Investing in Women-Led Startups

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Investing in Women-Led Startups

Deborah Weinswig

Managing Director

deborahweinswig@fung1937.com

US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016

June 8, 2016

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AgendaABOUT US

OVERVIEW

DRIVERS FOR WOMEN-LED STARTUPS

CHALLENGES FOR WOMEN-LED STARTUPS

CASE STUDY: CHINA

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About Fung Group

TRADING LOGISTIC

S

DISTRIBUTIO

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RETAILING

Li & Fung LimitedListed on SEHK

Global Brands GroupListed on SEHK

Fung Retailing LimitedPrivately Held Entity

Convenience Retail

Asia Limited

Listed on SEHK

Trinity Limited

Listed on SEHK

Branded Lifestyle Holdings Limited

LiFung Kids (Holdings) Limited

Toyrs “R” Us (Asia)

Suhyang Networks

UCCAL Fashion Group

Privately Held Entities

Fung Holdings (1937) Ltd.

A privately held entity and major shareholder of the Fung Group

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About Fung Global

• Fung Global Retail & Technology advises retailers, real estate developers and tech companies on projects situated

at the intersection of retail, tech and/or fashion.

• Our team offers a robust knowledge bank and significant experience in the retail, fashion and tech fields. We are

involved in many areas of the business and believe this allows us to offer a unique perspective by focusing on the

future and where the sector is heading.

A Unique Combination of Retail, Fashion & Tech

RETAIL FASHIO

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TECH

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AgendaABOUT US

OVERVIEW

DRIVERS FOR WOMEN-LED STARTUPS

CHALLENGES FOR WOMEN-LED STARTUPS

CASE STUDY: CHINA

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Overview

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Global Overview & Regional Comparison

• Higher women early stage

entrepreneurship rates in developing

economies

• Lower early stage entrepreneurship

rates in developed countries

• Asia has a high concentration of female

entrepreneurship

• In North America, female TEA rate is

only 11%

Region Female

TEA Rate

Male

TEA Rate

F/M

Ratio

Africa 25 26 0.96

Asia & Oceania 14 15 0.93

Latin America& Caribbean 15 19 0.79

Europe 6 13 0.46

North America 11 16 0.69

Middle East 8 14 0.57

Europe 5 9 0.55

Total Early-stage Entrepreneurship Activity (TEA) Rate by Region and

Gender (% of Total Adult Population)

Total Early-stage Entrepreneurship Activity (TEA) rate, which

measures the percentage of the adult population (18 to 64 years) in

the process of starting a business and those who have recently

started one. Source: Babson College

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Our Accelerator Partnerships

ENTREPRENEURSROUNDTABLE

ACCELERATOR

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Our Accelerator Partnerships

Percentage of Women-Led Startups

ENTREPRENEURSROUNDTABLE

ACCELERATOR30% 100%

100% 15%

30% 30%

40% 100%

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NAME UR PRICE

SELF-CHECKOUT

EVANGELIZE THRIVE

EXPERIENTIAL RETAIL: MAKE THE STORE AN AWESOME PLACE

CUSTOMER ENGAGEMENT: HOW DO YOU CONVERT THE CONSUMER

ALL CHANNEL: The CONSUMER CAN SHOP WHEREVER +

WHENEVER

REACTION COMMERCE

NEW RETAIL MODELS:HOW WILL THE CONSUMER SHOP IN THE FUTURE

Four-Quadrant Disruptors Framework with Women-led Startups

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Women & Business: General Trend

• 10 M+ US business owned by women

entrepreneurs: the highest rate of

women founders than anywhere else

• 19.2% board seat in S&P 500

companies versus 11.7% in 2000

(Catalyst.org)

2014 S&P 500 Board Seats Held By Women

Source: Catalyst.org

x

19.2%Women

88.8%Men

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Women In The Tech Sector

Tech Leadership Roles Held by Women

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Women In The Tech Sector: Global

Source: Next Shark.com

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage of Global Employees by Gender

%Male

%Female

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Women-Led Startups: General Trend

15%Of the companies

receiving venture capital

had a woman on the

executive team

5.6%Of firms with women

decision-makers raised

more than $100M since

2009

3%Of total venture capital

goes to companies with

women CEOs ($1.5B out

of $50.8B between 2011-

13)

9%Of total seed stage

investments are given to

companies with women

entrepreneurs

13%Of total early stage

investments are given to

companies with women

entrepreneurs

86%Of venture-funded

businesses have

zero women in

management

positions

Source: Womenwhotech.com

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Women-Led Startup VC Funding

117 209 342 486 523 555

1100

15002000 2200

2500 2450

9.5%11.7%

14.3%

17.4% 16.8%17.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

500

1000

1500

2000

2500

3000

3500

2009 2010 2011 2012 2013 2014

U.S. Venture Funded Companies by Founder Gender

Source:Crunchbase

# of Funded

Companies [by First

Funding Round

Recorded]

% of Total

Companies w/

Female Founder

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Drivers1. INSTITUTIONAL AND ORGANIZATIONAL

2. THOUGHT LEADERSHIP

3. GLOBAL WOMEN ENTREPRENEURSHIP EVENTS

4. INCREASING VC FUNDING

5. IMPROVED ANGEL INVESTMENT

6. EMERGING CROWDFUNDING FOR WOMEN

7. BETTER ROE FROM WOMEN-LED BUSINESSES

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1: Institutional and Organizational

Funding Institutions and Organizations

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2: Thought Leadership

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3: Global Women Entrepreneurship Events

Alibaba

“Global Conference on Women

and Entrepreneurship”

Women Who Tech

“Women Startup Challenge”

Fung Global

“Breakfast with Disruptors:

Women-Led Startups with a Focus

on Beauty and Fashion”

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4: Increasing VC Funding

• In 2013, 18% of venture capital deals

went to women-led companies, while

only 5% of women-led companies

received funding in 1999 by US VC

funds

• Female-founded companies received

the largest investments

• Retail (43%)

• Media (17%)

• Software(6%)

Source: Pitchbook

8%

10% 10% 10% 11%

12%

16% 16% 17% 18%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Percentage of Global VC Deals Investing in Companies With

Female Founder

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5: Improved Angel Investment

• In 2014, there were 82,633 women angel

investors in the US an increase from 57,967

in 2013

• This figure has grown by over 7x since 2004,

when there were 11,250 women angel

investors

• In 2014, women angels represented 26.1%

of the angel market, a significant increase

from 19.4% in 2013

• Angel investment is a long-term, relational

process which attracts more female investors

• Rise in the number of women-only angel

networks

Source: AngelList

4%

8%

11%

14%

22%

Developer Tools

Entreprise Software

Fashion

Organic Food

Women Focused

Percentage of Women Investors by Market as of 2014

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6: Emerging Crowdfunding For Women

Equity-Based Crowdfunding

• The overall success rate was 20% while

women-led companies had a 23% success

rate

• On average, women-led companies raised

$422,370 versus $405,295 overall

Reward-Based Crowdfunding

• Women had a 70% success rate versus

61% for men in reaching their goals on

Kickstarter

• Women-owned technology companies

have a 65% success rate compared to a

30% success rate for male-owned

technology companies

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6: Emerging Crowdfunding For Women

Plum Alley is crowdfunding for

women by women, founded by

Deborah Jackson.

Indiegogo, with Danae

Ringelmann as one of its founding

members, reported that 42% of its

crowdfunding campaigns are run

by women.

Crowdfunder has Rita

Ravindra as its Chief

Operations Officer.

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7: Better ROE From Women-Led Businesses

• Women-led private technology

companies are more capital-efficient,

achieving 35% higher return on

investment

• Women-led venture-backed companies

are bringing in 12% higher revenue

than male-owned tech companies

(Kauffman Foundation)

• 80 women CEOs produced equity

returns 226% better than the S&P 500

from 2002 to 2014 (Quantopian)

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Challenges1. UNDERREPRESENTATION IN STEM JOBS

2. PERCEPTION OF WOMEN’S LACK OF ENTREPRENEURIAL SPIRIT

3. PERSONAL EXAMPLES

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1: Underrepresentation In STEM Jobs

• Women’s share of STEM degrees remained

largely unchanged between 2004 and 2014

• 15% of women finding a job in a STEM

profession versus 31% for men

• The average male make $91,000 compared to

$75,000 for a woman

• Women hold 57% of jobs in the workforce vs

25% in computing technology

49%43% 40%

51%57% 60%

50%43% 40%

50%57% 60%

Women’s Share of STEM Degrees by Degree Level

Female

Male

2004 | 2014 2004 | 20142004 | 2014

Bachelor’s Degree | Master’s Degree | Doctoral Degree

Source: Golden Seeds, WhoIsHostingThis

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2: Perception Of Women’s Lack Of Entrepreneurial Spirit

• Women reported lower perceived opportunities, higher fear of failure, lower

perceived capabilities, and knowing fewer entrepreneurs than men

0%

5%

10%

15%

20%

25%

18-24 25-34 35-44 45-54 55-64 65+

Entrepreneurial Rates for Males and Females

Male Female

0%

5%

10%

15%

20%

25%

30%

18-24 25-34 35-44 45-54 55-64 65+

Entrepreneurial Intentions for Males and Females

Male Female

Source: GoldenSeeds

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3: Personal Examples

Kelsey ConophyFounder & CEO

WorkZeit

Fang ChengCEO

Linc

Wendy ChenCEO

Omnistream Co

Sue WelchCEO

Bamboo Rose

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Case Study: China

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Case Study: China

0% 10% 20% 30% 40% 50% 60% 70%

Saudi Arabia

India

Italy

South Africa

Agentina

France

Indonesia

Germany

US

UK

Russia

Brazil

Japan

Australia

Canada

China

Source: WorldBank

Labor Force Participation Rate by Country in 2014

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Case Study: China

• Venture capital is the top funding

source for Chinese startups

9%13% 16%

11%

16%4%

42%

40%

38%

38%31%

42%

U.S. U.K. China

PrivateEquity

Angel/Micro VC

VentureCapital2

OtherSources

% Breakdown by Fund Sources

Source: Silicon Valley Bank

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Case Study: China

• Chinese startups have more women in

leadership

Source: Silicon Valley Bank

% Companies Having at Least One Woman CEO

US

UK

CHINA

x

x

x

54%

53%

79%

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Case Study: China

Key Stats of Female Entrepreneurs in

China

• Average Age: 47

• Education-Level: 36.8% have bachelor’s

degrees and 12.7% have graduate

degrees

• Company Size: 66.8% small; 26% medium

enterprises; 7.2% large

Finance2%

IT2%

Professional Services

4%

Entertainment 6%

Education8%

Medical Services

11%

Lodging/Tourism/Restaurant

15%

Fashion25%

Toys and Baby Care27%

Women-led Startups in China by Sector

Source: AliResearch

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Case Study: China

Popular Women-Led Startups

Liu QingPresident of Didi Chuxing,

a mobile platform

taxi-calling app

Company Size: $20 Billion

Zhao KokyingCo-Founder of Uboche,

a car-parking app

Company Size: $1.42 Million

Chen FengFounder of Meililai,

a beauty-O2O app

Company Size: $1.53 Million

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Case Study: China

• TechBase is China’s first tech

accelerator for women-led start-ups

launched in 2015

• Services include business consulting,

fundraising, media, talent recruitment,

law, etc.

• CEO Ling Zihan: "If women fail to get

deeply involved in the internet, their

future economic status will be at great

risk,“

• Co-hosting the 2016 “HER STARTUP”

Women-led startup competition

Accelerator: TechBase

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Case Study: China

Accelerator: TechBase

116Entrepreneurs

interviewed

20+Interviews by

media home

and abroad

14Startups

incubated

14Online and offline

events hosted

400+Women

entrepreneurs

connected

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Case Study: China

• SOSV is a $235 million USD venture capital

fund founded by technology visionary Sean

O’Sullivan in 1993

• China Accelerator is Asia's first mentorship-

driven seed funding program since 2009

• The program runs 2x per year in Shanghai

• By today, 76 startups have participated

• 28 / 76 startups had at least one female

founder = 37%

• In the last 3 cohorts, 17 / 32 companies had

at least one female founder = 52% female-

founded

• 12 / 32 companies had a female CEO = 38%

female CEOs

Accelerator: SOSV’s ChinaAccelerator

Female-Led Startups in 2014 Cohort:

CEO, Lu Guo CEO, Miranda Tan

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Thank You!

Deborah Weinswig

Managing Director

deborahweinswig@fung1937.com

US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016

June 8, 2016