Tech insights | The numbers that mattered for us in 2015

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#TechInsightsThe numbers that mattered for us in 2015

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(Almost) Everyoneis connected

Millennials spend more

Tech Business opportunitiesstand out

In 2015 Mobile Subscriptions outnumber World’s population

The digital natives increase their purchasing power

VC-backed companies are reaching +$100B

Media How people access and exchange information?M

C

S

Overview

Investment trends

Consumer InternetHow people consume products and services?

Software How technology creates intelligence on top of data?

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(Almost) Everyone is connected

Mobile SubscriptionsOutnumber the World’sPopulationThe mobile revolution passed another milestone this year. The number of mobile subscriptions now outnumbers the world’s population. There are more mobile subscriptions than people living on this planet. The number of mobile subscriptions stood at 7.3 Billion at the end of September 2015 and will grow to 7.4 Billion by the end of the year. Meanwhile the world’s population will climb to 7.35 Billion by the end of 2015 according to the United Nations’ projections. (Source: Ericsson’s Mobility Report)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

10B

9B

8B

7B

6B

5B

4B

7.4B

7.3B

World Population Mobile Subscriptions

Sources: Ericsson Mobility Report, United Nations

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Millennials spend more

Millennials are increasing their purchasing powerMillennials are now those between the ages of 17 and 34 who have grown up in a time of rapid changes. For most of this generation the digital revolution does not represent disruption. They are the first digital native generation and technology represents theirs opportunity.

The US Case

The Millennial generation is the biggest in US history—even bigger than the Baby Boom.Their purchasing power is increasing year on year and collectively are expected to spend more than $200B annually starting in 2017 and $10 trillion in their lifetimes.

The US Case, Average income (Year) by Age

Median Household Incomes

$60k

$50k

$40k

$30k

$20k

$10k

$0k

$80k

$70k

15-24 25-34 35-44 45-54 55-64 +65

92Mmillennials

Source: Goldman Sachs, Advisor Perspective, Median Household Incomes by Age

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Tech Business Opportunities stand out

VC-backed tech companies are reaching +$100BVC-backed technology companies continue to raise more money, with the first half of 2015 seeing nearly $60B invested across more than 3,500 deals.Internet and mobile continue to account for the bulk of deals to VC-backed companies, as the two major sectors accounted for 65% of all deals in Q2’15. All other sectors remained fairly range-bound with healthcare accounting for 12%, software 5%, and consumer products & services at 3%.

Annual Global Financing Trends to VC-Backed Companies

Sources: CB Insights

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Media

#video #gaming #messaging #music #socialmedia&newsOver the next five years, the consumer tech and media industry will grow by over $500B reaching +$2T market.

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M How people access and exchange information?

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Overview Video Gaming Music Social Media& Messaging

NewsOverview Video Gaming Music Messaging SocialMedia&News

Online video consumption and adv expenditureare exploding on multiple devices

M C S

• Every day we spend 17% of our time in watching videos• Online video ads are growing 2x as fast as the overall online ad market.

Facebook over the past few years has made a concerted effort to become increasingly less reliant on YouTube: today 70% of all new video are uploaded directly on Facebook, and it has passed YouTube in desktop daily video views (also thanks to autoplay). Mobile is eating the video: The number of hours people spent watching videos on mobile (Youtube) is up 100% y/y and it represents the 66.4% of the total views. Connected TV is the new mobile. Around 40% of population uses Connected TV. Chromecast and other OTT devices are accelerating the transition and drive the convergence between online and offline contents.

Watch me play: Global viewership reached 450M in 2015

On top of the platforms: MCN growth.

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Overview Video Gaming Music Social Media& Messaging

NewsOverview Video Gaming Music Social Media& Messaging

NewsVideo Gaming Music

2 Billion highly networked and connected users worldwide eSports reached 160M total audience: revenues for eSports will grow by 250% between 2015 and 2020

Multiplayer games growth is driven by Millennials

Tournament prize pools reached $71M in 2015

Gaming is one of the most widespread consumer behaviour

MMMMM C SMessaging Social Media

& News

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Overview Video Gaming Music Social Media& Messaging

NewsOverview Video Gaming Music Social Media& Messaging

NewsOverview Video Gaming Music Social Media& Messaging

NewsVideo Gaming Music

$6.85B revenuesMusic registered $6.85B revenues, with a crucial turning point in 2015: monthly subscriptions are more than digital downloads and physical revenues

The future, in streamingMost of user growth in digital streaming will bead-supported, but paid users will account for a far greater proportion of the revenues.

Two streaming trends: - Youtube remains dominant for on-demand streaming- The Spotify effect: music streaming is a crowded market. New entry in 2015: Apple Music

Music,from ownership to access

M C SMessaging Social Media

& News

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Video Gaming Music

Messaging is the fastest growing online behaviour: the industry counts 3.6 Billion registered users.

In 2015, new business models are grown on top of messaging: Entreprise messaging and Dating apps are two successful examples.

Everyone interacts on messaging platforms: businesses are building services on top

M C S Messaging Social Media& News

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M C SOverview Video Gaming Music Social Media

& MessagingNews

M C SVideo Gaming Music

Social Media: search and social media are the best starting point to reach news. People participate, share and comment.

Traditional newspaper:• Online version: revenues from display ads fall• the Value of both circulation and ads on printed newspapers is shrinking• Digital publishing could increase the engagement and drive new revenue streams for publishers

Digital born newspaper: media company valuations are higher than traditional newspapers.

Optimized distribution: Facebook Instant Articles, Google AMP, Apple News.

Engagement on News is the key: optimized distribution, enriched experience and social products.

Messaging Social Media& News

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Consumer Internet

#ecommerce #ondemandeconomy #fintech

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C How people consume products and services?

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Ecommerce On Demand Economy Fintech

Ecommerce continues to be a top secular growth industry, with 24% estimated growth in 2016, including China.

Mobile commerce will grow from $25B to $31B in 2016.

Local delivery trend: what you need, right now Bringing new verticals of retail to the Internet

On Demand Economy grew 14X since 2010

M C S

Deliver thebest experience: everything you need, right now, on mobile, in the most convenient way.

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Ecommerce On Demand Economy Fintech

In 2014, global investment in FinTech companies grew by 210% to $12.21B.

Crowdfunding to surpass VC in 2016

Robo advisor: it’s not (only) about fees, it’s about access

Breaking-up the bitcoin-blockchain paradigm

Mobile Payments, transactions everywhere

Insurance, from reactive to proactive approach

M C S

Democratising access: empower consumers – not control them.

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Software

#AI #Health #Adblocking #cybersecurity #wearables #wifi

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S How technology creates intelligence on top of data?

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Artificial Intelligence The market for AI-based analytics could grow to $70B by 2020. The market for AI technologies could reach $43.5B by 2024 as companies seek to derive greater value from big data.

M C SAI Health Adblocking Cyber security Wearables Wifi

Digital Health is in Good HealthIn 2015, venture funding of digital health companies surpassed $4.3B

Cybersecurity is no longer a choiceSecurity’s days as just a technical issue are done. It is becoming a central concern for leaders at the highest level of many organizations and governments, transcending national borders.

Ad Blocking is going MobileUntil 2015, mobile ad blocking apps could only block ads on mobile browsers — not in apps. But now there’s an ad blocker — “Been Choice” opening new challenges for the advertisers.

Wearables growth, waiting for the killer appGlobal wearable device units are expected to grow at 35% CAGR 2014-2019.

WiFi is gold for Small BusinessesIn 2019, 54% of the Mobile devices traffic will be on WiFi networks. Who will benefit from WiFi growing diffusion?Smart Small Business.

Wifi

Tech Insights January 20th, 2016

United Ventures is an Early Stage Venture Capital fund, focused on Media, Consumer Internet and Software investments. We back visionary entrepreneurs who reshape industries through technology, linking talents with global markets.

Learn more at unitedventures.it

In 2015 Mobile Subscriptions outnumbered World’s population: now almost everyone is connected. More and more people access digital services. At the same time, Millenials, are becoming “older” and they are increasing their purchasing power. They are the most addicted to use and consume digital services and products. In the US, the Millennial generation is the biggest in US history—even bigger than the Baby Boomers. Their purchasing power is increasing year on year and collectively are expected to spend more than $200B annually in 2017 and $10 trillion in their lifetimes.VC-backed tech-driven companies addressing this market opportunity continue to raise more money, the first half of 2015 saw nearly $60B invested across more than 3,500 deals.

Our purpose in this presentation is to tell the 2015’s story by numbers from our perspective, looking at the three main investment trends: Media, Consumer Internet and Software.

DisclaimerThis Presentation has been prepared by United Ventures’ team, using free documents and reports about the State of Tech Industry available online. The information contained herein does not purport to be all-inclusive about market trends discussed.The information contained in this document should not be relied upon as being an independent or impartial view of the subject matter and it has to be considered as a communication promotion. United Ventures

@unitdventuresUnited Ventures