Startupbootcamp China Industry Report 2018

One Glance at China01
02
03
04
Future of China
Opportunities and Challenges for
Foreign Startups
China Startup Ecosystem
05 Future Key Industries
Contents

ONE
One Glance at ChinaFirst Impression of China
“Big” Data in China
China Economic Growth

First Impression of China
The world’s largest population: 1.404 billion
people
The third largest geographical area: 9.6 million
sq km
CHINA

Internet
Infrastructure
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.
Internet
Resource
Source: CNNIC “41th, Statistical report on the development of China Internet network”

• 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

Ali 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.

• 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.

Chinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries

TWO
Future of ChinaChina’s Future Direction
Digital China
Manufacture China
Green China
Open-up China
Innovation China
Aging China
Rural Areas’ Urbanization

China’s Future Direction
China 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 China
China’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 China
Made 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 China
Sustainable 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 for
two strategic emerging industries: new energy vehicles and
advanced energy-saving technologies and equipment.

Open-up China
One 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 China
Re-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 China
Future Top Technologies: Cloud, IoT, Big Data, AI, BlockChain
“
AI
IoT
(Internet of Things)
Cloud /
Edge Computing
BIG
DATA
Big
Data
BlockChain
“When the Demographic Dividend is gone, here comes
the Dividend of Technology.
——Baidu CEO,
Robin Li

Aging China
China 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 China
Health 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 0
1 5
2 0
2 0
2 0
30
2 0
1 5
2 0
2 0
2 0
30
2 0
1 5
2 0
2 0
2 0
30
2 0
1 5
2 0
2 0
2 0
30
2 0
1 5
2 0
2 0
2 0
30
19.1
2013
↓10％t
han2015
↓30％
than2015
2.2 2.5 3.0
29.3
About
28
About
25
—— >8 16
10 20 30
3.6
2014
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’ Urbanization
The 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

THREE
Opportunities & 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 Capacity
Second 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
2016
Source: eMarketer, Aug 2016

Consumption Growth
China will add nearly $2 trillion in new
consumption by 2021

Consumption Upgrade
Consumption 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 Investment
Investors 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 Profiles
Chinese 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 trends
Source: 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 Behavior
Consumer 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
ChinaSpeed
In 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 Environment
Inconsistent 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%
laws
58%
laws
37%
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%
employees
29%
employees
35%
employees
37%
employees
42%
Difficulty obtaining
required licenses
29%
Increasing Chinese
protectionism
32%
required licenses
26%
Corruption
30%
management
31%
management
32%
employees
29%
management
30%
Corruption
26%
management
30%
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

FOUR
China Startup EcosystemVenture Capital in China
Startups in China
Typical 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 VCs
Venture 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 Activity
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 IPOs
Until Q3 2017, 98 Chinese
VC-backed companies went
public, raising $7.9 billion.

Startups in China
The newly funded startups in Chinese provinces(2017 H1)

The hottest sectors sought after by entrepreneurs
Startups in China

Listed in the 20 most high-tech cities in the world
China 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 Ecosystem
China 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
”

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” Campaign
China 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.

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

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

A hub Of
original equipment
manufacturers (OEM)
A world-class
Hardware
Maker
An
Innovation
Hub of software
Shenzhen— 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.

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

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

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

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.

FIVE
Future Key Industries in China
Digital Health
Agri-food Tech
Smart Manufacturing
Clean Tech
Ed Tech

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 Revolution
Digital 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. Stroke
2. Ischemic heart disease
3. Road traffic injury
4. Lung cancer
5. COPD
6. Liver cancer
7. Gastric cancer
8. Alzheimer's disease
9. Suicide
10. 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 million
3. 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 industry
Digital 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 80
115
366
721
689
324
6,714 3,771 4,904
13,275
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
M
edicalInform
atizationM
edicine
Com
m
unity-oriented
Prim
aryCare
M
edicalEquipm
entSales
M
edicalEquipm
ent
Consum
ptive
M
edical
Treatm
ent
M
edicalScience
And
Technology
Big
H
ealth
M
edicalFinance
M
edicalTools
Rehabilitation
N
ursing
Seek
M
edicalAdvice
M
aternalPregnancy
M
edicalSupport
Circulation
Channel
Subdivisions
The 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

Biosensorix
Point of care and quantitative diagnostics tool
Startupbootcamp Alumni - Biosensorix
Digital Health

We Doctor
Online platform connecting connecting patients and doctors together
Notable Chinese Startup – We Doctor
Digital Health

Beyond 2030, the negative impacts of climate change on agricultural yields will
become increasingly severe in all regions.
Agri-Food Tech
The 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 innovation
Agri-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 Issue
Agri-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 importedfoods most representative of
healthy foods in China (Euromonitor, 2016).
No Artificial Additives Organic Ingredients Low Calorie Slimming Effect
Chinese Customer consumption habits are changing
Agri-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 consumption
Agri-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 Enablers
Agri-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
Agri-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 innovation
Agri-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 innovation
Agri-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 investment
The amount of investment
The growth rate of investment number
The growth rate of investment
amount
8,772
11,401
14,574
19,062
22,774
29％
30％ 28％ 31％
19％
91
40.97
68
44.48
108
72.72
272
183.81 189
167,74
-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
Logistics
Processing
Production
Agricultural
Materials Supply
Support Service
Whole Industry Chain
Agricultural Products Sales
Agricultural Products Logistics
Agricultural Products Processing
Production
Agricultural Materials
Supply
China’s Agricultural Investment Trend
2015 2016 2017H1
Agri-Food Tech

Capital
Consumers
Agricultural Materials Supply
Production
Agricultural Materials Chain
E-commerce
Production
Crop Planting
Animal Breeding
Fishery Production
Forestry Production
Processing
Grain 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 Sales
Comprehensive
E-commerce
Fresh Food
E-commerc
e
Supermarket
Chain
Fresh Food
Chain
Food chain
Convenienc
e Store
New Retail
Restauran
t
Agricultural Products’ Whole Industrial Chain
Support Service
Agricultural 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
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
E-commerce
Platform E-commerce
Vertical E-commerce
O2O E-commerce
Direct Supply From Origins
Offline Brand
Material Distribution
Smart Agricultural
Production
IoT(internet Of Things)
Big Data
Ai(artificial Intelligence)
Agricultural Technology
Services
Drone
Intelligent Tracing
Services
Diversification
Financial Service
Training Services
System Service
Information Service
Data Service
Marketing Service
Talent Service
Industrial Ecological
System
Agriculture + Leisure Tourism
Agriculture + Real Estate
Agriculture + Pension
Agriculture + Health
Agriculture + Environmental
Protection
Agriculture + Cultural Creativity
China Agriculture will develop in 4 core directions in the future
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
Eskesso
Smart sous vide cooking appliance and cloud platform
Startupbootcamp Alumni - Eskesso
Agri-Food Tech

Ele.me
Online platform to order take-out
Notable Chinese Startup – ele.me
Agri-Food Tech

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 intelligence
Fast integration and
flexible configuration
Open standards Virtual real-time
representation
Digital life-cycle
management
Secure value-creation
networks
Smart Manufacturing’s Features
Smart 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 Dividend
Smart 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 Manufacturers
Software Vendors &
3rd-Party Integrators Customers
Benefits of Smart Manufacturing
Smart Manufacturing

Source: CBINSIGHTS, Advanced manufacturing trends
Manufacturing + Technology is taking in 2017
Smart 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
Smart Manufacturing

Smart Manufacturing is inevitable for industrial countries to realize Manufacturing Upgrade.
US
Re-industrializatio
n Strategy
Germany
Industry 4.0
EU
Factories of the
Future
India
Make 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 Upgrade
Smart 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 Manufacturing
Smart 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 Size
Smart Manufacturing

ThingTrax
Connect your machines, motors, tools and labor in minutes
Startupbootcamp Alumni - ThingTrax
Smart Manufacturing

Top-Level
Design
System
Integration
Intelligent
Factory
HuaZhi
A globalized smart manufacturing solution provider and system integrator
Notable Chinese Startup- HuaZhi
Smart Manufacturing

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 Technology
Clean Tech

Source: CBINSIGHTS, Renewable energy & the rise of solar
Revived Interest In Renewables
Clean Tech

Countries with clean energy policies implemented
Clean Tech

After years of growth, VC investment in cleantech companies has been on the decline
Global funding trend
Clean 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 Policies
Clean 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 Trend
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 Potential
Clean 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 Trends
Clean Tech

Tespack
Charge your mobile devices directly from sun
Startupbootcamp Alumni - Tespack
Clean Tech

NIO
High performance intelligent electric SUV (7 pedestal)
Raised $1700 million in 2017
Notable Chinese Startup - NIO
Clean 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 Tech
The 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.
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
Publishers
Digital Courseware
Research & Scientific
Ed Management Tech
Student Management
Systems
Faculty
Administration
Student Financing
Enrolments &
Admissions
Learning Management
Systems
Social Platforms
Artificial Intelligence
VR/AR
Robotics
Games & Simulation
Early Childhood
Personalised Learning
Proprietary Campus &
Online
Open Online
Language
Hiring
Internships
LEARNING DESIGN
AND MANAGEMENT
STUDENT LIFECYCLE
CREATE MANAGE CREDENTIALDISCOVER CONNECT EXPERIENCE LEARN ADVANCE
Testing & Assessment
Badging & Credentialing
Source: NAVITAS Ventures
Startup Landscape
Ed 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 Size
Ed 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
*K12 : Kindergartden to 12th Grade
Future Major Growth Points
Ed 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
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
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
Ed Tech

IPO
The total amount of
mergers and acquisitions
(M&As) increased by 165
percent year on year.
M&A
IPOs 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
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, 2017
Source: 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 Landscape
Ed Tech

Focus EDU
Focus EDU is the world's first
integrated classroom system that
improves education outcomes
through real-time attention level
reports.
Startupbootcamp Alumni - BrainCo
Ed Tech

Vipkid
Online 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 - Vipkid
Ed Tech

136
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Startupbootcamp China Industry Report 2018

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Startupbootcamp China Industry Report 2018