GLOBAL TECHNOLOGY TRENDS & STARTUP HUBS 2014!

From Silicon Valley to London To Seoul!

January 22, 2014

SparkLabs Global Ventures

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

General Technology Trends!

January 22, 2014

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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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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
(%) 18 15 12 9 6 3.0 3 0 2010 2011 IT 2012 2013F 2014F Axis Title OECD GDP 1.8 4.4 4.7 3.6 2.3 15.3 13.3 60% 44% 47% 45% 46% 44% 80% 32% 31% 33% 32% 33% 37%

Revenue breakdown by electronic devices (global)

100% 0% 0% 0% 2% 5% 8% 12%

15%

40%

43%

43%

40%

39%

35%

30%

28%

20% 24% 0% 2006 2007 TV 2008 PC 2009 2010 2011 2012 2013F 2014F Handset Tablet PC 22% 22% 22% 21% 18% 17% 15% 14%

1.4

1.2

Source: Gartner, SA, OECD, SparkLabs Global

Source: DisplaySearch, Gartner, SA, SparkLabs Global

January 22, 2014

SparkLabs Global Ventures

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

(20) 2008 2009 PC (-3.4%) 2010 LCD (5.4%) 2011 Handset 5.3%) 2012 2013F Home Appliances (3.0%) 2014F

Source: DisplaySearch, Gartner, SA, SparkLabs Global

January 22, 2014

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Mobile Industry Trends!

January 22, 2014

SparkLabs Global Ventures

Mobile Devices is Still the Major ! Demand Driver in 2014

1)! 2)! 3)! 4)!

Smartphone demand will continuously grow along with decreasing price

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
(%) 100 80 60 21 40 54 20 0 4 0 2006 6 0 2007 47 40 6 0 2008 38 9 0 2009 31 30 25 18 0 2010 19 1 2011 12 2012 26 14 2013F 22 42 42 38 35 1,500 22

Global handset/smartphone shipment & ASP

(Units mn) 2,000

48

53

54

51

51

1,000

27 16 2014F

500

0 2007 2008 2009 2010 2011 2012 2013F 2014F Global handset Global smartphone

Low($36-99)

Middle($100-190)

High($191-299)

Premium(over $300)

Source: Gartner, SA, OECD, SparkLabs Global

Source: Gartner, SA, OECD, SparkLabs Global

January 22, 2014

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Smartphone Market in 2013 & 2014

LTE smartphone penetration trends
(Unit mn)
500 400 28% 300 20% 200 100 0 2010 0% 2011 1% 2012 2013F LTE phone 2014F 13% 10% 0% 38% 40% 30% Sony, 2% Nokia, 1% Pantech, 4% Motorola, 5% HTC, 3% LG, 11% Samsung, 40% Others, 14%

Market share of LTE phone in 2013

Apple, 20%

Smartphone penetration by region

100% 80% 60% 40% 20% 0% North America Western Europe Asia Pacific Central & Central & Latin Eastern America Europe Africa Middle East

Smartphone penetration timeline

80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2012 2013F 2014F 60% 71%

Source: SA, SparkLabs Global

Source: SA, SparkLabs Global

January 22, 2014

SparkLabs Global Ventures

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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Startup Trends!

January 22, 2014

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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)
2% 4% 4% 6% 4% 27%

China new startups by category (2012)

1% E-commerce 3% Mobile web Social media 27% Web tools Games Multimedia 7% Media/Information Web sales 9% Search engines Blogs/Forums 13% 25% Payment/Donation NGOs Other

Mobile Personal Social Marketing Shopping Social Personal Kids Education

2% 3% 4% 5%

0% 1%

8%

13%

17%

Gaming Travel Health

15%

Source: Media, SparkLabs Global

Source: Media, SparkLabs Global

January 22, 2014

SparkLabs Global Ventures

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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 14.20% 4.50% 31.90% 5.30% 3.80% 6% Industrial Electronics Consumer product and services Services 13.30% 20.90% Others 16.6 18.7 Healthcare Mobile & telecom 3.1 10.4

Internet Healthcare Mobile & telecom Software(non-internet/ mobile) Industrial Consumer products & services Energy & utilities Others

4.1 4.1 6.2 36.8

Source: Media, SparkLabs Global

Source: Media, SparkLabs Global

January 22, 2014

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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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Global Startup Hubs!

January 22, 2014

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GLOBAL HUBS!

Stockholm Silicon Valley New York London Berlin

Beijing Tel Aviv Seoul

January 22, 2014

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DEFINITION!
What denes a leading global startup hub?!

! Engineering Talent! ! Entrepreneurs / Mentors! ! Technical Infrastructure! ! Funding Ecosystem & Exits!

! Startup Culture! ! Legal & Policy Infrastructure! ! Economic Foundation! ! Government Policies & Programs!

January 22, 2014

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GLOBAL HUBS!
Population of Top 8 ! Global Startup Hubs! ! ! ! ! ! ! ! !
*population by metro area!

1.! Silicon Valley

7.1 Million

2.! New York City

19.8 Million 13.6 Million 2.1 Million

3.! London

4.! Stockholm 5.! Berlin

4.2 Million 3.4 Million

6.! Tel Aviv 7.! Beijing 8.! Seoul

19.3 Million 25.7 Million

January 22, 2014

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SILICON VALLEY!
Startup Snapshots of Silicon Valley

January 22, 2014

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NEW YORK CITY!

Startup Snapshots of Silicon Alley
"

January 22, 2014

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LONDON!
Startup Snapshots of London
"

January 22, 2014

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STOCKHOLM!
Startup Snapshots of Stockholm
"

January 22, 2014

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BERLIN!
Startup Snapshots of Berlin
"

6Wunderkinder

January 22, 2014

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TEL AVIV!
Startup Snapshots of Tel Aviv
"

January 22, 2014

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BEIJING!
Startup Snapshots of Beijing
"
Kaixin001

January 22, 2014

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SEOUL!
Startup Snapshots of Seoul
"

January 22, 2014

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Thank you!!
!

www.sparklabsglobal.com!

January 22, 2014

SparkLabs Global Ventures

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