Embed Size (px)
Citation preview
Tech Startups and Corpora1ons
Compete or partner up ?
A quick word about what I do…
We help corpora1ons partner up with tech startups
What I do
These corpora1ons are looking for innovate products or services that they could offer to their customers.
We find, evaluate and integrate such products and services for them.
Our porGolio
Intro
The Ecosystem
Corpora1on
Angel
VC
Advisor
Government
Startup
A bit of history… Year 2000 AD
2000 Total Internet Users
108m
118m
108m
18m 4.5m
7.6m
105m
6%
Total Penetra1on
Users: 361m Source: Internet World Stats
Evolu8on of Content Discovery 1975 -‐ 2015
Source: Nielsen 12/14 (courtesy of Mary Meeker’s KPCB Internet Trends Report)
2000 Global Venture Funding
US$101.1B
6%
108m
Total Asia $12.3B
Total Europe $19.5B
Israel $1.0B
Source: EVCA, NVCA, IVC Research Center
157
105
Global Venture Funding 1990 -‐ 2015
Source: Thompson ONE, Morgan Stanley Equity Capital Markets, Bloomberg
2000 Tech Startup Hubs
6%
108m 108m
108m
108m 108m
108m
Source: Thompson ONE, Bloomberg
-‐ Main sectors: E-‐Commerce and Search
-‐ Disrup1on: Minimal
A threat ? Let’s look at e-‐commerce
2000 Global Retail Market: Online vs. Offline
<1%
Online Offline
Est. $11.2T
US UK
China
Russia
India
Brazil Nigeria
Germany
Source: eMarketer
The corporate threat looked like this…
2000 Major Fashion Marketplace
Source: Internet Archive
Not very strong in design
But definitely prejy good at TV Ads
Very popular TV ad from Pets.com 2000
Source: Internet Archive
What is different now ?
2015 Total Internet Users
345m
1.7B
27m
604m
47%
Total Penetra1on
Users: 3.36B
331m 314m
Source: Internet World Stats
2014 Global Venture Funding
US $58.8B
6%
Total Asia Est. $39.1B
Total Europe Est. $10.2B
Israel $3.6B
Source: EVCA, NVCA, IVC Research Center, Preqin
157
105
Global Venture Funding 1990 -‐ 2015
Source: Thompson ONE, Morgan Stanley Equity Capital Markets, Bloomberg
2015 Major Tech Startup Hubs
6%
108m
Source: Financial Times, Wall Street Journal
Compare to 2000
2000 Tech Startup Hubs
6%
108m 108m
108m
108m 108m
108m
Source: Thompson ONE, Bloomberg
The corporate threat looks like this …
2016 Airbnb
Source: Airbnb website
2000 Major Fashion Marketplace
Source: Internet Archive
So, what about the disrup1on ?
2015 Global Retail Market: Online vs. Offline
$1.3T
14%
12%
6%
Online Offline
$21.1T
7%
US UK
China 2%
Russia
8%
4% 1%
India
Brazil
1%
Nigeria
Germany
Source: eMarketer
What are corporates doing ?
The empire never sleeps
Paying ajen1on
2015 Corporate Memos
Source: CB Insights
This is why
2015 Disrup8ng Logis8cs
Source: CB Insights
2015 Disrup8ng Banking
Source: CB Insights
You think hardware can’t be disrupted ?
2015 Disrup8ng Auto
Source: CB Insights
Corporate thinking.
Then.
Who should you be afraid of ? 2000
Corporate thinking.
Now.
Who should you be afraid of ? 2015
Are startups a poten1al threat ?
Cost to Launch a Tech Startup
$5m
$500k $50k $5k
Open source and horizontal scaling
Cloud and AWS
2000 2005 2009 2011
Source: Upfront Ventures
Beat them but also join them ?
2015 GeYng into the game
Source: Financial Times, Wall Street Journal
Let the fishing begin 2015
-‐ Ignore -‐ Acquire -‐ Compete -‐ Partner up
Why partner up ? Why can’t we just buy them ?
Confusing 1mes. Internet, mobile, millenials…
Reasons to partner up
① Bejer speed (quicker decision making and implementa1on)
② Bejer innova1on (more sparks) ③ Stronger mo1va1on (when you work for yourself) ④ Bejer understanding of the young market ⑤ Leaner
Thanks.
Ques1ons ?
Impact of Internet
Source: Harvey Balls 4/15 (courtesy of Mary Meeker’s KPCB Internet Trends Report)
