China Pings Silicon Valley Redefine Chinese Tech Startup Ecosystem Sherrie Wang PeakView Capital
At A Glance of Shengjing Group Shengjing Group Biz Training & Consulting Arm (Shengjing360) Biggest Biz Management Consulting Brand for Growth Stage > 30,000 Customers, >1,500 Customers listed on NEEQ Market (National Equities Exchange and Quotations) 10 Billion RMB Valuation Capital Management Arm (Peakview Capital) >2 Billion USD Managed (end of 2016) Biggest China-2-Globe VC/PE FoFs Invest to >60 Top-tier VC/PE funds in China, USA & Israel
The Best Chi a I vestors s I vestor
Fu d s Portfolio i US & Israel Forbes The Midas List Of Top Tech Investors List U.S.A Israel
To Be Super Hub Bridge China and Global Innovation Ecosystem 4/11/17
Running the Israel-China Accelerator Program for IL Ministry of Economy is the Milestone of SJ Global Ecosystem
Overpraised? Expert Market Nov. 2017 Features including Salary of Software Engineers, Time to Set up a company Living cost and monthly rent, Growth Rate Index and Output of Entrepreneurship
The Global Startup Ecosystem Ranking Compass, The Global Startup Ecosystem Ranking 2015 (Unit: 100m USD
Global Unicorn Club with Two Polars 215 Unicorns Globally 108 from USA (Sept., 2017) Top 5 Most Valuable Unicorn Company Valuation Country Uber $68 Bn USA Didi Chuxing $50 Bn China Xiaomi $46 Bn China AirBnB $29 Bn USA Palantir $20 Bn USA
Global Unicorn Club with Two Polars
Breakthrough of History Nov. 21st, 2017 Tencent Exceeded Facebook in Valuation Tencent s Valuation 4000 Bn HKD 522.9 Bn USD
China Central and Local Governments Play Very Active and Key Roles in Stimulus Policy, Industrial Plan Making and Fund Supporting
China Central Government: National Emerging Industrial Plan The 13th Five-Year National Development Plan defined Five Strategic Emerging Industries The industrial scale has continued to grow, becoming a new impetus to economic and social development. The added value of the strategic emerging industries accounts for 15% of the GDP, forming a new pillar of 5 trillion yuan output value scale with a new generation of Information Technology, High-end Manufacturing, Bio and Medical Technology, Green and Low Carbon Industry, and Digital Creativity The State Council released national industrial plan: May 19th, 2015: Made in China 2025 Future Advanced Manufacturing July 20th, 2017: "A New Generation of Artificial Intelligence Development Plan
First National Certified AI Open Platform Ministry of Science & Technology Nov. 15th, 2017 Autonomous Driving Open AI Platform Smart City Brain Open AI Platform Medical Image Open AI Platform Intelligent Voice Open AI Platform
Shanghai Declaration Ministry of Industry and Information Technology Shanghai City Nov. 18th, 2017 1, Work together to build a smart, low-carbon, efficient, comfortable and convenient intelligent network system with zero emission, zero casualties and zero barriers. 2, Jointly increase the innovation of intelligent network car forward-looking and common key technologies, and establish a common platform for R & D, testing, evaluation and demonstration of intelligent network car. 3, Jointly strengthen the construction of intelligent network of automotive laws and standards system, and actively promote the intelligent network of vehicles to expand pilot demonstration; 4, Will jointly explore the collection, collation, analysis and sharing of big data and promote the application of big data in automobile, transportation, energy and urban development. Indicating that the state has made a determined effort to think of the intelligent network car as the most important holder in the era of industrial internet, and will vigorously promote its development in various fields such as policies, technologies and standards.
Government Leading Fund of Funds China PE FoFs Distribution (Capital Managed, Bn RMB) Benchmark City Beijing & Shanghai Private Capital Leading FoFs 8.7% Government Leading FoFs State Owned Group Leading FoFs Private Capital Leading FoFs 饼图 State Owned Group Leading FoFs 9.9% Beijing Sci & Tech Leading FoFs: 20 Bn RMB, will be Released 9% 10% 81% Government Leading FoFs 81.4% Shanghai Sci & Tech Leading FoFs: 30 Bn RMB, Released in Sept. 2018 TMT, Biotech, Advanced Manufacture Environment Protection & Green Energy
2017 Mainland Best Startup City Beijing Guangzhou Three Echelons, L Shape Shenzhen Hangzhou Beijng Shanghai Shenzhen Guangzhou Hangzhou Chengdu Chongqing Tianjin Nanjing Wuhan Fuzhou Guiyang
I ter et Co pa y s Area Base By Sectors and Cities NC Beijing EC MC WC Shanghai Chengdu Wuhan Hangzhou Chongqing SC Shenzhen Guangzhou Dongguan
I ter et Co pa y s Area Base By Sectors and Cities-100Bn Level Platform ECom/Payment/Fin NC ance JD,JD Finance Beijing Search Engine Platform SmartPhone: XIAOMI EC MC WC E-Commerce & Payment Shanghai Chengdu Wuhan Ali,Ant Finance, Alipay Hangzhou Chongqing SC Shenzhen Communication Guangzhou Application Dongguan Social Platform SmartPhone: E-Com/Payment/Finance HUAWEI, OPPO, VIVO Tenpay, Wechat Pay
I ter et Co pa y s Area Base By Sectors and Cities-10Bn Level Platform News Feed AI/Autonomous & Portal Driving Security, O2O Top 3 Internet Video Platform Software Tool Life Service NC Beijing EC MC WC O2O Shanghai Chengdu Wuhan Life Service Hangzhou Chongqing SC Shenzhen Guangzhou Dongguan
I ter et Co pa y s Area Base By Sectors and Cities- Bn Level Training & Live Video App Educaiton NC Beijing Independent Internet Finance EC Training & MC WC Mobile Shanghai Game Chengdu Wuhan Hangzhou Educaiton Chongqing Live VideoSC AppShenzhen Guangzhou Dongguan Live Video App Independent Internet Finance
Beijing vs Bay Area ZGC vs. SV CHINA Beijing Zhongguancun (ZGC) USA Bay Area Silicon Valley
Beijing: China Startup Storm Center Four Key Startup Eco Features: Talents, Market, Environment, Capital All Ranked Best among all cities 1 20% Active Tencent Open Platform Developers based in Beijing 2 > 230, 000 university students graduate in a year like 2015 3 Companies successfully raise fund in Beijing, 2X times more than Shanghai 4 >50% China Unicorn ( 1 Bn RMB Valuation) born in Beijing and totally raised 200 Bn USD, including Global Top 5 Unicorn: Didi, Xiaomi both 5, >250 Startup Space, >150 Incubator and university science Park, 50 of them are national level,
ZGC, Top Leading GIE in China 1, Going-out Stage China to Offshore Offshore Inno Center (Space) + FoFs+ Venture (Capital) + Offshore Accelerator (Connection Servie) 2, Inviting-in Stage Offshore to China Onshore Inno Center (Space) + Landing China Funds (Capital) + Onshore Global Inno Accelerator (Servie)
ZGC, Top Leading GIE in China Peakview-ZGC Co-GP USA Fund 300m USD launched in Sept., 2017 Wit essed y Beiji g s Mayor in Silicon Valley Left: Chen Jining, Mayor of Beijing Right: Erik Lassila: General Partner of Peakview Capital
7 Chi a s lpo Nu ers Hit a Re ord High 2007-2017 Q3 Chinese enterprises both at home and abroad till Nov.:385 400 352 347 281 300 219 200 124 118 76 37 100 99 77 154 129 75 47 66 125 96 89 227 64 20 0 0 2007 2008 2009 2010 2011 2012 境内上市 2013 2014 2015 2016 2017 3Q 境外上市
2017 Leanding Funds in China IPO Market 16 IPO 10.03X Book Value 14 IPO 7.41X Book Value 11 IPO 12.70X Book Value 11 IPO 6.32X Book Value 11 IPO 7.32X Book Value
HK Se urity Market s Pote tial for IL High Tech an New Economy Companies Israel Innovative Company China Mainland Market China Private Investment Hong Kong Security Market New Israel Fund is being Set Up 100m USD Fund Investment+ Company Co-investment
China Mobile Internet Growth is Slowing Down 2008-2016 China Internet Users and Their Growth Rates 700m Users 10% Growth Rate
100Bn and 10Bn Platforms With Solid Positioning 100 Billion USD Platform 10 Billion USD Platform Communication Platform Internet Payment Service Smartphone E-Commerce Platform Car-Sharing Platform Search Engine Platform Taking-away Service News Feed
Huge Internet Traffic Entrances Concentrated
Internet Traffic Concentration Make Pure Online Startup Based on Traffic Difficult More strict and governing policies make content production facing challenges The disappearance of user market bonuses leads to high marketing cost Price war is difficult to repeat, Offline has become an important user access channel
China Unicorn Top 300 (2016) China Unicorn Sector Distribution (Valuation > 1 Bn RMB) 1, Internet Finance(Fintech): 40:44 2, E-commerce: 37: 36 3, Automotive & Transportation: 26:23 4, Medical & Health 15:21 5, Online 2 Offline: 24: 17 6, Online Education15:14 7, Online Video 9:12 8, Games 15:11 9, Enterprise Service 7:11 10, Hardward 5:9 11, Logistics 8:9
Key Word of Future Opportunity Vertical: Financial, Medical, Enterprise, Transportation Entertainment, Tourism, Intelligent: Artificial Intelligence for Vertical Application (Automonomous Car, Finance, Medical, Industrial Deep: Disruptive Technology Hardware +Software New Retail Offline resources activated and integrated Cross-border
Artificial Intelligence: USA vs China
Artificial Intelligence: Startup Sectors The total amount of artificial intelligence startups in China and the United States China and the United States Artificial intelligence Startup in Sectors China Natural language Processing Machine Learning 42% American 1078 Computer Vision and Imaging 23% China 592 Technology platform Smart Drone Global 2542 Smart Robot Autonomous Driving AI Processor / Chip Voice Recognition American
BAT Investment Map: Finance and Automotive Transport as Main Battlefield BAT Investment Map for the First Half BAT investment in a wide range of areas, and there of 2016 is a clear cross between each other, but also dabbled in foreign investment M & A. Sports Tencent Social Internet Game Enterprise Local Life service Entertainment Medical health E-commerce Logistics Tourism Hardware Automotive Transportation Finance Real Estate Servie Baidu Alibaba Tool software Baidu actively looks for the next leading opportunity through commercially-available new technologies such as deep learning, artificial intelligence and autonomous driving. Alibaba is not just an e-commerce company. It has strong competitiveness in the fields of finance, cloud business, big data, culture and entertainment. Tencent around QQ and WeChat set up a rich life and consumer scene services, rapid transition in the era of mobile games and get the lead.
Fintech: Tide of IPO and Regulations Coming Nov. 21st, Internet Finance Risk Governing Lead Group, Stop issuing license and more governing policies will be issued following
China Nets Union Clearing Corporation Payment institutions and banks will be connected to a unified clearing platform set up by Payment & Clearing Association of China. Commercial Bankers China Nets Union Alipay TraderA Tenpay TraderB 其他第三方 3rd Party Payment Service Alipay TraderC BEFORE NETS UNION TraderA Tenpay 其他第三方 TraderB Trader C AFTER NETS UNION
Consumption Upgrade Opportunities on Internet Emerging Internet-based Consumption Sector Significantly Increased 8. Watch video with smart TV / box 9.5 Online Knowledge Paid Consuming: 8% Spend more money on digital products Smart TV/Box: 9.5% Buy video members to see the play / movie Spend more money on digital products:23.3% Personal Consuming Loas Online Video Platform Membership:24.5% Personal Consuming Loans:26.6% Online takeaway Online Takeaway:36.7% Mobile phone taxi / car rental Tax/Car Calling with Mobile Phone: 36.7% Cross Border Online Shoppings Cross-border Online Shopping:37.6% Offline Consumer Mobile Payment:58.1% Offline shoppingr mobile phone payment 23.3 24.5 26.6 36.7 36.7 37.6 58.1 0. 15. 30. 45. 60. 75. 58.1% As of October 2016
Top Content Maker Popular and Better Paid Professor of Economics Beijing University 215104 Subscriptions, 6 million USD/year Business Consultant BitCoin Early Player How to be Financial Free Psychological Counselor Professor of Management Tsinghua University 102344 Subscriptions, 3 million USD/year
Oversea Investment of BAT 70 53 35 18 0 2014First half 2014Second half Baidu 2015First half 2015Second half Alibaba 2016First half 2016Second half Tencent 2017First half
Global Innovation Changing World