SILICON VALLEY Startup Snapshots of Global Technology Trends & Startup Hubs 2014

GLOBAL TECHNOLOGY TRENDS & STARTUP HUBS 2014 From Silicon Valley to London To Seoul January 22, 2014 SparkLabs Global Ventures 1

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 SparkLabs Global Ventures 2

General Technology Trends January 22, 2014 SparkLabs Global Ventures 3

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 SparkLabs Global Ventures 4

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 SparkLabs Global Ventures 5

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 SparkLabs Global Ventures 6

Mobile Industry Trends January 22, 2014 SparkLabs Global Ventures 7

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 SparkLabs Global Ventures 8

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 SparkLabs Global Ventures 9

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 SparkLabs Global Ventures 10

Startup Trends January 22, 2014 SparkLabs Global Ventures 11

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 SparkLabs Global Ventures 12

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 13

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 SparkLabs Global Ventures 14

Global Startup Hubs January 22, 2014 SparkLabs Global Ventures 15

GLOBAL HUBS Stockholm London Silicon Valley New York January 22, 2014 Berlin Beijing Tel Aviv SparkLabs Global Ventures Seoul 16

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 SparkLabs Global Ventures 17

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 SparkLabs Global Ventures 18

SILICON VALLEY Startup Snapshots of Silicon Valley January 22, 2014 SparkLabs Global Ventures 19

NEW YORK CITY Startup Snapshots of Silicon Alley   January 22, 2014 SparkLabs Global Ventures 20

LONDON Startup Snapshots of London   January 22, 2014 SparkLabs Global Ventures 21

STOCKHOLM Startup Snapshots of Stockholm   January 22, 2014 SparkLabs Global Ventures 22

BERLIN Startup Snapshots of Berlin   6Wunderkinder January 22, 2014 SparkLabs Global Ventures 23

TEL AVIV Startup Snapshots of Tel Aviv   January 22, 2014 SparkLabs Global Ventures 24

BEIJING Startup Snapshots of Beijing   Kaixin001 January 22, 2014 SparkLabs Global Ventures 25

SEOUL Startup Snapshots of Seoul   January 22, 2014 SparkLabs Global Ventures 26

Thank you! www.sparklabsglobal.com January 22, 2014 SparkLabs Global Ventures 27

SILICON VALLEY Startup Snapshots of Global Technology Trends & Startup Hubs 2014

Bernard Moon

SILICON VALLEY Startup Snapshots of