# Startupbootcamp China Industry Report

> An in-depth analysis which sheds light on great opportunities for international, growth-stage companies to expand to China

- Interactive version: https://startupbootcamp.relayto.com/e/startupbootcamp-china-industry-report-fha1gtaw
- Format: PDF document, 136 pages
- Published by: [Startupbootcamp](https://startupbootcamp.relayto.com/)
- Last updated: 2021-11-20
- More from this site: https://startupbootcamp.relayto.com/llms.txt

## Page 1

SBC China Report

## Page 2

Contents
One Glance at China
01
Future of China
02
China Startup Ecosystem
03
Opportunities and Challenges for
04
Foreign Startups
Future Key Industries
05

## Page 3

ONE
One Glance at China
First Impression of China
“Big” Data in China
China Economic Growth

## Page 4

First Impression of China
The world’s largest population: 1.404 billion
people
The third largest geographical area: 9.6 million
sq km
CHINA

## Page 5

“Big” Data in China
Internet Internet
Infrastructure Resource
Until December 2017, the number of
Until 2017 Q2, the total length of the
Chinese websites reached 5.33 million
cable line reached 36.06 million
with an annual growth rate of 10.6%.
kilometers.
Until December 2017, the number of
Until 2017 Q3, the number of Internet
Chinese web pages reached 260.4 billion
broadband access ports reached 760
with an annual growth rate of 10.3%.
million.
Until 2017 Q3, the number of mobile
Until November 2017, the number of
communication base stations reached
mobile applications (APPs) in the
6.041 million, and 3G/4G base stations
Chinese market reached 3.9 million.
accounted for 74%.
Source: CNNIC “41th, Statistical report on the development of China Internet network”

## Page 6

“Big” Data in China
Internet Data
• The number of Internet users in China was 772 million, and the Internet Penetration Rate
was 55.8%.
Until
• The number of rural Internet users in China was 209 million, accounted for 27%, the number
December
of urban Internet users in China was 563 million, accounted for 73%.
2017
• 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.

## Page 7

“Big” Data in China
Ali Data & WeChat Data
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.
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!

## Page 8

China Economic Growth
2016
1978
• The economic reform
• The modernization
program began.
propelled the growth
• China ranked tenth with
of Tertiary Sector.
nominal Gross Domestic
• China jumped up to
Product (GDP) of RMB
second place with a
364.5 billion ($ 57.86
nominal GDP of RMB
billion).
74.42 trillion ($11.81
billion).
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.

## Page 9

China Economic Growth
Chinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries

## Page 10

China Economic Growth
Chinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries

## Page 11

China Economic Growth
Chinese Cities Compared with Countries
Source: Visual Capitalist. 35 Chinese Cities with economies as big as countries

## Page 12

TWO
Future of China
China’s Future Direction
Digital China
Manufacture China
Green China
Open-up China
Innovation China
Aging China
Rural Areas’ Urbanization

## Page 13

China’s Future Direction
China 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
Two Centennial Goals
“A moderately prosperous society” by 2021*
A “strong, democratic, civilized, harmonious,
and modern socialist country” by 2049*
*2021: the 100th anniversary of the party’s founding.
*2049: the 100th anniversary of the founding of the People’s Republic.

## Page 14

Digital China
China’s digital globalization is only just getting started but
gathering fast momentum.
The bigger, younger China market is
enabling rapid commercialization of digital
business models on a large scale.
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.

## Page 15

Manufacture China
Made in China 2025: turn China into a
“manufacturing superpower”
Support the foreign-invested enterprises to get listed, and issued bonds in China, and
Ten Key Sectors
they are allowed to participate in the national science and technology project. In terms of
New Energy Vehicles
qualification licensing, standard formulation, government procurement, and the "China
made 2025" policy, domestic and foreign enterprises are treated equally.
Next-Generation
—— Li Keqiang, Government Work Report
Information
Technology (IT)
Biotechnology
The Ministry of Industry
In 2017, the Ministry of Industry and
and Information
Information Technology issued 25
New Materials
China has set up a special
Technology has reached an
key areas under Made in China
fund to support key projects.
agreement with China
2025, including Internet of Aerospace
Single project can get about
Development Bank (CDB).
things(IoT), new materials, smart
30 million to 50 million RMB,
From 2015 to 2020, CDB will Ocean Engineering And
appliances and high-end consumer
some common technology
provide financing of no less High-Tech Ships
electronics, information security
projects or key technology
than 300 billion RMB, and
capabilities of industrial control
projects can get more than
Railway
multiple financial services
systems, quality and safety
100 billion RMB.
(like, loans, bonds,
traceability system of infant
Robotics
investment, leasing, etc) to
formula milk powder industry etc.
"Made in China 2025".
Power Equipment
Agricultural Machinery
Financial Services Support
25 Key Areas Special Fund Support

## Page 16

Green China
Sustainable economic model:
clean up environmental degradation
Strict Enforcement Support Domestic
of Environmental Standards Green Industries
The Chinese government will support the growth of its
energy-saving and environmental protection industries into
Chinese government has stepped up its efforts to
globally competitive firms.
enforce environmental regulations through national
emissions monitoring systems and central Strong support for
two strategic emerging industries: new energy vehicles and
government-led inspections in 15 provinces.
advanced energy-saving technologies and equipment.

## Page 17

Open-up China
One 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.

## Page 18

Innovation China
Re-establish China as a global center of
innovation and technology
China’s Innovation-Driven 13th FYP innovation plan’s target
Development Model - Building a national innovation system with high
efficiency and synergy
• Become an "innovative nation" by 2020.
• Become an international leader in • Cultivate active innovation individuals or
innovation by 2030. organizations.
• Establish China as a world powerhouse • Deploy high level innovation base.
of scientific and technological • Create high end innovation growth pole.
innovation by 2050. • Build an open and cooperative innovation network.
• Establish modern innovation governance structure.
• Construct a good innovation ecology.

## Page 19

Innovation China
Future Top Technologies: Cloud, IoT, Big Data, AI, BlockChain
IoT
Cloud /
(Internet of Things)
Edge Computing
AI
BIG
Big BlockChain
Data
DATA
“
When the Demographic Dividend is gone, here comes
“
the Dividend of Technology.
——Baidu CEO,
Robin Li
When the Demographic Dividend is gone, here comes
the Dividend of Technology.
——Baidu CEO,
Robin Li

## Page 20

Aging China
China already stepped into an aging society
Aging population continues to grow, causing some
problems
In 2000, the Chinese population aged 65+ has reached 88.11
• The proportion of endowment insurance fund to GDP is increasing,
million, accounting for 6.96%. According to international
and the burden of pension expenditure is increasing.
standards, China has stepped into an Aging Society.
• 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

## Page 21

Healthy China
Health Service Healthy Life Health Level
2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0
and Security
1 5 2 0 30 1 5 2 0 30 1 5 2 0 30
Premature Mortality
Life Expectancy
Health Literacy
↓10％t ↓30％
of Major Chronic
19.1
20 30
10 Per Citizen 76.3 77.3 79.0
Level of Residents
han2015 than2015
Diseases
2013
(%)
The Number of
Practitioners
Infant Mortality
(Assistants) Per
8.1 7.5 5.0
Rate (%)
The Number of
2.2 2.5 3.0
Thousand
Regular Physical
Permanent
3.6
Exercisers 4.4 5.3
Residents
2014
(Hundreds of
The Proportion of Millions of People)
The Mortality of
Personal Health 10.7 9.5 6.0
Child Under 5
About About
Expenditure To
Years of Age (%)
29.3
28 25
Total Health
Costs (%)
2 0 2 0 2 0
Health
Maternal
Environment 1 5 2 0 30
20.1 18.0 12.0
Mortality (1/100
Health Industry
2 0 2 0 2 0
Thousand)
The Ratio of Good
1 5 2 0 30
Weather Days In Continuous
The Proportion of
76.7 >80 improvement
The Industry Size Urban And Above
Urban And Rural
of Health Service Cities(%)
—— Residents Meet
>8 16 89.6 90.6 92.2
(Trillion Yuan)
The Standard of
National Physique
Determination (%)

## Page 22

Rural Areas’ Urbanization
The process of urbanization continues to move
forward steadily
Actively promoting the urbanization of rural migrants Improving urban functions
By 2020, the target of urbanization rate of China's resident population • Speeding up the construction of urban traffic network.
is 60%, and the urbanization rate of the household population is 45%. • 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.
Cultivate small and medium cities and characteristic town Drive the construction of New Countryside
• Extending infrastructure and public services to the
• Upgrading the infrastructure of the county and key towns.
countryside.
• Cultivating a batch of small and medium-sized cities.
• Promoting the integration and development of China’s main
• Speeding up the development of characteristic town.
three industries in rural areas.
• Promoting the development of rural e-commerce.

## Page 23

THREE
Opportunities & Challenges
for Foreign Startups
Opportunities
Challenges

## Page 24

If a startup becomes successful in China,
its growth can be astonishing.
Huge Growth Potential in China
％
Huge Market Capacity Consumption Growth & Upgrade
Venture Capital Investment Unique Chinese Customer Profiles

## Page 25

Huge Market Capacity
Second 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
2016
Source: eMarketer, Aug 2016

## Page 26

Consumption Growth
China will add nearly $2 trillion in new
consumption by 2021

## Page 27

Consumption Upgrade
Consumption has become the first driving
force for China's economic growth
02
01 03
DPI Growth Rate is Surging Rural Huge Potential in
Higher than GDP Consumption Service Consumption
The Disposable Personal Income(DPI) The expenditure of residents for
The number of migrant workers
for per urban citizen has increased, service consumption has increased
has decreased sharply, while the
its growth rate has always been significantly, while the commodity
number of local migrant workers
significantly higher than the GDP consumption has been relatively
rebounded.
growth rate. decreased.
In third-tier and forth-tier cities, the population of
middle class grows significantly
Accommodation Commodity Consumption(Food, Service consumption
Apparel)
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
Source: Wind, Suning Institute of Finance
Source: Wind information, Suning Institute of Finance

## Page 28

Technology Venture Capital Investment
Investors placed big bets on Chinese upstarts
Chinese venture-capital investment by technology, 2016, $billion
Fintech Virtual Reality Robotics and drones
Autonomous Driving
Artificial Intelligence Education Technology
Source: Mckinsey Global Institute

## Page 29

Unique Chinese Customer Profiles
Chinese 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
Consumption
feel that brands and
Demographic shifts are Chinese consumers are Customers tend to use
boundaries—typically
companies should be
creating a growing
passionately taking up more digitalized services.
defined by age and
environmentally
number of single people
new interests and they
gender—are less relevant responsible.
in China. Among urban
to consumers today. -- GfK Survey
are increasingly willing E-commerce was
populations, 16% now live
to spend money on welcomed by Chinese
alone, compared with just
66 million (or 16.2%) bought
Men develops grooming
those wide-ranging customer due to its
5% ten years ago.
five or more “green”
habit, spending more on
interests convenience.
products in 2015, up from
men skin care products.
In general, single people
just 4 million in 2011 (3.4%).
seek smaller volumes,
Notably, they are willing to
Customers get accustomed
Older generation begin to
greater convenience, and pay a price premium - up to
spend more on travel and
to digitalization lifestyle.
higher-quality goods. 33% - for those products.
sports activities
-- Alibaba’s customers study
Eco-conscious Passionate Digitized
Diversified Single
Customer Trend Seeker Customer
Customer Person
Different customer profiles unravel new market trends
Source: BCG Analysis, Five Profiles That Explain China’s Consumer Economy

## Page 30

Challenges for foreign entrepreneurs.
Language Difference
Cultural Differences
Internet Accessibility Restriction
Different Customer “ChinaSpeed” Challenging Regulatory
Behavior Manifestation Environment

## Page 31

Different Customer Behavior
Consumer 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)

## Page 32

“ChinaSpeed” Manifestation
ChinaSpeed
In 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.
Cutthroat Domestic Competition
For any successful startup hundreds or
even thousands of copycats will
emerge almost instantly.

## Page 33

Challenging Regulatory Environment
Inconsistent regulations and enforcement are top challenges
Top five business challenges in China
2012 2013 2014 2015 2016 2017
Inconsistent regulatory Inconsistent regulatory
Shortage of qualified
01
Rising labor costs Rising labor costs Rising labor costs interpretation and unclear interpretation and unclear
management
laws laws
44% 46% 61%
43%
57% 58%
Inconsistent Inconsistent
Inconsistent regulatory Inconsistent regulatory
regulatory regulatory
interpretation and unclear interpretation and Rising labor costs Rising labor costs
02
interpretation and interpretation and
laws unclear laws
54% 58%
unclear laws unclear laws
37% 38%
39% 47%
03
Shortage of qualified Shortage of qualified Shortage of qualified Shortage of qualified Difficulty obtaining Increasing Chinese
employees employees employees employees required licenses protectionism
29% 35% 37% 42% 29% 32%
04 Difficulty obtaining Shortage of qualified Shortage of qualified Shortage of qualified Shortage of qualified
Corruption
required licenses management management employees management
30%
26% 31% 32% 29% 30%
Shortage of qualified Difficulty obtaining Increasing Chinese Difficulty obtaining required
05
Corruption Industry overcapacity
management required licenses protectionism licenses
26% 29%
30% 31% 30% 29%
Source: China Business Climate Survey Report 2017

## Page 34

FOUR
China Startup Ecosystem
Venture Capital in China
Startups in China
Typical High-tech Cities in China

## Page 35

Venture Capital in China
Fundraising Trend
Until Q3 2017,
equity financings into
China-based companies reached
$36.73 billion through 1605
deals.
Source: Dow Jones Venture Capital Report

## Page 36

Venture Capital in China
The hottest sectors sought after by VCs
The hottest sectors sought after by VCs
Number of financing deals in different sectors, 2017 H1 Funds raised by different sectors, 2017 H1, billion
(RMB)
Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1

## Page 37

Venture Capital in China
Venture M&A Market Activity
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.
Source: Dow Jones Venture Capital Report

## Page 38

Venture Capital in China
Chinese VC-backed IPOs
Until Q3 2017, 98 Chinese
VC-backed companies went
public, raising $7.9 billion.
Source: Dow Jones Venture Capital Report

## Page 39

Startups in China
The newly funded startups in Chinese provinces(2017 H1)
Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1

## Page 40

Startups in China
The hottest sectors sought after by entrepreneurs
Source: IT Juzi and Tecent, China Venture Capital Report – 2017 H1

## Page 41

China Typical High-tech Cities
Listed in the 20 most high-tech cities in the world
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
Dallas-Fort
City Tokyo Stockholm Vancouver Amsterdam Beijing Shanghai Montreal Bangalore Shenzhen
Worth
Country Texas Japan Sweden Canada the Netherlands China China Canada India China
Source: 2thinknow : data innovation agency.
• Startups • Smart Cities Ranking
• Patents • City Innovation Policy
Technological
• Venture Capitalists • Number of Programmers
Advancement
Factors
• Innovation Cities Index • Metropolitan Population
Ranking • Industrial Designers

## Page 42

China High-tech Cities
Shanghai – Building An International Startup Ecosystem
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

## Page 43

China High-tech Cities
Shanghai – Building An International Startup Ecosystem
Shanghai was ranked no.1 in English-language
proficiency in China.
——EF English Proficiency Index 2017
Shanghai 56.76
”
Hong Kong 55.81
Beijing 53.83
Shenzhen 50.56
Guanghzou 50.09
Proficiency: Very low Low Moderate High Very High

## Page 44

China High-tech Cities
Shanghai – Building An International Startup Ecosystem
Government Policies Promote Innovation
National “Mass Entrepreneurship And Innovation” Campaign
China 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.
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.
Risk-compensation Policy for Angel Investors

## Page 45

China High-tech Cities
Shanghai – Building An International Startup Ecosystem
Affluent Financial Support
Government Subsidy Programs Notable VC Firms
In the third quarter of 2016, Shanghai was
The Shanghai government offers various subsidy
ranked no.2 among Chinese cities in terms of
programs in different districts.
the total number of angel investments.
• Company Registration Subsidy
• Entrepreneurship Loan
• Rental Assistance Program
• Social Insurance Subsidy
• Service Business One-off Subsidy
• Innovative Solution One-off Subsidy
• Training Subsidy
Kleiner Perkins Caufield & Byers

## Page 46

China High-tech Cities
Shanghai – Building An International Startup Ecosystem
Shanghai Jiao
Fudan Tongji
Tong University
University University
Science and Technology Education Hub
Shanghai’s education
system is extremely
East China University
East China
competitive at all levels,
of Science and
Normal
attracting top students from
Technology
University
all over the country.

## Page 47

China High-tech Cities
Shenzhen— Becoming An International Hub of Hardware Innovation
A hub Of A world-class An
original equipment Hardware Innovation
manufacturers (OEM) Maker Hub of software

## Page 48

China High-tech Cities
Shenzhen— Becoming An International Hub of Hardware Innovation
The youngest city in China: The average age of its With 7,860,000 migrants in 2016, Shenzhen is also one
population in 2016 is only 33. 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.

## Page 49

China High-tech Cities
Shenzhen— Becoming An International Hub of Hardware Innovation
Urban Master Planning of Shenzhen(2010-2020)
Municipal Committee Secretary of
Urban Layout Map
Shenzhen Ma Xingrui laid out the city’s
blueprint for the next five years:
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.
Shenzhen Municipal People's Government
2010
Yantian: A leisure tourism and logistics hub.

## Page 50

China High-tech Cities
Shenzhen— Becoming An International Hub of Hardware Innovation
Shenzhen has ranked No.1 for 13 years.
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,
In 2016, the number of PCT(Patent Cooperation
which hold the world’s top-two positions in terms of investment
Treaty) applications by Shenzhen is 19,648,
in R&D, according to the OECD.
accounts for 46% of national applications.
Source: The Intellectual Property Office of Guangdong Province, Shenzhen, Shanghai, Beijing; The Statistics
Bureau of related cities

## Page 51

China High-tech Cities
Shenzhen— Becoming An International Hub of Hardware Innovation
Strong Financial Support
Government Subsidy Programs VC Firms and Enterprises
The total amount of investment from the top
• Start-Up Enterprise Subsidy
100 Shenzhen VC funds in 2016 was ¥58
• Rental Subsidy
billion, up 40% year over year, which was
• Social Security Subsidy
invested in 987 transactions, up 16.4% year
• Employment Subsidy
• Micro-Financing over year.
• Peacock Campaign: for High-level talents
Shenzhen Capital Group Tencent Industry Win-Win
Fund
Source: Shenzhen Chamber of Investment

## Page 52

China High-tech Cities
Shenzhen— Becoming An International Hub of Hardware Innovation
Creative Innovation Ecosystem
Makerspaces Accelerators Notable Startups Industry-Leading Companies
Shenzhen is a hub for The incubator and accelerator In 2016, there are 131 Chinese Major industry-leading tech
makers. network in Shenzhen is Unicorn with valuation at over companies are headquartered in
relatively underdeveloped. $487 billion, among these 131 Shenzhen. Their success sets an
companies, 13 are based in example and brings more
Shenzhen with a valuation of investment and business
around $39 billion in total. opportunities into the city.

## Page 53

FIVE
Future Key Industries in China
Digital Health
Agri-food Tech
Smart Manufacturing
Clean Tech
Ed Tech

## Page 54

Digital Health

## Page 55

Digital Health
What is 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.
Providers and other stakeholders are using digital health in their efforts to:
Reduce inefficiencies Improve access Reduce costs
Increase quality Make medicine more personalized for patients
Patients and consumers can use digital health to better manage and track their health and wellness related activities.

## Page 56

Digital Health
The Digital Health Revolution
Digital Revolution Genomic Revolution
+
Wireless sensors & Devices
PREVENTION
RESULTS
Mobile connectivity
PREDICTION
Social networking
Genomics
MANAGEMENT
Internet
DIAGNOSIS
Imaging
Data Universe
DISEASE
Health info systems

## Page 57

Digital Health
Innovation Trends
Policies and Regulations Patient-Generated Mobile Health = Healthcare
Drive & Threaten Innovation Data Comes of Age
Blockchain Health Empathetic Health
Ecosystem Driversifies Interfaces Mature

## Page 58

Digital Health
Digital Health is still picking up steam
Source: CBINSIGHTS, Healthcare consumerization

## Page 59

Digital Health
Global Funding Trend
• 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.
Source: CBINSIGHTS, Digital Health Funding Reaches Record Level

## Page 60

Digital Health
The rate of chronic disease is increasing in China
In 2016, Top 10 reasons causing
Highest YLLs* in China:
In 2016, three types of
diseases causing the 1. Stroke
Population
maximum number of deaths
2. Ischemic heart disease
Aging Intensity are:
3. Road traffic injury
1. Cardiovascular and
4. Lung cancer
cerebrovascular diseases
5. COPD
- 17.6 million
6. Liver cancer
2. Tumor - 8.93 million
7. Gastric cancer
3. Chronic respiratory
8. Alzheimer's disease
disease – 3.54 million
9. Suicide
10. Esophageal cancer
Environment
Pollution
*YLL: Years of life lost (percentage of total)
Source: Global Burden of Disease Study 2016, GBD

## Page 61

Digital Health
Policies promote the reform of medical health industry
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.
Encourage R&D, reduce costs,
simplify approval procedure,
Medicine
open e-commerce platform.
Realize de-administration of
public hospitals, establish a
modern management system,
Medical Services
reduce overall service costs.
Change from license to record,
standardize examination
method, establish priority
Medical Equipment
approval system.
Integrate the basic insurance
system of urban and rural
Medical Insurance
residents, adjust the catalogue
of insurance drugs.
Standardize the registration
process and strengthen the
Supplements
review of production license.
Source: Qingke Research Institute, China Medical health industry’s investment report

## Page 62

Digital Health
Health awareness is enhanced
In 2017, Chinese families' awareness of health went through three great changes.
01 02
03
The awareness of Healthy life The idea of proactive
The awareness of family health
was enhanced prevention was deeply
management was improved
rooted in mind
The survey found that, The survey found that, when The survey found that, 93% of
respondents expressed a need for asked which factor is more
respondents believe that everyone is
health management services, important to health, 93% of
one part of family, each family
81.8% of respondents wanted to get respondents chose "positive
member's health behavior will
health intervention services that health management plan", while
interact with each other. Therefore,
could improve their unhealthy only 6.8% of respondents chose
health management should take
lifestyles and habits, and 76.4% of "more advanced medical
family as a unit.
respondents wanted to get health technology, equipment and
science information. treatment plan".
Source: Chinese family health data report (2017)

## Page 63

Digital Health
China Health Industry’s Market Size

## Page 64

Digital Health
China Digital Health Funding Trend
721
689
239,497
204,537
366 324
The main reason for the
105,295
increase of financing scale is
capital market's favor for the
traditional medical service
136
115 38,904
and medical equipment.
80
64
13,275
6,714
3,771
4,904
The number of investment
Unit: Million
Source: Vcbeat, Medical Health Industry Financing Report, 2017 Q3

## Page 65

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

## Page 66

The Average Deal
Digital Health
Subdivisions Size
(10000 RMB)
Medical Equipment Sales 25,730
Community-oriented Primary 18.631
Care
Medicine 18,079
Medical Finance 16,571
Biotechnology 14,857
Medical Informatization 10,770
Consumptive Medical 9,671
Treatment
Circulation Channel 7,000
Medical Tools 6,971
Medical Science And 5,650
Technology
Seek Medical Advice 4,825
gy
Care
Rehabilitation Nursing 4,285
Medicine
Big Health
Biotechnolo
Treatment
Technology Medical Tools
Medical Support Big Health 4,147
Medical Finance
Medical Equipment
Circulation Channel
Maternal Pregnancy
Seek Medical Advice
Medical Science And
Consumptive Medical
Medical Equipment 3,700
Rehabilitation Nursing
Medical Informatization
Medical Equipment Sales
Medical Support
Community-oriented Primary
Source: Vcbeat, 2017 Medical Health Industry investment report
Maternal Pregnancy 2,272

## Page 67

Digital Health
Investment and financing in subdivision areas

## Page 68

Digital Health
Startupbootcamp Alumni - Biosensorix
Biosensorix
Point of care and quantitative diagnostics tool

## Page 69

Digital Health
Notable Chinese Startup – We Doctor
We Doctor
Online platform connecting connecting patients and doctors together

## Page 70

Agri-Food
Tech

## Page 71

Agri-Food Tech
The Age of Agri-Food Revolution
Beyond 2030, the negative impacts of climate change on agricultural yields will
become increasingly severe in all regions.

## Page 72

Agri-Food Tech
China’s urgent need for agriculture innovation
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.

## Page 73

Agri-Food Tech
China’s Food Safety Issue
consider food safety when buying food
86%
give top consideration to food safety when buying food
52%
are against food additives
88%
Food Scandals
Melamine Milk scandal ‘Aluminium’ dumplings
‘Sewer’ oil ‘Cadmium’ rice Glow-in-the-dark pork
Note: Consumers investigated are mainly from 1st & 2nd-tier cities
Source: Ipsos, Trends in Food, Beverage & Consumer Insights in China 2016

## Page 74

Agri-Food Tech
Chinese Customer consumption habits are changing
The urbanization and rapid growth of
As the standard of living and disposable income rise
the Chinese middle class are
consumers are looking for natural, organic,
significantly changing the consumption
and imported foods most representative of
habits of Chinese consumers.
healthy foods in China (Euromonitor, 2016).
No Artificial Additives Organic Ingredients Low Calorie Slimming Effect

## Page 75

Agri-Food Tech
China’s huge potential for food consumption
The change of urban residents' family population and disposable income
Average family population of Urban Households
Per capita disposable income of urban
residents(RMB)
Source: National Statistics Bureau ,Guoxin Securities Economic
Research Institute

## Page 76

Agri-Food Tech
What is Agri-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.

## Page 77

Agri-Food Tech
Key Agri-Food Tech Enablers
BIG DATA INTERNET PAYMENTS MOBILE WEARABLES
IOT
ECOMMERCE DRONES
AI 3D PRINTERS
BIO-TECH ROBOTS
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.

## Page 78

Agri-Food Tech
AgriFood Tech Category Definitions
Source: AgFunder, AgriFood Tech Investing Report - MidYear 2017

## Page 79

Agri-Food Tech
Global Funding Trend
Source: AgFunder, AgriFood Tech Investing Report - MidYear 2017

## Page 80

Agri-Food Tech
China provide administration support for agricultural innovation
Government "Thirteen five" special plan for agriculture and rural
science and technology innovation
Policy
By 2020, the contribution rate of agricultural innovation
is over 60%, the ability of agricultural technology
Target
01
innovation is in the forefront of the world.
• 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.

## Page 81

Agri-Food Tech
China provide administration support for agricultural innovation
Across the country, 260 national agriculture and
Industry
science technology parks are built to serve as
Parks
part-technology showcase, part R&D pilot farms.
Projects run the gamut from plant and animal breeding programs to
02
precision agriculture and water-efficient farming.
Top agricultural universities allocate subsidies and
University
working space for student and alumni startup teams.
Innovation
Cyb-Bot, a robotics and automation company received investment
from a China Agricultural University Fund.
03

## Page 82

Agri-Food Tech
China’s Agricultural Investment Trend
China's Agricultural Fixed assets investment (excluding
farmers) and its growth rate, 2012 - 2016
Unit: Billion RMB Unit: ％
The number of investment
The amount of investment
31％
30％
28％
The growth rate of investment number 153％
29％
19％
The growth rate of investment
amount
152％
22,774
63％
9％
-9％
19,062
59％ 272
-31％
-25％
14,574
189
11,401 183.81
167,74
8,772
108
91
72.72
68
44.48
40.97
2012 2013 2014 2015 2016
2012 2013 2014 2015 2016
The amount of investment Growth rate
In 2016, the number of investment was 189, and the
In 2016, Agricultural fixed investment in China (excluding
amount of investment was RMB 16.774 billion.
farmers) was RMB 2277.4 billion , up 19% from 2016.
Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report

## Page 83

Agri-Food Tech
China’s Agricultural Investment Trend
0.58
Support Service
Support Service
After Series D
Whole Industry Whole Industry Chain
Series Chain
After Series
C/C+
D
Series
B/B+
Agricultural Products Sales
Series
C/C+
Series
B/B+
Series
A/A+
Agricultural Products
Series
Sales
A/A+
Agricultural Products Logistics
Pre-A
Pre-A
Agricultural Products Processing
Agricultural Products
Logistics
Angel Round Agricultural Products
Agricultural Products
Processing
Angel Round
Production
Agricultural Products
Production
Agricultural Materials
Supply
Seed Agricultural
Seed
Materials Supply
2016
2015 2017H1
2016
2015 2017H1
Invest more in early rounds. In 2016, investment in series A/A+ accounted for
In 2016, the top 3 investment areas are Agricultural Products Sales(43%),
29.6%, in Pre-A accounted for 5.8%, in angel round accounted for 24.3%, in seed
Agricultural Products Logistics(20%) Agricultural Products Processing(11%), in
round accounted for 6.9%. In the first half of 2017, investment in earlier rounds
the first half of 2017, the proportion of investment in agricultural products
before A/A+ round accounted for over 60%, but the proportion decreased
processing and logistics increased significantly.
significantly, the proportion of investment in series B/B+ or later rounds is rising.
Source：IT Juzi, ChinaVenture, CYZone, Pintu Think Tank

## Page 84

Agri-Food Tech
The analysis of china agricultural industry chain
Capital
Agricultural Products Agricultural Product
Agricultural Products Sales
Agricultural Materials Supply Agricultural Products
Processing Logistics
Production
Agricultural Materials
Comprehensive
Grain And Oil
Crop Planting Agricultural Bulk Products
Production E-commerce
The agricultural
E-commerce
industry chain is
Fresh Food
E-commerc
relatively complex,
e
Milk Drink
Traditional Agricultural
Animal Breeding
Supermarket involving many
Products Wholesale
Chain
Consumers
segments, mainly
Fresh Food
Agricultural Materials Chain Seafood And Aquatic Products
related to
Chain
agricultural
Fishery Production B2B Fresh Raw
Food chain
Materials Wholesale
materials supply,
Animal Products
agricultural
Convenienc
e Store
products
Storage And Logistics Of
Forestry Production production,
New Retail
Agricultural Materials
Agricultural Products
Other
E-commerce
processing, logistics
Restauran
and sales. Besides
t
that, it also contains
supporting services.
Agricultural Products’ Whole Industrial Chain
Support Service
Agricultural Technical Service Agricultural Financial Service Agricultural Information Service Agricultural Information Service
Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report

## Page 85

Agri-Food Tech
China Agriculture will develop in 4 core directions in the future
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 Services Smart Agricultural Industrial Ecological
Commercialization Diversification Production System
Agricultural Materials Financial Service IoT(internet Of Things) Agriculture + Leisure Tourism
E-commerce Training Services Big Data Agriculture + Real Estate
Platform E-commerce System Service Ai(artificial Intelligence) Agriculture + Pension
Vertical E-commerce Information Service Agricultural Technology Agriculture + Health
O2O E-commerce Data Service Services Agriculture + Environmental
Direct Supply From Origins Marketing Service Drone Protection
Offline Brand Talent Service Intelligent Tracing Agriculture + Cultural Creativity
Material Distribution
Source: Pintu Think Tank, 2017 China Agricultural Internet Research Report

## Page 86

Agri-Food Tech
Startupbootcamp Alumni - Eskesso
Eskesso
Smart sous vide cooking appliance and cloud platform
Step 1: Put your Eskesso Step 2: Add a pack of
in any pot of water food to the mix
Step 3: Select the recipe you are
cooking and push START in our App

## Page 87

Agri-Food Tech
Notable Chinese Startup – ele.me
Ele.me
Online platform to order take-out

## Page 88

Smart
Manufacturing

## Page 89

Smart Manufacturing
What is
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)

## Page 90

Smart Manufacturing
Smart Manufacturing’s Features
Fast integration and
People as key players
Distributed intelligence
flexible configuration
Virtual real-time Digital life-cycle Secure value-creation
Open standards
representation management networks

## Page 91

Smart Manufacturing
Key Smart Manufacturing Tech Enablers
IoT AR 3D Printing /
(Internet of Things) (Augmented Reality) Additive Manufacturing
Advanced AI and Machine
Robotics Learning
Advanced Predictive
Materials Analytics

## Page 92

Smart Manufacturing
Smart Manufacturing’s Digital Dividend
Boost Manufacturers’ Promote Business Spur Industrial Jobs’
Profit Model Innovation Revolution
Some dangerous, mundane jobs that humans
Smart manufacturers boost profits The digital transformation of
formerly performed are indeed being conducted
through improved quality, faster industry will serve as a basis for
by robots now.
throughput, less maintenance and new business models that can pay
downtime, reduced material waste big dividends in terms of quality A shift to smart manufacturing makes companies
and faster decision-making. and documentation. more competitive and increases revenues. Higher
profits give companies more capital to finance
improvements and expansions, which require
The smart processes also enhance Digital technologies can help to
hiring more workers.
worker safety, reducing insurance make possible completely new
and medical costs. value creation networks that
As more manufacturers embrace high-tech
extend beyond company
solutions, workers with expertise in fields such as
boundaries.
electronics, engineering and IT (including
cybersecurity) are needed.

## Page 93

Smart Manufacturing
Benefits of Smart Manufacturing
Benefits to stakeholders in a value chain
Affordable access to new
Technology & innovation.
Better user app
Better user experience.
development &
A more informed &
Pilot new technologies for
feedback.
Fluid value chain
larger manufacturers.
Increased confidence &
path.
personal satisfaction.
Less nitty-gritty
Increased productivity
integration.
via sensors.
Software Vendors &
Manufacturers Customers
Suppliers
3rd-Party Integrators

## Page 94

Smart Manufacturing
Manufacturing + Technology is taking in 2017
Source: CBINSIGHTS, Advanced manufacturing trends

## Page 95

Smart Manufacturing
Global Funding Trend
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

## Page 96

Smart Manufacturing
Smart Manufacturing is inevitable for industrial countries to realize Manufacturing Upgrade.
Germany
Industry 4.0
EU
Japan: New Industrial
US
Factories of the
Revolution Driven by Robots
Re-industrializatio
Future
n Strategy
India
Make in India Campaign

## Page 97

Smart Manufacturing
China’s Manufacturing Upgrade
Challenges for China’s Manufacturing Industry
01 02 03
Damage to environment Depletion of natural Rapid increase in
resources production costs
04 05 06
Shrinkage in export Competition from other Lack of innovative products
markets low wage countries and key manufacturing
know-hows and technologies
China needs to upgrade its manufacturing industry and move to
higher value-added manufacturing.

## Page 98

Smart Manufacturing
Support for Smart Manufacturing
C T
Capital Talent
• “Made in China 2025” Special Fund. • Encourage enterprises to build smart manufacturing training bases,
cultivating skillful technicians.
• Collaborate with various financial institutions to provide comprehensive
financial services, including loans, investment, bonds and leases, for key • Support universities to set up systems for cultivating smart
projects of "Made in China 2025". manufacturing talents.
• Attract smart manufacturing talents into China.
I
T
Infrastructure Technology
• Build Smart Manufacturing Innovation Centers, developing key
• Develop equipment, construct test verification system and
technology research.
identification system based on industrial network.
• Encourage enterprises, universities and scientific research
• Promote “smart manufacturing” integrate with “Internet Plus”, establish
institutions collaborate with each other to set up innovation alliance.
information infrastructure made for industrial production.

## Page 99

Smart Manufacturing
China’s Smart Manufacturing Market Size
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

## Page 100

Smart Manufacturing
Startupbootcamp Alumni - ThingTrax
ThingTrax
Connect your machines, motors, tools and labor in minutes

## Page 101

Smart Manufacturing
Notable Chinese Startup- HuaZhi
HuaZhi
A globalized smart manufacturing solution provider and system integrator
Top-Level System Intelligent
Design Integration Factory

## Page 102

Clean Tech

## Page 103

Clean Tech
About 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

## Page 104

Clean Tech
Driving Forces for Clean Technology
Environmental issues,
Global investment in the
Technological Many government Clean tech technologies
including global climate
energy sector fell 12
advances including leaders have recognized
like AI and IoT will gain
change, deforestation, air
percent last year to $1.7
continued innovations that future
global manufacturing
pollution, and inadequate
trillion, A drop in
in microelectronics, competitiveness is
conventional oil supplies of clean water, economies of scale from
biology, chemistry, and directly linked to being
exploration could cause a
have stepped up pressure
other industries like
physics, have more resource-efficient
shortage of crude and
to find more
automobiles and
other fuels. significantly improved and less reliant on Older,
environmentally benign
robotics. Clean tech
the performance of polluting technologies.
Ways to meet the needs of
• Australia: Coal Shortage
prices are falling due to
many Clean
a growing world. The
• America: Electricity
technologies. manufacturing
concern over climate
Shortage
economies of scale.
• China: Gas Shortage change in particular has
• Pakistan: Electricity
led to new focus in
Shortage
alternative transportation
and energy technologies.
Political Manufacturing
Energy Technologies Environment
Winds Economics Of Scale
Uncertainty Advances Issues

## Page 105

Clean Tech
Revived Interest In Renewables
Source: CBINSIGHTS, Renewable energy & the rise of solar

## Page 106

Clean Tech
Countries with clean energy policies implemented

## Page 107

Clean Tech
Global funding trend
After years of growth, VC investment in cleantech companies has been on the decline

## Page 108

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

## Page 109

Clean Tech
China’s Green Growth
th
13 FYP encourage clean energy production and consumption.
Targets for energy intensity, renewable energy share , and carbon intensity
have been further tightened.
Energy consumption Share of non-fossil in primary Carbon emissions per unit
per unit of GDP energy consumption of GDP
Source: PwC, Chinese Cleantech Market Opportunities, 2017

## Page 110

Clean Tech
Environmental Protection Policies
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"

## Page 111

Clean Tech
China Cleantech Investment Trend
Government investment and total investment in environmental
prevention (including renewable energy)
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.

## Page 112

Clean Tech
China funding trend
Investment in China's Clean Tech Industry from 2014 to
2017 Q3
TM
Source: PwC, MoneyTree China Clean Energy and Technology Industry investment report

## Page 113

Clean Tech
China funding trend
TM
Source: PwC, MoneyTree China Clean Energy and Technology Industry investment report

## Page 114

Clean Tech
China Cleantech Market Potential
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

## Page 115

Clean Tech
China Cleantech Trends
Solar Energy
1
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 Energy
2
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
3
The industry is standing at the inflection point with
the deep integration of the vehicle market.
Solid Waste Treatment and Disposal
4
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.
New Science and Technology of Energy
5
Conservation and Environment Protection
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. Water Treatment
6
The water treatment industry remains prosperous, and the water
treatment system will be continuously improved and perfected.

## Page 116

Clean Tech
Startupbootcamp Alumni - Tespack
Tespack
Charge your mobile devices directly from sun

## Page 117

Clean Tech
Notable Chinese Startup - NIO
NIO
High performance intelligent electric SUV (7 pedestal)
Raised $1700 million in 2017

## Page 118

Ed Tech

## Page 119

Ed Tech
The Existing Problems with Education
01 02 04
03
Unprepared Students Isolated Schools
Anxious Parents Stressed Teachers
Nowadays, students In order to give Teachers face constant Schools and their pupils are
graduate from these children the greatest pressure from both often far removed from real
institutions with deep chance of success in parents and school social issues; and schools
confusion about the the future, there is administrations in a are very much closed off ‘in
future and their more anxiety than unitary evaluation silos’, preventing them from
direction in life. ever among parents. system. effectively connecting with
social resources.
The big disconnect is happening in education area, as the world
becomes more connected at a global level.

## Page 120

Ed Tech
Digital will soon be the nucleus of
Students are born with digital DNA
every industry
Only 10 percent of schools offer any kind of computer Education institutions need to cater to the digital
science class. If we don’t start at school-level exposing demand of their consumers — people who are
learners to technology existing outside the classroom, constantly exposed to digital technologies outside of
the skills gap will soon be a valley that cannot be the classroom have come to expect the same digital
bridged. capabilities within the four walls of a learning
environment.
Ed Tech is poised to be the biggest and possibly
most profitable digitalized sector

## Page 121

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?

## Page 122

Ed Tech
Global Funding Trend
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.
Source: CBINSIGHTS, High Marks: Ed Tech Deals Tick Up In Q1’17

## Page 123

Ed Tech
Startup Landscape
Landscape 2.0 maps 5000 companies into eight steps we call the next
generation learning lifecycle.
CREATE MANAGE DISCOVER CONNECT EXPERIENCE LEARN CREDENTIAL ADVANCE
573 companies 617companies 362 companies 803 companies 622 companies 1384 companies 266 companies 523 companies
$4.8b invested $6.3b invested $7.0b invested $2.3b invested $5.6b invested $10.4b invested $2.1b invested $4.2b invested
Publishers Ed Management Tech Student Financing Learning Management VR/AR Personalised Learning Testing & Assessment Hiring
Digital Courseware Student Management Enrolments & Systems Robotics Proprietary Campus & Badging & Credentialing Internships
Research & Scientific Systems Admissions Social Platforms Games & Simulation Online
Faculty Artificial Intelligence Early Childhood Open Online
Administration Language
LEARNING DESIGN
STUDENT LIFECYCLE
AND MANAGEMENT
Source: NAVITAS Ventures

## Page 124

Ed Tech
Asia Market Size
There are The average Asian family spends
600,000,000 K12* students in Asia
10x that of the United States
>40%
of their income on education related
HUGE
By 2020, China’s college-educated
products and services
talent pool is expected to number
MARKET SIZE
195,000,000people
There are
300,000,000 people learning English in China
more than the entire US labor force that
year
more than the entire English speaking population of the United
states
*K12 : Kindergarden to 12th Grade

## Page 125

Ed Tech
China Education Industry
China's education industry is
ushering into its
“
Golden Age
with expansion
in terms of both
industry size and
market activity.
Source: Deloitte Education Industry Report 2017

## Page 126

Ed Tech
Future Major Growth Points
Personal training grows because of
better economic capability and higher
willingness to improve competitiveness.
Early childhood education is driven by
2
the implementation of two-child
Vocational Training
policy which brings sufficient demand
and the government's policies to
encourage preschool education.
K12* Training
3
The growth of K12 extra-curricular training
Early Childhood Education
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
1 drives the demand for K12 examination-
oriented education and language education.
126
Source: Deloitte Education Industry Report 2017
*K12 : Kindergartden to 12th Grade

## Page 127

Ed Tech
Contributors to Ed Tech Golden Age – Favorable Policies
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.
Vocational education, benefited from the
relevant development planning and the Belt
and Road Initiative will see development
trends of "running school by means of
4
collectivization", "investment of private
Preschool education will see
capital in education", and "going global" in
positive development under the
the future.
guidance of policies including
Higher Academic
the proposals for China's 13th
2 Education
Five-Year Plan which proposes
the target to realize inclusive
Vocational Training
Higher academic education
preschool education in 2020.
is focusing on "boosting
employment" and
K12 Education
"standardizing independent
3
colleges“.
Preschool Education
Key points of K12 educational
informationization are accelerating
informationization, and admission
policies at the compulsory education
1
stage have created a favorable
condition for fair distribution of
high-quality resources.
Source: Deloitte Education Industry Report 2017

## Page 128

Ed Tech
Contributors to Ed Tech Golden Age – Capital Inflow
There has been a rapid increase of social capital flowing into the
education industry both in terms of total amount and frequency.
Investment Cases Total Investment Amount
270
> twice
190
42%
RMB15.9 billion
RMB 6.1
billion
2014 2015
2014 2015
Source: Deloitte Education Industry Report 2017

## Page 129

Ed Tech
Contributors to Ed Tech Golden Age – Capital Inflow
Internet companies represented by BAT, large real estate
companies, and non-educational listed companies are
venturing into education.
Internet companies represented by
Real estate companies are
BAT, are searching for segments of
developing educational
in-depth development to improve the
related real estate.
depth of their ecosystem.
Source: Deloitte Education Industry Report 2017

## Page 130

Ed Tech
Contributors to Ed Tech Golden Age – Exit Opportunities
IPOs increased by 76 percent
from a year earlier. More capital
is expected to flow into the
M&A
industry under easy policies.
The total amount of
mergers and acquisitions
(M&As) increased by 165
IPO
percent year on year.
Source: Deloitte Education Industry Report 2017

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Ed Tech
China Ed Tech Funding Trend
Source: GETChina Insights, Digging into China EdTech 2017Q1

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Ed Tech
Educational Industry Fundraising Status
Information-driven Education
K12 International Early Career Quality Higher
Other
Education Comprehensive
Education Education Education Education Education
Service
K12
• Among Educational Industry, capital is mainly
Career Education
focus on K12, International Education, Early
Education, Career Education.
Early Education
• In 2016, the fundraising is went through a cold
Quality Education
winter, but career education fundraising is
increasing. International Education
Information-driven Education
• In 2017, quality education fundraising events
accounted for 18%, obviously higher than previous
Education Comprehensive Service
years.
Higher Education
Note: the data is from 2015 to April, 2017
Source: IT Juzi & Taoli Capital
Other

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Ed Tech
China Ed Tech Industry Landscape
K12 Career Education
Early Childhood Education Higher Education
婷婷姐姐
International Education
Quality Education Education Education Comprehensive
Informationization Service

## Page 134

Ed Tech
Startupbootcamp Alumni - BrainCo
Focus EDU
Focus EDU is the world's first
integrated classroom system that
improves education outcomes
through real-time attention level
reports.

## Page 135

Ed Tech
Notable Chinese Startup - Vipkid
Vipkid
Online children's english education platform
High Quality Teachers From
Effectively Schedule Classes An Immersive Learning Experience
North America
Check Classroom Scene United States Common Core State High Quality Service From
At Any Time Curriculum Standard (CCSS) Chinese Teachers

## Page 136

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