Provides an overview of general technology and startup trends around the world. Snapshots of Silicon Valley, NYC, London, Stockholm, Berlin, Tel Aviv, Beijing and Seoul.
1. GLOBAL TECHNOLOGY TRENDS &
STARTUP HUBS 2014
From Silicon Valley to London To Seoul
January 22, 2014
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2. CONTENT
• General Technology Trends
• Mobile Industry Trends
• Startup Trends
• Global Startup Hubs
• Startup Snapshots of Global Hubs : Silicon Valley,
NYC, London, Stockholm, Berlin, Tel Aviv, Beijing, and Seoul.
January 22, 2014
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4. Continuing Evolution of Technology
Hot Trends at CES 2014
Bendable UHD TV
Smart cars
Wearable devices
Curved OLED TV
Smart watch
Internet of Everything
January 22, 2014
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5. Global IT Industry Growth Exceeding
OECD GDP Growth in 2014
• IT industry is expected to grow 4.7% and 3.6% in 2013 and 2014 respectively
• Mobile devices are recovering the slow demand of PCs and TVs
IT industry market growth VS OECD GDP growth
Revenue breakdown by electronic devices (global)
(%)
100%
0%
0%
0%
31%
33%
32%
2%
5%
18
80%
15.3
15
32%
33%
37%
13.3
12
8%
40%
12%
43%
60%
9
4.7
4.4
6
3.0
1.8
3
40%
1.2
1.4
3.6
2.3
44%
47%
45%
46%
44%
39%
35%
15%
43%
30%
28%
15%
14%
20%
24%
22%
22%
22%
21%
18%
17%
2006
2007
2008
2009
2010
2011
2012
0%
0
2010
2011
2012
IT
2014F
Axis Title
OECD GDP
Source: Gartner, SA, OECD, SparkLabs Global
January 22, 2014
2013F
TV
PC
Handset
2013F 2014F
Tablet PC
Source: DisplaySearch, Gartner, SA, SparkLabs Global
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6. Annual Demand Growth of IT
• Global PC and TV demand will show a small recovery in 2014
• Major IT products demand growth: PC -9.8%(2013) → -3.4%(2014F), LCD TV 1.0% →
5.4%, Home appliances 3.0% → 3.0%
• Global mobile phone demand growth will increase from 3.6% in 2013 to 5.3% in 2014
Demand growth of major IT categories
(%)
40
20
0
(20)
2008
2009
PC (-3.4%)
2010
LCD (5.4%)
2011
Handset 5.3%)
2012
2013F
2014F
Home Appliances (3.0%)
Source: DisplaySearch, Gartner, SA, SparkLabs Global
January 22, 2014
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8. Mobile Devices is Still the Major
Demand Driver in 2014
Smartphone demand will continuously grow along with decreasing price
1)
2)
3)
4)
Smartphone penetration still remains below 60% in emerging markets (Latin America, Asia, Middle East)
LTE smartphone penetration hovers below 30%
Replacement demand for feature phone users are accelerating
The estimate-beating demand for mobile payment, shopping and banking services.
Global smartphone shipments are expected to grow 24% YoY to 1.2 billion units and
the penetration is expected to reach 71% in 2014.
Global smartphone market breakdown by price range
(Units mn)
(%)
100
80
2,000
42
48
53
54
51
38
35
22
22
1,000
25
51
26
27
500
12
14
16
0
2012
2013F
2014F
42
60
21
40
31
30
54
47
40
38
4
0
2006
6
0
2007
6
0
2008
9
18
19
0
2009
0
2010
1
2011
20
0
Global handset/smartphone shipment & ASP
Low($36-99)
Middle($100-190)
High($191-299)
Source: Gartner, SA, OECD, SparkLabs Global
January 22, 2014
1,500
2007
2008
2009
2010
Global handset
Premium(over $300)
2011
2012
2013F
2014F
Global smartphone
Source: Gartner, SA, OECD, SparkLabs Global
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9. Smartphone Market in 2013 & 2014
LTE smartphone penetration trends
Market share of LTE phone in 2013
(Unit mn)
500
38%
Sony, 2%
40%
Others, 14%
Nokia, 1%
400
30%
28%
Pantech, 4%
300
200
HTC, 3%
13%
10%
100
1%
0%
0
2010
2011
Samsung,
40%
Motorola,
5%
20%
LG, 11%
0%
2012
2013F
LTE phone
Apple, 20%
2014F
Smartphone penetration by region
Smartphone penetration timeline
100%
80%
71%
70%
80%
60%
60%
60%
50%
40%
40%
20%
30%
0%
20%
North
America
Western
Europe
Asia
Pacific
Central & Central &
Latin
Eastern
America Europe
Africa
Middle
East
10%
0%
2007
Source: SA, SparkLabs Global
January 22, 2014
2008
2009
2010
2011
2012
2013F 2014F
Source: SA, SparkLabs Global
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10. Mobile Application Growth
• Usage of mobile application is accelerating along with increased consumption of
smartphones
• The chart below shows the growth in events tracked since May of 2008, which reflects
the growth of the app economy
• App usage steadily increases over the course of the day and ultimately peaks in the
evening unlike TV which remains low then has a dramatic jump in the evening
Worldwide mobile application events (billion)
Average time spent on iOS devices (U.S. only)
Source: Flurry Analytics
Source: Flurry Analytics
January 22, 2014
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12. New Startups by Category (U.S. & China)
• Charts below shows category breakdown of new startups in U.S. and China in 2012
• Mobile category took the largest percentage in U.S. startup market and second
largest percentage in China market in 2012
U.S. new startups by category (2012)
1%
2%
4%
Mobile
4%
4%
China new startups by category (2012)
2%
Personal
27%
6%
3%
Social Marketing
4%
Shopping
Social Personal
8%
E-commerce
0%
1%
Mobile web
3%
Social media
27%
5%
Games
Multimedia
7%
Media/Information
Kids
Education
13%
17%
15%
Web sales
9%
Search engines
Blogs/Forums
Gaming
13%
Travel
Health
Source: Media, SparkLabs Global
January 22, 2014
Web tools
25%
Payment/Donation
NGOs
Other
Source: Media, SparkLabs Global
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13. Investment in Mobile Companies Increases
• Charts below shows category breakdown of U.S. angel investment
• Internet and mobile sector increased by 4.9% and 3.3% respectively from end of 2012
to 3Q13, while healthcare sector decreased by 2.2% in the same period
U.S. angel investment trend in 2012
U.S. angel investment trend in 3Q13
Internet
Healthcare
14.20%
4.50%
Internet
3.1
Mobile & telecom
5.30%
Electronics
3.80%
Healthcare
4.1
31.90%
Industrial
10.4
36.8
4.1
Software(non-internet/
mobile)
6.2
Industrial
Consumer product
and services
6%
Services
13.30%
20.90%
Mobile & telecom
Consumer products &
services
16.6
Energy & utilities
Others
18.7
Others
Source: Media, SparkLabs Global
January 22, 2014
Source: Media, SparkLabs Global
SparkLabs Global Ventures
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14. Seed Deals Receiving Next Funding
• Companies receiving seed financing exclusively from Seed VC funds are almost half as likely to
raise follow-on financing as those raising seed financing from larger VC funds
• In the graph below, Seed VC investments or those seed investments in which a VC participated
had a higher rate of receiving follow-on investment than seed investments which were strictly
participated in by angel investors
• For seed rounds with VC participation, the rate at which companies received follow-on
investment was 46.7% while seed rounds comprised only of angels had follow-on rates of 35.4%
Percentage of Seed Deals Receiving Follow On
Follow-on Investment Rate in Seed VC Investments
by Investor type
Source: CB Insights
Source: CB Insights
January 22, 2014
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17. DEFINITION
What defines a leading global
startup hub?
• Engineering Talent
• Startup Culture
• Entrepreneurs / Mentors
• Legal & Policy Infrastructure
• Technical Infrastructure
• Economic Foundation
• Funding Ecosystem & Exits
• Government Policies & Programs
January 22, 2014
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18. GLOBAL HUBS
Population of Top 8
Global Startup Hubs
1. Silicon Valley
7.1 Million
2. New York City
19.8 Million
3. London
13.6 Million
4. Stockholm
2.1 Million
5. Berlin
4.2 Million
6. Tel Aviv
3.4 Million
7. Beijing
19.3 Million
8. Seoul
25.7 Million
*population by metro area
January 22, 2014
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