SBC China Report … · 22-03-2018 · cable line reached 36.06 million kilometers. Until 2017 Q3,...
Transcript of SBC China Report … · 22-03-2018 · cable line reached 36.06 million kilometers. Until 2017 Q3,...
SBC China Report
One Glance at China01
02
03
04
Future of China
Opportunities and Challenges for Foreign Startups
China Startup Ecosystem
05 Future Key Industries
Contents
ONEOne Glance at China
First Impression of China
“Big” Data in China
China Economic Growth
First Impression of China
The world’s largest population: 1.404 billion peopleThe third largest geographical area: 9.6 million sq km
CHINA
“Big” Data in China
InternetInfrastructure
Until 2017 Q2, the total length of the cable line reached 36.06 million
kilometers.
Until 2017 Q3, the number of Internet broadband access ports reached 760
million.
Until 2017 Q3, the number of mobile communication base stations reached 6.041 million, and 3G/4G base stations
accounted for 74%.
Until December 2017, the number of Chinese websites reached 5.33 million with an annual growth rate of 10.6%.
Until December 2017, the number of Chinese web pages reached 260.4 billion with an annual growth rate of 10.3%.
Until November 2017, the number of mobile applications (APPs) in the Chinese market reached 3.9 million.
InternetResource
Source: CNNIC “41th, Statistical report on the development of China Internet network”
“Big” Data in China
• The number of Internet users in China was 772 million, and the Internet Penetration Rate was 55.8%.
• The number of rural Internet users in China was 209 million, accounted for 27%, the number of urban Internet users in China was 563 million, accounted for 73%.
• The proportion of Chinese people getting access to Internet by mobile phones, desktop computers, laptops and television was 97.5%, 53%, 35.8%, and 28.2% respectively.
Until December
2017
Internet Data
“Big” Data in ChinaAli Data & WeChat Data
Singles’ Day (“Double 11”)
At 00:03:01 of November 11, the turnover was over 10 billion yuan!
2017 "Tmall Double 11 Global Carnival" turnover was over 168 billion 200 million yuan!
In September 2017,
The daily average users reached 902 million.The number of elderly users reached 50 million.The average daily WeChat messages reached 38 billion.
China Economic Growth
• The modernization propelled the growth of Tertiary Sector.
• China jumped up to second place with a nominal GDP of RMB 74.42 trillion ($11.81 billion).
• The economic reform program began.
• China ranked tenth with nominal Gross Domestic Product (GDP) of RMB 364.5 billion ($ 57.86 billion).
20161978
Source: National Bureau of Statistics of the People's Republic of China
*Primary Sector: the industry providing materials for production, including planting, forestry, animal husbandry, aquaculture.*Secondary Sector: the industry processing basic materials and sold it. *Third Sector: the service industry containing all the other industries not included in Primary Sector and Secondary Sector.
China Economic GrowthChinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries
China Economic GrowthChinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries
China Economic GrowthChinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries
TWOFuture of China
China’s Future DirectionDigital ChinaManufacture ChinaGreen ChinaOpen-up ChinaInnovation ChinaAging ChinaRural Areas’ Urbanization
China’s Future DirectionChina Communist Party’s (CCP) 19th Party Congress
• Encourage more social entities to carry out innovation and entrepreneurship.
• Carry out vocational skills training, focusing on solving structural employment contradictions.
• Provide comprehensive public employment services, encourage entrepreneurship of young people and migrant workers.
• Enhance the support for SMEs' innovation and promote the transformation of scientific and technological achievements.
—CCP 19th Party Congress
“A moderately prosperous society” by 2021*
A “strong, democratic, civilized, harmonious, and modern socialist country” by 2049*
Two Centennial Goals
*2021: the 100th anniversary of the party’s founding.*2049: the 100th anniversary of the founding of the People’s Republic.
Digital ChinaChina’s digital globalization is only just getting started but
gathering fast momentum.
China’s three Internet giants (Baidu, Alibaba, and Tencent) are building a multifaceted and multi-industry digital ecosystem that touches almost every aspect of consumers’ lives.
The government gave digital players space to experiment before enacting official regulation and is now becoming an active supporter.
The bigger, younger China market is enabling rapid commercialization of digital business models on a large scale.
Manufacture ChinaMade in China 2025: turn China into a
“manufacturing superpower”
Ten Key Sectors
New Energy Vehicles
Next-Generation Information
Technology (IT)
Biotechnology
New Materials
Aerospace
Ocean Engineering And High-Tech Ships
Railway
Robotics
Power Equipment
Agricultural Machinery
Support the foreign-invested enterprises to get listed, and issued bonds in China, and they are allowed to participate in the national science and technology project. In terms of
qualification licensing, standard formulation, government procurement, and the "China made 2025" policy, domestic and foreign enterprises are treated equally.
—— Li Keqiang, Government Work Report
In 2017, the Ministry of Industry and Information Technology issued 25 key areas under Made in China 2025, including Internet of things(IoT), new materials, smart appliances and high-end consumer electronics, information security capabilities of industrial control systems, quality and safety traceability system of infant formula milk powder industry etc.
China has set up a special fund to support key projects. Single project can get about 30 million to 50 million RMB, some common technology projects or key technology projects can get more than 100 billion RMB.
The Ministry of Industry and Information Technology has reached an agreement with China Development Bank (CDB). From 2015 to 2020, CDB will provide financing of no less than 300 billion RMB, and multiple financial services (like, loans, bonds, investment, leasing, etc) to "Made in China 2025".
25 Key Areas Special Fund Support Financial Services Support
Green ChinaSustainable economic model:
clean up environmental degradation
Strict Enforcement of Environmental Standards
Chinese government has stepped up its efforts to enforce environmental regulations through national
emissions monitoring systems and central government-led inspections in 15 provinces.
Support Domestic Green Industries
The Chinese government will support the growth of its energy-saving and environmental protection industries into
globally competitive firms.
Strong support fortwo strategic emerging industries: new energy vehicles and
advanced energy-saving technologies and equipment.
Open-up ChinaOne Belt, One Road(OBOR) aims to create world’s
largest cooperation platform
"One Belt, One Road(OBOR)" International Cooperation Forum
• Create Entrepreneurial Space and Entrepreneurial Workshops for youth all over the world.
• From 2018, China will hold the China International Import Exposition to attract politicians, exhibitors as well as professional purchasers all over the world to expand China Market, share cooperation opportunities between different countries.
• China Development Bank and The Export-Import Bank of China will respectively provide 250 billion RMB and 130 billion RMB of special loans to support infrastructure construction, financial cooperation in OBOR.
• In the next 5 years, 2500 young scientists will be engaged in short-term research work in China, 5000 people will be trained in science technology and management and 50 joint laboratories will be put into operation.
Innovation ChinaRe-establish China as a global center of
innovation and technology
China’s Innovation-Driven Development Model
• Become an "innovative nation" by 2020.• Become an international leader in
innovation by 2030.• Establish China as a world powerhouse
of scientific and technological innovation by 2050.
13th FYP innovation plan’s target- Building a national innovation system with high efficiency and synergy
• Cultivate active innovation individuals or organizations.
• Deploy high level innovation base.• Create high end innovation growth pole.• Build an open and cooperative innovation network.• Establish modern innovation governance structure.• Construct a good innovation ecology.
Innovation ChinaFuture Top Technologies: Cloud, IoT, Big Data, AI, BlockChain
When the Demographic Dividend is gone, here comes the Dividend of Technology.
——Baidu CEO, Robin Li
“AI
IoT(Internet of Things)
Cloud / Edge Computing
BIGDATA
Big Data
BlockChain“
When the Demographic Dividend is gone, here comes the Dividend of Technology.
——Baidu CEO, Robin Li
Aging ChinaChina already stepped into an aging society
In 2000, the Chinese population aged 65+ has reached 88.11 million, accounting for 6.96%. According to international standards, China has stepped into an Aging Society.
Aging population continues to grow, causing some problems• The proportion of endowment insurance fund to GDP is increasing,
and the burden of pension expenditure is increasing.• The decrease of the labor population and the increase of human
cost have caused the transfer of manufacturing activities to cheaper overseas markets.
Source: National Bureau of Statistics of the People's Republic of China
Healthy ChinaHealth Service and Security
Premature Mortality of Major Chronic Diseases
The Number of Practitioners (Assistants) Per Thousand Permanent Residents
The Proportion of Personal Health Expenditure To Total Health Costs (%)
Health Industry
The Industry Size of Health Service (Trillion Yuan)
Healthy Life
Health Literacy Level of Residents (%)
The Number of Regular Physical Exercisers (Hundreds of Millions of People)
The Ratio of Good Weather Days In Urban And Above Cities(%)
Health Environment
Health Level
The Mortality of Child Under 5 Years of Age (%)
Life Expectancy Per Citizen
Maternal Mortality (1/100 Thousand)
The Proportion of Urban And Rural Residents Meet The Standard of National Physique Determination (%)
Infant Mortality Rate (%)
2 01 5
2 02 0
2 030
2 01 5
2 02 0
2 030
2 01 5
2 02 0
2 030
2 01 5
2 02 0
2 030
2 01 5
2 02 0
2 030
19.12013
↓10%than2015
↓30%than2015
2.2 2.5 3.0
29.3About
28About
25
—— >8 16
10 20 30
3.62014
4.4 5.3
76.7 >80 Continuous improvement
76.3 77.3 79.0
8.1 7.5 5.0
10.7 9.5 6.0
20.1 18.0 12.0
89.6 90.6 92.2
Rural Areas’ UrbanizationThe process of urbanization continues to move
forward steadily
By 2020, the target of urbanization rate of China's resident population is 60%, and the urbanization rate of the household population is 45%.
Actively promoting the urbanization of rural migrants• Speeding up the construction of urban traffic network.• Implementing the reconstruction of urban underground pipe
network .• Promoting the construction of the sponge City.• Promoting the construction of new cities.• Improving the level of urban public service.
Improving urban functions
• Upgrading the infrastructure of the county and key towns.• Cultivating a batch of small and medium-sized cities.• Speeding up the development of characteristic town.
Cultivate small and medium cities and characteristic town• Extending infrastructure and public services to the
countryside.• Promoting the integration and development of China’s main
three industries in rural areas.• Promoting the development of rural e-commerce.
Drive the construction of New Countryside
THREEOpportunities & Challenges for Foreign StartupsOpportunities
Challenges
If a startup becomes successful in China, its growth can be astonishing.
Huge Market Capacity Consumption Growth & Upgrade
Unique Chinese Customer ProfilesVenture Capital Investment
Huge Growth Potential in China
%
Huge Market CapacitySecond largest economy let firms attain huge scale
Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets; numbers may not add up to 100% due to rounding; *excludes Hong Kong; **forecast from May 2016Source: eMarketer, Aug 2016
Consumption GrowthChina will add nearly $2 trillion in new
consumption by 2021
Consumption UpgradeConsumption has become the first driving
force for China's economic growth
The Disposable Personal Income(DPI) for per urban citizen has increased,
its growth rate has always been significantly higher than the GDP
growth rate.
The expenditure of residents for service consumption has increased significantly, while the commodity
consumption has been relatively decreased.
Huge Potential in Service Consumption
DPI Growth Rate is Higher than GDP
Surging Rural Consumption
The number of migrant workers has decreased sharply, while the number of local migrant workers
rebounded.
0201 03
GDP(constant price, on season-on-season basis) Dominant income ratio (right axis)Per capita disposable income of urban residents: cumulative on year-on-year
In third-tier and forth-tier cities, the population of middle class grows significantly
Accommodation Commodity Consumption(Food, Apparel)
Service consumption
Source: Wind information, Suning Institute of Finance Source: Wind, Suning Institute of Finance
Technology Venture Capital InvestmentInvestors placed big bets on Chinese upstarts
Robotics and dronesVirtual RealityFintech
Chinese venture-capital investment by technology, 2016, $billion
Source: Mckinsey Global Institute
Artificial Intelligence Education Technology Autonomous Driving
Unique Chinese Customer ProfilesChinese customers have different consumption habits
Globalization, technology (which gives people greater exposure to the world), and rising income levels (which give them the time and money to follow their interests) shaped Chinese customers into different profiles.
80% of Chinese consumers feel that brands and companies should be environmentally responsible.
-- GfK Survey
66 million (or 16.2%) bought five or more “green” products in 2015, up from just 4 million in 2011 (3.4%). Notably, they are willing to pay a price premium - up to 33% - for those products.-- Alibaba’s customers study
Eco-conscious Customer
Chinese consumers are passionately taking up new interests and they are increasingly willing to spend money on those wide-ranging interests
Passionate Trend Seeker
Customers tend to use more digitalized services.
E-commerce was welcomed by Chinese customer due to its convenience.
Customers get accustomed to digitalization lifestyle.
Digitized Customer
Consumption boundaries—typically defined by age and gender—are less relevant to consumers today.
Men develops grooming habit, spending more on men skin care products.
Older generation begin to spend more on travel and sports activities
Diversified Customer
Demographic shifts are creating a growing number of single people in China. Among urban populations, 16% now live alone, compared with just 5% ten years ago.
In general, single people seek smaller volumes, greater convenience, and higher-quality goods.
Single Person
Different customer profiles unravel new market trendsSource: BCG Analysis, Five Profiles That Explain China’s Consumer Economy
Challenges for foreign entrepreneurs.
Different Customer Behavior
“ChinaSpeed” Manifestation
Challenging Regulatory Environment
Language Difference Cultural Differences
Internet Accessibility Restriction
Different Customer BehaviorConsumer behavior in China is different
from the rest of the world
• They are into mobile payments for its flexibility
• They are natural omni-channel shoppers
• They love a bargain, but price is no longer paramount
• They are more demanding
• They rely on social media and what their friends say about
products
• They prefer marketplaces to stand-alone shopping websites
• They are into brands, but they aren’t very loyal (yet)
“ChinaSpeed” Manifestation
ChinaSpeedIn China, the time a company takes to reach over 50% domestic market penetration is much more less than other countries.
Even if a product is not perfect yet, Chinese companies launch it and use customer feedback to release an improved version at ChinaSpeed.
For any successful startup hundreds or even thousands of copycats will emerge almost instantly.
Cutthroat Domestic Competition
Challenging Regulatory EnvironmentInconsistent regulations and enforcement are top challenges
2012 2013 2014 2015 2016 2017
Shortage of qualified management
43%Rising labor costs
44%Rising labor costs
46%Rising labor costs
61%
Inconsistent regulatory interpretation and unclear
laws 57%
Inconsistent regulatory interpretation and unclear
laws 58%
Inconsistent regulatory interpretation and unclear
laws 37%
Inconsistent regulatory interpretation and
unclear laws 38%
Inconsistent regulatory
interpretation and unclear laws
39%
Inconsistent regulatory
interpretation and unclear laws
47%
Rising labor costs 54%
Rising labor costs 58%
Shortage of qualified employees
29%
Shortage of qualified employees
35%
Shortage of qualified employees
37%
Shortage of qualified employees
42%
Difficulty obtaining required licenses
29%
Increasing Chinese protectionism
32%
Difficulty obtaining required licenses
26%Corruption
30%Shortage of qualified
management 31%
Shortage of qualified management
32%
Shortage of qualified employees
29%
Shortage of qualified management
30%
Corruption 26%
Shortage of qualified management
30%
Difficulty obtaining required licenses
31%
Increasing Chinese protectionism
30%Industry overcapacity
29%Difficulty obtaining required
licenses 29%
Top five business challenges in China
Source: China Business Climate Survey Report 2017
01
02
03
04
05
FOURChina Startup Ecosystem
Venture Capital in ChinaStartups in ChinaTypical High-tech Cities in China
Venture Capital in ChinaFundraising Trend
Source: Dow Jones Venture Capital Report
Until Q3 2017, equity financings into China-based companies reached $36.73 billion through 1605 deals.
The hottest sectors sought after by VCs
Number of financing deals in different sectors, 2017 H1
The hottest sectors sought after by VCsVenture Capital in China
Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1
Funds raised by different sectors, 2017 H1, billion (RMB)
Venture M&A Market ActivityVenture Capital in China
Source: Dow Jones Venture Capital Report
Until Q3 2017, mergers and acquisitions(M&As) for venture-backed companies in China garnered $8.44 billion through 29 deals.
The amount raised and the deal flow is already exceed the prior year.
Chinese VC-backed IPOsVenture Capital in China
Until Q3 2017, 98 Chinese VC-backed companies went public, raising $7.9 billion.
Source: Dow Jones Venture Capital Report
Startups in ChinaThe newly funded startups in Chinese provinces(2017 H1)
Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1
The hottest sectors sought after by entrepreneursStartups in China
Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1
Listed in the 20 most high-tech cities in the worldChina Typical High-tech Cities
Rank 1 2 3 4 5 6 7 8 9 10
City San Francisco New York London Los Angeles Seoul Taipei Boston Singapore Toronto Chicago
Country California New York England California South Korea Taiwan Massachusetts Singapore Canada Illinois
Rank 11 12 13 14 15 16 17 18 19 20
City Dallas-Fort Worth Tokyo Stockholm Vancouver Amsterdam Beijing Shanghai Montreal Bangalore Shenzhen
Country Texas Japan Sweden Canada the Netherlands China China Canada India China
• Startups
• Patents
• Venture Capitalists
• Innovation Cities Index
Ranking
Source: 2thinknow : data innovation agency.
• Smart Cities Ranking
• City Innovation Policy
• Number of Programmers
• Metropolitan Population
• Industrial Designers
Technological Advancement
Factors
Shanghai has the international culture, the economies of scale, the business infrastructure and a critical mass of talent and capital to provide fertile ground for a vibrant startup ecosystem.
SHANGHAI
Shanghai – Building An International Startup EcosystemChina High-tech Cities
Shanghai was ranked no.1 in English-language proficiency in China.
——EF English Proficiency Index 2017
Proficiency: Very low Low Moderate High Very High
Shanghai
Hong Kong
Beijing
Shenzhen
Guanghzou
56.76
55.81
53.83
50.56
50.09
”
Shanghai – Building An International Startup EcosystemChina High-tech Cities
Shanghai – Building An International Startup Ecosystem
Government Policies Promote Innovation
Risk-compensation Policy for Angel Investors
The policy aims to compensate investors for as much as 60% of any actual losses resulting from the failure of seed investments in tech startups in Shanghai. The policy covers up to ¥3 million for each unsuccessful investment case, with a limit of ¥6 million per investment firm per year.
National “Mass Entrepreneurship And Innovation” CampaignChina is hoping that technologies and Internet-driven
startups can become the new economic engine, promoting growth of a successful startup ecosystem,
replacing the old-style pursuit of GDP growth through manufacturing and industrial exports.
China High-tech Cities
Affluent Financial Support
Government Subsidy Programs
The Shanghai government offers various subsidy programs in different districts.
• Company Registration Subsidy• Entrepreneurship Loan• Rental Assistance Program• Social Insurance Subsidy• Service Business One-off Subsidy• Innovative Solution One-off Subsidy• Training Subsidy
Notable VC Firms
In the third quarter of 2016, Shanghai was ranked no.2 among Chinese cities in terms of the total number of angel investments.
Kleiner Perkins Caufield & Byers
Shanghai – Building An International Startup EcosystemChina High-tech Cities
Science and Technology Education Hub
Fudan University
Tongji University
Shanghai Jiao Tong University
East China University of Science and
Technology
Shanghai’s education system is extremely
competitive at all levels, attracting top students from
all over the country.
East China Normal
University
Shanghai – Building An International Startup EcosystemChina High-tech Cities
A hub Of original equipment manufacturers (OEM)
A world-class Hardware Maker
An Innovation Hub of software
China High-tech CitiesShenzhen— Becoming An International Hub of Hardware Innovation
The youngest city in China: The average age of its population in 2016 is only 33.
With 7,860,000 migrants in 2016, Shenzhen is also one of the most diverse cities in the country.
Shenzhen is a city with culture of tolerance and open-mindedness.
It was voted China’s Most Dynamic City and the City Most Favored by Migrant Workers in 2014.
China High-tech CitiesShenzhen— Becoming An International Hub of Hardware Innovation
Qianhai: A Hong Kong-Shenzhen service center, focusing on high tech, education, art and logistics services.Futian: A political, financial and trading center.Luohu: A financial and trading services center.Longgang and Pingshan: A modern heavy industrial base.Longhua: A transportation and logistics hub.Guangming: A local high-tech and eco-agricultural base.Aerotropolis: An international logistics and supply-chain base.Yantian: A leisure tourism and logistics hub.
Municipal Committee Secretary of Shenzhen Ma Xingrui laid out the city’s blueprint for the next five years:
Urban Master Planning of Shenzhen(2010-2020)Urban Layout Map
Shenzhen Municipal People's Government 2010
China High-tech CitiesShenzhen— Becoming An International Hub of Hardware Innovation
Shenzhen has ranked No.1 for 13 years.
In 2016, the number of PCT(Patent Cooperation Treaty) applications by Shenzhen is 19,648, accounts for 46% of national applications.
R&D Spending in Shenzhen tops 80 billion yuan, accounts for 4.1% of GDP, putting it on a par with South Korea and Israel, which hold the world’s top-two positions in terms of investment in R&D, according to the OECD.
Source: The Intellectual Property Office of Guangdong Province, Shenzhen, Shanghai, Beijing; The Statistics Bureau of related cities
China High-tech CitiesShenzhen— Becoming An International Hub of Hardware Innovation
Government Subsidy Programs
• Start-Up Enterprise Subsidy• Rental Subsidy• Social Security Subsidy• Employment Subsidy• Micro-Financing• Peacock Campaign: for High-level talents
VC Firms and Enterprises
The total amount of investment from the top 100 Shenzhen VC funds in 2016 was ¥58 billion, up 40% year over year, which was invested in 987 transactions, up 16.4% year over year.
Source: Shenzhen Chamber of Investment
Shenzhen Capital Group Tencent Industry Win-Win Fund
Strong Financial Support
Shenzhen— Becoming An International Hub of Hardware InnovationChina High-tech Cities
Creative Innovation Ecosystem
Makerspaces
Shenzhen is a hub for makers.
Notable Startups Industry-Leading CompaniesAccelerators
The incubator and accelerator network in Shenzhen is
relatively underdeveloped.
Major industry-leading tech companies are headquartered in Shenzhen. Their success sets an
example and brings more investment and business
opportunities into the city.
In 2016, there are 131 Chinese Unicorn with valuation at over $487 billion, among these 131
companies, 13 are based in Shenzhen with a valuation of
around $39 billion in total.
Shenzhen— Becoming An International Hub of Hardware InnovationChina High-tech Cities
FIVEFuture Key Industries in China
Digital HealthAgri-food TechSmart Manufacturing Clean Tech Ed Tech
Digital Health
Digital health is the convergence of digital and
genomic technologies with health, healthcare,
living, and society to enhance the efficiency of
healthcare delivery and make medicines more
personalized and precise.
Digital Health
What is Digital Health?
Providers and other stakeholders are using digital health in their efforts to:
Patients and consumers can use digital health to better manage and track their health and wellness related activities.
Reduce inefficiencies Improve access Reduce costs
Increase quality Make medicine more personalized for patients
Digital Revolution Genomic Revolution
Wireless sensors & Devices
Mobile connectivity
Social networking
Genomics
Internet
Imaging
Data Universe
Health info systems DISEASE
DIAGNOSIS
MANAGEMENT
PREDICTION
PREVENTION
+
RESULTS
The Digital Health RevolutionDigital Health
Policies and Regulations Drive & Threaten Innovation
Patient-Generated Data Comes of Age
Mobile Health = Healthcare
Blockchain Health Ecosystem Driversifies
Empathetic Health Interfaces Mature
Innovation Trends Digital Health
Source: CBINSIGHTS, Healthcare consumerization
Digital Health is still picking up steam Digital Health
• On a quarterly basis, funding saw a 100% increase from $1.2B in Q4’16 to $2.4B in Q1’17. Deal flow, which picked up at the end of 2016, fell slightly in Q1’17, landing at 255.
• In general, deals to digital health startups trended up through Q1’16. However, the sector has been on rocky footing lately with Q2’16 and Q3’16 seeing big drops in deal flow. In Q4 deals pushed back up, then declined again slightly in Q1’17.
Global Funding Trend
Source: CBINSIGHTS, Digital Health Funding Reaches Record Level
Digital Health
Population Aging Intensity
Environment Pollution
In 2016, Top 10 reasons causing Highest YLLs* in China:1. Stroke2. Ischemic heart disease3. Road traffic injury4. Lung cancer5. COPD6. Liver cancer7. Gastric cancer8. Alzheimer's disease9. Suicide10. Esophageal cancer
The rate of chronic disease is increasing in China
In 2016, three types of diseases causing the maximum number of deaths are:1. Cardiovascular and
cerebrovascular diseases - 17.6 million
2. Tumor - 8.93 million3. Chronic respiratory
disease – 3.54 million
*YLL: Years of life lost (percentage of total)Source: Global Burden of Disease Study 2016, GBD
Digital Health
From 2016 to 2017, China issued 23 policies covering medical insurance, medical services, medical equipment, medicine and health care products. Most policies are about the field of medicine, the intensity of reform is huge.
Medicine
Medical Services
Medical Equipment
Medical Insurance
Supplements
Encourage R&D, reduce costs, simplify approval procedure, open e-commerce platform.
Realize de-administration of public hospitals, establish a modern management system, reduce overall service costs.
Change from license to record, standardize examination method, establish priority approval system.
Integrate the basic insurance system of urban and rural residents, adjust the catalogue of insurance drugs.
Standardize the registration process and strengthen the review of production license.
Source: Qingke Research Institute, China Medical health industry’s investment report
Policies promote the reform of medical health industryDigital Health
The idea of proactive prevention was deeply
rooted in mind
The survey found that, when asked which factor is more important to health, 93% of
respondents chose "positive health management plan", while only 6.8% of respondents chose
"more advanced medical technology, equipment and
treatment plan".
02
The survey found that, respondents expressed a need for
health management services, 81.8% of respondents wanted to get health intervention services that
could improve their unhealthy lifestyles and habits, and 76.4% of respondents wanted to get health
science information.
The awareness of Healthy life was enhanced
01
The survey found that, 93% of respondents believe that everyone is
one part of family, each family member's health behavior will
interact with each other. Therefore, health management should take
family as a unit.
The awareness of family health management was improved
03
In 2017, Chinese families' awareness of health went through three great changes.
Source: Chinese family health data report (2017)
Health awareness is enhanced Digital Health
China Health Industry’s Market Size Digital Health
The main reason for the increase of financing scale is capital market's favor for the traditional medical service and medical equipment.
Unit: Million
The number of investment
136
64 80115
366
721689
324
6,714 3,771 4,90413,275
38,904
105,295
239,497
204,537
China Digital Health Funding Trend
Source: Vcbeat, Medical Health Industry Financing Report, 2017 Q3
Digital Health
Artificial Intelligence, Precision Medical Treatment, POCT, Non-public Health Care are the key words of industry financing in the first half of 2017
Precision medical treatment includes molecular diagnosis, targeted therapy, and so on*TCM: Traditional Chinese Medicine; CSO: Contract Sales Organization; CRO: Contract Research Organization; CMO: Contract Manufacturing Organization; POCT: Point of Care Treatment; PCR: Polymerase Chain Reaction; GCLE: a chemical raw material.Source: FIRESTONE, Health Industry Financing Report – 2017,H1
Digital Health
Biotechnology
Med
ical In
formatiz
ation
Med
icine
Comm
unity-o
riented
Primary
Care
Med
ical E
quipm
ent S
ales
Med
ical E
quipm
ent
Consum
ptive M
edica
l
Treatm
ent
Med
ical S
cience
And
TechnologyBig H
ealth
Med
ical F
inance
Med
ical T
ools
Rehabili
tation N
ursin
g
Seek M
edica
l Advice
Mater
nal Pre
gnancy
Med
ical S
upport
Circulatio
n Channel
SubdivisionsThe Average Deal Size(10000 RMB)
Medical Equipment Sales 25,730
Community-oriented Primary Care
18.631
Medicine 18,079
Medical Finance 16,571
Biotechnology 14,857
Medical Informatization 10,770
Consumptive Medical Treatment
9,671
Circulation Channel 7,000
Medical Tools 6,971
Medical Science And Technology
5,650
Seek Medical Advice 4,825
Rehabilitation Nursing 4,285
Big Health 4,147
Medical Equipment 3,700
Medical Support
Maternal Pregnancy 2,272Source: Vcbeat, 2017 Medical Health Industry investment report
Digital Health
Investment and financing in subdivision areas Digital Health
BiosensorixPoint of care and quantitative diagnostics tool
Startupbootcamp Alumni - Biosensorix Digital Health
We DoctorOnline platform connecting connecting patients and doctors together
Notable Chinese Startup – We DoctorDigital Health
Agri-Food Tech
Beyond 2030, the negative impacts of climate change on agricultural yields will become increasingly severe in all regions.
Agri-Food TechThe Age of Agri-Food Revolution
A fifth of the world’s population Only 5% to 7% of world’s arable land
Resource Scarcity and Population Growth have pushed agricultural innovation to the top of China’s agenda.
China’s urgent need for agriculture innovationAgri-Food Tech
consider food safety when buying food
give top consideration to food safety when buying food
are against food additives
86% 52%
88%
Melamine Milk scandal
‘Sewer’ oil ‘Cadmium’ rice
‘Aluminium’ dumplings
Glow-in-the-dark pork
Food Scandals
Note: Consumers investigated are mainly from 1st & 2nd-tier cities Source: Ipsos, Trends in Food, Beverage & Consumer Insights in China 2016
China’s Food Safety IssueAgri-Food Tech
The urbanization and rapid growth of
the Chinese middle class are
significantly changing the consumption
habits of Chinese consumers.
As the standard of living and disposable income rise
consumers are looking for natural, organic, and imported foods most representative of healthy foods in China (Euromonitor, 2016).
No Artificial Additives Organic Ingredients Low Calorie Slimming Effect
Chinese Customer consumption habits are changingAgri-Food Tech
Source: National Statistics Bureau ,Guoxin Securities Economic Research Institute
The change of urban residents' family population and disposable income
Average family population of Urban Households Per capita disposable income of urban residents(RMB)
China’s huge potential for food consumptionAgri-Food Tech
Agri-food tech is aiming to improve or disrupt the global
food and agriculture industry. it includes a wide range of processes, operations, and
roles as food travels from the farm to the fork.
What is Agri-Food Tech?
Agri-Food Tech
IOTINTERNET PAYMENTS WEARABLESMOBILE
DRONES
ROBOTSBIO-TECH
ECOMMERCE
3D PRINTERSAI
BIG DATA
New generations of increasingly low cost technology hardware and software are challenging and disrupting the traditional models of
producing, packaging, marketing, selling, delivering, securing, tracking, eating, recycling and even introducing new types of food substitutes.
Key Agri-Food Tech EnablersAgri-Food Tech
AgriFood Tech Category Definitions
Source: AgFunder, AgriFood Tech Investing Report - MidYear 2017
Agri-Food Tech
Source: AgFunder, AgriFood Tech Investing Report - MidYear 2017
Global Funding TrendAgri-Food Tech
Government Policy
"Thirteen five" special plan for agriculture and rural science and technology innovation
By 2020, the contribution rate of agricultural innovation is over 60%, the ability of agricultural technology innovation is in the forefront of the world.
Target
• Significantly improve agricultural technology innovation level.
• Significantly improve agricultural comprehensive and
industrial competitiveness.
• Significantly improve innovative platform and talent team.
• Significantly improve efficiency of agricultural science and
technology innovation system.
• The agricultural and rural innovation and entrepreneurship
ecology being more optimized.
01
China provide administration support for agricultural innovationAgri-Food Tech
Industry Parks
Across the country, 260 national agriculture and science technology parks are built to serve as part-technology showcase, part R&D pilot farms.
Projects run the gamut from plant and animal breeding programs to precision agriculture and water-efficient farming.02
University Innovation
Top agricultural universities allocate subsidies and working space for student and alumni startup teams.
Cyb-Bot, a robotics and automation company received investment from a China Agricultural University Fund. 03
China provide administration support for agricultural innovationAgri-Food Tech
In 2016, Agricultural fixed investment in China (excluding farmers) was RMB 2277.4 billion , up 19% from 2016.
In 2016, the number of investment was 189, and the amount of investment was RMB 16.774 billion.
China's Agricultural Fixed assets investment (excluding farmers) and its growth rate, 2012 - 2016
Unit: Billion RMB Unit: %
The amount of investment Growth rate
The number of investmentThe amount of investmentThe growth rate of investment numberThe growth rate of investment amount
8,772
11,401
14,574
19,062
22,774
29% 30% 28% 31%19%
91
40.9768
44.48
108
72.72
272
183.81 189167,74
-25%
9%59%
63%
153%
152%
-9%
-31%
China’s Agricultural Investment Trend
Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report
Agri-Food Tech
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
In 2016, the top 3 investment areas are Agricultural Products Sales(43%), Agricultural Products Logistics(20%) Agricultural Products Processing(11%), in the first half of 2017, the proportion of investment in agricultural products processing and logistics increased significantly.
Invest more in early rounds. In 2016, investment in series A/A+ accounted for 29.6%, in Pre-A accounted for 5.8%, in angel round accounted for 24.3%, in seed round accounted for 6.9%. In the first half of 2017, investment in earlier rounds before A/A+ round accounted for over 60%, but the proportion decreased significantly, the proportion of investment in series B/B+ or later rounds is rising.
After Series D
Series C/C+
Series B/B+
Series A/A+
Pre-A
Angel Round
Seed
Angel Round
Seed
After Series D
Series C/C+Series B/B+
Series A/A+
Pre-A
Source:IT Juzi, ChinaVenture, CYZone, Pintu Think Tank
2015 2016 2017H1
0.58Support Service
Whole Industry Chain
Agricultural Products Sales
Agricultural Products LogisticsAgricultural Products
Processing
Agricultural Products Production
Agricultural Materials Supply
Support Service
Whole Industry Chain
Agricultural Products Sales
Agricultural Products Logistics
Agricultural Products Processing
Agricultural Products Production
Agricultural Materials Supply
China’s Agricultural Investment Trend
2015 2016 2017H1
Agri-Food Tech
Capital
Consumers
Agricultural Materials Supply
Agricultural Materials Production
Agricultural Materials Chain
Agricultural Materials E-commerce
Agricultural Products ProductionCrop Planting
Animal Breeding
Fishery Production
Forestry Production
Agricultural Products ProcessingGrain And Oil
Milk Drink
Seafood And Aquatic Products
Animal Products
Other
Agricultural Product Logistics
Agricultural Bulk Products E-commerce
Traditional Agricultural Products Wholesale
B2B Fresh Raw Materials Wholesale
Storage And Logistics Of Agricultural Products
Agricultural Products Sales
Comprehensive E-commerce
Fresh Food E-commerce
Supermarket Chain
Fresh Food Chain
Food chain
Convenience Store
New Retail
Restaurant
Agricultural Products’ Whole Industrial Chain
Support ServiceAgricultural Technical Service Agricultural Financial Service Agricultural Information Service Agricultural Information Service
The agricultural industry chain is relatively complex, involving many segments, mainly related to agricultural materials supply, agricultural products production, processing, logistics and sales. Besides that, it also contains supporting services.
The analysis of china agricultural industry chain
Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report
Agri-Food Tech
In the future, with further integration of Internet and the whole agricultural industrial chain, the innovation mode emerge constantly. The main directions include logistics commercialization, services diversification, production intelligentization and industrial ecologicalization.
Logistics Commercialization
Agricultural Materials E-commerce
Platform E-commerceVertical E-commerce
O2O E-commerceDirect Supply From Origins
Offline BrandMaterial Distribution
Smart Agricultural Production
IoT(internet Of Things)Big Data
Ai(artificial Intelligence)Agricultural Technology
ServicesDrone
Intelligent Tracing
Services Diversification
Financial ServiceTraining Services
System ServiceInformation Service
Data ServiceMarketing Service
Talent Service
Industrial Ecological System
Agriculture + Leisure TourismAgriculture + Real Estate
Agriculture + PensionAgriculture + Health
Agriculture + Environmental Protection
Agriculture + Cultural Creativity
China Agriculture will develop in 4 core directions in the future
Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report
Agri-Food Tech
Step 1: Put your Eskesso in any pot of water
Step 2: Add a pack of food to the mix
Step 3: Select the recipe you are cooking and push START in our App
EskessoSmart sous vide cooking appliance and cloud platform
Startupbootcamp Alumni - EskessoAgri-Food Tech
Ele.meOnline platform to order take-out
Notable Chinese Startup – ele.meAgri-Food Tech
Smart Manufacturing
Smart Manufacturing
Smart Manufacturing are systems that are “fully-integrated, collaborative
manufacturing systems that respond in real time to meet changing demands and
conditions in the factory, in the supply network, and in customer needs.”
——The National Institute of Standards and Technology (NIST)
What is Smart Manufacturing?
People as key players Distributed intelligenceFast integration and
flexible configuration
Open standards Virtual real-time representation
Digital life-cycle management
Secure value-creation networks
Smart Manufacturing’s FeaturesSmart Manufacturing
IoT (Internet of Things)
Advanced Robotics
AR (Augmented Reality)
3D Printing / Additive Manufacturing
AI and Machine Learning
Predictive Analytics
Advanced Materials
Key Smart Manufacturing Tech Enablers Smart Manufacturing
Spur Industrial Jobs’ Revolution
Promote Business Model Innovation
Boost Manufacturers’ Profit
Smart manufacturers boost profits through improved quality, faster
throughput, less maintenance and downtime, reduced material waste
and faster decision-making.
The smart processes also enhance worker safety, reducing insurance
and medical costs.
The digital transformation of industry will serve as a basis for
new business models that can pay big dividends in terms of quality
and documentation.
Digital technologies can help to make possible completely new value creation networks that
extend beyond company boundaries.
Some dangerous, mundane jobs that humans formerly performed are indeed being conducted
by robots now.
A shift to smart manufacturing makes companies more competitive and increases revenues. Higher
profits give companies more capital to finance improvements and expansions, which require
hiring more workers.
As more manufacturers embrace high-tech solutions, workers with expertise in fields such as
electronics, engineering and IT (including cybersecurity) are needed.
Smart Manufacturing’s Digital DividendSmart Manufacturing
Benefits to stakeholders in a value chain
A more informed &
Fluid value chain
path.
Affordable access to new
Technology & innovation.
Pilot new technologies for
larger manufacturers.
Increased productivity
via sensors.
Better user app
development &
feedback.
Less nitty-gritty
integration.
Better user experience.
Increased confidence &
personal satisfaction.
Suppliers ManufacturersSoftware Vendors &
3rd-Party Integrators Customers
Benefits of Smart ManufacturingSmart Manufacturing
Source: CBINSIGHTS, Advanced manufacturing trends
Manufacturing + Technology is taking in 2017Smart Manufacturing
Deals are making a come back
While 2016 saw a tightening
throughout all of venture
capital, deal making has
rebounded in Q1'17.
Source: CBINSIGHTS, Advanced manufacturing trends
Global Funding TrendSmart Manufacturing
Smart Manufacturing is inevitable for industrial countries to realize Manufacturing Upgrade.
USRe-industrializatio
n Strategy
GermanyIndustry 4.0
EUFactories of the Future
IndiaMake in India Campaign
Japan: New Industrial Revolution Driven by Robots
Smart Manufacturing
China needs to upgrade its manufacturing industry and move to higher value-added manufacturing.
Challenges for China’s Manufacturing Industry
01 02 03
04 05 06
Damage to environment Depletion of natural resources
Rapid increase in production costs
Shrinkage in export markets
Competition from other low wage countries
Lack of innovative products and key manufacturing know-hows and technologies
China’s Manufacturing UpgradeSmart Manufacturing
• “Made in China 2025” Special Fund.• Collaborate with various financial institutions to provide comprehensive
financial services, including loans, investment, bonds and leases, for key projects of "Made in China 2025".
Capital• Encourage enterprises to build smart manufacturing training bases,
cultivating skillful technicians.• Support universities to set up systems for cultivating smart
manufacturing talents.• Attract smart manufacturing talents into China.
Talent
• Develop equipment, construct test verification system and identification system based on industrial network.
• Promote “smart manufacturing” integrate with “Internet Plus”, establish information infrastructure made for industrial production.
Infrastructure• Build Smart Manufacturing Innovation Centers, developing key
technology research.• Encourage enterprises, universities and scientific research
institutions collaborate with each other to set up innovation alliance.
Technology
C T
I T
Support for Smart ManufacturingSmart Manufacturing
In 2016, China's smart
manufacturing industry output
value reached 1.2 trillion RMB.
Since 2011, the average annual
growth rate in the past 5 years is
more than 20%, far higher than
the growth rate of GDP.
Smart manufacturing industry is
developing at a high speed, the
industry output value is
estimated to reach 3 trillion
RMB by 2020.
Source: Qianzhan Research Academy, The analysis on development and market size of China Smart Manufacturing Industry in 2017
China’s Smart Manufacturing Market SizeSmart Manufacturing
ThingTraxConnect your machines, motors, tools and labor in minutes
Startupbootcamp Alumni - ThingTraxSmart Manufacturing
Top-Level Design
System Integration
Intelligent Factory
HuaZhiA globalized smart manufacturing solution provider and system integrator
Notable Chinese Startup- HuaZhiSmart Manufacturing
Clean Tech
Clean Tech
A diverse range of products, services, and processes that harness renewable
materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes.
——Clean Edge, a clean technology research firm
About Clean Tech.
Many government leaders have recognized that future competitiveness is directly linked to being more resource-efficient and less reliant on Older, polluting technologies.
Environment Issues
Environmental issues, including global climate change, deforestation, air pollution, and inadequate supplies of clean water, have stepped up pressure to find more environmentally benign Ways to meet the needs of a growing world. The concern over climate change in particular has led to new focus in alternative transportation and energy technologies.
Political Winds
Clean tech technologies like AI and IoT will gain global manufacturing economies of scale from other industries like automobiles and robotics. Clean tech prices are falling due to manufacturing economies of scale.
Manufacturing Economics Of Scale
Global investment in the energy sector fell 12 percent last year to $1.7 trillion, A drop in conventional oil exploration could cause a shortage of crude and other fuels.
• Australia: Coal Shortage• America: Electricity
Shortage• China: Gas Shortage• Pakistan: Electricity
Shortage
Energy Uncertainty
Technological advances including continued innovations in microelectronics, biology, chemistry, and physics, have significantly improved the performance of many Clean technologies.
Technologies Advances
Driving Forces for Clean TechnologyClean Tech
Source: CBINSIGHTS, Renewable energy & the rise of solar
Revived Interest In RenewablesClean Tech
Countries with clean energy policies implementedClean Tech
After years of growth, VC investment in cleantech companies has been on the decline
Global funding trendClean Tech
Source: CBINSIGHTS, Renewable Planet: Energy Deals Outside The United States
Clean Tech
13th FYP encourage clean energy production and consumption.
Targets for energy intensity, renewable energy share , and carbon intensity have been further tightened.
Energy consumption per unit of GDP
Share of non-fossil in primary energy consumption
Carbon emissions per unit of GDP
Source: PwC, Chinese Cleantech Market Opportunities, 2017
China’s Green Growth Clean Tech
Air Pollution Prevention and Control Action Plan, Sept 2013 "By 2017, PM10 in cities at prefecture level and above must fall by 10% from 2012 levels; PM 2.5 in Beijing- Tianjin-Hebei, Yangtze River delta, and Pearl
River delta must fall by 25%, 20% and 15% respectively "
Water Pollution Prevention and Control Action Plan, April 2015 "By 2020, water quality in seven key areas must reach national standard Level III; black and odorous water to be reduced to less than 10%; and drinking water should reach Level III"
Soil Pollution Prevention and Control Action Plan, June 2016 "By 2020, the safe utilization rate of contaminated arable land should reach about
90%, while the safe utilization rate of the polluted plots should exceed 90%. By 2030, the safe utilization rates of contaminated arable land and polluted plots
should both exceed 95% respectively"
Environmental Protection PoliciesClean Tech
By 2016, China's green investment had
reached RMB 1.85 trillion (approx. USD 269
billion), which constitutes 2.5% of the GDP.
It is estimated that the cleantech sector will
reach RMB 17 trillion (approx. USD 2.47
trillion) by 2020, with an increase of RMB 2
trillion (approx. USD 290 billion) each year.
Government investment and total investment in environmental prevention (including renewable energy)
China Cleantech Investment TrendClean Tech
Investment in China's Clean Tech Industry from 2014 to 2017 Q3
China funding trend
Source: PwC, MoneyTreeTM China Clean Energy and Technology Industry investment report
Clean Tech
China funding trend
Source: PwC, MoneyTreeTM China Clean Energy and Technology Industry investment report
Clean Tech
First Tier subsectors:Waste management and recycling, water, and air pollution controls account for 70% of the total investment.
Second Tier Subsectors:Environmental monitoring and energy efficiency sectors account for about 20% of the Investment.
Note: 1. Investment data from 2013.1-2016.7; 2.Only deals with disclosed company names are take into account; 3.Investee companies involved in several subsectors are calculated multiple times in different categories.Source: PwC, Chinese Cleantech Market Opportunities, 2017
China Cleantech Market PotentialClean Tech
Solar Energy
Wind Energy
Solar Energy’s installed capacity ranked the first globally; China would witness the rapid development of the
distributed photovoltaic; and the photovoltaic manufacturing industrial chain is likely to be consummated gradually.
Wind power's global installed capacity has been increasing steadily, the energy pattern has been optimized with the respective development in the power restricted area and non-restricted area.
New Energy Vehicles
Water Treatment
Solid Waste Treatment and Disposal
New Science and Technology of Energy Conservation and Environment Protection
The industry is standing at the inflection point with the deep integration of the vehicle market.
The government is increasingly carrying out positive policies to support the industrial development, hence the solid waste treatment and disposal is stepping into the golden age.
The water treatment industry remains prosperous, and the water treatment system will be continuously improved and perfected.
Building energy conservation developed fast, near-zero energy buildings are ushering in many favorable policies. Besides that, Energy-saving
household appliances have become a major trend in the home appliances development.
1
2
3
4
5
6
China Cleantech TrendsClean Tech
TespackCharge your mobile devices directly from sun
Startupbootcamp Alumni - TespackClean Tech
NIOHigh performance intelligent electric SUV (7 pedestal)
Raised $1700 million in 2017
Notable Chinese Startup - NIOClean Tech
Ed Tech
Anxious Parents
In order to give
children the greatest
chance of success in
the future, there is
more anxiety than
ever among parents.
02
Nowadays, students
graduate from these
institutions with deep
confusion about the
future and their
direction in life.
Unprepared Students
01
Teachers face constant
pressure from both
parents and school
administrations in a
unitary evaluation
system.
Stressed Teachers
03
Schools and their pupils are
often far removed from real
social issues; and schools
are very much closed off ‘in
silos’, preventing them from
effectively connecting with
social resources.
Isolated Schools
04
The big disconnect is happening in education area, as the world becomes more connected at a global level.
Ed TechThe Existing Problems with Education
Ed Tech is poised to be the biggest and possibly most profitable digitalized sector
Digital will soon be the nucleus of every industry
Only 10 percent of schools offer any kind of computer
science class. If we don’t start at school-level exposing
learners to technology existing outside the classroom,
the skills gap will soon be a valley that cannot be
bridged.
Students are born with digital DNA
Education institutions need to cater to the digital
demand of their consumers — people who are
constantly exposed to digital technologies outside of
the classroom have come to expect the same digital
capabilities within the four walls of a learning
environment.
Ed Tech
Ed Tech(Educational technology) is "the study and ethical practice of facilitating learning and improving performance by creating, using, and managing appropriate technological processes and resources".
What is Ed Tech?
Ed Tech
Quarterly deals to Ed tech startups
increased throughout 2012, but have
fluctuated since then. Deal count
peaked in Q1’15 with 148, but fell below
130 at the end of 2015. Q1’17 is the first
time since Q3’15 that deals to Ed tech
startups broke 130.
Global Funding Trend
Source: CBINSIGHTS, High Marks: Ed Tech Deals Tick Up In Q1’17
Ed Tech
Landscape 2.0 maps 5000 companies into eight steps we call the next generation learning lifecycle.
573 companies$4.8b invested
617companies$6.3b invested
362 companies$7.0b invested
803 companies$2.3b invested
622 companies$5.6b invested
1384 companies$10.4b invested
266 companies$2.1b invested
523 companies$4.2b invested
PublishersDigital Courseware
Research & Scientific
Ed Management TechStudent Management
SystemsFaculty
Administration
Student FinancingEnrolments & Admissions
Learning Management Systems
Social PlatformsArtificial Intelligence
VR/ARRobotics
Games & SimulationEarly Childhood
Personalised LearningProprietary Campus &
OnlineOpen Online
Language
Hiring Internships
LEARNING DESIGNAND MANAGEMENT STUDENT LIFECYCLE
CREATE MANAGE CREDENTIALDISCOVER CONNECT EXPERIENCE LEARN ADVANCE
Testing & AssessmentBadging & Credentialing
Source: NAVITAS Ventures
Startup LandscapeEd Tech
*K12 : Kindergarden to 12th Grade
300,000,000 people learning English in China
HUGE MARKET SIZE
By 2020, China’s college-educated talent pool is expected to number
195,000,000people
more than the entire US labor force that year
600,000,000 K12* students in Asia
10x that of the United States
There are The average Asian family spends
>40%of their income on education related
products and services
There are
more than the entire English speaking population of the United states
Asia Market SizeEd Tech
China's education industry is ushering into its
with expansion in terms of both industry size and market activity.
Golden Age“
China Education Industry
Source: Deloitte Education Industry Report 2017
Ed Tech
1
Early childhood education is driven by the implementation of two-child policy which brings sufficient demand and the government's policies to encourage preschool education.
Early Childhood Education The growth of K12 extra-curricular training is attributed to the demand increase resulted from the pick-up of the school age population. Meanwhile, desire for further education and international education also drives the demand for K12 examination- oriented education and language education.
Personal training grows because of better economic capability and higher willingness to improve competitiveness.
K12* Training
Vocational Training
126
2
3
Source: Deloitte Education Industry Report 2017*K12 : Kindergartden to 12th Grade
Future Major Growth PointsEd Tech
Accelerated amendment of private education related laws and supporting policies. In terms of different education stages, relevant policies have outlined the future trends of each sector.
2
1
Preschool education will see positive development under the guidance of policies including the proposals for China's 13th Five-Year Plan which proposes the target to realize inclusive preschool education in 2020.
Preschool Education Key points of K12 educational informationization are accelerating informationization, and admission policies at the compulsory education stage have created a favorable condition for fair distribution of high-quality resources.
Higher academic education is focusing on "boosting employment" and "standardizing independent colleges“.
K12 Education
Vocational Training
3
4
Vocational education, benefited from the relevant development planning and the Belt and Road Initiative will see development trends of "running school by means of collectivization", "investment of private capital in education", and "going global" in the future.
Higher Academic Education
Contributors to Ed Tech Golden Age – Favorable Policies
Source: Deloitte Education Industry Report 2017
Ed Tech
There has been a rapid increase of social capital flowing into the education industry both in terms of total amount and frequency.
RMB 6.1 billion
Total Investment Amount
2014 2015
> twice
RMB15.9 billion
Investment Cases
2014 2015
190
270
42%
Contributors to Ed Tech Golden Age – Capital Inflow
Source: Deloitte Education Industry Report 2017
Ed Tech
Internet companies represented by BAT, large real estate companies, and non-educational listed companies are venturing into education.
Internet companies represented by BAT, are searching for segments of
in-depth development to improve the depth of their ecosystem.
Real estate companies are developing educational
related real estate.
Contributors to Ed Tech Golden Age – Capital Inflow
Source: Deloitte Education Industry Report 2017
Ed Tech
IPOThe total amount of
mergers and acquisitions
(M&As) increased by 165
percent year on year.
M&AIPOs increased by 76 percent
from a year earlier. More capital
is expected to flow into the
industry under easy policies.
Contributors to Ed Tech Golden Age – Exit Opportunities
Source: Deloitte Education Industry Report 2017
Ed Tech
China Ed Tech Funding Trend
Source: GETChina Insights, Digging into China EdTech 2017Q1
Ed Tech
K12 International Education
Early Education
Career Education
Quality Education
Information-driven Education
Education Comprehensive
Service
Higher Education
Other
• Among Educational Industry, capital is mainly focus on K12, International Education, Early Education, Career Education.
• In 2016, the fundraising is went through a cold winter, but career education fundraising is increasing.
• In 2017, quality education fundraising events accounted for 18%, obviously higher than previous years.
K12
Career Education
Early Education
Quality Education
International Education
Information-driven Education
Education Comprehensive Service
Higher Education
Other
Educational Industry Fundraising Status
Note: the data is from 2015 to April, 2017Source: IT Juzi & Taoli Capital
Ed Tech
Early Childhood Education K12 Career Education Higher Education
International Education Quality Education Education Informationization
Education Comprehensive Service
婷婷姐姐
China Ed Tech Industry LandscapeEd Tech
Focus EDUFocus EDU is the world's first integrated classroom system that improves education outcomes through real-time attention level reports.
Startupbootcamp Alumni - BrainCoEd Tech
VipkidOnline children's english education platform
High Quality Teachers From North America Effectively Schedule Classes An Immersive Learning Experience
Check Classroom Scene At Any Time
United States Common Core State Curriculum Standard (CCSS)
High Quality Service From Chinese Teachers
Notable Chinese Startup - VipkidEd Tech
136
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