor
NextDoor Theranos Cloudera Evernote Tango
Coupa
Software
ContextLogicMedallia Lookout Others…
Entire list of Unicorn Startups that hasn’t gone public

32. “Silicon Valley isn't just a place, it's a state of mind. A
state of mind where failure is okay, where risk
taking is celebrated, where young people are
seen as thought leaders, and where folks try to
help each other with no expectation of anything in
return.”
Sheel Tyle,
Co-founder &
CEO of Amplo
On Silicon Valley
Sheel focuses on consumer
technology & education in the
U.S. and emerging markets.
Sheel holds board seats or
observer roles with Andela
(independent), LearnUp, and
Robinhood. He is a World
Economic Forum Global Shaper.

33. Startup Snapshot of Silicon Valley
SILICON VALLEY

34. “Los Angeles occupies a unique position as the
center of the global entertainment industry.
Companies who want access to content, talent and media
knowledge are all locating offices here. Los Angeles also
has a rich set of experienced entrepreneurs, angel
investors and venture capital that can help new
companies scale and grow.”
Sam Wick, Head of UTA Ventures
On Los Angeles
Sam is currently Head of
UTA Ventures. Previously
he was EVP & GM,
Enterprise at Maker
Studios, which was
acquired by Disney in
2014.

35. LOS ANGELES
11 Unicorn Startups in Los Angeles

36. Startup Snapshot of Los Angeles
LOS ANGELES

37. “NYC is one of the fastest growing ecosystems for tech
startups.There's a tight-knit community of
founders, investors and talent from around the
world - not to mention one of the most diverse
melting pots of people from all walks of life. It's a
unique place to launch new products to a high
concentration of early adopters, both consumer and
enterprise.”
Suzanne Xie,
Founder & CEO of Hullabalu
On NYC
Suzanne is Founder of Hullabalu, a
family media startup re-inventing
storytelling for the new generation.
Hullabalu's story apps have been
installed over 1.4M times and is a
#1 iTunes Books bestseller in over
42 countries. Investors include SV
Angel, 645 Ventures, Melo7 Tech,
Joanne Wilson, SparkLabs Global
Ventures and others.

38. NEW YORK CITY
15 Unicorn Startups in New York City

39. Startup Snapshot of Silicon Alley
NEW YORK CITY

40. "London has a unique combination where in one
single city there is strong concentration of deep
technical talent alongside people with business
experience across multiple sectors and it's also the
seat of government and regulation. For the new wave of
startups coming up that are tackling real world issues,
it's an ideal starting ground to coordinate across all these
domains.”
Aneesh Varma, Co-founder & CEO of Aire
On London
Aire gives people a new credit
score to help them qualify for
essential financial products.
The company’s investors
include White Star Capital,
Sunstone Capital,
TechStars/Barclays Accelerator,
and SparkLabs Global
Ventures.

41. LONDON
9 Unicorn Startups in London

42. “Despite the public perception on Brexit, the UK and
London continues to be the leading driver of the European
tech ecosystem. Digital comprises the highest % of
GDP out of any OECD country and both the founder and
funder ecosystem continues to accelerate. It is a natural hub
for FinTech given its centrality for global finance, for AdTech
given a number of the largest media buying groups are UK
based, and for AI given the PhD outputs from the likes of
Cambridge, Oxford, UCL and Imperial. Most importantly its
founder and employee base is one of the most vibrantly
diverse in the world.”
Christian Hernandez, Co-founder &
Managing Partner of White Star Capital
On London
White Star Capital is an
early-stage VC firm
helping entrepreneurs
across the Atlantic. Their
investments include
companies such as
Betaworks (US), Summly
(UK – Bought by Yahoo!),
and Dollar Shave Club
(US).

43. Startup Snapshot of London
LONDON

44. “Beijing is great for startups because it's not only the
center for tech, business, politics and culture in China,
but also has a large early adoption market for new
technology and consumer trends.The city is littered
with co-working spaces and events for startups.VCs
are hungry to invest in great companies. Besides
Silicon Valley, Beijing is the next most vibrant
place for startups.”
Anna Fang, CEO &
Partner of ZhenFund
On Beijing
Anna is Head of the largest seed
fund in China with over $500
million AUM. Since starting the
fund in 2011 with Xu Xiaoping,
Anna has managed the fund’s
over 300 early stage investments.

45. BEIJING
25 Unicorn Startups in Beijing

46. Startup Snapshot of Beijing
BEIJING
Kaixin001
Tujia
Edaixi

47. “The Stockholm startup ecosystem is on fire, with
Spotify, Mojang, King and Klarna leading the way.A
new generation of companies that includes Truecaller,
Lifesum and Trustly are following in their footsteps.
Stockholm's secret sauce is a mix of great
products, engineering skills, Nordic design and
a culture of going international from day one.
This is attracting people and capital from all over the
world and reinforcing the fact that Stockholm is one of
the best places in Europe to build a startup.”
Henrik Torstensson,
CEO of Lifesum
On Stockholm
Lifesum is digital health startup
that offers its users a flexible
platform to support and
encourage a healthy, balanced
lifestyle. They have won Best of
App Store 3 years in a row. Their
investors include Nokia Growth
Partners, Bauer Media, SparkLabs
Global Ventures and others.

48. Startup Snapshot of Stockholm
STOCKHOLM

49. Unicorn Startups in Tel Aviv and Stockholm
TEL AVIV & STOCKHOLM
3 in STOCKHOLM3 in TEL AVIV

50. Startup Snapshot of Tel Aviv
TEL AVIV

51. SHANGHAI
13 Unicorn Startups in Shanghai
Pinduoduo
Hujiang

52. “In my mind, the two most important factors that makes Seoul
one of the best ecosystems for startups is its people and
infrastructure. In a city where 40% of the population of South
Korea is living in Seoul, the population has experienced internet
speeds years ahead of any other city in the world which in turn
has produced a technically savvy work force and customer base.
It is no coincidence that many businesses such as SNS and
mobile social gaming were successful in Korea many years
before it became globally popular. Because it is the most
connected city in the world, entrepreneurs can offer
services now that may not be possible anywhere else
until later when internet speed and/or user adoption catches up.”
Chris Koh, Co-founder of SparkLabs
Ventures and Co-founder of Coupang
On Seoul
Chris is Co-founder of
Coupang, which is the
leading ecommerce
company in South Korea.
They recently raised $1
billion from Softbank and
previously raised capital from
Sequoia Capital Global
Equities, BlackRock Private
Equity, and others.

53. Startup Snapshot of Seoul
SEOUL
Baedal Minjeok

54. BOSTON & SEOUL
6 in BOSTON 4 in Seoul
Unicorn Startups in Boston and Seoul

55. “The Boston talent pool is unrivaled and the
community is very hungry for breakout companies.
While there can be disadvantages to being outside the
hype zone, I love that it provides space to focus
and build transformational products.And I love
that the community rallies around emerging companies
more than I've seen in any other city.”
Pat Kinsel, Founder & CEO of Notarize
On Boston
Pat is Founder & CEO of
Notarize and a Venture
Partner at Polaris Partners. He
was Co-founder & CEO of
Spindle, which was acquired
by Twitter in 2013.

56. Startup Snapshot of Boston
BOSTON

57. About SparkLabs Global Ventures
www.sparklabsglobal.com

58. We are a global seed-stage fund with partners in Silicon Valley, London, Tel Aviv, Singapore,
and Seoul. Since December 2013, we have invested in 60 companies. Our global approach means that
we can pick the best deals in the right geographies where the sectors are hottest. For example, London has
become the leader in fintech, deep tech is growing fast in Scandinavia and South Korea, cybersecurity in
Israel and ecommerce in Asia.

59. Our Team

60. “SparkLabs team was extremely value-add - they provided strategic advice, brokered relationships, and was 100%
committed to supporting us in building our company. They opened more doors for us than any other investor. SparkLabs is
an extension of your team. I would work with them in a heartbeat.” - Somrat Niyogi, Co-founder & CEO of Stitch
(acquired by SugarCRM)
“YJ and I, along with the entire team at KnowRe are ecstatic to be a part of the SparkLabs family, beginning from our
days in the accelerator. As an investor and mentor, SparkLabs brings a partnership that truly embodies the
characteristics of a family - being involved, bringing to bear ALL of one's resources, a genuine concern for someone
that goes far beyond self-interest. This type of partnership invariably leads to a deep trust. As entrepreneurs turned
investors, SparkLabs has a distinct understanding of both tectonic shifts in industry and the needs of, say a junior
marketing employee. This unique vertical acumen is extremely valuable and a critical component to growth.” -
David Joo, Co-founder & Co-CEO of KnowRe (www.knowre.com)
“Love working with these guys. Gives ‘sweat capital’ an entirely new meaning, going to all lengths around the world to
get us what we need.” - Akash Nigam, Co-founder & CEO of Blend (www.blend.la)
Our Entrepreneurs
Silicon Valley
Silicon Valley
NYC

61. “SparkLabs is an amazing team of investors. The partners are experienced operators from around the globe who have
helped us with not only key business issues, but also bouncing new ideas. Everyone is intelligent and charismatic, so
it's easy to see why the fund has such an expansive network of founders, senior executives, and advisors who are always
there to help. If you're a founder who cares about scale, international expansion, or just adding an awesome extension
to your team - SparkLabs is your fund.” - Cathy Han, Co-founder & CEO of 42 (YC W14)
(www. 42technologies.com)
“The partners at SparkLabs are amazing people and have been a motivating force since the early days of Petnet. They
are forward thinking in the way they think about the internet of things and how it will shape they way people shop for
consumables. They have an expansive global network of executives, advisors, and investors who are ready to help in
any form necessary. SparkLabs is an essential team member for companies who are looking to expand their brand
globally.” - Carlos Herrera, Co-founder & CEO of Petnet (www.petnet.io)
Our Entrepreneurs
Silicon Valley
LA
“Code Kingdoms is delighted to part of the SparkLabs family. The partners understand entrepreneurs because they are
entrepreneurs themselves - the guidance and support provide is always insightful, relevant and timely. Having SparkLabs
as an investor has been a significant contributor to the growth of our company and also provided immense learning
opportunities from fellow portfolio companies and wider network.” - Ross Targett, Co-founder & CEO of Code
Kingdoms (www.codekingdoms.com)
London

62. “During 2016, the SparkLabs Global team
continued their close involvement with Petnet’s
fundraising, making introductions that directly
led to $12 million of the $17 million we
have raised to date.”
Our Entrepreneurs
Carlos Herrera
Co-founder & CEO
of Petnet

63. Thank you!
www.sparklabsgroup.com