THE CHINESE STARTUP

REVOLUTIONAndrea Camacho Mattos

NUMBERS 10,600 new startups created every

day in China.

In 2015, China registered 4.85M of new startups, while US had 6.36M new businesses.

Beijing has 40 unicorns, second only to Silicon Valley.

2014 2015 2016

1.6

4.8

EXP 15

5.7 6.4 EXP 7

N. OF Startup China-US [million]China US

Andrea Camacho Mattos, June 2016

HOTTEST STARTUP HUBSO BeijingO ShanghaiO GuangdongO ShandongO ZhejiangO FujianO HunanO ChonqingAndrea Camacho Mattos, June 2016

INDUSTRIESBeijing: E-commerce, Transportation, High-tech, Internet

Shanghai: Finance, Internet, E-commerce

Guangdong: Hardware, Manufacturing

Zhejiang: Marketing

Andrea Camacho Mattos, June 2016

27%

16%

11%11%

7%

5%

23%

Industry Split of Chinese Unicorns

E-commerce - 27%Finance - 16%Entartainment - 11%Transportation - 11%Hardware - 7%Local Life - 5%Others - 23%

INVESTMENTS In 2015 Chinese government

injected US$ 231 billion in VC to stimulate the startup environment.

Beijing is the 2nd hub in the world after Silicon Valley in terms of investments.

China has more than 1,600 incubators.

1.5 B$

1.6 B$

11.6 B$

7 B$

Shanghai

Shenzhen +

GuangzhouBeijing

Silicon Valley

Andrea Camacho Mattos, June 2016

OPPORTUNITIES/ISSUES Main internet companies in China – Tencent (Rev: US$ 15B), Alibaba (Rev: US$ 15B) and

Baidu (Rev: US$ 10B) – acquire together about a hundred of startups every year.

Shanghai is the most international hub in China – huge network of foreign startups there; probably the best kick off city for any international startup.

Very hard for non-Chinese people do (good) business in China. Expanding in China requires to have some locals involved.

Chinese government has a high influence in the startup scene and it tends to promote local against foreign companies (with some exceptions).

O

I

Andrea Camacho Mattos, June 2016

SOURCES• People Squared accelerator• Xnode acceleratorWebliography: http://www.china.org.cn/business/2015-06/09/content_35775291.htm https://www.cbinsights.com/blog/silicon-valley-tech-investment-exit-report/ http://www.bloomberg.com/news/articles/2016-03-08/china-state-backed-venture-funds-tripled-to-338-billion-in-2015 http://www.bloomberg.com/news/articles/2015-11-23/china-outstrips-rest-of-the-world-in-creating-startups-report-shows http://www.iamwire.com/2015/09/china-6-hottest-startup-hubs/119267 http://qz.com/660835/you-dont-need-to-be-in-california-to-build-a-lucrative-startup/ http://www.fastcompany.com/3046773/hit-the-ground-running/the-state-of-the-american-entrepreneur-in-2015 http://www.wsj.com/articles/chinas-buzzing-startups-wont-slow-down-for-slowdown-1455359404 http://fortune.com/china-clean-tech-silicon-valley/ https://angel.co/china http://www.recode.net/2016/5/13/11592570/china-startup-tech-economy-silicon-valley

Andrea Camacho Mattos, June 2016