2017 silicon valley investment trends by edith yeung

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2017 Silicon Valley Investment Trends Edith Yeung | @edithyeung

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/ Edith Yeung is the head of 500 Greater China and 500 Startups Mobile Collective and invested in over 35 mobile, VR, AR, AI and machine learning startups in last 2 years. Before 500, Edith was the VP of marketing & business development for Dolphin Browser. Dolphin Browser is a Sequoia-backed mobile browser with over 150 million installs worldwide. She also founded RightVentures - seed stage investment firm focusing on mobile and consumer internet companies. Prior, she led many operation roles at Oracle, Siebel, AT&T, Symantec, Telstra, Cisco, Autodesk, etc.

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Edith Yeung | @edithyeung | edith.co

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/ / Since July 2010 1,540+ Portfolio Companies

500 Startups Is the Most Active Seed Investor in the World1

$275M in AUM2

The various geographies highlighted in the map result from investments we have made across all 500 Startups funds. 1.  CB Insight https://www.cbinsights.com/blog/2015-early-stage-investors/ 2.  Approximated as of 5/31/2016 and includes the following 500 Startups funds: (a) 500 Startups, L.P. and 500 Startups-A, L.P. (together, “Fund I”), (b) 500 Startups II, L.P. and 500 Startups II-A, L.P. (together, “

Fund II”), (c) 500 Startups III, L.P. and 500 Startups III-A, L.P. (together, “Fund III”), (d) 500 Startups IV, L.P. and 500 Startups IV-A, L.P. (together, “Fund IV”), (e) 500 Startups Annex Fund, 3.  L.P. (“Annex”), (f) 500 Luchadores, L.P. (“Luchadores”), (g) 500 Durians, L.P. (“Durians”), (h) 500 Mobile Collective, L.P. (“Mobile Collective”), (i) 500 Kimchi, L.P. (“Kimchi”), (j) 500 TukTuks, L.P. (“TukT

uks”), (k) 500 Startups JP, L.P. ("Japan”), (l) 500 Startups Istanbul, L.P. ("Istanbul”), (m) 500 Nordics, L.P. (“Nordics”), (n) 500 Falcons, L.P. (“Falcons”), (o) 500 Kulfi, L.P. (“India”), and (p) 500 Fintech, L.P. (“Fintech”), and (q) 500 Startups Canada, L.P. (“Canada”).

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/ 500 Startups is one the most active early-stage frontier technology Investors

IoT - Security IoT - Toys IoT - Health IoT - Home IoT – Enterprise

3D Printing Robotics / Auto VR / AR Connectivity AI

IoT -Lifestyle

Drones / Aero

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/ / 3 Unicorns ($1B+ in valuation)

Companies are a select sampling of investments across 500 Startups funds and will not be held in Fund IV. While Fund IV has not invested in the rounds of financing shown on this slide, at least one 500 Startups fund has invested in one or more rounds of financing for each of these companies. The valuations listed herein are estimated as at March 31, 2016 based on 500 Startups Valuation Policy as set out in the Appendix to this presentation. These numbers provide a snapshot of estimated valuation as at a particular time and may change. Further detail with regard to financing of companies listed on this slide can be found on Crunchbase. A full list of 500 Startups companies is available upon request.

30+ Centaurs ($100M ~ $999M in valuation) * indicates companies that have already exited

3 Unicorns ($1B+ in valuation) and 30+ Centaurs ($100M-999M in valuation)

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8 Silicon Valley Technology Trends Every Investors Should Watch


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Trend 1 – Year of Artificial Intelligence

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/ Apple, Google, Intel, Microsoft, Salesforce, Amazon will continue to invest and acquire AI companies. 18 AI companies were acquired in 2016

Edith Yeung | @edithyeung | edith.co Source: CBInsights

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/ 2017 Investment Focus & Predictions Applied Artificial Intelligence


With the rise of big data and AI, startups applying machine learning algorithms to solve problems: •  Robotics •  Autonomous vehicles •  Health •  Finance •  IoT •  Education •  Commerce •  Security •  Personal assistant In area of sales, marketing, CRM, customer service, legal, HR, etc.

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Skype Translator enables real time communication while speaking 8 different languages simultaneously

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Trend 2 Year of The Voice


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/ Meet Alexa


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/ Meet Google Home


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/ How have I been using Alexa

Edith Yeung | @edithyeung | edith.co Source: Business Insider

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/ Amazon, Google, Microsoft and Apple’s voice are coming to your car, phone, TV, home appliances


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/ Trend 3 – Virtual & Augmented Reality Is Still Going Strong, but Investment Will Slow Down


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/ / Projected over $2.2 billion invested in 156 deals in 2016

Source: Digi-capital: http://www.digi-capital.com/news/2016/07/record-2-billion-arvr-investment-in-last-12-months/#.V9rRVD4rI9c

Popular Investment categories: •  VR/VR video •  Hardware •  Services and studios •  Gaming •  Apps •  Advertising/marketing •  Developer tools and distribution Top 10 most funded VR/AR startups 1.  Magic Leap ($1.39 billion) 2.  Razer ($125M) 3.  NextVR ($115.5M) 4.  OTOY ($101M) 5.  Jaunt ($100M) 6.  MindMaze ($118M) 7.  Blippar ($99M) 8.  Oculus ($93.55M) 9.  LensAR ($91.1M) 10.  Meta ($73M)


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/ / Apple, Google, Facebook are acquiring VR/AR startups

Source: CBInsights https://www.cbinsights.com/blog/top-acquirers-ar-vr-ma-timeline/

Active VR/AR acquirers •  Apple (3 acquisitions) •  Google (2 acquisitions) •  Facebook •  Autodesk •  GoPro Notable acquisitions •  Facebook acquires Oculus (VR headset) for $2B •  ALPHAEON acquires LensAR (laser cataract treatment) for $59M •  Google acquires Skill & Hackett ((design studio) •  Google acquires Thrive (VR Audio) •  Apple acquires Flyby Media (mobile AR app developer) •  Apple acquires PrimeSense (interactive device) •  Apple acquires Metaio (AR) •  Qualcomm acquires Kooaba (cloud base image recognition)


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Source: CBInsight / MagicLeap Edith Yeung | @edithyeung | edith.co

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/ / 2017 Investment Focus & Predictions

Source: Goldman Sachs Global Investment Research

Development building blocks & tools •  VR input •  VR search •  VR social •  VR payment Industries •  Health •  Gaming •  Education •  Real Estate •  Retail •  Live Events •  Engineering •  Military


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Trend 4 – The Year of the Robots


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/ Trend 4 – The Rise of the Robots - $2.6 billion invested across 405 robotics startups


Enterprise •  Heavy industrial & manufacturing •  Drones (non-delivery) •  Retail & warehouse •  Last-Mile delivery •  Restaurants •  Agriculture •  Services Consumer •  Social •  Educational •  Personal Drones •  Home (cooking / housekeeping/

Transportation / Elderly care) Medical •  Surgical •  Services (Hospital) •  Bionics & Rehab Safety •  Drones •  Building Security •  Field assistance

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In 2018, China will account for more than one-third of the industrial robots installed worldwide.

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/ Low-powered Robots (camera/sensor) as a Service .


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/ Trend 5 – The Year of Data Driven Personalized Healthcare


1.  Integrate genetic data into clinical workflow 2.  Pharmacogenomics - prescribe medications based on patient specific

age, gender, ethnicity, genomic factors 3.  Noninvasive DNA liquid biopsy testing and screening 4.  Gene-Editing CRISPR-CAS9 5.  Direct-to-Consumer Genetics Testing

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/ 388 startups raised over $4.7 billion Since 2012


Genomics = creation and analysis of genetic data •  Gene-based diagnostic tests •  Genetic sequencing •  Data analysis tools for

genetic data •  Gene editing (CRISPR-

CAS9)

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/ CRISPR-CAS9 .


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/ Trend 6 – The Year of Racing to Become the Next Android for Autonomous Vehicles


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/ 33 Corporations Working On Autonomous Vehicles


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A world with no accidents, traffic tickets or car ownership 75% of vehicles on the road by 2040 will be driverless.


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/ Trend 7 – The Year of Synthetic Meat, Eggs and Dairy


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/ 275 startups raised over $5.7 billion in 2015


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/ Trend 8 – The Year of Cross-Border Startups

Edith Yeung | @edithyeung | edith.co Source: AppAnnie

China Surges to the #1 Revenue Spot on iOS

in 2016

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NetEase earned over $800M in China with Fantasy Westward Journey Game (夢幻西遊)

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/ Billion of Mobile Users Inspire New Business Models. Alibaba’s Single Day generated about $14 billion in 24 hours


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/ Wish raised $500 million from Temasak


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/ Chinese is Willing to Pay for Video Subscription


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Artificial Intelligence Voice Virtual and Augmented Reality Robotics Data Driven Healthcare Synthetic Food Cross-Border Startups

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8 Silicon Valley Technology Trends Every Investors Should Watch

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/ 500 Greater China Aims to Bring The Best Silicon Valley Startups to China, Taiwan and Hong Kong


Meet Cjin Cheng [email protected]

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The Future is Calling.

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/ You can find me at:

•  Email [email protected] •  Twitter @edithyeung •  Newsletter http://www.edith.co/#newsletter
