Gport GMIC Roadshow USA Report -EN

GMIC
2012
ROADSHOW
USA

China’s
Tech
Leaders
On
Tour

GMIC
2012
ROADSHOW
USA
|
Company
Visits

November
5th-‐11th,
2011

Outline

1.  Event
IntroducDon

2.  United
States
Market
Review

3.  Companies
Visited

4.  Conclusion

5.  GMIC
2012

research@greatwallclub.com
|
Copyright
2011.
All
rights
reserved.

Event
IntroducDon

Ø 

About
GMIC
2012

Ø 

GMIC
ROADSHOW

Ø 

DelegaMon
Members

Ø 

IMnerary

|
Copyright
2011.
All
rights
reserved.

EVENT
INTRODUCTION|
GMIC
2012

Global
Mobile
Internet
Conference

May 9th – 11th 2012
Beijing, China

Asia’s
largest
mobile
internet
conference

§  5000
aPendees

§  61%
CxO
and
VP
level

§  Elite
Speakers

§  G20
Summit
closed
door
leaders
meeMng

§  Startup
and
developer
tracks:
G-‐Startup
and
AppSpace

gmic.greatwallclub.com
|
Copyright
2011.
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rights
reserved.

EVENT
INTRODUCTION|
GMIC
ROADSHOW

GMIC
ROADSHOW
is
one
of
the
Great
Wall
Club’s
(GWC)
events

as
well
as
an
overseas
promoMon
for
the
Global
Mobile
Internet

Conference
(GMIC).
This
event
is
designed
to
show
GMIC
as
a

communicaMon
link
between
Asia,
especially
China,
and
overseas

markets
to
global
industry
leaders
and
entrepreneurs.

。

5
|
Copyright
2011.
All
rights
reserved.

EVENT
INTRODUCTION
|
DELEGATION
MEMBERS

LEI
JUN
LIN
BIN
Wang
Jian

CEO,
Xiaomi
President,
Xiaomi
CTO,
Alibaba

Michael
Song

Wang
Yong
WANG
QIANGYU

CEO,
Skymobi
CEO,
DeNA
China
CEO,
Duanqu

文厨
BO
YIQUN
BARRETT
PARKMAN

CEO,
GWC
President,
GWC
VP,
GWC

6
|
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2011.
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rights
reserved.

EVENT
INTRODUCTION
|
ITINERARY

NOVEMBER
5 -‐13 ,
2011:
HIGHLIGHTS
REVIEW

TH TH

§  Glu
Mobile
|
One
of
the
top
3
mobile
game

development
and
publishing
companies
in
the
world.

Square
|
A
payment
giant
with
an
annual
transacMon

Company
§ 
volume
of
more
than
$2
billion.

Visits
§  SV
Angel
|
A
legendary
angel
investment
agency
that

11/7
-‐

invested
in
Google,
Facebook,
TwiPer,
and
Groupon.

§  RocketSpace
|
A
startup
company
incubator.

§  Zynga
|
A
leading
social
game
developer.

§  GMIC
Roadshow
San
Francisco

Events
§  VIP
Dinner

Company
§  eBay
|
The
world's
largest
e-‐commerce
plaeorm.

Visits
§  Paypal
|The
world's
largest
payment
soluMon
provider.

11/8
-‐

§  Venture
Capitalist
Dinner

Events
§  Boundless
Mobile
InnovaMon

§  CEO
Dinner

7
|
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2011.
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rights
reserved.

EVENT
INTRODUCTION
|
ITINERARY

NOVEMBER
5 -‐13 ,
2011:
HIGHLIGHTS
REVIEW

TH TH

§  Sequoia
Capital
|
The
world’s
largest
venture

Company
capital
ﬁrm.

11/9
-‐
Visits
§  Google
Android
|
The
development
team
for
the

most
popular
mobile
operaMng
system.

Events
§  SVCW
CEO
Dinner

§  Evernote
|The
world’s
No.
1
cross-‐plaeorm

Company
note-‐taking
sohware
/
cloud
storage
plaeorm.

11/10
-‐

Visits
§  Mozilla
|
The
world’s
3rd
largest
browser

provider.

8
|
Copyright
2011.
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rights
reserved.

USA
Market
Review

Ø  From
Horizontal
to
VerMcal

Ø  Three
Important
Trends
of
the
VerMcal
Market

Ø  Social-‐Local-‐Mobile

Ø 

Other
Noteworthy
Segments

|
Copyright
2011.
All
rights
reserved.

MOBILE
MARKET
IN
THE
UNITED
STATES
AND
IN
GENERAL

From
Horizontal
to
VerDcal

»  With
the
introducMon
of
cloud
networking
and
increased
bandwidth,
the
market

for
Mobile
Services
stands
to
increase
significantly.
One
of
the
important
trends
is

that
market
entrance
shihs
from
horizontal
products
and
services
to
verMcal

business
soluMons,
which
is
exemplified
by
Square
(see
the
company
visits
page)

»  Two
Major
Classes
of
Services
in
the
Future
Mobile
Market

§  Horizontal
-‐
Services
and
products
that
meet
user
needs.

§  VerMcal

-‐
Services
and
soluMons
that
meet
the
market
segments'
needs.

»  Three
Major
Reasons

§  Users’
core
needs
have
been
met
in
general.
SubstanMal
innovaMon
in
a
single

market
is
difficult.

§  Technological
development
makes
it
possible
for
package
soluMons
to
be

applied
in
market
segments.

§  Hot
segments
and
products
are
cooling
down.
Making
revenue
from
a
single

product
or
service
hot
spot
is
becoming
difficult.
Product
integraMon
and

added-‐value
services
that
meet
the
systemaMc
needs
are
becoming
popular.

10
|
Copyright
2011.
All
rights
reserved.

MOBILE
MARKET
IN
THE
UNITED
STATES
AND
IN
GENERAL

Three
Important
Trends
of
the
VerMcal
Market

1.  Connected
devices
could
reach
50
billion
devices
by
2020
(There
were
roughly

12.5
billion
as
of
2010).

§  Two
Types:
Single
Use
(eReaders,
Health
Monitors)
and
MulM-‐purpose
devices

(smartphones,
tablets).

§  Major
technological
reﬁnements
and
adjustments
are
going
to
need
to
take
place
to

handle
this
increase
in
data
transfer.

2.  Healthcare
oriented
services
via
mobile
will
surge.

§  Healthcare
will
account
for
20%
of
the
U.S.
GDP
soon.

§  The
aging
populaMon
of
the
U.S.
and
the
world
will
act
as
the
accelerant
that
pushes

this
market
into
overdrive.

3.  Ongoing
Development
of
Mobile
Search
Engines

§  Constraints
of
mobile
devices
demand
simpler
ways
to
search
for
things
than

tradiMonal
“Google-‐like”
search
engines.

§  New
search
methods,
such
as
“voice
command”
searches
like
Siri
that
are
capable
of

doing
one
or
two
word
searches
with
reasonable
accuracy,
are
the
future.

§  The
winner
in
this
market
will
be
the
new
Google
for
the
next
10
years.

11
|
Copyright
2011.
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rights
reserved.

MOBILE
MARKET
IN
THE
UNITED
STATES
AND
IN
GENERAL

Social-‐Local-‐Mobile
(So-‐Lo-‐Mo)

»  So-‐Lo-‐Mo
will
conDnue
to
develop
and
have
a
deepening

impact.

§  SoLoMo
will
provide
the
informaMon
that
will
allow
businesses
to
target
and

inﬂuence
customers
in
ways
never
before
possible.

§  Dataming
and
controlling
opinions
will
make
or
break
companies
in
the

future.

§  34%
of
TwiPer
users
share
a
link
about
a
product
more
than
once
a
day.

This

means
that
push
noMﬁcaMon
between
users
has
become
a
reality
in
a
sense.

12
|
Copyright
2011.
All
rights
reserved.

MOBILE
MARKET
IN
THE
UNITED
STATES
AND
IN
GENERAL

Other
Noteworthy
Segments

1.  Mobile
Payment

§  Global
Mobile
Payments
will
exceed
$750
billion
by
2015.

§  NFC
transacMons
will
make
up
75%
of
these
transacMons.

§  SMS
payments
and
mobile
web
payments
will
stagnate.

§  From
July
2009
to
July
2010,
$1
billion
of
goods
were
purchased
from
Amazon
via
mobile

payment.

2.  Mobile
AdverMsing

§  Of
the
$33
billion
spent
on
digital
adverMsing
in
the
U.S.,
$1
billion
was
mobile.

§  Only
35%
of
U.S.
mobile
subscribers
are
currently
using
smartphones.

As
this
grows

exponenMally,
so
will
the
mobile
adverMsing
market.

§  Targeted
adverMsing
through
SoLoMo
will
make
mobile
markeMng
more
effecMve
and
thus

more
aPracMve.

3.  Mobile
VoIP

§  Mobile
VoIP
is
expected
to
jump
from
15
billion
minutes
in
2010
to
over
470
billion
by
2015.

§  This
growth
will
kill
the
revenue
generated
from
tradiMonal
voice
and
SMS
services.

§  This
will
be
a
baPleground
for
the
coming
years
as
carriers
fight
to
find
new
ways
to
balance

their
loss
of
profits
from
tradiMonal
services.
VoIP
services
need
a
way
to
moneMze
their

product.

13
|
Copyright
2011.
All
rights
reserved.

Companies
Visited

Ø 

Glu
Mobile
Ø 

Sequoia
Capital

Ø 

Square
Ø 

Google
Android

Ø 

SV
Angel

Ø 

Evernote

Ø 

Zynga
Ø 

Mozilla

Ø 

eBay

Ø 

Paypal

|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
GLU
MOBILE

»  Company
IntroducDon

§  One
of
the
top
3
mobile
game
development
and
publishing
companies
in
the

world.

§  Founded
in
2001,
Glu
is
based
in
San
Francisco
and
has
a
branch
in
Beijing.

§  Listed
on
the
NASDAQ
in
2007.
(NASDAQ:
GLUU)

§  Beijing
branch
employs
about
150
people.

Contract
Killer Super
KO
Boxing Big
Time
Gangsta

Guitar
Hero Deer
Hunter StarBlitz
15
|
Copyright
2011.
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rights
reserved.

COMPANY
VISITS|
GLU
MOBILE

»  OperaDng
condiDons

§  More
than
70
million
users

§  22,090
acMve
users
per
month

§  2,103
acMve
users
per
day

§  34%
are
Android
users;
66%
are
iOS

users

»  Financial
PosiDon

§  Market
Value:
$197.06M

§  Total
Revenue
in
the
Last
12
Months:

$66.65M

§  Gross
Proﬁt
in
the
last
12
Months:

$47.69M

§  Net
Proﬁt
in
the
Last
12
Months:

-‐$16.02M

16
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
GLU
MOBILE

»  Business
Model

Free
+
Premium

§  Micro-‐TransacMons-‐-‐75%
of
Total

Revenue

§  Display
Ads
(CPM)-‐-‐5%
of
Total

Revenue

§  Incented
Ads
(CPX)-‐-‐20%
of
Total

Revenue

»  Product
Strategy

ü  Seek
“Word
of
Mouth”
and
Social

CommunicaMon

ü  Give
the
Full
Game
to
the
Customer

ü  Free
+
Premium
+
Maximized

Product
Value
(Fully
Develop
the

Commercial
Value
of
Each
Game)

17
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
GLU
MOBILE

»  Keys
to
Glu’s
Success

1.  Free
+
Premium
(Freemium)
Business
Model

2.  Great
cross-‐plaeorm
porMng
capability:
Dedicated
teams
responsible
for
the

adaptaMon
of
all
aspects
in
the
Android
ecosystem
to
ensure
that
each
game

can
be
run
in
a
variety
of
hardware
and
sohware
environments.

3.  Industrial
chain
coverage:
From
the
proposal
of
game
concepts
to
the
release

and
promoMon
of
it
-‐
cooperaMon
with
chip
makers,
handset
manufacturers,

most
of
the
SNS
plaeorms
and
almost
all
retail
stores.

4.  Tremendous
advantages
on
heavy
client
games,
especially
3D
game

development.

5.  Make
business
strategies
based
on
its
own
advantages.
Instead
of
following

the
trends
of
social
games
or
the
socializaMon
of
games,
it
sMcks
to
the
player-‐
oriented
strategy
to
add
social
elements
at
the
premise
of
gameplay
and

players
experience
(As
social
as
relevant).

»  The
Future
of
the
Game
Market
from
Glu’s
PerspecDve

1.  Three
Major
Trends:
Mobile,
Freemium,
and
Social
Games

2.  Two
DirecMons
for
the
Development:
CompaMbility
(browser-‐oriented)
or
user

18

experience
(local
resource-‐oriented)

|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
SQUARE

»  Company
IntroducDon

§  A
payment
giant
with
annual
transacMon
volume
of
more
than
$
2
billion.

§  Co-‐founded
in
February
2009
by
TwiPer
founder
Jack
Dorsey.

It
is

headquartered
in
San
Francisco,
United
States.

§  By

October
the
company
has
raised
over
170
million
U.S.
dollars.

»  OperaDng

CondiDons

§  Nearly
20,000
acMve
users
per
day.
More
than
900,000
actual
users.

§  More
than
9,000
sales
outlets
in
the
United
States.
Nearly
one
million
card
readers
have

been
distributed.

§  More
than
100,000
new
businesses
per
month.
Total
number
of
businesses
has
reached

10%
of
that
of
Visa
or
MasterCard.

§  Usage
by
mobile
device：

iPad(21%),
iPhone(45%)

iPod(3%),
Android(31%)

»  Financial
PosiDons

§  Over
$11M
in
daily
transacMons

§  Over
$2B
in
annual
transacMons

§  Company
valuated
at
$2B

19
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
SQUARE

»  Business
Model

Current:
Cost
Per
TransacDon

§  Cost
Per
Swipe
–
2.75%
of
the
transacMon
volume.

No
extra
charge.

§  Cost
Per
Keyed-‐in
-‐-‐
2.75%
of
the
transacMon
volume.
No
extra
charge.

Future:
product
recommendaMons
+
adverMsing,
and
may
become
a
e-‐
commerce
plaeorm
as
well
as
a
portal

20
|
Copyright
2011.
All
rights
reserved.

COMPANIES
VISITS
|
SQUARE

»  Keys
To
Square’s
Success

1.  Reasonable
Commercial
PosiDoning:

Believe
in
the
concept
of
"new

technologies
will
not
just
improve
the
tradiMonal
payment
methods
but

completely
change
the
payment
industry"
and
posiMon
the
company
as
a
"one-‐
stop
payment
soluMon
provider"
rather
than
a
mere
"mobile
payment"

company.

2.  Simple
Business
Model:

Do
everything
possible
to
simplify
the
user
payment

process.
Cancelled
the
$0.15
extra
charge
early
in
this
year.

3.  Product
for
Niche
Market:

TradiMonal
payment
system
could
not
meet
the

needs
of
small
businesses
and
individuals,
and
it
is
by
paying
aPenMon
to
their

needs
that
helped
Square
accumulate
core
users
in
its
early
stage.

4.  Customer
Experience-‐Oriented
Product
InnovaDon:
Instead
of
using
new

technologies
(e.g.,
NFC)
sequaciously,
Square
set
its
target
as
"to
support
every

payment
method
available
to
customers"
and
"to
help
businesses
complete

every
possible
transacMon.”

5.  Cost:
Eﬃcient
strategies
for
markeMng
and
core
user
accumulaMon
:
1)
add

word-‐of-‐mouth
and
popular
elements
to
the
product
so
that
it
is
sought
aher

by
users;
2)
distribute
product
trials
to
diﬀerent
target
groups;
3)
use
social

21

communicaMon
plaeorms.
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
SV
ANGEL

»  Fund
InformaDon

1.  Founded
in
2005
by
Ron
Conway,
a
legendary
angel
investor
in
Silicon
Valley

who
has
invested
in
Google,
Facebook,
TwiPer,
and
Zynga.

2.  Headquartered
in
Silicon
Valley,
the
$60
million
fund
mainly
conducts
small

investments
to
start-‐up
companies
during
their
early
stage.

3.  Only
one
General
Partner
(David
Lee),
others
including
Ron
Conway
are
LPs.

4.  As
of
November
15,
2011,
SV
ANGEL
has
invested
in
more
than
220
business

projects,
including
TwiPer,
Foursquare,
Groupon,
Dropbox,
Square,
Filpboard

and
AirBnB.
More
than
half
of
the
companies
have
received
Series
A

ﬁnancing,
and
25%
of
them
received
investments
from
Top
10
venture
capital

investors。

5.  The
average
investment
amount
is
around
$
150,000
(about
1%
to
5%
of
the

equity),
while
that
of
key
projects
vary
from
$
500,000
to
1,000,000.

6.  Give
priority
to
projects
with
long-‐term
impacts,
and
put
parMcular
emphasis

on
establishing
long-‐term
relaMonships
with
excellent
entrepreneurs
as
well

as
on
future
investment
possibiliMes.

22
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
SV
ANGEL

»  SV
Angel’s
Views：

1.  Two
key
market
drivers:

MobilizaMon
and
GlobalizaMon

2.  Three
future
market
direcMons:

§  New
Media
Channel,
Real
Time
Data
ConsumpMon

§  O2O
Commerce

§  CollaboraMve
ConsumpMons

3.  A
technology
update
cycle
usually
lasts
about
20
to
25
years,
and
now

everything
is
only
in
the
early
stage
of
the
cycle,
so
the
industry
is
sMll
far

from
being
a
bubble.
SV
Angel
will
conMnue
its
current
momentum
of

investment
for
at
least
another
ﬁve
years.

4.  SV
Angel
has
never
been
so
opMmisMc
for
this
industry
and
does
not
think

there
are
signs
of
slowdown.

5.  The
next
Google
and
Facebook
will
come
from
Y
Combinator.

23
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
ZYNGA

»  Company
IntroducDon

§  World's
No.1
social
gaming
company

§  Founded
in
June
2007,
it
began
to
proﬁt
in
the
fall
the
same
year.

§  Headquartered
in
San
Francisco,
USA.
Employs
more
than
2,000
people.

Maintains
a
branch
in
Beijing.

§  Core
team:
Mark
Pincus
(CEO)
Cadir
Lee
(CTO)
Dave
Wehner
(CFO)

|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
ZYNGA

»  OperaDng
CondiDons

§  Over
148
million
unique
users
per
month
(average)
spread
over
166
countries.

§  232
million
acMve
users
per
month
(average).

§  Over
the
past
year:

§  More
than
60
million
users
logged
on
at
least
one
Zynga
game
plaeorm
every
day.
2

billion
minutes
were
spent
in
Zynga's
games
per
day.

§  Zynga
sold
38,000
virtual
goods
per
second
and
the
annual
revenue
from
virtual

goods
reached
$
575
million.

§  Zynga
gained
only
$
22.8
million
from
adverMsing,
a
figure
decreased
by
36%

compared
to
2009.

»  Financial
PosiDon

§  Annual
Revenue:
$598M,
an
391%
increase
compared
with
122
million
in
2009

§  Q1
revenue:
$235M,
133%
more
than
last
year

§  Annual
profit:
$90M

§  Q1
profit
:
$11.8M,
84%
more
than
last
year

§  Current
disposable
cash
:
$1
billion

§  The
total
cost
of
markeMng
in
2010
was
more
than
$114
million

§  R
&
D
costs
in
the
first
quarter
reached
$71.8
million,
158%
more
than
last
year

25
|
Copyright
2011.
All
rights
reserved.

企业拜访 |
ZYNGA

»  Business
Model

Virtual
Commodity
Trading
+
AdverMsing

§  3%
to
5%
of
the
users
pay
for
virtual
goods.

§  Online
and
oﬄine
purchase
channels,
with
a
variety
of
payment
methods.

§  Virtual
commodity
trading
accounts
for
90%
of
total
revenue,
while

adverMsing
revenue
takes
an
increasingly
small
proporMon.

§  TransacMons
conducted
via
Facebook
are
charged
for
30%
of
the
volume.

§  AdverMsing
services
are
via
1)
graphics
display
of
the
adverMser's
brand
,
2)

implanted
adverMsements
in
the
game
interface.

26
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
ZYNGA

»  CooperaDon
and
CompeDDon
Netween
Zynga
and
Facebook

1.  CooperaDon

§  Facebook
is
the
largest
channel
plaeorm
for
Zynga

§  Zynga
games
bring
Facebook
new
users

2.  Facebook
Banned
“NoDﬁcaDon”

§  In
May
2010
Facebook
stopped
social
games
from
using
the

"noMﬁcaMon"
funcMon
to
promote

3.  Facebook
Introduced
Credit

§  In
September
2010,
Facebook
introduced
the
Facebook
credit

§  StarMng
from
July
1,
2011,
the
Facebook
credit
has
become
the

only
currency
on
the
plaeorm,
and
Facebook
charges
30%
of
the

trading
volume

4.  Zynga
Built
Its
Plahorm
Itself

§  Zynga
built
a
plaeorm
itself
in
reacMon
to
Facebook's
method,

and
started
to
launch
new
promoMon
and
revenue
channels

27
|
Copyright
2011.
All
rights
reserved.

企业拜访 |
ZYNGA

»  Why
Zynga
succeeded?

1.  Started
on
the
shoulders
of
Facebook

§  Take
full
advantage
of
Facebook's
dominance
at
the
desktop
market,
and
seize
the

market
quickly
through
strong
channels.

2.  Copy
successful
games
ASAP

§  Copy
popular
games
in
a
short
period
of
Mme,
and
accumulate
large
numbers
of

users
through
large-‐scale
adverMsing
(which
cost
10%
to
20%
of
its
total
annual

income)
and
cross-‐promoMon
between
users

3.  AjenDon
to
the
data
decision

§  Allocate
signiﬁcant
resources
to
data
centers,

and
build
data
models
for
each

game.
Zynga
invested
hundreds
of
millions
of
dollars
over
the
past
three
years
on

recruiMng
engineers
and
purchasing
servers

§  Product
development
relies
on
its
strong
technological
system
and
data
analysis

teams
(mostly
from
Oracle).
The
company
make
decisions
based
on
mass
data
and

rigorous
analysis
rather
than
experience

4.  Adjust
channel
strategies
according
to
the
situaDon

§  In
the
desktop
market,
Zynga
introduced
new
promoMon
and
moneMzaMon

channels
such
as
embedded
adverMsing
and
oﬄine
payment

§  In
the
mobile
market,
it
remains
a
loose
cooperaMon
with
Facebook
and
at
the

same
Mme
open
up
other
channels
as
well

28
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
EBAY

»  Company
IntroducMon

§  World's
largest
e-‐commerce
plaeorm.

§  Founded
on
September
4,
1995;
listed
on
NASDAQ
on
September
24,

1998
(NASDAQ:
EBAY)
.

§  Headquartered
in
San
Jose,
California;
17,700
employees.

§  Core
team:
Pierre
Omidyar
(founder
and
Chairman),
John
Donahoe
(CEO),

Bob
Swan
(CFO).

29
|
Copyright
2011.
All
rights
reserved.

企业拜访 |
EBAY

»  OperaDng
CondiDons
»  Financial
PosiDon

§  More
than
100
million
acMve
users
§  Market
value:
$37.43B

§  More
than
1.6
billion
page
views
per
§  Total
revenue
in
last
12
months:

day
$10.77B

§  $
1,877
worth
of
transacMons
per
§  Gross
proﬁt
in
last
12
months:

second
$7.64B

§  2011
Q2
transacMon
totaled
more
than
§  Net
proﬁt
in
last
12
months:
$1.81B

$14.6
billion

30
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
EBAY

»  Business
Model

C2C
online
Trading
Plaeorm

1.  Online
aucMon
/
fixed
price

transacMons

§  eBay
inserMon
fee

§  eBay
final
value
fee

2.  PayPal
transacMon
fee
income

3.  AdverMsing
/
classificaMon
services

revenue

31
|
Copyright
2011.
All
rights
reserved.

企业拜访 |
PAYPAL

»  Company
IntroducDon

§  World's
largest
payment
soluMon
provider.

§  eBay
was
founded
in
December
1998
and
is
headquartered
in
San
Jose,

California.
It
was
acquired
by
eBay
in
2002,
and
now
is
an
eBay
company.

§  Paypal
can
be
used
in
194
countries
and
regions
worldwide
and
supports

more
than
20
currencies.

§  Core
Team：
ScoP
Thompson
(President)， Patrick
Dupuis
(CFO)

32
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
PAYPAL

»  OperaDng
CondiDons

§  More
than
90%
of
the
sellers
and
more

than
85%
of
buyers
use
PayPal
in

internaMonal
online
transacMons.

§  More
than
100
million
acMve
users,
and

about
1
million
new
users
per
month.

§  More
than
$315
million
of
daily

transacMon
volume,
which
means

$3,650
per
second.

§  In
2011
the
total
transacMon
volume

will
exceed
$120
billion.

»  Financial
PosiDon

§  Total
revenue
in
2010:
$3.4
billion,
in

which
internaMonal
business
accounted

for
47%

§  Gross
proﬁt
in
2010:
about
$1
billion

§  2011
Q3
revenue
was
$1.1
billion,
an

32%
growth
over
the
same
period
last

year.

33
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
PAYPAL

»  Business
Model

Core
payment
methods

1)
Banking
system
recharge
2)
operator
billing
3)
Paypal
Credit
Card

Core
proﬁt
model
-‐-‐
Account
TransacMon
Fees

§  Monthly
trading
volume
less
than
$
3,000
-‐
$
0.30
per
transacMon
+
3.9%
of
turnover;

§  Monthly
trading
volume
from
$
3,000
to
$10,000
-‐
$
0.30
per
transacMon
+
3.4%
of

turnover;

§  Monthly
trading
volume
from
$
10,000
to
$100,000
-‐
$
0.30
per
transacMon
+
3.2%
of

turnover;

§  Monthly
trading
volume
more
than
$
100,000
-‐
$
0.30
per
transacMon
+
2.9%
of

turnover.

34
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
PAYPAL

»  eBay
and
the
Mobile
Internet

1.  By
October,
eBay
mobile
client
has

been
downloaded
for
more
than
57

million
Mmes.

2.  Last
year
eBay
mobile
client

contributed
more
than
5
billion
worth

of
transacMon
volume.

3. 
Each
week
2600
automobiles
are
sold

via
eBay
mobile
clients.

4.  It
is
expected
that
within
three
years,

50%
of
eBay
customers
will
use
mobile

devices
for
Internet
communicaMons
.

5.  Aher
acquiring
RedLaser,
eBay
began

to
implement
new
mobile
strategies
-‐

to
ﬁnd
and
develop
mobile

applicaMons
that
support
voice
and

video
recogniMon
technologies.

»  Paypal
and
the
mobile
Internet

1.  In
2011
Paypal's
mobile
payment

totaled
$
3.5
billion
($
10
million
per

day
or
more
than
$
10,000
per

minute.

2.  Aquired
the
mobile
payment

company
Zong
for
$
240
million.

35
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
SEQUOIA

CAPITAL

»  Fund
introducDon

1.  World's
largest
venture
capital
ﬁrm.

2.  Founded
in
1972,
Sequoia
Capital
owns
nearly
30
funds
and
$10
billion

managed
capital
in
total.

3.  Sequoia
Capital
has
invested
in
a
total
of
more
than
500
companies
-‐
more

than
130
of
which
have
been
successfully
listed.
The
companies
they
invested

in
take
up
10%
of
the
total
NASDAQ
value.

4.  Sequoia
Capital
has
invested
in
a
number
of
prominent
companies
such
as

Apple,
Cisco,
Oracle,
Yahoo
and
Google.
For
more
than
30
years,
Sequoia

Capital
has
powered
many
of
the
well-‐known
companies
in
the
United
States.

5.  Sequoia
Capital
China
Fund
currently
manages
seven
funds
with
a
worth
of
2

billion
US
dollars
and
4
billion
yuan
in
total
for
investments
in
China's
high-‐
growth
companies.

36
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
SEQUOIA

CAPITAL

»  Sequoia
Capital's
Views

1.  Look
for
sparks
that
can
start
prairie
fires:

§  New
technological
and
innovaMve
projects

§  Projects
with
superior
customer
values
and
fast
distribuMon
plaeorms

2.  Investment
strategy
should
not
change
with
market
condiMons,
for
at
any

stage
of
the
economic
cycle
there
will
be
good
businesses.

3.  One
of
the
standards
to
measure
whether
an
industry
is
overheated
is
the

difficulty
and
cost
for
start-‐ups
to
recruit
people.

4.  Sequoia
sees
itself
not
as
an
investor
but
a
business
partner
with
the

companies.
Do
not
pursue
"in-‐and-‐out"
profits,
but
look
for
products
that

change
the
world.

5.  Prefer
projects
with
long-‐term
and
extensive
values
to
delicate
small

business.

6.  According
to
Sequoia's
observaMon,
Chinese
e-‐commerce
companies
spend
a

lot
on
markeMng
but
the
customer
conversion
rate
and
product
gross
margin

are
far
below
the
average
of
their
U.S.
counterparts
(Amazon
enjoys
25%
to

30%
gross
margin
rate,
which
is
the
lowest
in
the
US).

37
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
GOOGLE
ANDROID

»  Company
IntroducDon

§  The
most
popular
mobile
operaMng
system
in
the
world.

§  Google
officially
unveiled
the
Android
operaMng
system
in
November
5th,

2007.

§  It
was
founded
by
Andy
Rubin
and
only
supported
phones
at
first.
In
2005,

only
22
months
since
its
founding,
Android
was
acquired
by
Google,
who

later
invited
a
number
of
manufacturers
to
form
the
Open
Handset

Alliance.
The
system
was
gradually
ported
to
Tablet
PCs
and
other

devices.

§  In
the
first
quarter
of
2011,
Android
surpassed
Nokia's
Symbian
which
had

been
dominaMng
for
more
than
10
years
and
became
the
world's
No.1.

38
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
GOOGLE
ANDROID

»  OperaDng
CondiDons

§  By
August
2011,
Android
has
been
the
No.1
in
35
countries,
with
an
average

48%
market
share.

§  By
November
2011,
Android
has
taken
over
52.5%
of
the
global
smart
phone

market
share.
In
China
the
number
was
58%.

§  November
18,
Google
reported
that
more
than
200
million
Android
devices

have
been
acMvated
via
Google
servers,
and
55
million
new
acMvaMons
each

day.
To
be
noted,
this
is
only
the
acMvaMons
via
Google
servers.

|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
GOOGLE
ANDROID

»  Views
from
the
Android
Team

1.  Compared
with
iOS,
which
only
covers
high-‐end
users,
Android
ecosystem
boasts
a
wider
range.
iOS

developers
make
simple,
but
not
necessarily
more,
profits.
There
will
be
more
innovaMons
and
bePer

opportuniMes
in
the
profit
model
for
Android
users.

2.  Rovio,
the
developer
of
Angry
Birds,
makes
almost
the
same
amount
of
profit
from
in-‐app
adverMsing
on

Android
plaeorm
than
in
AppStore.

3.  Android
has
not
devote
resources
on
the
profitability
of
this
plaeorm,
but
this
will
be
one
of
the
main

tasks
for
the
Android
team.

4.  Android
plaeorm
is
flexible
enough
to
adapt
to
a
variety
of
market
characterisMcs
in
different
regions.

5.  Revenue
generated
from
Android
plaeorm
in
Japan
surpassed
that
of
iOS.

6.  Google
is
prepared
for
long-‐lasMng,
all-‐round
compeMMon.

What
we
see
now
is
just
the
beginning.

Google's
killer
app
will
be
the
coordinaMon
between
various
products
and
services.

7.  Any
innovaMons
on
the
plaeorm-‐level
face
compaMbility
issues.

8.  One
of
the
purposes
for
Android's
open
strategy
is
to
use
many
distribuMon
channels
to
maximize
the

market
share,
so
that

customers
have
easier
access
to
the
product.

9.  Current
revenue
of
Android
is
mainly
from
adverMsing
on
search
engines.
Android,
as
one
of
the
major

markeMng
channels
for
Google
search,
has
brought
nearly
1
/
3
of
their
users.

40
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
EVERNOTE

»  Company
IntroducDon

§  World's
No.
1
cross-‐plaeorm
note
sohware
/
cloud
storage
plaeorm.

§  Founded
in
2007,
and
headquartered
in
Mountain
View,
California.

§  Core
team:
Stepan
Pachikov
(founder),
Phil
Libin
(CEO),
Dave
Engberg
(CTO)

§  66
days
aher
the
product
launch,
the
number
of
users
reached
100
million;

222
days,
200
million;
133
days;
300
million;
1084
days,
400
million;
83
days;

reach
500
million;
52
days,
600
million.

41
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
EVERNOTE

»  OperaDng
CondiDons

§  By
Oct
2011
there
have
been
16
million

users,
2/3
of
which
internaMonal
users.

§  Registered
users
grow
by
100
million

every
month.

§  By
the
end
of
2010
the
total
number
of

unique
users
had
reached
2,089,705.

Paying
customers
grew
at
470%

annually,
exceeding
that
of
free
users

»  Financial
PosiDon

§  Total
revenue
in
last
12
months:

$16M

§  Average
monthly
income:
more
than

$
1.2M.
Revenue
growth
rate:
more

than
300%

§  Last
valuaMon:
$
1
B

42
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
EVERNOTE

»  Business
Model

Free
+
Premium

1.  Accumulate
core
users
with
free

services
(The
easiest
way
to
have
1

million
paid
users
is
to
have
1
billion

free
users.
-‐
Evernote
CEO
Phil
Libin)

2.  By
providing
amazing
free
products,

improving
the
user
experience

gradually,
and
constantly
updaMng
its

high-‐quality
value-‐added
services,

Evernote
switches
acMve
users
into

paying
users
and
keep
the
conversion

above
1%
(Phil
Libin
assumed
that
1%

is
enough
be
proﬁtable,
whereas
the

actual
conversion
rate
is
more
than

5%).

3.  Ensure
the
gross
margin
in
the
whole

43

process
with
eﬀecMve
cost
control.
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS|
EVERNOTE

»  InspiraDons
from
Evernote

1.  The
core
of
free
+
premium
business
model
lies
in

superior
product

experience,
stable
conversion
rate
from
acMve
to
paid
users,
and
the

extraordinary
cost
control.

2.  One
of
the
benefits
that
large
groups
of
free
users
bring
is
the
user

ecosystem.

§  Large
number
of
free
users
actually
become
the
most
dynamic
product

development
team,
and
their
understanding
of
user
needs
and
acMve

creaMon
are
qualiMes
that
even
professional
teams
do
not
have.

§  Its
huge
number
of
users
influences
device
manufacturers,
such
as
HTC,

so
that
they
build
in
Evernote
products
as
their
default
back-‐end
service

plaeorm
as
well
as
take
the
iniMaMve
to
integrate
their
products.

3.  Sharing
is
informaMon
addiMon;
search
is
subtracMon.
For
most
users,
search

has
more
pracMcal
significance
than
sharing.

4.  The
vision
of
Evernote
is
not
to
make
cross-‐plaeorm
applicaMons,
but
a

universal
memory
plaeorm
for
all
mankind.
For
any
plaeorm
services,

building
data
centers
is
of
great
importance.
Evernote
has
clearly
taken
this

into
account
when
distribuMng
the
ecosystem
in
overseas
markets.

5.  Pure
promoMon
and
markeMng
is
much
less
effecMve
than
the
integraMon
of

industrial
chain.
Evernote
tends
to
rely
on
their
own
strength
of
the

44

ecosystem
to
extend
its
services
at
all
levels.

|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
MOZILLA

»  Company
IntroducDon

§  Mozilla
Fund
(referred
to
as
Mozilla)
is
a
non-‐proﬁt
organizaMon
to
support

and
lead
the
open-‐sourced
Mozilla
project,
and
is
the
provider
for
world's

third-‐largest
browser
Firefox
(the
top
two
being
IE
and
Chrome).

§  Mozilla
OrganizaMon
was
founded
in
February
1998
by
Netscape
staﬀ

internally,
while
the
Fund
was
formally
established
in
July
2003.
It
is

headquartered
in
Mountain
View,
California,
USA

§  Mozilla
Fund
describes
itself
as
"a
public
service
organizaMon
commiPed
to

the
provision
of
a
variety
of
Internet
opMons
and
innovaMons",
and
its

project
includes
Firefox,
Thunderbird,
Drumbeat,
Mozilla
Labs.

§  Core
team:
Gary
Kovacs
(CEO),
Mitchell
Baker
(Chairman),
Brendan
Eich

(CTO),
Chris
Beard
(CIO),
Jim
Cook
(CFO)

|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
MOZILLA

»  OperaDng
CondiDons

§  There
are
about
500
million
Firefox
users

§  More
than
140
million
daily
acMve
users

§  Over
25%
of
market
share,
ranking
3rd

§  Its
market
share
in
China
has
been

declining
since
2008,
and
is
only
3.32%

now

§  40%
of
the
updates
are
from
volunteers

»  Financial
PosiDon

§  Throughout
2010,
Mozilla
(including

the
Fund
and
its
subsidiaries)
gained

more
than
$
123
million
of
total

revenue,
a
18%
growth
compared
to

2009.

46
|
Copyright
2011.
All
rights
reserved.

COMPANY
VISITS
|
MOZILLA

»  Views
from
Mozilla

1.  Browser
developers
need
innovaMons
in
business
models.
In
the
mobile

Internet
era,
a
third-‐party
browser
will
no
longer
suﬃce.
"One
more
choice"

is
no
longer
the
primary
user
need.

2.  The
next
objecMve
for
Firefox
will
be
deep
customizaMon
and
integraMon
of

the
browser
and
the
user.

3.  Firefox
will
try
a
HTML5
applicaMon-‐centric,
open
Web-‐Based,
cross-‐
plaeorm
appstore.
The
ﬁrst
step
will
be
a
developer
Beta
in
the
forth

quarter.

4.  One
of
the
purposes
of
Firefox's
open
appstore
is
to
verify
the
feasibility

and
pracMcality
of
the
Web
as
an
applicaMon
plaeorm.

5.  HTML5
developers
should
have
more
paMence
-‐
due
to
technical
limits,

most
of
the
apps
cannot
run
on
HTML5
smoothly
for
now.
However,
the

HTML5
trend
is
set,
so
the
advent
of
large-‐scale,
cross-‐plaeorm

compaMbility
is
only
a
maPer
of
Mme.

6.  Firefox
add-‐on
is
the
largest
exisMng
Web-‐based
appstore.
With
this
Firefox

accumulated
a
lot
of
experience
and

developers.
This
a
unique
advantage

that
other
plaeorms
do
not
have.

47
|
Copyright
2011.
All
rights
reserved.

KEYWORDS

»  Keyword
-‐
Freemium

Although
it
has
a
long
history,
Freemium
only
has
gained
its
popularity
recently.

It
is
a
free
+
premium
business

model;
companies
provide
main
features
of
the
products
or
services
for
free
to
acquire
a
large
number
of
high-‐
quality
core
users,
and
then
charge
them
with
value-‐added
services
or
an
advanced
versions.
China
is
one
of
the

early
markets
where
Freemium
has
succeeded.
Tencent,
now
a
industrial
giant,
started
with
this
model.

Some

companies
we
visited
in
GMIC
Roadshow,
such
as
Zynga,
Glu
and
Evernote,
are
also
typical
Freemium
players.

Basic
Elements
of
Freemium：

§  “IrresisMble”
Free
Products：Inferior
products
will
not
aPract
users,
even
free
of
charge.
Successful

Freemium
products
are
amazing
because
they
provide
full-‐funcMon
versions
(instead
of
crippled
ones)
to

users
for
free.

§  A
Large
AcMve
User
Base：AcMve
users
means
product
retenMon,
and
retained
users
have
the

possibility
to
be
paid
users.
As
Evernote
CEO
Phil
Libin
says
–
“The
easiest
way
to
have
1
million
paid
users

is
to
have
1
billion
free
users.”

§  Extraordinary
Cost
Control：Venture
capitals
do
not
ensure
the
long-‐term
success
of
Freemium

companies;
only
great
cost
control
abiliMes
do.

§  User
Data
Analysis
and
Mining：The
user
value
needs
to
be
exploited.
The
massive
number
of
users

requires
strong
data
teams
to
support
the
decision
making
for
products
and
services.
Only
by
knowing

who
will
pay
and
how
much
they
will
pay
can
Freemium
companies
succeed.

§  InnovaMons
in
Value-‐Added
Services：From
the
services
themselves
to
the
moneMzaMon
model,

Freemium
requires
constant
innovaMons.
With
the
cost
set,
how
to
maximize
the
value
of
the
product
in
a

way
that
users
accept?
How
to
improve
the
conversion
rate
from
free
users
to
paid
ones?
These
will

always
be
frequently
asked
quesMons.

49
|
Copyright
2011.
All
rights
reserved.

KEYWORDS

»  Keyword
-‐
Freemium

Why
is
Freemium
so
Popular?

§  Users
are
easier
aPracted
by
free
products.

It
is
the
"easily-‐aPracted
users"
that
are

the
premise
of
Freemium.

§  Free
products
with
greater
user
retenMon
cause
higher
transfer
cost
to
users.

The

fundamental
advantage
of
Freemium
is
the
accumulaMon
and
retenMon
of
core
users,

because
no
maPer
how
good
the
moneMzaMon
model
is,
it
cannot
make
profits

without
stable
user
groups.

§  The
marginal
cost
advantage
of
sohware
and
Internet
products.
It
was
difficult
for

Freemium
to
succeed
before
the
Internet
era.
The
reason
why
it
prevails
now
is
that

most
IT
products
have
almost
zero
marginal
cost.

§  Another
reason
for
the
popularity
of
Freemium
is
its
advantages
in
markeMng.

Before

there
were
social
media,
“word-‐of-‐mouth”
markeMng
was
difficult,
whereas
now

various
social
media
plaeorms
amplify
its
effecMveness.

§  Core
users
aPracted
by
free
products
contribute
more
to
the
formaMon
of
the

ecosystem.
As
Evernote
CEO
said,
a
major
part
of
the
development
of
Freemium

products
comes
from
users.

Free
users
are
more
willing
to
contribute
their
efforts
to

improve
the
user
experience.
Numerous
user-‐developed
products
will,

in
a
short
Mme,

form
a
ecosystem
that
is
difficult
for
compeMtors
to
replicate.

50
|
Copyright
2011.
All
rights
reserved.

KEYWORDS

»  Keywords
-‐
HTML5

Cu~ng-‐Edge
PracMMoners‘
Views

1.  Webstore
-‐
cross-‐plaeorm
compaMbility
is
undoubtedly
the
primary

significance
of
HTML5.
Web-‐based
apps
is
not
only
a
technical
soluMon,
but

also
opens
up
different
market
segments
for
more
opportuniMes
in
business

model
innovaMon.
Microsoh,
Mozilla
and
Google
have
started
their
own

browser-‐related
strategies.

2.  The
80/20
rule
of
HTML5
-‐
due
to
technical
limits
at
this
stage,
only
about

20%
of
all
apps
are
suitable
to
run
on
HTML5
plaeorm,
and
the
rest
80%
are

not
for
they
require
higher
performance.
But
the
trend
is
set.
This
80%

represents
potenMal
rather
than
obstacle.

3.  Games
that
are
larger
than
100m
currently
cannot
run
in
the
browser
-‐

although
HTML5
reduces
the
cost
of
porMng,
the
response
Mme
and
gaming

experience
greatly
limited
so
that
hard-‐core
gamers
will
not
be
saMsfied.

4.  HTML5
is
hard
to
promote
-‐
on
the
one
hand,
HTML5
is
being
pushed
more

because
of
strategic
needs
from
companies
than
by
urgent
needs
from
users;

the
other
hand,
its
high
requirements
for
hardware
and
bandwidth
are
also

constraints.

51
|
Copyright
2011.
All
rights
reserved.

KEYWORDS

»  Key
word
-‐
Ecosystem

InspiraMons
from
great
Silicon
Valley
business

1.  APenMon
to
their
own
posiMon
in
the
ecosystem
and
to
the
industry
chain
integraMon
capabiliMes.

No
maPer
who
is
speaking,
Glu,
Zynga,
or
Google
Android,
the
construcMon
and
development
of

ecosystem
have
become
an
important
part
of
their
long-‐term
strategy.

§  Android's
success
comes
from
the
rapid
formaMon
of
a
large
ecosystem,
thanks
to
Google's

eﬀorts.
In
terms
of
scale
it
is
even
larger
than
that
of
Apple.
Google's
core
strengths
in
the

future
also
lie
in
the
synergy
between
various
parts
of
its
ecosystem.

§  Glu
has
dedicated
teams
responsible
for
the
adaptaMon
of
all
aspects
of
the
Android

ecosystem.
It
also
cooperates
with
the
industrial
chain
covering
chip
makers,
handset

manufacturers,
SNS
plaeorms,
and
a
variety
of
retail
stores.

§  Evernote
believes
that
pure
markeMng
is
much
less
eﬀecMve
than
integraMng
the
industrial

chain,
therefore
it
always
adheres
to
the
construcMon
of
ecological
system,
with
which
to

promote
and
extend
its
own
business.

2.  Drive
product
development
and
markeMng
by
customer
needs
to
accelerate
the
formaMon
of

ecosystems.
This
is
parMcularly
evident
in
development
of
companies
like
Evernote
and
Mozilla,

whose
large
number
of
free
users
and
volunteers
actually
become
the
most
dynamic
product

development
team,
and
their
understanding
of
user
needs
and
acMve
creaMon
are
qualiMes
that

even
professional
teams
do
not
have.

3.  Lead
or
parMcipate
in
the
construcMon
of
a
business
ecosystem
so
that
companies
have
resources

beyond
their
own
borders
and
beyond
the
local
market.
During
the
enMre
trip
this
is
the
theme
of

all
China-‐related
topics.
Glu
and
Mozilla
are
acMvely
seeking
cooperaMon
with
OEMs
and

operators;
Zynga
formed
an
alliance
with
Tencent;
Evernote
began
trying
to
build
data
centers
in

China;
Google,
although
quiet
in
the
Chinese
market,
conMnues
to
envolve
Chinese
developers
into

its
own
ecosystem.

52
|
Copyright
2011.
All
rights
reserved.

CONCLUSION

»  On
New
Technologies
and
Business
Models
-‐
InspiraDons
from
Square

and
Evernote

§  Whether
it
is
HTML5
or
NFC,
new
technologies
tend
to
be
over-‐sought
or

idolized.
But
we
also
see
such
entrepreneurs
as
Jack
Dorsey
who
set
up

companies
in
a
quite
different
way:
From
the
beginning,
the
idea
was
not
to

mobilize
the
payment
method.
It
was
the
overall
development
of

technologies
to
make
a
whole
new
model
that
completely
changes
tradiMonal

methods
or
even
the
way
of
life.

As
Jack
Dorsey
said,
“First
of
all,
Square
is

not
a
mobile
payment
company;
secondly
it
is
not
even
a
payment
company.”

§  What
Square
pursues
is
"make
the
payment
itself
no
longer
a
hindrance"
-‐

"to
support
every
payment
method
available
to
customers"
and
"to
help

businesses
complete
every
possible
transacMon".

They
will
support
NFC
as

long
as
customers
need
them
to.
While
most
companies
focus
solely
on
new

technologies,
Square
sees
the
bigger
picture
and
emphasizes
on
how
these

technologies
can
be
applied
to
the
business
model
and
ecosystem.
This

difference
in
perspecMve
differenMate
this
companies
from
ordinary
ones.

§  In
Evernote
we
also
heard
them
say
"to
be
a
universal
memory
plaeorm
of

mankind".
We
can't
help
thinking
about
the
words
Mr.
Lei
Jun
said
to
Tencent

employees
in
a
recent
GWC
mobitalk:
"It
is
Mme
for
Tencent,
as
a
giant
with

$40
billion
of
market
value,
to
change
the
world."
A
great
company
from

China
is
something
we
all
look
forward
to.

53
|
Copyright
2011.
All
rights
reserved.

CONCLUSION

»  On
the
Mobile
Internet
boom
-‐
trend
or
trick
?

§  Throughout
the
GMIC
Roadshow,
we
heard
more
than
once
American
colleagues'

amazement:
The
startup-‐boom
in
Beijing
is
quite
similar
to
that
in
Silicon
Valley
some
Mme

ago.
Angel
investors
and
VCs
have
different
views
due
to
their
business
backgrounds.
For

example,
SV
Angel,
from
the
perspecMve
of
science
and
technology
update
cycle,
believes

that
mobile
Internet
is
sMll
only
at
the
early
stage
and
far
from
a
bubble,
not
to
menMon

slowing
down;
Sequoia
capital
measures
whether
there
is
overheaMng
based
on
"the

difficulty
and
cost
for
start-‐ups
to
recruit
people."
They
thinks
that
"at
any
stage
of
the

economic
cycle
there
will
be
good
businesses,"
and
invest
in
projects
and
entrepreneurs

with
long-‐term
and
extensive
values
for
in-‐and-‐out
returns.

»  On
the
direcMon
of
investment
-‐
angel
investment
vs
venture
capital.

ü  SV
Angel's
focuses

§  New
media
channels,
real-‐Mme
content
consumpMon

§  O2O
Business

§  Collaborated
consumpMon

ü  Basic
investment
philosophy
of
Sequoia
Capital
:
find
a
spark
can
start
a
prairie
fire:

§  New
technological
and
innovaMve
projects

§  Projects
with
superior
customer
values
and
fast
distribuMon
plaeorms

54
|
Copyright
2011.
All
rights
reserved.

PICTURES

|
COMPANY
VISITS

Do nahoe

TwiPer
Founder
-‐
Jack
Dor
eBay
CEO
-‐
John
sey

Aliyun
President,
Wang

ice
President
of
Mobile
Bus iness,

David
Marcus
Jian
-‐
GMIC
Roadshow

Paypal
V research@greatwallclub.com
|
Copyright
2011.
All
rights
reserved.

ABOUT
GWC:
WHO
WE
ARE

enable’s its members and clients to:
Develop trusted relationships
Learn market leading strategies
Promote their initiatives

Connecting the
mobile internet
ecosystem
of
China
to that of
the world’s
en.greatwallclub.com
|
Copyright
2011.
All
rights
reserved.

If
you
have
any
comments
on
this
report
or
want
more
informaMon
about
GWC
and
the

Global
Mobile
Internet
Conference,
please
contact
us
at

SHAWN
MICHAEL
CUI

|

MARKET
RESEARCH
AND
CONSULTING
PROJECTS,
SENIOR
MANAGER

»  Email:
shawn@greatwallclub.com

»  www.linkedin.com/in/shawnmichael

CommiPed
to
building
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world-‐leading
mobile

Internet
business
plaeorm.
We
help
our
members
and

clients
establish
business
relaMonships
based
on
mutual

trust,
learn
strategies
and
innovaMve
market-‐leading

business
model,
and
promote
their
development
major

This
report
is
an
internal
publicaMon
of
Great
Wall
Club
and
is
intended
for
its
members.
strategic
markets
both
in
China
and
the
world.

Unauthorized
publicaMon
and/or
use
of
communicaMons
are
prohibited
without

permission
from
the
copyright
owners.
|
Copyright
2011.
All
rights
reserved.

Gport GMIC Roadshow USA Report -EN

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