sbc china report … · 22-03-2018 · cable line reached 36.06 million kilometers. until 2017 q3,...

SBC China Report

One Glance at China01

02

03

04

Future of China

Opportunities and Challenges for Foreign Startups

China Startup Ecosystem

05 Future Key Industries

Contents

ONEOne Glance at China

First Impression of China

“Big” Data in China

China Economic Growth

First Impression of China

The world’s largest population: 1.404 billion peopleThe third largest geographical area: 9.6 million sq km

CHINA


InternetInfrastructure

Until 2017 Q2, the total length of the cable line reached 36.06 million

kilometers.

Until 2017 Q3, the number of Internet broadband access ports reached 760

million.

Until 2017 Q3, the number of mobile communication base stations reached 6.041 million, and 3G/4G base stations

accounted for 74%.

Until December 2017, the number of Chinese websites reached 5.33 million with an annual growth rate of 10.6%.

Until December 2017, the number of Chinese web pages reached 260.4 billion with an annual growth rate of 10.3%.

Until November 2017, the number of mobile applications (APPs) in the Chinese market reached 3.9 million.

InternetResource

Source: CNNIC “41th, Statistical report on the development of China Internet network”


• The number of Internet users in China was 772 million, and the Internet Penetration Rate was 55.8%.

• The number of rural Internet users in China was 209 million, accounted for 27%, the number of urban Internet users in China was 563 million, accounted for 73%.

• The proportion of Chinese people getting access to Internet by mobile phones, desktop computers, laptops and television was 97.5%, 53%, 35.8%, and 28.2% respectively.

Until December

2017

Internet Data

“Big” Data in ChinaAli Data & WeChat Data

Singles’ Day (“Double 11”)

At 00:03:01 of November 11, the turnover was over 10 billion yuan!

2017 "Tmall Double 11 Global Carnival" turnover was over 168 billion 200 million yuan!

In September 2017,

The daily average users reached 902 million.The number of elderly users reached 50 million.The average daily WeChat messages reached 38 billion.

China Economic Growth

• The modernization propelled the growth of Tertiary Sector.

• China jumped up to second place with a nominal GDP of RMB 74.42 trillion ($11.81 billion).

• The economic reform program began.

• China ranked tenth with nominal Gross Domestic Product (GDP) of RMB 364.5 billion ($ 57.86 billion).

20161978

Source: National Bureau of Statistics of the People's Republic of China

*Primary Sector: the industry providing materials for production, including planting, forestry, animal husbandry, aquaculture.*Secondary Sector: the industry processing basic materials and sold it. *Third Sector: the service industry containing all the other industries not included in Primary Sector and Secondary Sector.

China Economic GrowthChinese Cities Compared with Countries

Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries

TWOFuture of China

China’s Future DirectionDigital ChinaManufacture ChinaGreen ChinaOpen-up ChinaInnovation ChinaAging ChinaRural Areas’ Urbanization

China’s Future DirectionChina Communist Party’s (CCP) 19th Party Congress

• Encourage more social entities to carry out innovation and entrepreneurship.

• Carry out vocational skills training, focusing on solving structural employment contradictions.

• Provide comprehensive public employment services, encourage entrepreneurship of young people and migrant workers.

• Enhance the support for SMEs' innovation and promote the transformation of scientific and technological achievements.

—CCP 19th Party Congress

“A moderately prosperous society” by 2021*

A “strong, democratic, civilized, harmonious, and modern socialist country” by 2049*

Two Centennial Goals

*2021: the 100th anniversary of the party’s founding.*2049: the 100th anniversary of the founding of the People’s Republic.

Digital ChinaChina’s digital globalization is only just getting started but

gathering fast momentum.

China’s three Internet giants (Baidu, Alibaba, and Tencent) are building a multifaceted and multi-industry digital ecosystem that touches almost every aspect of consumers’ lives.

The government gave digital players space to experiment before enacting official regulation and is now becoming an active supporter.

The bigger, younger China market is enabling rapid commercialization of digital business models on a large scale.

Manufacture ChinaMade in China 2025: turn China into a

“manufacturing superpower”

Ten Key Sectors

New Energy Vehicles

Next-Generation Information

Technology (IT)

Biotechnology

New Materials

Aerospace

Ocean Engineering And High-Tech Ships

Railway

Robotics

Power Equipment

Agricultural Machinery

Support the foreign-invested enterprises to get listed, and issued bonds in China, and they are allowed to participate in the national science and technology project. In terms of

qualification licensing, standard formulation, government procurement, and the "China made 2025" policy, domestic and foreign enterprises are treated equally.

—— Li Keqiang, Government Work Report

In 2017, the Ministry of Industry and Information Technology issued 25 key areas under Made in China 2025, including Internet of things(IoT), new materials, smart appliances and high-end consumer electronics, information security capabilities of industrial control systems, quality and safety traceability system of infant formula milk powder industry etc.

China has set up a special fund to support key projects. Single project can get about 30 million to 50 million RMB, some common technology projects or key technology projects can get more than 100 billion RMB.

The Ministry of Industry and Information Technology has reached an agreement with China Development Bank (CDB). From 2015 to 2020, CDB will provide financing of no less than 300 billion RMB, and multiple financial services (like, loans, bonds, investment, leasing, etc) to "Made in China 2025".

25 Key Areas Special Fund Support Financial Services Support

Green ChinaSustainable economic model:

clean up environmental degradation

Strict Enforcement of Environmental Standards

Chinese government has stepped up its efforts to enforce environmental regulations through national

emissions monitoring systems and central government-led inspections in 15 provinces.

Support Domestic Green Industries

The Chinese government will support the growth of its energy-saving and environmental protection industries into

globally competitive firms.

Strong support fortwo strategic emerging industries: new energy vehicles and

advanced energy-saving technologies and equipment.

Open-up ChinaOne Belt, One Road(OBOR) aims to create world’s

largest cooperation platform

"One Belt, One Road(OBOR)" International Cooperation Forum

• Create Entrepreneurial Space and Entrepreneurial Workshops for youth all over the world.

• From 2018, China will hold the China International Import Exposition to attract politicians, exhibitors as well as professional purchasers all over the world to expand China Market, share cooperation opportunities between different countries.

• China Development Bank and The Export-Import Bank of China will respectively provide 250 billion RMB and 130 billion RMB of special loans to support infrastructure construction, financial cooperation in OBOR.

• In the next 5 years, 2500 young scientists will be engaged in short-term research work in China, 5000 people will be trained in science technology and management and 50 joint laboratories will be put into operation.

Innovation ChinaRe-establish China as a global center of

innovation and technology

China’s Innovation-Driven Development Model

• Become an "innovative nation" by 2020.• Become an international leader in

innovation by 2030.• Establish China as a world powerhouse

of scientific and technological innovation by 2050.

13th FYP innovation plan’s target- Building a national innovation system with high efficiency and synergy

• Cultivate active innovation individuals or organizations.

• Deploy high level innovation base.• Create high end innovation growth pole.• Build an open and cooperative innovation network.• Establish modern innovation governance structure.• Construct a good innovation ecology.

Innovation ChinaFuture Top Technologies: Cloud, IoT, Big Data, AI, BlockChain

When the Demographic Dividend is gone, here comes the Dividend of Technology.

——Baidu CEO, Robin Li

“AI

IoT(Internet of Things)

Cloud / Edge Computing

BIGDATA

Big Data

BlockChain“

When the Demographic Dividend is gone, here comes the Dividend of Technology.

——Baidu CEO, Robin Li

Aging ChinaChina already stepped into an aging society

In 2000, the Chinese population aged 65+ has reached 88.11 million, accounting for 6.96%. According to international standards, China has stepped into an Aging Society.

Aging population continues to grow, causing some problems• The proportion of endowment insurance fund to GDP is increasing,

and the burden of pension expenditure is increasing.• The decrease of the labor population and the increase of human

cost have caused the transfer of manufacturing activities to cheaper overseas markets.

Source: National Bureau of Statistics of the People's Republic of China

Healthy ChinaHealth Service and Security

Premature Mortality of Major Chronic Diseases

The Number of Practitioners (Assistants) Per Thousand Permanent Residents

The Proportion of Personal Health Expenditure To Total Health Costs (%)

Health Industry

The Industry Size of Health Service (Trillion Yuan)

Healthy Life

Health Literacy Level of Residents (%)

The Number of Regular Physical Exercisers (Hundreds of Millions of People)

The Ratio of Good Weather Days In Urban And Above Cities(%)

Health Environment

Health Level

The Mortality of Child Under 5 Years of Age (%)

Life Expectancy Per Citizen

Maternal Mortality (1/100 Thousand)

The Proportion of Urban And Rural Residents Meet The Standard of National Physique Determination (%)

Infant Mortality Rate (%)

2 01 5

2 02 0

2 030

2 01 5

2 02 0

2 030

2 01 5

2 02 0

2 030

2 01 5

2 02 0

2 030

2 01 5

2 02 0

2 030

19.12013

↓10％than2015

↓30％than2015

2.2 2.5 3.0

29.3About

28About

25

—— >8 16

10 20 30

3.62014

4.4 5.3

76.7 >80 Continuous improvement

76.3 77.3 79.0

8.1 7.5 5.0

10.7 9.5 6.0

20.1 18.0 12.0

89.6 90.6 92.2

Rural Areas’ UrbanizationThe process of urbanization continues to move

forward steadily

By 2020, the target of urbanization rate of China's resident population is 60%, and the urbanization rate of the household population is 45%.

Actively promoting the urbanization of rural migrants• Speeding up the construction of urban traffic network.• Implementing the reconstruction of urban underground pipe

network .• Promoting the construction of the sponge City.• Promoting the construction of new cities.• Improving the level of urban public service.

Improving urban functions

• Upgrading the infrastructure of the county and key towns.• Cultivating a batch of small and medium-sized cities.• Speeding up the development of characteristic town.

Cultivate small and medium cities and characteristic town• Extending infrastructure and public services to the

countryside.• Promoting the integration and development of China’s main

three industries in rural areas.• Promoting the development of rural e-commerce.

Drive the construction of New Countryside

THREEOpportunities & Challenges for Foreign StartupsOpportunities

Challenges

If a startup becomes successful in China, its growth can be astonishing.

Huge Market Capacity Consumption Growth & Upgrade

Unique Chinese Customer ProfilesVenture Capital Investment

Huge Growth Potential in China

％

Huge Market CapacitySecond largest economy let firms attain huge scale

Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets; numbers may not add up to 100% due to rounding; *excludes Hong Kong; **forecast from May 2016Source: eMarketer, Aug 2016

Consumption GrowthChina will add nearly $2 trillion in new

consumption by 2021

Consumption UpgradeConsumption has become the first driving

force for China's economic growth

The Disposable Personal Income(DPI) for per urban citizen has increased,

its growth rate has always been significantly higher than the GDP

growth rate.

The expenditure of residents for service consumption has increased significantly, while the commodity

consumption has been relatively decreased.

Huge Potential in Service Consumption

DPI Growth Rate is Higher than GDP

Surging Rural Consumption

The number of migrant workers has decreased sharply, while the number of local migrant workers

rebounded.

0201 03

GDP(constant price, on season-on-season basis) Dominant income ratio (right axis)Per capita disposable income of urban residents: cumulative on year-on-year

In third-tier and forth-tier cities, the population of middle class grows significantly

Accommodation Commodity Consumption(Food, Apparel)

Service consumption

Source: Wind information, Suning Institute of Finance Source: Wind, Suning Institute of Finance

Technology Venture Capital InvestmentInvestors placed big bets on Chinese upstarts

Robotics and dronesVirtual RealityFintech

Chinese venture-capital investment by technology, 2016, $billion

Source: Mckinsey Global Institute

Artificial Intelligence Education Technology Autonomous Driving

Unique Chinese Customer ProfilesChinese customers have different consumption habits

Globalization, technology (which gives people greater exposure to the world), and rising income levels (which give them the time and money to follow their interests) shaped Chinese customers into different profiles.

80% of Chinese consumers feel that brands and companies should be environmentally responsible.

-- GfK Survey

66 million (or 16.2%) bought five or more “green” products in 2015, up from just 4 million in 2011 (3.4%). Notably, they are willing to pay a price premium - up to 33% - for those products.-- Alibaba’s customers study

Eco-conscious Customer

Chinese consumers are passionately taking up new interests and they are increasingly willing to spend money on those wide-ranging interests

Passionate Trend Seeker

Customers tend to use more digitalized services.

E-commerce was welcomed by Chinese customer due to its convenience.

Customers get accustomed to digitalization lifestyle.

Digitized Customer

Consumption boundaries—typically defined by age and gender—are less relevant to consumers today.

Men develops grooming habit, spending more on men skin care products.

Older generation begin to spend more on travel and sports activities

Diversified Customer

Demographic shifts are creating a growing number of single people in China. Among urban populations, 16% now live alone, compared with just 5% ten years ago.

In general, single people seek smaller volumes, greater convenience, and higher-quality goods.

Single Person

Different customer profiles unravel new market trendsSource: BCG Analysis, Five Profiles That Explain China’s Consumer Economy

Challenges for foreign entrepreneurs.

Different Customer Behavior

“ChinaSpeed” Manifestation

Challenging Regulatory Environment

Language Difference Cultural Differences

Internet Accessibility Restriction

Different Customer BehaviorConsumer behavior in China is different

from the rest of the world

• They are into mobile payments for its flexibility

• They are natural omni-channel shoppers

• They love a bargain, but price is no longer paramount

• They are more demanding

• They rely on social media and what their friends say about

products

• They prefer marketplaces to stand-alone shopping websites

• They are into brands, but they aren’t very loyal (yet)

“ChinaSpeed” Manifestation

ChinaSpeedIn China, the time a company takes to reach over 50% domestic market penetration is much more less than other countries.

Even if a product is not perfect yet, Chinese companies launch it and use customer feedback to release an improved version at ChinaSpeed.

For any successful startup hundreds or even thousands of copycats will emerge almost instantly.

Cutthroat Domestic Competition

Challenging Regulatory EnvironmentInconsistent regulations and enforcement are top challenges

2012 2013 2014 2015 2016 2017

Shortage of qualified management

43%Rising labor costs



61%

Inconsistent regulatory interpretation and unclear

laws 57%


laws 58%


laws 37%

Inconsistent regulatory interpretation and

unclear laws 38%

Inconsistent regulatory

interpretation and unclear laws

39%

Inconsistent regulatory

interpretation and unclear laws

47%

Rising labor costs 54%

Rising labor costs 58%

Shortage of qualified employees

29%


35%


37%


42%

Difficulty obtaining required licenses

29%

Increasing Chinese protectionism

32%


26%Corruption

30%Shortage of qualified

management 31%


32%


29%


30%

Corruption 26%


30%


31%

Increasing Chinese protectionism

30%Industry overcapacity

29%Difficulty obtaining required

licenses 29%

Top five business challenges in China

Source: China Business Climate Survey Report 2017

01

02

03

04

05

FOURChina Startup Ecosystem

Venture Capital in ChinaStartups in ChinaTypical High-tech Cities in China

Venture Capital in ChinaFundraising Trend

Source: Dow Jones Venture Capital Report

Until Q3 2017, equity financings into China-based companies reached $36.73 billion through 1605 deals.

The hottest sectors sought after by VCs

Number of financing deals in different sectors, 2017 H1

The hottest sectors sought after by VCsVenture Capital in China

Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1

Funds raised by different sectors, 2017 H1, billion (RMB)

Venture M&A Market ActivityVenture Capital in China


Until Q3 2017, mergers and acquisitions(M&As) for venture-backed companies in China garnered $8.44 billion through 29 deals.

The amount raised and the deal flow is already exceed the prior year.

Chinese VC-backed IPOsVenture Capital in China

Until Q3 2017, 98 Chinese VC-backed companies went public, raising $7.9 billion.


Startups in ChinaThe newly funded startups in Chinese provinces(2017 H1)


The hottest sectors sought after by entrepreneursStartups in China


Listed in the 20 most high-tech cities in the worldChina Typical High-tech Cities

Rank 1 2 3 4 5 6 7 8 9 10

City San Francisco New York London Los Angeles Seoul Taipei Boston Singapore Toronto Chicago

Country California New York England California South Korea Taiwan Massachusetts Singapore Canada Illinois

Rank 11 12 13 14 15 16 17 18 19 20

City Dallas-Fort Worth Tokyo Stockholm Vancouver Amsterdam Beijing Shanghai Montreal Bangalore Shenzhen

Country Texas Japan Sweden Canada the Netherlands China China Canada India China

• Startups

• Patents

• Venture Capitalists

• Innovation Cities Index

Ranking

Source: 2thinknow : data innovation agency.

• Smart Cities Ranking

• City Innovation Policy

• Number of Programmers

• Metropolitan Population

• Industrial Designers

Technological Advancement

Factors

Shanghai has the international culture, the economies of scale, the business infrastructure and a critical mass of talent and capital to provide fertile ground for a vibrant startup ecosystem.

SHANGHAI

Shanghai – Building An International Startup EcosystemChina High-tech Cities

Shanghai was ranked no.1 in English-language proficiency in China.

——EF English Proficiency Index 2017

Proficiency: Very low Low Moderate High Very High

Shanghai

Hong Kong

Beijing

Shenzhen

Guanghzou

56.76

55.81

53.83

50.56

50.09

”


Shanghai – Building An International Startup Ecosystem

Government Policies Promote Innovation

Risk-compensation Policy for Angel Investors

The policy aims to compensate investors for as much as 60% of any actual losses resulting from the failure of seed investments in tech startups in Shanghai. The policy covers up to ¥3 million for each unsuccessful investment case, with a limit of ¥6 million per investment firm per year.

National “Mass Entrepreneurship And Innovation” CampaignChina is hoping that technologies and Internet-driven

startups can become the new economic engine, promoting growth of a successful startup ecosystem,

replacing the old-style pursuit of GDP growth through manufacturing and industrial exports.

China High-tech Cities

Affluent Financial Support

Government Subsidy Programs

The Shanghai government offers various subsidy programs in different districts.

• Company Registration Subsidy• Entrepreneurship Loan• Rental Assistance Program• Social Insurance Subsidy• Service Business One-off Subsidy• Innovative Solution One-off Subsidy• Training Subsidy

Notable VC Firms

In the third quarter of 2016, Shanghai was ranked no.2 among Chinese cities in terms of the total number of angel investments.

Kleiner Perkins Caufield & Byers


Science and Technology Education Hub

Fudan University

Tongji University

Shanghai Jiao Tong University

East China University of Science and

Technology

Shanghai’s education system is extremely

competitive at all levels, attracting top students from

all over the country.

East China Normal

University


A hub Of original equipment manufacturers (OEM)

A world-class Hardware Maker

An Innovation Hub of software

China High-tech CitiesShenzhen— Becoming An International Hub of Hardware Innovation

The youngest city in China: The average age of its population in 2016 is only 33.

With 7,860,000 migrants in 2016, Shenzhen is also one of the most diverse cities in the country.

Shenzhen is a city with culture of tolerance and open-mindedness.

It was voted China’s Most Dynamic City and the City Most Favored by Migrant Workers in 2014.


Qianhai: A Hong Kong-Shenzhen service center, focusing on high tech, education, art and logistics services.Futian: A political, financial and trading center.Luohu: A financial and trading services center.Longgang and Pingshan: A modern heavy industrial base.Longhua: A transportation and logistics hub.Guangming: A local high-tech and eco-agricultural base.Aerotropolis: An international logistics and supply-chain base.Yantian: A leisure tourism and logistics hub.

Municipal Committee Secretary of Shenzhen Ma Xingrui laid out the city’s blueprint for the next five years:

Urban Master Planning of Shenzhen(2010-2020)Urban Layout Map

Shenzhen Municipal People's Government 2010


Shenzhen has ranked No.1 for 13 years.

In 2016, the number of PCT(Patent Cooperation Treaty) applications by Shenzhen is 19,648, accounts for 46% of national applications.

R&D Spending in Shenzhen tops 80 billion yuan, accounts for 4.1% of GDP, putting it on a par with South Korea and Israel, which hold the world’s top-two positions in terms of investment in R&D, according to the OECD.

Source: The Intellectual Property Office of Guangdong Province, Shenzhen, Shanghai, Beijing; The Statistics Bureau of related cities


Government Subsidy Programs

• Start-Up Enterprise Subsidy• Rental Subsidy• Social Security Subsidy• Employment Subsidy• Micro-Financing• Peacock Campaign: for High-level talents

VC Firms and Enterprises

The total amount of investment from the top 100 Shenzhen VC funds in 2016 was ¥58 billion, up 40% year over year, which was invested in 987 transactions, up 16.4% year over year.

Source: Shenzhen Chamber of Investment

Shenzhen Capital Group Tencent Industry Win-Win Fund

Strong Financial Support

Shenzhen— Becoming An International Hub of Hardware InnovationChina High-tech Cities

Creative Innovation Ecosystem

Makerspaces

Shenzhen is a hub for makers.

Notable Startups Industry-Leading CompaniesAccelerators

The incubator and accelerator network in Shenzhen is

relatively underdeveloped.

Major industry-leading tech companies are headquartered in Shenzhen. Their success sets an

example and brings more investment and business

opportunities into the city.

In 2016, there are 131 Chinese Unicorn with valuation at over $487 billion, among these 131

companies, 13 are based in Shenzhen with a valuation of

around $39 billion in total.

Shenzhen— Becoming An International Hub of Hardware InnovationChina High-tech Cities

FIVEFuture Key Industries in China

Digital HealthAgri-food TechSmart Manufacturing Clean Tech Ed Tech

Digital Health

Digital health is the convergence of digital and

genomic technologies with health, healthcare,

living, and society to enhance the efficiency of

healthcare delivery and make medicines more

personalized and precise.

Digital Health

What is Digital Health?

Providers and other stakeholders are using digital health in their efforts to:

Patients and consumers can use digital health to better manage and track their health and wellness related activities.

Reduce inefficiencies Improve access Reduce costs

Increase quality Make medicine more personalized for patients

Digital Revolution Genomic Revolution

Wireless sensors & Devices

Mobile connectivity

Social networking

Genomics

Internet

Imaging

Data Universe

Health info systems DISEASE

DIAGNOSIS

MANAGEMENT

PREDICTION

PREVENTION

+

RESULTS

The Digital Health RevolutionDigital Health

Policies and Regulations Drive & Threaten Innovation

Patient-Generated Data Comes of Age

Mobile Health = Healthcare

Blockchain Health Ecosystem Driversifies

Empathetic Health Interfaces Mature

Innovation Trends Digital Health

Source: CBINSIGHTS, Healthcare consumerization

Digital Health is still picking up steam Digital Health

• On a quarterly basis, funding saw a 100% increase from $1.2B in Q4’16 to $2.4B in Q1’17. Deal flow, which picked up at the end of 2016, fell slightly in Q1’17, landing at 255.

• In general, deals to digital health startups trended up through Q1’16. However, the sector has been on rocky footing lately with Q2’16 and Q3’16 seeing big drops in deal flow. In Q4 deals pushed back up, then declined again slightly in Q1’17.

Global Funding Trend

Source: CBINSIGHTS, Digital Health Funding Reaches Record Level

Digital Health

Population Aging Intensity

Environment Pollution

In 2016, Top 10 reasons causing Highest YLLs* in China:1. Stroke2. Ischemic heart disease3. Road traffic injury4. Lung cancer5. COPD6. Liver cancer7. Gastric cancer8. Alzheimer's disease9. Suicide10. Esophageal cancer

The rate of chronic disease is increasing in China

In 2016, three types of diseases causing the maximum number of deaths are:1. Cardiovascular and

cerebrovascular diseases - 17.6 million

2. Tumor - 8.93 million3. Chronic respiratory

disease – 3.54 million

*YLL: Years of life lost (percentage of total)Source: Global Burden of Disease Study 2016, GBD

Digital Health

From 2016 to 2017, China issued 23 policies covering medical insurance, medical services, medical equipment, medicine and health care products. Most policies are about the field of medicine, the intensity of reform is huge.

Medicine

Medical Services

Medical Equipment

Medical Insurance

Supplements

Encourage R&D, reduce costs, simplify approval procedure, open e-commerce platform.

Realize de-administration of public hospitals, establish a modern management system, reduce overall service costs.

Change from license to record, standardize examination method, establish priority approval system.

Integrate the basic insurance system of urban and rural residents, adjust the catalogue of insurance drugs.

Standardize the registration process and strengthen the review of production license.

Source: Qingke Research Institute, China Medical health industry’s investment report

Policies promote the reform of medical health industryDigital Health

The idea of proactive prevention was deeply

rooted in mind

The survey found that, when asked which factor is more important to health, 93% of

respondents chose "positive health management plan", while only 6.8% of respondents chose

"more advanced medical technology, equipment and

treatment plan".

02

The survey found that, respondents expressed a need for

health management services, 81.8% of respondents wanted to get health intervention services that

could improve their unhealthy lifestyles and habits, and 76.4% of respondents wanted to get health

science information.

The awareness of Healthy life was enhanced

01

The survey found that, 93% of respondents believe that everyone is

one part of family, each family member's health behavior will

interact with each other. Therefore, health management should take

family as a unit.

The awareness of family health management was improved

03

In 2017, Chinese families' awareness of health went through three great changes.

Source: Chinese family health data report (2017)

Health awareness is enhanced Digital Health

China Health Industry’s Market Size Digital Health

The main reason for the increase of financing scale is capital market's favor for the traditional medical service and medical equipment.

Unit: Million

The number of investment

136

64 80115

366

721689

324

6,714 3,771 4,90413,275

38,904

105,295

239,497

204,537

China Digital Health Funding Trend

Source: Vcbeat, Medical Health Industry Financing Report, 2017 Q3

Digital Health

Artificial Intelligence, Precision Medical Treatment, POCT, Non-public Health Care are the key words of industry financing in the first half of 2017

Precision medical treatment includes molecular diagnosis, targeted therapy, and so on*TCM: Traditional Chinese Medicine; CSO: Contract Sales Organization; CRO: Contract Research Organization; CMO: Contract Manufacturing Organization; POCT: Point of Care Treatment; PCR: Polymerase Chain Reaction; GCLE: a chemical raw material.Source: FIRESTONE, Health Industry Financing Report – 2017,H1

Digital Health

Biotechnology

Med

ical In

formatiz

ation

Med

icine

Comm

unity-o

riented

Primary

Care

Med

ical E

quipm

ent S

ales

Med

ical E

quipm

ent

Consum

ptive M

edica

l

Treatm

ent

Med

ical S

cience

And

TechnologyBig H

ealth

Med

ical F

inance

Med

ical T

ools

Rehabili

tation N

ursin

g

Seek M

edica

l Advice

Mater

nal Pre

gnancy

Med

ical S

upport

Circulatio

n Channel

SubdivisionsThe Average Deal Size(10000 RMB)

Medical Equipment Sales 25,730

Community-oriented Primary Care

18.631

Medicine 18,079

Medical Finance 16,571

Biotechnology 14,857

Medical Informatization 10,770

Consumptive Medical Treatment

9,671

Circulation Channel 7,000

Medical Tools 6,971

Medical Science And Technology

5,650

Seek Medical Advice 4,825

Rehabilitation Nursing 4,285

Big Health 4,147

Medical Equipment 3,700

Medical Support

Maternal Pregnancy 2,272Source: Vcbeat, 2017 Medical Health Industry investment report

Digital Health

Investment and financing in subdivision areas Digital Health

BiosensorixPoint of care and quantitative diagnostics tool

Startupbootcamp Alumni - Biosensorix Digital Health

We DoctorOnline platform connecting connecting patients and doctors together

Notable Chinese Startup – We DoctorDigital Health

Agri-Food Tech

Beyond 2030, the negative impacts of climate change on agricultural yields will become increasingly severe in all regions.

Agri-Food TechThe Age of Agri-Food Revolution

A fifth of the world’s population Only 5% to 7% of world’s arable land

Resource Scarcity and Population Growth have pushed agricultural innovation to the top of China’s agenda.

China’s urgent need for agriculture innovationAgri-Food Tech

consider food safety when buying food

give top consideration to food safety when buying food

are against food additives

86% 52%

88%

Melamine Milk scandal

‘Sewer’ oil ‘Cadmium’ rice

‘Aluminium’ dumplings

Glow-in-the-dark pork

Food Scandals

Note: Consumers investigated are mainly from 1st & 2nd-tier cities Source: Ipsos, Trends in Food, Beverage & Consumer Insights in China 2016

China’s Food Safety IssueAgri-Food Tech

The urbanization and rapid growth of

the Chinese middle class are

significantly changing the consumption

habits of Chinese consumers.

As the standard of living and disposable income rise

consumers are looking for natural, organic, and imported foods most representative of healthy foods in China (Euromonitor, 2016).

No Artificial Additives Organic Ingredients Low Calorie Slimming Effect

Chinese Customer consumption habits are changingAgri-Food Tech

Source: National Statistics Bureau ,Guoxin Securities Economic Research Institute

The change of urban residents' family population and disposable income

Average family population of Urban Households Per capita disposable income of urban residents(RMB)

China’s huge potential for food consumptionAgri-Food Tech

Agri-food tech is aiming to improve or disrupt the global

food and agriculture industry. it includes a wide range of processes, operations, and

roles as food travels from the farm to the fork.

What is Agri-Food Tech?

Agri-Food Tech

IOTINTERNET PAYMENTS WEARABLESMOBILE

DRONES

ROBOTSBIO-TECH

ECOMMERCE

3D PRINTERSAI

BIG DATA

New generations of increasingly low cost technology hardware and software are challenging and disrupting the traditional models of

producing, packaging, marketing, selling, delivering, securing, tracking, eating, recycling and even introducing new types of food substitutes.

Key Agri-Food Tech EnablersAgri-Food Tech

AgriFood Tech Category Definitions

Source: AgFunder, AgriFood Tech Investing Report - MidYear 2017

Agri-Food Tech

Source: AgFunder, AgriFood Tech Investing Report - MidYear 2017

Global Funding TrendAgri-Food Tech

Government Policy

"Thirteen five" special plan for agriculture and rural science and technology innovation

By 2020, the contribution rate of agricultural innovation is over 60%, the ability of agricultural technology innovation is in the forefront of the world.

Target

• Significantly improve agricultural technology innovation level.

• Significantly improve agricultural comprehensive and

industrial competitiveness.

• Significantly improve innovative platform and talent team.

• Significantly improve efficiency of agricultural science and

technology innovation system.

• The agricultural and rural innovation and entrepreneurship

ecology being more optimized.

01

China provide administration support for agricultural innovationAgri-Food Tech

Industry Parks

Across the country, 260 national agriculture and science technology parks are built to serve as part-technology showcase, part R&D pilot farms.

Projects run the gamut from plant and animal breeding programs to precision agriculture and water-efficient farming.02

University Innovation

Top agricultural universities allocate subsidies and working space for student and alumni startup teams.

Cyb-Bot, a robotics and automation company received investment from a China Agricultural University Fund. 03

China provide administration support for agricultural innovationAgri-Food Tech

In 2016, Agricultural fixed investment in China (excluding farmers) was RMB 2277.4 billion , up 19% from 2016.

In 2016, the number of investment was 189, and the amount of investment was RMB 16.774 billion.

China's Agricultural Fixed assets investment (excluding farmers) and its growth rate, 2012 - 2016

Unit: Billion RMB Unit: ％

The amount of investment Growth rate

The number of investmentThe amount of investmentThe growth rate of investment numberThe growth rate of investment amount

8,772

11,401

14,574

19,062

22,774

29％ 30％ 28％ 31％19％

91

40.9768

44.48

108

72.72

272

183.81 189167,74

-25％

9％59％

63％

153％

152％

-9％

-31％

China’s Agricultural Investment Trend

Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report

Agri-Food Tech

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

In 2016, the top 3 investment areas are Agricultural Products Sales(43%), Agricultural Products Logistics(20%) Agricultural Products Processing(11%), in the first half of 2017, the proportion of investment in agricultural products processing and logistics increased significantly.

Invest more in early rounds. In 2016, investment in series A/A+ accounted for 29.6%, in Pre-A accounted for 5.8%, in angel round accounted for 24.3%, in seed round accounted for 6.9%. In the first half of 2017, investment in earlier rounds before A/A+ round accounted for over 60%, but the proportion decreased significantly, the proportion of investment in series B/B+ or later rounds is rising.

After Series D

Series C/C+

Series B/B+

Series A/A+

Pre-A

Angel Round

Seed

Angel Round

Seed

After Series D

Series C/C+Series B/B+

Series A/A+

Pre-A

Source：IT Juzi, ChinaVenture, CYZone, Pintu Think Tank

2015 2016 2017H1

0.58Support Service

Whole Industry Chain

Agricultural Products Sales

Agricultural Products LogisticsAgricultural Products

Processing

Agricultural Products Production

Agricultural Materials Supply

Support Service

Whole Industry Chain


Agricultural Products Logistics

Agricultural Products Processing

Agricultural Products Production


China’s Agricultural Investment Trend

2015 2016 2017H1

Agri-Food Tech

Capital

Consumers


Agricultural Materials Production

Agricultural Materials Chain

Agricultural Materials E-commerce

Agricultural Products ProductionCrop Planting

Animal Breeding

Fishery Production

Forestry Production

Agricultural Products ProcessingGrain And Oil

Milk Drink

Seafood And Aquatic Products

Animal Products

Other

Agricultural Product Logistics

Agricultural Bulk Products E-commerce

Traditional Agricultural Products Wholesale

B2B Fresh Raw Materials Wholesale

Storage And Logistics Of Agricultural Products


Comprehensive E-commerce

Fresh Food E-commerce

Supermarket Chain

Fresh Food Chain

Food chain

Convenience Store

New Retail

Restaurant

Agricultural Products’ Whole Industrial Chain

Support ServiceAgricultural Technical Service Agricultural Financial Service Agricultural Information Service Agricultural Information Service

The agricultural industry chain is relatively complex, involving many segments, mainly related to agricultural materials supply, agricultural products production, processing, logistics and sales. Besides that, it also contains supporting services.

The analysis of china agricultural industry chain


Agri-Food Tech

In the future, with further integration of Internet and the whole agricultural industrial chain, the innovation mode emerge constantly. The main directions include logistics commercialization, services diversification, production intelligentization and industrial ecologicalization.

Logistics Commercialization

Agricultural Materials E-commerce

Platform E-commerceVertical E-commerce

O2O E-commerceDirect Supply From Origins

Offline BrandMaterial Distribution

Smart Agricultural Production

IoT(internet Of Things)Big Data

Ai(artificial Intelligence)Agricultural Technology

ServicesDrone

Intelligent Tracing

Services Diversification

Financial ServiceTraining Services

System ServiceInformation Service

Data ServiceMarketing Service

Talent Service

Industrial Ecological System

Agriculture + Leisure TourismAgriculture + Real Estate

Agriculture + PensionAgriculture + Health

Agriculture + Environmental Protection

Agriculture + Cultural Creativity

China Agriculture will develop in 4 core directions in the future


Agri-Food Tech

Step 1: Put your Eskesso in any pot of water

Step 2: Add a pack of food to the mix

Step 3: Select the recipe you are cooking and push START in our App

EskessoSmart sous vide cooking appliance and cloud platform

Startupbootcamp Alumni - EskessoAgri-Food Tech

Ele.meOnline platform to order take-out

Notable Chinese Startup – ele.meAgri-Food Tech

Smart Manufacturing

Smart Manufacturing

Smart Manufacturing are systems that are “fully-integrated, collaborative

manufacturing systems that respond in real time to meet changing demands and

conditions in the factory, in the supply network, and in customer needs.”

——The National Institute of Standards and Technology (NIST)

What is Smart Manufacturing?

People as key players Distributed intelligenceFast integration and

flexible configuration

Open standards Virtual real-time representation

Digital life-cycle management

Secure value-creation networks

Smart Manufacturing’s FeaturesSmart Manufacturing

IoT (Internet of Things)

Advanced Robotics

AR (Augmented Reality)

3D Printing / Additive Manufacturing

AI and Machine Learning

Predictive Analytics

Advanced Materials

Key Smart Manufacturing Tech Enablers Smart Manufacturing

Spur Industrial Jobs’ Revolution

Promote Business Model Innovation

Boost Manufacturers’ Profit

Smart manufacturers boost profits through improved quality, faster

throughput, less maintenance and downtime, reduced material waste

and faster decision-making.

The smart processes also enhance worker safety, reducing insurance

and medical costs.

The digital transformation of industry will serve as a basis for

new business models that can pay big dividends in terms of quality

and documentation.

Digital technologies can help to make possible completely new value creation networks that

extend beyond company boundaries.

Some dangerous, mundane jobs that humans formerly performed are indeed being conducted

by robots now.

A shift to smart manufacturing makes companies more competitive and increases revenues. Higher

profits give companies more capital to finance improvements and expansions, which require

hiring more workers.

As more manufacturers embrace high-tech solutions, workers with expertise in fields such as

electronics, engineering and IT (including cybersecurity) are needed.

Smart Manufacturing’s Digital DividendSmart Manufacturing

Benefits to stakeholders in a value chain

A more informed &

Fluid value chain

path.

Affordable access to new

Technology & innovation.

Pilot new technologies for

larger manufacturers.

Increased productivity

via sensors.

Better user app

development &

feedback.

Less nitty-gritty

integration.

Better user experience.

Increased confidence &

personal satisfaction.

Suppliers ManufacturersSoftware Vendors &

3rd-Party Integrators Customers

Benefits of Smart ManufacturingSmart Manufacturing

Source: CBINSIGHTS, Advanced manufacturing trends

Manufacturing + Technology is taking in 2017Smart Manufacturing

Deals are making a come back

While 2016 saw a tightening

throughout all of venture

capital, deal making has

rebounded in Q1'17.

Source: CBINSIGHTS, Advanced manufacturing trends

Global Funding TrendSmart Manufacturing

Smart Manufacturing is inevitable for industrial countries to realize Manufacturing Upgrade.

USRe-industrializatio

n Strategy

GermanyIndustry 4.0

EUFactories of the Future

IndiaMake in India Campaign

Japan: New Industrial Revolution Driven by Robots

Smart Manufacturing

China needs to upgrade its manufacturing industry and move to higher value-added manufacturing.

Challenges for China’s Manufacturing Industry

01 02 03

04 05 06

Damage to environment Depletion of natural resources

Rapid increase in production costs

Shrinkage in export markets

Competition from other low wage countries

Lack of innovative products and key manufacturing know-hows and technologies

China’s Manufacturing UpgradeSmart Manufacturing

• “Made in China 2025” Special Fund.• Collaborate with various financial institutions to provide comprehensive

financial services, including loans, investment, bonds and leases, for key projects of "Made in China 2025".

Capital• Encourage enterprises to build smart manufacturing training bases,

cultivating skillful technicians.• Support universities to set up systems for cultivating smart

manufacturing talents.• Attract smart manufacturing talents into China.

Talent

• Develop equipment, construct test verification system and identification system based on industrial network.

• Promote “smart manufacturing” integrate with “Internet Plus”, establish information infrastructure made for industrial production.

Infrastructure• Build Smart Manufacturing Innovation Centers, developing key

technology research.• Encourage enterprises, universities and scientific research

institutions collaborate with each other to set up innovation alliance.

Technology

C T

I T

Support for Smart ManufacturingSmart Manufacturing

In 2016, China's smart

manufacturing industry output

value reached 1.2 trillion RMB.

Since 2011, the average annual

growth rate in the past 5 years is

more than 20%, far higher than

the growth rate of GDP.

Smart manufacturing industry is

developing at a high speed, the

industry output value is

estimated to reach 3 trillion

RMB by 2020.

Source: Qianzhan Research Academy, The analysis on development and market size of China Smart Manufacturing Industry in 2017

China’s Smart Manufacturing Market SizeSmart Manufacturing

ThingTraxConnect your machines, motors, tools and labor in minutes

Startupbootcamp Alumni - ThingTraxSmart Manufacturing

Top-Level Design

System Integration

Intelligent Factory

HuaZhiA globalized smart manufacturing solution provider and system integrator

Notable Chinese Startup- HuaZhiSmart Manufacturing

Clean Tech

Clean Tech

A diverse range of products, services, and processes that harness renewable

materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes.

——Clean Edge, a clean technology research firm

About Clean Tech.

Many government leaders have recognized that future competitiveness is directly linked to being more resource-efficient and less reliant on Older, polluting technologies.

Environment Issues

Environmental issues, including global climate change, deforestation, air pollution, and inadequate supplies of clean water, have stepped up pressure to find more environmentally benign Ways to meet the needs of a growing world. The concern over climate change in particular has led to new focus in alternative transportation and energy technologies.

Political Winds

Clean tech technologies like AI and IoT will gain global manufacturing economies of scale from other industries like automobiles and robotics. Clean tech prices are falling due to manufacturing economies of scale.

Manufacturing Economics Of Scale

Global investment in the energy sector fell 12 percent last year to $1.7 trillion, A drop in conventional oil exploration could cause a shortage of crude and other fuels.

• Australia: Coal Shortage• America: Electricity

Shortage• China: Gas Shortage• Pakistan: Electricity

Shortage

Energy Uncertainty

Technological advances including continued innovations in microelectronics, biology, chemistry, and physics, have significantly improved the performance of many Clean technologies.

Technologies Advances

Driving Forces for Clean TechnologyClean Tech

Source: CBINSIGHTS, Renewable energy & the rise of solar

Revived Interest In RenewablesClean Tech

Countries with clean energy policies implementedClean Tech

After years of growth, VC investment in cleantech companies has been on the decline

Global funding trendClean Tech

Source: CBINSIGHTS, Renewable Planet: Energy Deals Outside The United States

Clean Tech

13th FYP encourage clean energy production and consumption.

Targets for energy intensity, renewable energy share , and carbon intensity have been further tightened.

Energy consumption per unit of GDP

Share of non-fossil in primary energy consumption

Carbon emissions per unit of GDP

Source: PwC, Chinese Cleantech Market Opportunities, 2017

China’s Green Growth Clean Tech

Air Pollution Prevention and Control Action Plan, Sept 2013 "By 2017, PM10 in cities at prefecture level and above must fall by 10% from 2012 levels; PM 2.5 in Beijing- Tianjin-Hebei, Yangtze River delta, and Pearl

River delta must fall by 25%, 20% and 15% respectively "

Water Pollution Prevention and Control Action Plan, April 2015 "By 2020, water quality in seven key areas must reach national standard Level III; black and odorous water to be reduced to less than 10%; and drinking water should reach Level III"

Soil Pollution Prevention and Control Action Plan, June 2016 "By 2020, the safe utilization rate of contaminated arable land should reach about

90%, while the safe utilization rate of the polluted plots should exceed 90%. By 2030, the safe utilization rates of contaminated arable land and polluted plots

should both exceed 95% respectively"

Environmental Protection PoliciesClean Tech

By 2016, China's green investment had

reached RMB 1.85 trillion (approx. USD 269

billion), which constitutes 2.5% of the GDP.

It is estimated that the cleantech sector will

reach RMB 17 trillion (approx. USD 2.47

trillion) by 2020, with an increase of RMB 2

trillion (approx. USD 290 billion) each year.

Government investment and total investment in environmental prevention (including renewable energy)

China Cleantech Investment TrendClean Tech

Investment in China's Clean Tech Industry from 2014 to 2017 Q3

China funding trend

Source: PwC, MoneyTreeTM China Clean Energy and Technology Industry investment report

Clean Tech

China funding trend

Source: PwC, MoneyTreeTM China Clean Energy and Technology Industry investment report

Clean Tech

First Tier subsectors:Waste management and recycling, water, and air pollution controls account for 70% of the total investment.

Second Tier Subsectors:Environmental monitoring and energy efficiency sectors account for about 20% of the Investment.

Note: 1. Investment data from 2013.1-2016.7; 2.Only deals with disclosed company names are take into account; 3.Investee companies involved in several subsectors are calculated multiple times in different categories.Source: PwC, Chinese Cleantech Market Opportunities, 2017

China Cleantech Market PotentialClean Tech

Solar Energy

Wind Energy

Solar Energy’s installed capacity ranked the first globally; China would witness the rapid development of the

distributed photovoltaic; and the photovoltaic manufacturing industrial chain is likely to be consummated gradually.

Wind power's global installed capacity has been increasing steadily, the energy pattern has been optimized with the respective development in the power restricted area and non-restricted area.

New Energy Vehicles

Water Treatment

Solid Waste Treatment and Disposal

New Science and Technology of Energy Conservation and Environment Protection

The industry is standing at the inflection point with the deep integration of the vehicle market.

The government is increasingly carrying out positive policies to support the industrial development, hence the solid waste treatment and disposal is stepping into the golden age.

The water treatment industry remains prosperous, and the water treatment system will be continuously improved and perfected.

Building energy conservation developed fast, near-zero energy buildings are ushering in many favorable policies. Besides that, Energy-saving

household appliances have become a major trend in the home appliances development.

1

2

3

4

5

6

China Cleantech TrendsClean Tech

TespackCharge your mobile devices directly from sun

Startupbootcamp Alumni - TespackClean Tech

NIOHigh performance intelligent electric SUV (7 pedestal)

Raised $1700 million in 2017

Notable Chinese Startup - NIOClean Tech

Ed Tech

Anxious Parents

In order to give

children the greatest

chance of success in

the future, there is

more anxiety than

ever among parents.

02

Nowadays, students

graduate from these

institutions with deep

confusion about the

future and their

direction in life.

Unprepared Students

01

Teachers face constant

pressure from both

parents and school

administrations in a

unitary evaluation

system.

Stressed Teachers

03

Schools and their pupils are

often far removed from real

social issues; and schools

are very much closed off ‘in

silos’, preventing them from

effectively connecting with

social resources.

Isolated Schools

04

The big disconnect is happening in education area, as the world becomes more connected at a global level.

Ed TechThe Existing Problems with Education

Ed Tech is poised to be the biggest and possibly most profitable digitalized sector

Digital will soon be the nucleus of every industry

Only 10 percent of schools offer any kind of computer

science class. If we don’t start at school-level exposing

learners to technology existing outside the classroom,

the skills gap will soon be a valley that cannot be

bridged.

Students are born with digital DNA

Education institutions need to cater to the digital

demand of their consumers — people who are

constantly exposed to digital technologies outside of

the classroom have come to expect the same digital

capabilities within the four walls of a learning

environment.

Ed Tech

Ed Tech(Educational technology) is "the study and ethical practice of facilitating learning and improving performance by creating, using, and managing appropriate technological processes and resources".

What is Ed Tech?

Ed Tech

Quarterly deals to Ed tech startups

increased throughout 2012, but have

fluctuated since then. Deal count

peaked in Q1’15 with 148, but fell below

130 at the end of 2015. Q1’17 is the first

time since Q3’15 that deals to Ed tech

startups broke 130.

Global Funding Trend

Source: CBINSIGHTS, High Marks: Ed Tech Deals Tick Up In Q1’17

Ed Tech

Landscape 2.0 maps 5000 companies into eight steps we call the next generation learning lifecycle.

573 companies$4.8b invested

617companies$6.3b invested







PublishersDigital Courseware

Research & Scientific

Ed Management TechStudent Management

SystemsFaculty

Administration

Student FinancingEnrolments & Admissions

Learning Management Systems

Social PlatformsArtificial Intelligence

VR/ARRobotics

Games & SimulationEarly Childhood

Personalised LearningProprietary Campus &

OnlineOpen Online

Language

Hiring Internships

LEARNING DESIGNAND MANAGEMENT STUDENT LIFECYCLE

CREATE MANAGE CREDENTIALDISCOVER CONNECT EXPERIENCE LEARN ADVANCE

Testing & AssessmentBadging & Credentialing

Source: NAVITAS Ventures

Startup LandscapeEd Tech

*K12 : Kindergarden to 12th Grade

300,000,000 people learning English in China

HUGE MARKET SIZE

By 2020, China’s college-educated talent pool is expected to number

195,000,000people

more than the entire US labor force that year

600,000,000 K12* students in Asia

10x that of the United States

There are The average Asian family spends

>40%of their income on education related

products and services

There are

more than the entire English speaking population of the United states

Asia Market SizeEd Tech

China's education industry is ushering into its

with expansion in terms of both industry size and market activity.

Golden Age“

China Education Industry

Source: Deloitte Education Industry Report 2017

Ed Tech

1

Early childhood education is driven by the implementation of two-child policy which brings sufficient demand and the government's policies to encourage preschool education.

Early Childhood Education The growth of K12 extra-curricular training is attributed to the demand increase resulted from the pick-up of the school age population. Meanwhile, desire for further education and international education also drives the demand for K12 examination- oriented education and language education.

Personal training grows because of better economic capability and higher willingness to improve competitiveness.

K12* Training

Vocational Training

126

2

3

Source: Deloitte Education Industry Report 2017*K12 : Kindergartden to 12th Grade

Future Major Growth PointsEd Tech

Accelerated amendment of private education related laws and supporting policies. In terms of different education stages, relevant policies have outlined the future trends of each sector.

2

1

Preschool education will see positive development under the guidance of policies including the proposals for China's 13th Five-Year Plan which proposes the target to realize inclusive preschool education in 2020.

Preschool Education Key points of K12 educational informationization are accelerating informationization, and admission policies at the compulsory education stage have created a favorable condition for fair distribution of high-quality resources.

Higher academic education is focusing on "boosting employment" and "standardizing independent colleges“.

K12 Education

Vocational Training

3

4

Vocational education, benefited from the relevant development planning and the Belt and Road Initiative will see development trends of "running school by means of collectivization", "investment of private capital in education", and "going global" in the future.

Higher Academic Education

Contributors to Ed Tech Golden Age – Favorable Policies


Ed Tech

There has been a rapid increase of social capital flowing into the education industry both in terms of total amount and frequency.

RMB 6.1 billion

Total Investment Amount

2014 2015

> twice

RMB15.9 billion

Investment Cases

2014 2015

190

270

42%

Contributors to Ed Tech Golden Age – Capital Inflow


Ed Tech

Internet companies represented by BAT, large real estate companies, and non-educational listed companies are venturing into education.

Internet companies represented by BAT, are searching for segments of

in-depth development to improve the depth of their ecosystem.

Real estate companies are developing educational

related real estate.

Contributors to Ed Tech Golden Age – Capital Inflow


Ed Tech

IPOThe total amount of

mergers and acquisitions

(M&As) increased by 165

percent year on year.

M&AIPOs increased by 76 percent

from a year earlier. More capital

is expected to flow into the

industry under easy policies.

Contributors to Ed Tech Golden Age – Exit Opportunities


Ed Tech

China Ed Tech Funding Trend

Source: GETChina Insights, Digging into China EdTech 2017Q1

Ed Tech

K12 International Education

Early Education

Career Education

Quality Education

Information-driven Education

Education Comprehensive

Service

Higher Education

Other

• Among Educational Industry, capital is mainly focus on K12, International Education, Early Education, Career Education.

• In 2016, the fundraising is went through a cold winter, but career education fundraising is increasing.

• In 2017, quality education fundraising events accounted for 18%, obviously higher than previous years.

K12

Career Education

Early Education

Quality Education

International Education

Information-driven Education

Education Comprehensive Service

Higher Education

Other

Educational Industry Fundraising Status

Note: the data is from 2015 to April, 2017Source: IT Juzi & Taoli Capital

Ed Tech

Early Childhood Education K12 Career Education Higher Education

International Education Quality Education Education Informationization

Education Comprehensive Service

婷婷姐姐

China Ed Tech Industry LandscapeEd Tech

Focus EDUFocus EDU is the world's first integrated classroom system that improves education outcomes through real-time attention level reports.

Startupbootcamp Alumni - BrainCoEd Tech

VipkidOnline children's english education platform

High Quality Teachers From North America Effectively Schedule Classes An Immersive Learning Experience

Check Classroom Scene At Any Time

United States Common Core State Curriculum Standard (CCSS)

High Quality Service From Chinese Teachers

Notable Chinese Startup - VipkidEd Tech

136

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