Food Energy Resources Connectivity Mobility Efficiency Food - As demand for protein products like meat and dairy increases, with more computing power than PCs during Y2K; combined with connectivity, it is truly a game-changer. Mobility and connectivity allows for rapid decision making, accelerated product development, and a consumer base that can shop from anywhere. Energy - From our food supply to our transportation network, Connectivity - From the moment a renowned politician invented the
www.summitcreekcapital.com • 208.928.7500 • [email protected]Energy Connectivity Resources Efficiency Mobility Demand Food This Venn Diagram encompasses the themes that we see as important drivers of growth and productivity in the world economy for years to come. It is laid out so that each theme intersects with every other theme, in any combination. While there are compelling “pure play” stories in every theme, it is the intersections between these big ideas that are intriguing. By filtering a company through these themes, a clearer picture is formed of how that company relates to the evolving global marketplace.
This Venn Diagram encompasses the themes that we see as important drivers of growth and productivity in the world economy for years to
come. It is laid out so that each theme intersects with every other theme, in any combination.
While there are compelling “pure play” stories in every theme, it is the intersections between
these big ideas that are intriguing. By filtering a company through these themes, a clearer picture
is formed of how that company relates to the evolving global marketplace.
summit creek capital
Energy - From our food supply to our transportation network, from the way we communicate to the clothes we wear, energy is the common theme. And, as a theme, it will continue to drive investment and innovation.
Demand - A generational shift is occurring as the developed world hands off the baton of the world’s consumer to the developing, global middle class. Investing in newly minted consumers is a theme that will drive investments for the foreseeable future.
Connectivity - From the moment a renowned politician invented the interwebs, the planet has become more and more connected. As such, we expect the connectivity theme to accelerate future growth. The possibility for business, customers and clients to interact in a connected world creates opportunities at every level of society and economic development.
Resources - Humans have always been dependent on the Earth’s resources. There will be enormous opportunities in the way we account for and use our resources, especially as essential resource needs become scarce and new resources see increased demand.
Food - As demand for protein products like meat and dairy increases, there is an even larger increase in demand for grains and arable land. In that light, feeding an ever larger global population is one of the themes that we believe will be more important in years to come.
Efficiency - Necessity is a mother, it has been said. Take a global financial crisis, add some technology and BAM! Efficiencies are created. Corporations and consumers both do more with less. Energy efficiency is discussed in every corner of the physical world. Investing in efficiency will continue to be one of Summit Creek’s focal points in years to come.
Mobility - We now have internet access available on mobile devices with more computing power than PCs during Y2K; combined with connectivity, it is truly a game-changer. Mobility and connectivity allows for rapid decision making, accelerated product development, and a consumer base that can shop from anywhere.
Before the Global Financial Crisis spawned buzzwords like the ‘new normal,’ there was an entire subset of buzzwords regarding the shifting economic paradigm. Acronyms, new words, and phrases such as ‘BRIC,’ ‘Chindia,’ ‘emerging markets,’ ‘developing economies,’ and ‘globalization’ were tossed around in the media with increasing frequency. The phenomena that these terms refer to is the economic growth of a group of countries that were once considered ‘third world.’ Countries such as Brazil, China, India, Indonesia, Malaysia, and Russia, are experiencing growth rates that are far in excess of their larger counterparts in the ‘developed’ world. A generational shift is occurring as the developed world hands off the baton of the world’s consumer to the developing, global middle class. Investing in newly minted consumers is a theme that will drive growth for the foreseeable future.
urban population is expected to double between
2000 & 2030***
of urban population growth will take place in the developing world***
BET WEEN
2007 & 2009 consumption in emerging m a r k e t s
SURPASSED U.S.consumpt ion FOR THE FIRST TIME*
Demand100 Years agoless than 5% of the world’spopulation lived in Cities****
NOW50.5%
live in Cities
NOW50.5%
Women account for 85% of all consumer purchases - everything from autos to health care.**
Food + ResouRces: center pivot irrigation increases water efficiency 40-90% versus flood irrigation, yet 90% of the world’s farmland is flood irrigated.
Efficiencies are created as all the themes interact with one another.
Corporations become more efficient, doing more with fewer employees. Consumers become more efficient, ditching landlines, computers, TVs, and video game consoles for smartphones. When smartphones met e-commerce, the excitement spawned m-commerce, the global marketplace in your pocket. Price checking has never been easier. Nor has growing a small business: start from the ground up, and extend to the cloud. Cloud computing has created operational efficiencies for companies of all sizes, but as server farms grow larger, their proprietors are seeking to become more energy efficient. Energy efficiency discussions extend to appliances, buildings, power grids, server farms,vehicles and pretty much all corners of the physical world.
Investing in efficiency will continue to be one of Summit Creek’s
focal points in years to come.
Food + eneRgy + ResouRces:
LED lights and temperature-controlled
rooms allow for agricultural products to be grown
in cities, reducing transportation costs and
water usage.
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Efficiency
eneRgy + ResouRces + connectivity: Smart Grid: Monitoring and
Metering consumption of electricity, fuel, and water to better balance
usage and define chokepoints.
eneRgy + connectivity + RESouRcES + MobiLity + FooD: allowing farmers to turn off irrigation pumps during peak hours from a smartphone; reducing their energy bill and reducing peak power prices. (m2m communications)
MobiLity + connEctivity: making a 1 click purchase
from the ski lift of the book that was recommended by the guy sitting next to you
on the lift chair.
$16.99
( 15% less and just
one mile away)
72%2009 vs 2010
smartphone salesup 72% compared 2009
Mobility
Price checking has never been easier
of purchases are already made using a mobile device.
according to ATT, Aug 26,2010
2011
2010 67 million units
95 million units
Expected Growth of Smartphones in Units
*Gartner
*Gartner
TOTAL MOBILE DEVICE SALES IN 2010 1.6 Billion
*Gartner
We’ve reached a tipping point in the last few years. We’ve had the internet for awhile now. We’ve also had cell phones for long enough that most of us can remember a briefcase-sized box with a shoulderstrap that you could talk on. And computers have been around since World War II. But, for the first time, internet access is available on a mobile device that has more computing power than PCs during Y2K, weighs less than a quarter-pounder with fries, and you can talk (or video conference) on it to boot. This always available computing power is a modern marvel, but combined with Connectivity, is truly a game-changer. Being mobile and connected allows for rapid decision making, accelerated product development, and a consumer base that can shop from anywhere.
I’m sure there’s an app for that
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With barcode scanning apps, you can use your phone to instantly compare prices with other merchants while on-the-go. Apps enable you to compare products across physical and ecommerce merchants, optimizing the shopping experience.
RESULTS
?
fivebillion
sixbillion
seven billion
eight billion
four billion
three billion
2-5 million years 7000 B.C. 6000 B.C. 5000 B.C. 4000 B.C. 3000 B.C. 2000 B.C. 1000 B.C. AD 1000 A.D.
Billi
ons
of P
eopl
e
two billion
sources: * Russian Wildfires Highlight the Global Population Growth-Food Supply Conundrum, by Matthew Weinschenk** http://www.investmentu.com/2010/June/the-worlds-biggest-food-fight.html*** Is Agriculture Depleting Our Water Supply On Purpose? by Tony D’Altorio, Investment U Research**** www.impactus.org
New Stone Age
commences
New Stone Age
BronzeAge
IronAge
Mod
ern
Age
Middle Ages
With more people, it means we’ll need to produce more food in the next 50 years than we’ve produced in the past 10,000 years combined.****
global water requirements are likely to rise at least 40% more than the current accessible & reliable supply.***
by 2030
It took 123 years for the world to go from one billion people to two billion (in 1930).*
It took only 12 years to go from five billion to six billion people (in 1999).*
It’s expected that by 2050, the global population will hit nine billion.*
Global Population Growth
Just 13.31% of global land area is considered arable*
The Black Death - The Plague
8 Billion = 8,000,000,000Human beings, when it comes down to it, have few basic necessities: Food, water, shelter, and connectivity with others. Overlay life, liberty, and the
pursuit of happiness, and necessities morph into luxuries. Producing enough food to feed an ever increasing population, with ever increasing standards of living, is a necessity. As demand for protein like meat and dairy products increases there is an even larger increase in demand for grains and arable land. In that light, Agriculture is one of the themes that we believe will be more important in years to come.
Food
The other three BRIC nations Russia, India & China forecast notching up their growth by 26%, 21% and 26% through 2019**
Brazil leads the pack, with growth of more than 40% through 2019.**
A g R I C u l T u R e
B R I C
Agriculture accounts for about 70% of all global water usage
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2030 A.D.
of us are already in the cloud
picasa, facebook, salesforce.com
The Daily Deal
$6 Billion by 2015 **
Spending on U.S. daily deals could soar as much as $3.9 billion in the next four years, which seems a little conservative based on the figures known about the largest players in the space.
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Connectivity
World Wide
SOCIALMEDIA
47 INSTANT MESSAGES SENT
PER DAY IN 2009
BILLION
InternetDatingThe online dating industry
is now worth $4 billion worldwide.
From the moment a renowned politician invented the interwebs, the planet has become more and more connected. Communication methods vary: broadband, clouds, fiber optics, smartphones, smartgrids, and wireless, but the end result is the same: information surrounds us. Connectivity will continue to redefine and reshape our lives, from the way we meet people to the way we manufacture goods to the way we shop for goods. New industries, currencies, and communities are being developed at an ever quickening pace; as are security issues, border disputes and trade wars. As such, we expect the connectivity theme to drive growth and innovation for the foreseeable future.
In 2010, 3 million tablets were connected to the mobile network, and each tablet generated 5
times more traffic than the average smartphone.
to Quadruple from 2009-2014Internet Traffic
www.cisco.com
copp
er in
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ions
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ons
year
~5
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~.2
5
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1980 1990 2000 2008
copp
er in
mill
ions
of t
ons
year1980 1990 2000 2008
U.S
.A.
Rest
of t
he W
orld
U.S
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.A.
U.S
.A.
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orld
Rest
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he W
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> 2
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Resourcesbrought to you by www.summitcreekcapital.com
China is the world’s leading user of refined copper. The booming economy in China contributed to a tripling of its annual refined copper consumption during the 8 years from 1999 to 2007.
COPPERconsumption
One bARRel Of Oil eqUAlS AppROximATely
520 pounds of coal
725 pounds of oven dried wood
580 cubic feet of natural gas
19 gallons of motor gasoline
Average water use per person per day (liters)***Top 5
2. Australia
3. Italy
4. Japan
1. US
5. Mexico
575
493
386
374
366
less than 2% of the earth’s water supply is fresh water. Of that, only 1% is available for drinking water.***
The average car contains nearly one mile of copper wire*
Humans have always been dependent on the Earth’s resources. Some of those resource dependencies have developed as trade and
commerce grew; coal and oil were not extremely useful before the industrial revolution. Others have never been excessively useful, but have captivated our attention for millenia (one shiny yellow metal, in particular, comes to mind). Still others, like water, have been taken for granted; regarded as free, misuse and overuse have been commonplace. Though mispricings are frequent, the laws of supply and demand hold strong for resources. There will be enormous opportunities in the way we account for and use our resources, especially as essential resource needs become scarce and new resources see increased demand. Resources have increasingly become viewed as national security issues: dependence
on foreign oil has been cited as a funding source for terrorism; bottlenecks in the supply of rare earth elements threaten developed economies around the world.
China produces & exports 95 % of rare earth elements.****
95%
EnergyFrom mitosis to manufacturing, our world is shaped by energy. Oil has had a good run as the king of energy, and though its reign will continue for decades more, the realization that it is a finite resource with some severe social and environmental side effects has spurred research into alternatives. Charlie Munger once said “I never miss an opportunity to NOT install solar systems, because I think they’re going to get cheaper. I’m not worried about what comes after oil, because solutions are on the horizon.”
References to a paradigm shift have become common in mainstream media; have you heard of the United States referred to as the ‘Saudi Arabia of Wind’ or the ‘Saudi Arabia of Natural Gas?’
From our food supply to our transportation network, from the way we communicate to the clothes we wear, energy is the common theme. And, as a theme, it will continue to drive investment and innovation.
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oil
coal
Nat
ural
Gas
Nuc
lear
Hyd
ro
34.30%
30.46%
23.41%
5.36%6.47%
Global Energy Use by Source 2010 (estimate) www.gregor.us
Wind was the 2nd largest US energy resource added for the 5th straight year.
10 GW of wind power added in 2009, bringing total to ~35 GW www1.eere.energy.gov
