2016 Investment Outlook

Marvin Liao | @marvinliao | April 28, 2016

Growing Mobile Startups is Tough• Mobile marketing is tough. ASO vs SEO.• Mobile engagement is tough. MAU, DAU, Churn• Mobile monetization is tough. Mobile CPM is still

relative low.• Mobile payment is still not 100% ready. iOS

users still worth more than Android users. • Device fragmentation. iOS or Android first?• Big guys are all eating your lunch. Tough to find

opportunities that Facebook, Apple, Google, Amazon, Baidu, Alibaba and Tencent are not working on.

Investors should run away from…

Investors should stay away from…• Social network or platform. Be careful with any startups

calling themselves platforms.• Utility Apps. Mail & Carousel (acquired Dropbox) were

both shut down. • Browser. The world is dominated by big browser players.• Delivery & Transportation. Get ready to compete with

Uber – service delivery as a platform will come soon.• Gaming. Small studios will need to raise substantial

capital to acquire users.• Consumer Messaging. Whatsapp, WeChat, Facebook

Messenger, Viber, Snapchat – is there room for another messaging app?

Funding future is bright for …

7 Trends Every Early Stage Tech Investors Should Pay Attention To

Trend 1 – Virtual & Augmented Reality Is the Next Engagement Platform

126 AR/VR Startups Raised $658M in 2015

Source: CBInsights- https://www.cbinsights.com/blog/vr-funding-2015/

Trend 2 – Internet of EverythingThe Internet of Things (IoT) is the network of physical objects or "things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.

Source: Chris McCannhttps://medium.com/@mccannatron/esports-market-ecosystem-map-c6ae5bc6a7d0

IoT Startups Raised Over $1.9B In 2015

Source: CBInsights- https://www.cbinsights.com/blog/internet-of-things-startup-funding/

Trend 3 – FinTech. 122 Startups in Asia Raised $3.5B in 2015. In US $3B in Q1, 2015

Source: Accenture - https://newsroom.accenture.com/news/fintech-investment-in-asia-pacific-set-to-at-least-quadruple-in-2015-according-to-report-by-accenture.htm

• Payment – 40%• Lending – 25%• Others – 35%

Trend 4 – Millenials Now Represent the Biggest Voice of the US Population

Source: Goldman Millennial Insights http://www.goldmansachs.com/our-thinking/pages/millennials//

With Over 85% Penetration, Millennial Are Redefining Smartphone Usage

New startups that are counting on the Millennial:• Dating• Shopping• Content consumption• Fitness • Access vs. Ownership

(sharing economy) for cars, housing, luxury goods

Source: Nielsen - http://www.nielsen.com/us/en/insights/news/2014/mobile-millennials-over-85-percent-of-generation-y-owns-smartphones.html

Trend 5 – The Future of LearningMobile technology enables new way to educate, learn and measure:• Learning technology (VR, AR,

mobile)• Teaching technology• Education enterprise software• Education assessment • Education device and network

managementSource: Department of Education - http://tech.ed.gov/files/2015/12/NETP16.pdf

Trend 6 – Messaging Is Eating the World

Business models that can be built on messaging platforms:• Shopping• Transportation• Customer Services• Finance• Fundraising• Hiring• Gaming• Enterprise internal

communications

Trend 7 – Rise of Cyber Security

VCs Poured $3.3B into Cyber Security in 2015

Questions?