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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.
January 22, 2014 SparkLabs Global Ventures 2
CONTENT
January 22, 2014 SparkLabs Global Ventures 3
General Technology Trends
January 22, 2014 SparkLabs Global Ventures 4
Smart cars Bendable UHD TV Wearable devices
Internet of Everything
Hot Trends at CES 2014
Smart watch Curved OLED TV
Continuing Evolution of Technology
January 22, 2014 SparkLabs Global Ventures 5
• 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
January 22, 2014 SparkLabs Global Ventures 6
• 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
January 22, 2014 SparkLabs Global Ventures 7
Mobile Industry Trends
January 22, 2014 SparkLabs Global Ventures 8
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)
(%)
January 22, 2014 SparkLabs Global Ventures 9
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%
January 22, 2014 SparkLabs Global Ventures 10
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
January 22, 2014 SparkLabs Global Ventures 11
Startup Trends
January 22, 2014 SparkLabs Global Ventures 12
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)
Source: Media, SparkLabs Global
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
January 22, 2014 SparkLabs Global Ventures 13
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
Source: Media, SparkLabs Global
U.S. angel investment trend in 2012 U.S. angel investment trend in 3Q13
Source: Media, SparkLabs Global
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
January 22, 2014 SparkLabs Global Ventures 14
• 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
January 22, 2014 SparkLabs Global Ventures 15
Global Startup Hubs
January 22, 2014 SparkLabs Global Ventures 16
GLOBAL HUBS
Silicon Valley
New York
London Berlin
Stockholm
Seoul Tel Aviv
Beijing
January 22, 2014 SparkLabs Global Ventures 17
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
January 22, 2014 SparkLabs Global Ventures 18
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
January 22, 2014 SparkLabs Global Ventures 19
SILICON VALLEY
Startup Snapshots of Silicon Alley
January 22, 2014 SparkLabs Global Ventures 20
NEW YORK CITY
Startup Snapshots of London
January 22, 2014 SparkLabs Global Ventures 21
LONDON
Startup Snapshots of Stockholm
January 22, 2014 SparkLabs Global Ventures 22
STOCKHOLM
Startup Snapshots of Berlin
January 22, 2014 SparkLabs Global Ventures 23
BERLIN
6Wunderkinder
Startup Snapshots of Tel Aviv
January 22, 2014 SparkLabs Global Ventures 24
TEL AVIV
Startup Snapshots of Beijing
January 22, 2014 SparkLabs Global Ventures 25
BEIJING
Kaixin001
Startup Snapshots of Seoul
January 22, 2014 SparkLabs Global Ventures 26
SEOUL
January 22, 2014 SparkLabs Global Ventures 27
Thank you!
www.sparklabsglobal.com