Making Global Internet Startups from China

Tim Gong, Managing Partner Susquehanna International Group Asia Investments

Worldwide Smartphone Sales to End Users by Operation System in 1Q2015 vs 1Q2014

Android iOS Windows Blackberry Other OS 20151Q Units 265,012,000 60,177,000 8,271,000 1,325,000 1,268,700 20141Q Units 227,549,000 43,062,000 7,580,000 1,714,000 1,731,000

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

20151Q Units

20141Q Units

Source: Gartner (May 2015)

78.8%

17.9%

2.5% 0.4% 0.4%

Android

iOS

Windows

Blackberry

Other OS

20151Q Smartphone Market Share

Units in 1Q 2015

Units in 1Q 2014

Worldwide Smart Phone Sales to End Users by the manufacture in 1Q2015 VS 1Q2014

Source: Gartner (May 2015)

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

Samsung Apple Microsoft LG Electronics Lenovo* Huawei Xiaomi TCL Communication

ZTE Micromax

20151Q Units

20141Q Units Units in 1Q 2015

Units in 1Q 2014

Top 10 worldwide Smartphone Manufactures Sales to End Users, 5 of them are China manufactures.

China manufactures are catching up fast and the sum of 8 top China manufactures has passed Samsung

In 1Q2015, China manufactures take 23.44% of worldwide smart phone market share in comparison with 21.21% in 1Q2014.

China Top Smartphone manufactures: Lenovo, Huawei, Xiaomi, TCL, ZTE, Coolpad, OPPO, HTC

23.4

21.3

13.1

7.2

4.3

1.8

29.0

21.2

23.9

9.4 10.8

3.2 1.7

19.9

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

China Samsung Apple Microsoft LG Electronics

Micromax Others

Market Share in 1Q 2015

Market Share in 1Q 2014

The number of China Internet Unicorns are growing faster than ever

There have been about 200 Internet Unicorns in the world by 1Q2015, and 54 of them are in China. In 2016, China will generate most Internet Unicorns in the world.

15

7 6 6 5 5 3 3 2 1 1

Retail & E-commerce

Comsumer Software Apps

Content Gaming Social & Communication

Classified Directories

Travel & Transportation

Finance Security Education Enterprise Software

Google Play Free Download Top 30

11

8

4

1 2 2

1 1 0

18

2

5

0 1

2

0 1 1

0

2

4

6

8

10

12

14

16

18

20

Game Social & Communication

Media & Music & Video

Entertainment Photography Tools Productivity Shopping News & Magazines

US Market

Japan market

Source: App Annie (June 15 2015)

2 China Mobile Internet Companies (360Security and CleanMaster) are on the

list of both US market and Japan market.

Other big companies of China: Wechat, MoMo, MeituPic, Carmera360, APUS

SIG Portfolio: Camera 360 Ecosystem

SIG Portfolio: Camera 360 Ecosystem

Captured Photos

SIG Portfolio: APUS The world's fastest growing mobile Internet startup

180M Total Users $116M

Total Funding $1B Valuation 5th

Top 10 Google Play app & developer worldwide

The time taken to gain 200 million global users is about 12 months.

SIG Portfolio: APUS APUS’ 180M users demographic

South Asia Southeast Asia

Europe & Russia

The Middle East

South America

North Americ

a

APUS Worldwide

Africa Oceania

Asia

SIG Portfolio: TouchPal (Voice + Keyboard)

Ø  TouchPal Voice is an app to provide free voice call service with contact book and local search integration. It has over global 160 million users, 40 million DAU and the database with over 109 million phone numbers to help users identify un-known phone call. It is the 1st mobile platform in the world to provide O2O + yellow page + local search, where the information of over 50 million merchants can be found.

Ø  TouchPal Keyboard is one of the most popular 3rd-party keyboard apps in the world. It has over 150 million users, 50 million DAU and supports more than 75 languages. It ranks the No.1 third party keyboard in Google Play, and it is the first 3rd-party keyboard running on iOS 8. Most well-known brands, such as HTC, Sony, Alcatel, Huawei and ZTE, preload TouchPal as their default keyboard to improve user experience.

SIG Portfolio: 5miles Ø  A global mobile C2C Trading Platform Ø  The time taken to reach monthly GMV of USD100 million is

expected to be less than 12 months

$0.65 $1.17 $2.21 $5.59 $13.00

$22.10 $31.20

$39.00 $49.40

$72.80

$88.40 $100.10

$133.90 $146.90

$188.50

$205.40

$224.90

$245.70

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

Jan15 Feb15 Mar15 Apr15 May15 Jun15 Jul15 Aug15 Sept15 Oct15 Nov15 Dec15 Jan16 Feb16 Mar16 Apr16 May16 Jun16

Millions 5miles Monthly GMV

SIG China Portfolios

Ø  Over 80 portfolios covering Internet, mobile Internet, O2O, Internet+, SaaS, Cloud, Big data sectors

Ø  Close to 300 millions DAU+UV each day, >60% is attributed to global users

Ø  Over 1 million online transaction each day, >10% is attributed to global users

Why China and what is next?

MIC (Made in China) is becoming MIG (Mobile in Global): Mobile Internet is bringing the world closer, and SOC (Speed of China) is impacting the globe. Next: IOT (Roberts, Drones and etc.), Global O2O and C2C, Digital Media Exporting

A person’s character isn’t determined by how

he enjoys victory, but rather how he endures defeat.