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
Capital Management Arm
(Shengjing360) (Peakview Capital)
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
>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
U.S.A
Israel
Forbes The Midas List Of Top Tech Investors List
4/11/17
To Be Super Hub Bridge China and Global Innovation Ecosystem
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
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
215 Unicorns Globally
108 from USA
(Sept., 2017)
Global Unicorn Club with Two Polars
Nov. 21st, 2017
Tencent Exceeded Facebook in Valuation
Tencent’s Valuation 4000 Bn HKD=522.9 Bn USD
Breakthrough of History
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 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”
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
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
Beijing Sci & Tech Leading FoFs:
20 Bn RMB, will be Released
Shanghai Sci & Tech Leading FoFs:
30 Bn RMB, Released in Sept. 2018
TMT, Biotech, Advanced Manufacture
Environment Protection & Green Energy
China PE FoFs Distribution
(Capital Managed, Bn RMB)
Government
Leading
FoFs 81.4%
State Owned
Group Leading
FoFs 9.9%
Private Capital
Leading FoFs
8.7%
81%
10%
9%
饼图 Government Leading FoFs
State Owned Group Leading FoFs
Private Capital Leading FoFs
Benchmark City
Beijing & Shanghai
2017 Mainland Best Startup City
Beijing Shenzhen
Guangzhou Hangzhou Beijng
Shanghai
Shenzhen
Guangzhou
Hangzhou
Chengdu
Chongqing
Tianjin
Nanjing
Wuhan
Fuzhou
Guiyang
Three Echelons, L Shape
I ter et Co pa y’s Area Base By Sectors and Cities
SC
Shenzhen
Guangzhou
Dongguan
EC
Shanghai
Hangzhou
MC
Wuhan
WC
Chengdu
Chongqing
NC
Beijing
SC
Shenzhen
Guangzhou
Dongguan
EC
Shanghai
Hangzhou
MC
Wuhan
WC
Chengdu
Chongqing
NC
Beijing
I ter et Co pa y’s Area Base By Sectors and Cities-100Bn Level Platform
Communication Application
Social Platform SmartPhone:
HUAWEI, OPPO, VIVO
E-
Com/Payment/Fin
ance
JD,JD Finance
E-Commerce & Payment
Ali,Ant Finance, Alipay
E-Com/Payment/Finance
Tenpay, Wechat Pay
Search
Engine
Platform
SmartPhone:
XIAOMI
SC
Shenzhen
Guangzhou
Dongguan
EC
Shanghai
Hangzhou
MC
Wuhan
WC
Chengdu
Chongqing
NC
Beijing
I ter et Co pa y’s Area Base By Sectors and Cities-10Bn Level Platform
Security,
Software Tool
Top 3 Internet
Video Platform
News Feed
& Portal
O2O
Life Service
AI/Autonomous
Driving
O2O
Life Service
SC
Shenzhen
Guangzhou
Dongguan
EC
Shanghai
Hangzhou
MC
Wuhan
WC
Chengdu
Chongqing
NC
Beijing
I ter et Co pa y’s Area Base By Sectors and Cities- Bn Level
Training &
Educaiton
Independent
Internet
Finance
Live Video
App
Live Video
App
Live Video
App
Mobile
Game
Training &
Educaiton
Independent
Internet
Finance
CHINA
Beijing vs Bay Area,ZGC vs. SV
USA
Beijing
Zhongguancun (ZGC)
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,
1, Going-out Stage
China to Offshore 2, Inviting-in Stage
Offshore to China
Offshore
Inno
Center
(Space)
+ FoFs+
Venture
(Capital)
+
Offshore
Accelerator
(Connection
Servie)
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
ZGC, Top Leading GIE in China
7 Chi a’s lPO Nu ers Hit a Re ord High
2007 - 2017 Q3 Chinese enterprises both at home and abroad
124
76 99
347
281
154
0
125
219 227
352
118
37 77
129
75 47
66 96 89
64
20
0
100
200
300
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3Q
境内上市 境外上市
till Nov.:385
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
Israel Innovative Company China Mainland Market China Private Investment
Hong Kong Security Market
HK Se urity Market’s Pote tial for IL High Tech an New Economy Companies
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
E-Commerce Platform
Internet Payment Service
Communication Platform
Search Engine Platform
Car-Sharing Platform
Taking-away Service
News Feed
100 Billion USD
Platform
10 Billion USD
Platform Smartphone
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)
(Valuation > 1 Bn RMB)
China Unicorn Sector Distribution
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
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
Key Word of Future Opportunity
Artificial Intelligence: USA vs China
42% American 1078
23% China 592
Global 2542
The total amount of artificial intelligence start-ups in China and the United States
China and the United States Artificial intelligence Startup in Sectors
China American
Natural language Processing
Machine Learning
Computer Vision and Imaging
Technology platform
Smart Drone
Smart Robot
Autonomous Driving
AI Processor / Chip
Voice Recognition
Artificial Intelligence: Startup Sectors
BAT Investment Map: Finance and Automotive Transport as Main Battlefield
BAT investment in a wide range of areas, and there is a clear cross between each other, but also dabbled in foreign investment M & A.
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.
BAT Investment Map for the First Half of 2016
Tencent
Social Internet Game
Alibaba
Baidu
Tool software
Automotive Transportation Finance
Sports Enterprise
Local Life service Entertainment
Medical health E-commerce
Logistics
Tourism
Hardware
Real Estate Servie
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
AFTER NETS UNION BEFORE NETS UNION
其他第三方
TraderA TraderB TraderC
其他第三方
TraderA TraderB Trader C
China Nets Union
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
3rd Party Payment Service Alipay Tenpay Alipay Tenpay
Consumption Upgrade Opportunities on Internet Emerging
8.
9.5
23.3
24.5
26.6
36.7
36.7
37.6
58.1
0. 15. 30. 45. 60. 75.
Watch video with smart TV / box
Spend more money on digital products
Buy video members to see the play / movie
Personal Consuming Loas
Online takeaway
Mobile phone taxi / car rental
Cross Border Online Shoppings
Offline shoppingr mobile phone payment
Internet-based Consumption Sector Significantly Increased
58.1%
As of October 2016
Online Knowledge Paid Consuming: 8% Smart TV/Box: 9.5% Spend more money on digital products:23.3% Online Video Platform Membership:24.5% Personal Consuming Loans:26.6% Online Takeaway:36.7% Tax/Car Calling with Mobile Phone: 36.7% Cross-border Online Shopping:37.6% Offline Consumer Mobile Payment:58.1%
Top Content Maker Popular and Better Paid
Professor of Economics Beijing University
215104 Subscriptions, 6 million USD/year
BitCoin Early Player How to be Financial Free
Business Consultant Psychological Counselor
Professor of Management Tsinghua University 102344 Subscriptions, 3 million USD/year
Oversea Investment of BAT
0
18
35
53
70
2014First half 2014Second half 2015First half 2015Second half 2016First half 2016Second half 2017First half
Baidu Alibaba Tencent
Global Innovation
Changing
World