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Starting Up in China

elibildner
January 19, 2012

Starting Up in China

An overview of startups and the internet industry in China.

elibildner

January 19, 2012
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  1. STARTING UP IN CHINA ELI BILDNER PRESENTATION DELIVERED AT GENERAL

    ASSEMBLY IN NEW YORK CITY, JANUARY 9, 2012
  2. CONTENTS Why start-up in China? 1 system, 2, 3, 4

    countries Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A Introductions
  3. WHO AM I AND WHAT AM I DOING HERE? Fulbright

    research on SMEs in rural China Work for this foundation in Hong Kong Co-found Transi.st in Shanghai grow up in Montclair, NJ (go Cougars)
  4. Tech meets impact WHAT WE DO Seed investments and incubation

    of social enterprises, with focus on intersection of technology and social innovation Growing China’s top SEs A fellowship program for seed-stage Chinese social entrepreneurs, offering training, mentorship and investment opportunities
  5. Calvin Chin Bill Schoenfeld Scott Ballantyne WHO WE ARE !

    David Chen Simon Huang Eli Bildner Hi.
  6. FRONT MATTER The Chinese start-up scene...has a frenetic feel similar

    to those early dot-com boom days. “I’ve worked in Tokyo and in Silicon Valley during the dot-com bubble, and that was intense,” he said. “But it’s not even close.” -NY Times Dealbook
  7. “The pressure to take a job with a large prestigious

    company, or even the government, remains a big hurdle for startups by young Chinese professionals born as the only child of their aging parents. Americans, in contrast, live with the epic stories of Bill Gates, Steve Jobs and Mark Zuckerberg dropping out of college to chase their dreams and become billionaires of companies that literally changed the world.” - Frank Yu
  8. “China’s users are too busy enjoying the Internet they have,

    rather than lamenting the one they don’t.” - Andrew Lih
  9. (Source: Kaixin/Sinosplice/John Pasden) “WHAT CAN SAVE OUR COUNTRY?” Public poll

    posted on Kaixin (social network) after Wenzhou train crash in July 2011. Respondents could select up to five options, ranging from “equality” to “science & technology”. Just 1% of respondents select “the economy.” The response of 73% of those polled: There is no hope. I don’t want to save it anymore.
  10. Why start-up in China? 1 system, 2, 3, 4 countries

    Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A LARGEST Internet user base in the world DO NOT APPLY The same rules IT’S COMING Like it or not PROBLEMS We’ve got
  11. MEET CHINA Why start-up in China? 1 system, 2, 3,

    4 countries Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A (Eli Bildner 1/9/12)
  12. URBAN RURAL Beijing & Shanghai: 15-20% of jobs; ~2.5% of

    population Rural China 2001: 64% of population 2011: <50% of population (Source: McKinsey)
  13. PRE-R&O* POST-R&O Came of age during cultural revolution *”Reform &

    Openness” Prize stability; the “iron rice bowl” Parents of the 1- child policy Came of age in a new era The “Post-80s” vs. The “Post-90s” Children of the 1- child policy 4-2-1 generational structure
  14. HAVE-NOTS (Source: Adrian Fisk/Chinasmack) HAVES The real divider is not

    where you live, but how you live. China is one of the most economically inequitable places in the world. And in a connected world, everyone is striving for the same Stuff. Guo mei mei. “After I watch TV I have a lot of thoughts, but no way to realize them.”
  15. Why start-up in China? 1 system, 2, 3, 4 countries

    Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A ޓ联᠓ ≠ Internet
  16. World average: China: 5.6 MBS 1.8 MBS (and often much

    slower on foreign sites) (Source: Technode)
  17. ޓ联᠓ is booming 0 100 200 300 400 500 600

    2007 2008 2009 2010 2011 M users (Source: China Internet Watch)
  18. 1/2 of the population And yet, web users comprise less

    than (Source: China Internet Watch) Less than 10% of urban Chinese shopped online in 2006. In two years, nearly half will Q2 web revenue = 62.2B RMB 77.5% YoY surge
  19. ޓ联᠓ is young & active of Chinese internet users are

    between the age of 10-40 80% 80% of Chinese social network users are between the age of 20-34 18.7 average number of hours spent per day...and then there are the ᠓༑
  20. ޓ联᠓ was always 2.0 0% 25% 50% 75% 100% News

    Search Email Music IM Gaming Blog Ecommerce USA China (Sources: Google, CNNIC, iResearch, Calvin Chin)
  21. ޓ联᠓ was always 2.0 0% 25% 50% 75% 100% News

    Search Email Music IM Gaming Blog Ecommerce USA China (Sources: Google, CNNIC, iResearch, Calvin Chin) Web 2.0
  22. It’s just...different Activity US China Send or read email 92%

    55% Use a search engine 92% 84% Get news 76% 79% Use a social networking site 65% 50% Do online banking 61% 33% Play online games 36% 68% Send instant messages 46% 84% (Sources: China internet watch, Tech Rice, Pew)
  23. Why start-up in China? 1 system, 2, 3, 4 countries

    Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A ޓ联᠓ A Clicking Tour
  24. Search is where the internet begins for many in China,

    where some users have trouble typing due to a bothersome input method (“pinyin”). Baidu: 78% of China’s search market
  25. TAOBAO Taobao is one of China’s e- commerce kings, holding

    31% of the country’s B2C market. It also provides an example of how foreign companies can screw up royally in China: In 2003, EBay held 90% of China’s online auction market. Today, almost all of that belongs to Taobao. An ugly website? To American eyes, perhaps. But most Chinese would demur. In China, the mouse click is king.
  26. 10% of China’s B2C market. ...And a good example of

    how different a market China really is. Where else would a huge e- commerce site send you a confirmation email with the cell phone number and name of the deliveryman? Or allow you to pay by cash on delivery? 360Buy.com
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  33. “China only has one firm that is capable of becoming

    China's Facebook: Tencent. The two (Facebook and Tencent) may be dissimilar in outward appearance, but the core of each is closely related: the social graph.” - Keso
  34. SOLVE Why start-up in China? 1 system, 2, 3, 4

    countries Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A PROBLEMS You should startup in China if you want to
  35. FURTHER READING @ECSELfellows Tech Rice Technode China Internet Watch iChinaStocks

    Twitter Sinica podcast Michael Pettis/ Seeking Alpha the 5-year plan (KPMG series) Startup digests
  36. Eli Bildner [email protected] Why start-up in China? 1 system, 2,

    3, 4 countries Why ޓ联᠓ ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A ଟ྆ʂ