mobile investment outlook 2016 - edith yeung

Connect 2016 Mobile Investment Outlook

Edith Yeung | @edithyeung | January 14, 2016

Edith Yeung is a Partner at 500 Startups’ Mobile Collective, focusing on investing in mobile apps and consumer internet startups. 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.

Edith Yeung | @edithyeung | edith.co

Why should you care about mobile?


Mobile Unicorns Are Kicking Ass!


105 Mobile Internet Unicorns’ Total Enterprise Value ~ $839 Billion

Source: Digi-‐Capital -‐ h;p://www.digi-‐capital.com/news/2015/11/mobile-‐internet-‐stocks-‐down-‐15-‐unicorn-‐valuaGons-‐drop-‐by-‐average-‐1-‐billion/#more-‐1049 Edith Yeung | @edithyeung | edith.co

85% Mobile Internet Unicorns Come From US & China – Q3 2015

Source: Digi-‐Capital -‐ h;p://www.digi-‐capital.com/news/2015/11/mobile-‐internet-‐stocks-‐down-‐15-‐unicorn-‐valuaGons-‐drop-‐by-‐average-‐1-‐billion/#more-‐1049

1.  United States 2.  China 3.  India 4.  Japan 5.  South Korea 6.  Israel 7.  Sweden 8.  United Kingdom 9.  Germany 10.  Finland 11.  Denmark 12.  France 13.  Singapore 14.  Malaysia


7 Sectors Make Up 90% of Total Mobile Internet Enterprise Value – Q3 2015

Source: Digi-‐Capital -‐ h;p://www.digi-‐capital.com/news/2015/11/mobile-‐internet-‐stocks-‐down-‐15-‐unicorn-‐valuaGons-‐drop-‐by-‐average-‐1-‐billion/#more-‐1049

1.  Social 2.  mCommerce 3.  Transportation 4.  Finance 5.  Messaging 6.  Games 7.  Food & drink


Growing Mobile Startups is Tough


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 …


8 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

Edith Yeung | @edithyeung | edith.co Source: CBInsights-‐ h;ps://www.cbinsights.com/blog/vr-‐funding-‐2015/

Trend 2 – Travel Industry Growing 2x Faster Than US Economy


After 22 consecutive quarters of job growth, the travel and tourism industry has added more than 1.1 million U.S. jobs that were previously lost during the global economic slowdown

Source: U.S. Department of Commerce, Bureau of Economic Analysis, U.S. Travel and Tourism Satellite Account (TTSA).

348 Travel Tech Startups Raised $5.2B in 2015

Edith Yeung | @edithyeung | edith.co Source: CBInsights-‐ h;ps://www.cbinsights.com/blog/funding-‐travel-‐tech-‐startups/

Trend 3 – Internet of Everything The 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 McCann h;ps://medium.com/@mccannatron/esports-‐market-‐ecosystem-‐map-‐c6ae5bc6a7d0


IoT Startups Raised Over $1.9B In 2015

Edith Yeung | @edithyeung | edith.co Source: CBInsights-‐ h;ps://www.cbinsights.com/blog/internet-‐of-‐things-‐startup-‐funding/

Trend 4 – APAC is Leading FinTech Innovation. 122 Startups Raised $3.5B in 2015.

Edith Yeung | @edithyeung | edith.co Source: Accenture -‐ h;ps://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 5 – Millennials Now Represent the Biggest Voice of the US Population

Edith Yeung | @edithyeung | edith.co Source: Goldman Millennial Insights h;p://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 -‐ h;p://www.nielsen.com/us/en/insights/news/2014/mobile-‐millennials-‐over-‐85-‐percent-‐of-‐generaGon-‐y-‐owns-‐smartphones.html

Trend 6 – The Future of Learning


Mobile 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

management Source: Department of EducaGon -‐ h;p://tech.ed.gov/files/2015/12/NETP16.pdf

Trend 7 – 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 8 – Copy From China – Billion of Mobile Users Inspire New Business Models


Hope you have your mooncake and get to eat it too!


You can find my presentation at: •  Deck http://www.edith.co/#blog •  Email [email protected] •  Twitter @edithyeung •  Newsletter http://www.edith.co/#newsletter
