PIONEERING GLOBAL VENTURE CAPITAL - September 2020 Employees' Retirement System of Rhode Island
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PIONEERING GLOBAL VENTURE CAPITAL September 2020 Employees’ Retirement System of Rhode Island
OVERVIEW
G G V S N A P S H OT
Founded in 2000, GGV Capital is a multi-stage investor, with ONE core team across US and Asia.
Global insights allow GGV to pick winning technology sectors that grows into investment flywheels across markets.
Strong & Consistent Investment Record of Building Highly Experienced and Unified Compelling Sector and Market
Performance $1B+ Category Leaders Team Trends Globally
• Gross IRR of over 25% and Net IRR • Led by 6 Managing Partners, more • 3 core sectors
of over 17% since inception than 100 years of combined total • Social/Internet
VC investing experience, 65 years • Enterprise Tech
combined working together at GGV • Smart Tech
$5.7B $4.2B 388 251
Assets Under Invested Since Total Portfolio Active Companies
Management* Inception Companies Invested
43 33 63 $1.6B
IPOs $1B+ Exits and Partial $1B+ Companies** Discounted Public Value**
To Date** Exits 45 Homegrown
AAC Technologies
Manbang Hello Zuoyebang
Table above showcases selected GGV unicorns. Blue boxes denote public companies. Data is from inception through June 30, 2020.
*AUM does not include commitments in the RMB Funds of approximately $463 million. **Data as of August 31, 2020. 2
FUNDS
UPCOMING FUNDS: FUND VIII/ PLUS AND DISCOVERY III
Upcoming Funds
*Target Fund Size
Continuation of winning strategy GGV VIII / Plus
$1,500M*
4:1
$1.2B: $300M
China 45%
U.S. 45%
SEA+ROW 10%
GGV VI / Plus GGV VII / Plus
$942M $1,405M
China 46% China 38%
U.S. 43% U.S. 45%
GGV Select SEA 2% SEA 15%
$457M ROW 9% ROW 2% GGV Discovery III
China 45%
U.S. 55%
$500M*
SEA 0% GGV Discovery I GGV Discovery II China 50%
ROW 0% $268M $475M
China 64% China 40% U.S. 40%
U.S. 30% U.S. 41% SEA+ROW 10%
GGV IV GGV V SEA 6% SEA 13%
$520M $622M ROW 0% ROW 6%
China 35% China 54%
U.S. 55% U.S. 44%
SEA 7% SEA 0%
ROW 3% ROW 2%
GGV I - III
$1,001M
2000 - 2006 2011 2014 2015 2016 2018 2020/ 2021
Committed capital includes Entrepreneurs Funds. Percentages are based on invested capital as of June 30, 2020. 3
TEAM
E X P E R I E N C E D S E C TO R F O C U S E D L E A D E R S H I P
BILLION-DOLLAR
YEARS YEARS EXPERIENCED Venture
>100 Combined Total VC Investing 65 Combined Total Experience 63 Companies Created Across
Total Investing Experience
5 Partners
Experience with GGV
JIXUN FOO HANS TUNG JENNY LEE GLENN SOLOMON ERIC XU JEFF RICHARDS
Joined GGV in 2006 Joined GGV in 2013 Joined GGV in 2005 Joined GGV in 2006 Joined GGV in 2017 Joined GGV in 2008
20 years of VC investing 18 years of VC investing 18 years of VC investing 23 years of VC investing 15 years of VC investing 12 years of VC investing
Social / Internet Social / Internet Smart Tech Enterprise Tech Social / Internet Enterprise Tech
Enterprise Tech Social / Internet Social / Internet Social / Internet
8x Forbes Midas List, 2018 Top 100 Venture Capitalists
Forbes Midas List 4x Top 20 Forbes Midas List Forbes Midas List by Forbes China 11 years as an entrepreneur and
Forbes China, 4x NY Times / CB Insights Top 100 Forbes Most Powerful Women TechCrunch 2020 Most Active & 2018 F40 Young Investors by founded 2 companies
“Best Venture Capitalist” VC List, 1x Top 20 New York Times & CB Insights, Top Engaged Investors Zero2IPO
Top 10 Venture Capitalist CBN News Magazines, Top 10 Most 100 2017 Top 100 Venture Investors by
by Zero2IPO Entrepreneur-Friendly VC Venture Capitalists ChinaVenture
Singapore Business China Young
Achiever Award
CHRIS BARBIN KHENG NAM LEE DENISE PENG WEIHAN LIEW VENTURE PARTNER
Venture Partner Venture Partner Venture Partner Venture Partner
Former CEO
Co-founder of Appirio Former Chairman of Vertex Former COO of Qunar Founder of BaBe
Enterprise Tech
Enterprise Tech Smart Tech Social / Internet Social/Internet
INVESTMENT TEAM: 29 (+1) PLATFORM SERVICES: 24 OPERATIONS: 33
Data as of August 31, 2020. 4
TEAM
P L AT F O R M S E R V I C E S P L AT F O R M
GGV is deeply committed and dedicated to the support and development
of our entrepreneurs
Platform Services Platform
• Platform Services team built in 2015
• Marketing and PR strategy
• Grown to 24 people strong across 5 specialized functions
• Equipping our entrepreneurs to build winning companies
7 Marketing
•
•
•
Global positioning
Agency introductions
Fundraising pitch deck assistance
• Broadening bandwidth to support our companies
post- investment • Founders + Leaders
4
• Access to global talent networks
Talent • Founder peers and curated cohorts
• Talent training
Team Growth Headcount • U.S./China relations
• Macro deal factors
9 7 Legal & Gov’t
Relations
•
•
Legal compliance, due diligence and governance
Legal support for transactions, contracts, IP, exits,
etc.
Y 2015 – Beginning of team buildout
• Generate new opportunities and customers
2
Business • Build value-added network for existing and
Development prospective portfolio companies
17
Y 2018 – First Government Relations hire in Beijing • Financial due diligence and best practices
4 Data Analytics &
Finance
•
•
Portfolio monitoring
Portfolio data management
24
Y 2020 – Creation of Business Development Function
Data as of August 31, 2020. 5
TEAM
G G V T E A M : VA L U E C R E AT I O N & C O M M U N I T Y O U T R E A C H
Marketing Talent Business Development Government Relations
GGV-Proprietary Content & Events
60+ 500+ Helping our portfolio companies generate
more revenue Navigate & reduce regulatory risks
Leverage government incentives
Portfolio Companies Participants
100+ 50
Podcast Clicks 1.21M+ MASTER
CLASS 140 3K+ Exec Introductions
Opt-In Execs 42 52M+
WeChat Articles Clicks 25K+ Companies Featured Audience Portfolio
Companies
(RMB) Govt grants
secured
Joined MBA
Program
Placements
24 10
32 Executives Qualified Corporate Programs
since 2019. Opportunities Relocations
20+ Placements
Countries of Placed female board
Founders members at Slice, Opendoor, Licensing
HashiCorp and more
GGV’s Response to COVID-19
3,518 Page Views
COVID-19 Operational Guide
• WeChat CEO groups
• Portfolio Communities in Slack
• Weekly Portfolio Town Halls
• Online seminars sharing best practices
• Aggregating resources on GGV’s website
• GGV People & Marketing Leaders calls
Data as of June 30, 2020. 6
DEAL FLOW
S T R O N G D E A L F L O W A N D E C O S Y S T E M PA R T N E R S
GGV reviewed 2,000+ deals globally in 2019
Early in China, strong brand and dealflow
388 50+
Portfolio Teams Strategic Partners
After 20 years with a global perspective and local presence, GGV has built a strong ecosystem around our
core sectors and investment themes. Collaborating closely with our portfolio teams, large strategic
partners, peers in the industry and our family of entrepreneurs, GGV has continued to invest in category
leaders across the U.S., China and Southeast Asia.
Our strong deal flow is attributed to:
1. Sector focus
2. Strong referral program from our scouts, 63 unicorns and portfolio ecosystem*
200+ 250+
3. Thesis-based proactive deal sourcing VC Firms and Angel Entrepreneurs Funds
Funds
Selected Co-Investments
智米
SMARTMI
Data as of June 30, 2020. *$1B+ companies as of August 5, 2020. 7
DEAL FLOW
DEAL FLOW: GGV SCOUTS AND SVCI
GGV’s Scout Program, currently numbering ~20 members, was created to enhance deal flow in early stage and seed companies. Based in the U.S., the GGV scouts are prominent entrepreneurs,
technology professionals and angel investors in our ecosystem who help to build our people rolodex and provide on-the-ground perspective into high-potential early startups. The scout
program has allowed GGV to react quickly and win up-and-coming deals even before they are available to the earliest round of investors.
Mitchell Hashimoto, Ryan Denehy Web Smith
Co-Founder and CTO HashiCorp Founder and CEO Electric.ai Founder and CEO
2PML
Mitchell is extremely well-known in open source circles and Ryan is a three-time repeat founder and very well- Web runs 2PML, a media platform for ecommerce and DTC. He
has a strong social media presence, which results in many connected in the NY enterprise technology ecosystem. He is is well networked and respected in the space, and often sees
entrepreneurs in this space approaching him with their a mentor to several early stage founders, and provided the trends and companies before others. Web has also been a
companies. He’s been very helpful in sending these deals to original introduction to Vic.ai, a GGV Discovery II portfolio resource for us on diversity and inclusion efforts and is very
GGV. company. well-respected in the black entrepreneur community.
Josh Elman Irving Fain Kabir Shahani
Venture Partner, Greylock CEO and Founder Founder and CEO
Ex-VP Product, Robinhood Bowery Amperity
Josh is well-connected to social networking opportunities Irving has been a founder in New York for over a decade. Kabir is a repeat founder in Seattle who sold his previous
from his work at both Robinhood and as an investor at He’s well-liked and connected in the NYC startup/founder company for $100M. We met Kabir during several rounds of
Greylock. He has been active in sourcing deals for Hans scene. Irving has been a great advocate for Hans, GGV and financing for Amperity, and although we did not invest, we
and GGV. our deal flow, connecting us with a number of food tech built a strong personal relationship. Kabir is very well-
deals in NY. connected and respected in the Seattle entrepreneur and
greater Washington communities.
SVCI is a 50+ strong active CISO angel network started in 2019 and managed by Oren Yunger, a GGV VP who works closely with Glenn Solomon on
Enterprise Tech deals. Given the quality of the CISOs involved, including members from Amazon Whole Foods, Atlassian, HP Enterprise, Levi Strauss and
Palo Alto Networks, SVCI has been approached by a significant percentage of all new cybersecurity startups of interest and has provided GGV with
significant deal flow in the cybersecurity space. https://www.svci.io/
8
PERFORMANCE
C O N S I S T E N T LY D R I V I N G E X I T S / D I S T R I B U T I N G C A P I TA L
Current Public Value – 10 Companies
$500M $866M $1,184M $1,596M
Q1 2020 Q2 2020 August 5, 2020 August 31, 2020
6 companies 8 companies 9 companies 10 companies
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H 2020
Public: Public Public: Public: Public: Public: Public: Public: Public: Public: Public:
$357M $361M $445M $702M $609M $548M $305M $84M $181M $479M $1,596M*
Driving 43 IPOs
and numerous
M&As through
multiple
downturns over
last 20 years,
distributed over
$3.1Bn*
Blue boxes denote public companies.
Includes secondary sales. Selected M&As, IPOs and secondary sales shown. *Distributions through July 28, 2020.
*Public companies and values as of August 31, 2020.
9
STRATEGY
G L O B A L I N S I G H T S / S E C T O R F O C U S / T H E S I S D R I V E N F LY W H E E L S
Global Strategy Focus Sectors Ground-up Themes
Aging Population & Modernization
Health and Food Tech
Fast-Moving Consumer Goods
Empowering Mom-and-Pop Shops
Social / Internet Technology-Enabled Industry Verticals
Online Marketplaces
Ed-Tech
Mobility and Travel
Logistics
Shared Economy
Global Cloud and Enterprise
Enterprise Tech
Rise of SMB Tech
Cloud Infrastructure
API-Driven Models
U.S. China SEA + India AI-Driven Software
Open Source Software
Smart Technology
Smart Tech Smart Cities
AI Algorithms / Solutions
5G and Connectivity
Automation
10STRATEGY
E X A M P L E F LY W H E E L : O N L I N E M A R K E T P L A C E S Social / Internet
Infrastructure / “Enablers”
B2B Marketplaces
Consumer to Consumer
Cross-border Marketplaces JD MRO
Business to Consumer
WWDZ
O P P O R T U N I T I E S
Global insights, sector experience & networks Understanding of the local marketplaces, themes and demands
Best product and market fit
Selected logos shown. 11STRATEGY
E X A M P L E F LY W H E E L : E D U C AT I O N T E C H Social / Internet
Supplemental Learning (Pre- College entrance, Adults Edtech Tools and Software
AI/ML/VR Based Learning
school, K-12) certifications
AI technology is driving language Supplemental learning spans across age In the older adolescent age groups, online With the growth of the edtech sector,
learning through adaptive learning groups and various mediums including education focuses on courses, tests and schools and teachers have started
and knowledge tracing technology, reading ability and comprehension, exams. Startups are targeting college adopting tools and software to enable
natural language processing, adaptive homework and study-related entrance students and professional live classes, homework questions setting,
learning based on the users’ assistance, after-school mentoring, certification test preparation by providing scoring, assessment, student
proficiency levels, auto-scoring thinking and concentration core skills, test prep online classes, including practice management, parent-teachers
engines and speech recognition and subject-focused training such as questions on app, automated scoring and communication as well as new networks
technologies, adaptive personalized mathematics and science. testing. to facilitate career office and recruitment
real-time language proficiency search needs.
assessment, and real-time Online education and reading groups New online colleges around specific
personalized feedback through and communities further drive the learnings like finance and coding are
various interactive interfaces. penetration of education technology focused on enabling adults to acquire new
adoption. skills beyond work hours and learning at
their own pace.
ZWZT
Data as of June 30, 2020. Table above shows selected ed tech logos. 12ED TECH
E D U C AT I O N T E C H : G G V P O R T F O L I O M A P
Early education K-12 Higher Education / Vocational / Adults
Curriculum Based
Homework Tool Online Classes Finance Degree Courses
Indonesia: India: Live Streaming Test Prep (SAT/TOEFL/ELTS)
Recorded content Classes
B2C
Holistic Learning
ZWZT
English Logical Thinking Chinese Chinese Composition Coding Spoken English
1-1 English
Software / Training
Childcare Centers community software Virtual Labs Software For Career Center
B2B
13STRATEGY
SOUTH ASIA: THE NEXT BILLION
Fintech
Ed Tech
• Leveraging sector knowledge and local know- Sector
hows to implement models with the best Flywheel • Mobile wallets and
market fit. payment infrastructure
Global Insights • Interconnection point to
& Networks
ease currencies
conversion.
GGV’s Track Record in SEA & India • Collateral based consumer
Local loans.
Knowledge
2005 1st Investment
>15 Years of Sector Experience
18 No. of Investments
3.4x MOIC Infrastructure & “Enablers”
Super Unicorn in Asia
• Digitizing moms-and-pops
• Building structured data to track transactions
Investment data as of June 30, 2020. Selected logos shown. 14PORTFOLIO CASE STUDY
S O C I A L / I N T E R N E T: W I S H
Initial Investment Date Entry Stage and Valuation Last Round Valuation
December 2013 Series B, $85M $11.3B
US-based ecommerce platform with
Chinese suppliers
Investment Thesis Value Creation Forward Looking
• Cross-border ecommerce was $100B in 2013 • Hans was the first VC who validated Wish’s • After a slightly slower Q1 2020 due to
and is projected to reach $5T in 2027. approach to sourcing from Chinese online COVID-19 affecting their supply chain, Wish
merchants to sell to value consumers is back on track to hit their 2020
• Wish’s vast product selection, intuitive app globally. projections as consumers moved
design, data-driven approach to increasingly to online purchases in Q2
recommendations, and efficient merchant • Hans helped Wish gain access to 60M+ SKUs 2020. In fact, April 2020 was a record
onboarding process combine to give the from Taobao and eBay online merchants in month for the company.
company a huge advantage over competitors China and helped them recruit their China
to be a winner in the “value” consumers team. • We expect Wish to file for IPO in the next
segment globally. 12 months.
• GGV assisted the company in bringing in new
• Wish is often in the top 5 shopping apps in investors such as DST, JD.com and Temasek.
the U.S.
• Hans has helped Wish think through the
diversification of its business from
marketplace revenue to include logistics and
advertising services as well as a B2B offline
initiative.
Investment data as of June 30, 2020. 15PORTFOLIO CASE STUDY
ENTERPRISE TECH: HASHICORP
Initial Investment Date Entry Stage and Valuation Last Round Valuation
September 2014 Series A, $30M $5.1B
Open source software company
Investment Thesis Value Creation Forward Looking
• Glenn first met HashiCorp’s founders in 2013 • Glenn has been on the board of the company • HashiCorp has established GGV as an early
pursuant to our proactive research into the since the Series A round (GDI investment) investor in the open source space in the
burgeoning DevOps/cloud computing and has led or co-led each subsequent round U.S. and has become a key anchor in our
movement – we felt cloud migration would as the company has grown from 7 people to flywheel, driving referrals of deals to GGV,
become a massive, global trend. 700+ today. and allowing GGV/Glenn to get into
competitive deals in the cloud space.
• Although HashiCorp was pre-revenue, they • Glenn has helped the founders develop a
had shown strong open source adoption of viable business model, recruit an executive • Given the company’s rapid growth,
its products. The company has now team and establish a funding plan. meaningful scale and large market
successfully converted developer traction to opportunity, we expect HashiCorp to
rapidly gain enterprise accounts, with 175+ • As a key board member, Glenn also chairs the pursue a public offering in the next 24
of the Global 2000 as customers. company’s compensation committee. months.
Investment data as of June 30, 2020. 16PORTFOLIO CASE STUDY
ENTERPRISE TECH: WPS
Initial Investment Date Entry Stage and Valuation 8/31 Market Cap
October 2013 Series A, $250M $22.3B
Office suite software company based in
China
Investment Thesis Value Creation Forward Looking
• WPS is the leading office software company • WPS was already profitable when Kingsoft, • As of 6/30, the company traded at about a
in China and Jenny led our investment in its the holding company, decided to spin off $21B market cap and has subsequently
only round of financing in late 2013 as part their various operating entities to allow for grown to a high of $28B market value.
of her thesis on the enterprise market. more independent growth beyond the parent
company. Jenny / GGV was invited to • Since IPO, WPS’ performance has been on
• WPS is the first GGV portfolio company to list participate in the round by Lei Jun (founder a ramp, driven mostly by new product
on the new Chinese capital market of Xiaomi), who was also the chairman of launches for collaborative software and
exchange, the SSE STAR market in Shanghai Kingsoft. higher conversion of free users to paid
on Nov 18, 2019. The exchange was users. WPS is a highly watched and traded
launched in June 2019 and to date has • Jenny spent time with the management team stock on the SSE STAR market as it was the
performed very well to expectations, to brainstorm on product features and largest issuer to date (when they went
providing a new exit listing exchange for our market entry strategy for international public) with a product suite ideally
China portfolio companies. expansion. We ultimately decided to refocus positioned for the new remote workplace
the company’s products back to China users post COVID.
and this has helped to build a huge user base
both on the consumer side and enterprise • GGV shares will be off lock-up in November
markets in China. 2020 and the team is currently putting in
place plans to sell down our position.
Investment data as of June 30, 2020. 17ESG AND COMMUNITY
G G V ’ S A P P R O A C H TO E S G
We take a holistic approach to responsible investment, seeking to adhere to ESG criteria in our investment processes to foster the best possible
returns, while also leading in areas where we can have the most positive impact towards a more sustainable future.
We believe transparency is a key ESG principle – we are committed to learn and make progress in each of
our ESG focus areas.
GOVERNANCE PEOPLE COMMUNITY
Compliance with laws and regulations Culture with high ethical and moral Engagement with our communities
standards and by our employees
Compliance with governing documents,
internal policies and practices Development of employees and Commitment to positive impact
entrepreneur ecosystem beyond the returns
ESG factor consideration in our
investment process Diverse and inclusive work Respond in times of need
environment and practices
Investing in emerging technology presents both risks and opportunities: we believe technology can be used to change
the world, solving today’s problems for a better future.
ROBOTICS &
EDUCATION MOBILITY FOOD & HEALTH WORK FINANCE AUTOMATION
18FUNDS
G G V F U N D S TO C O M E
GGV Capital VIII LP
GGV Discovery III LP
GGV Capital VIII Plus LP
VIII: $1,200 million
Target Fund Size Target Fund Size $500 million
VIII Plus: $300 million
Vintage 2020 / 2021 Vintage 2020 / 2021
45% - China 50% - China
Geographies 45% - U.S. Geographies 40% - U.S.
10% - SE Asia / ROW 10% - SE Asia / ROW
Stages Multi-Stage Stages Seed, Early A or First Institutional
VIII: 2.5%
Management Fees Management Fees 2.5%
VIII Plus: None
VIII: 20% / 25% premium
Carried Interest Carried Interest 20% / 25% premium
VIII Plus: 20%
19APPENDIX Strategy flywheels and Case studies
STRATEGY
CHINA
Ecommerce
Market
COVID-19 has forced businesses to build and users to adapt.
The digital population continues to grow worldwide, which enables greater Due to COVID-19, 42% of the U.S. population bought groceries online in March 2020, nearly
connectivity and promotes a more collaborative economy. double the number (22%) in 2018.2
Global Digital Footprint (2019)1 China’s three largest ecommerce platforms, Alibaba, JD.com and Pinduoduo have all seen
surges in sales and active users in the first half of 2020.3
Total Unique Mobile Internet Users Active Social Mobile Social
Penetration Rate in
Population Users Media Users Media Users 25% 2025
7.7 B 5.1 B 4.4 B 3.5 B 3.3 B
Current Penetration Rate 15%
Global Digital Growth (2018 – 2019)
In the past few years, China has surpassed the
+1.1% +2.0% +9.1% +9.0% +10.0% U.S. as the largest ecommerce market in the
world. The Chinese e-commerce market is the
+84 M +100 M +367 M +288 M +297 M fastest growing in the world (~20% annually),
four times the rate of the market in the U.S. 2
Smart Tech
Voice Recognition
The global market for voice Enterprise
Global AI Market Size 4 search devices grew 187% in Q2
(USD trillions) 2018. By 2024, the global voice-
based smart speaker market
could be worth $30 billion. Global enterprise technology spending will reach $3.9
CAGR of >30% 5.7 6.4
4.5 trillion in 2020
3 3.5
1.9 2.4
0.7 1.2 3M China enterprise growth primarily driven by the proliferation of
small and medium-enterprises in demand for automated
Alibaba shipped 3M Tmall Genie
2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2025E
speakers in Q2 2018 – 50% of
software.
Chinese market
39.4% Global autonomous vehicle market is projected to reach
$557 billion by 2026 with annual growth of 39.4% from 228% China is the second largest cloud infrastructure in the world,
Annual with 10.8% share.
2019 to 2026. Xiaomi’s Mini AI speaker sales
Growth
were up 228% in 2018.
1. Global Digital 2019 Reports 3. Oberlo, 10 Online Shopping Statistics, Mar 2020
2. PwC 2017, Total Retail 2017, eCommerce in China 4. “The RPA Market Will Reach $2.9 Billion By 2021”, Forrester Research 2017
21SECTOR STRATEGY
T H E A C C E L E R AT I N G D I G I TA L E C O N O M Y
Corporate Spin-outs
Aging Demographic
Increased digitization has led to the emergence of
COVID-19 Health & Wellness
tech giants
Contact-free economy Food tech
Medical & healthcare services With tech giants expanding their platforms, there will
Redesigned supply chains & logistics
be an increasing trend of spin-out events
Technology adoption Accessibility & affordability
Smart Cities & Homes Necessities & day-to-day essentials
Remote work environment
Choices & flexibility
Professional, financial & services
O P P O R T U N I T I E S
Education Technology Online Health Online Fitness, Entertainment & Lifestyle
Food Delivery & E-Commerce Enterprise Hardware-IOT & Automation
B2B Marketplaces Travel / Real Estate 2.0 Transportation 2.0
JD MRO
Selected logos shown. 22STRATEGY
S E C TO R F LY W H E E L S : S O C I A L / I N T E R N E T
Alibaba Platform B2C
New Markets
Cross Border
New Retail
Consumer &
New Retail
C2C / B2B Platform
Health & Wellness
Infrastructure / Logistics
Lifestyle
Gaming & Social
Social /
Internet Transportation Sharing & Self Drive
New Markets Autonomous
Ed-Tech
Children Supplemental Learning
Adult learning / Certification
Selected logos shown. 23STRATEGY
S E C TO R F LY W H E E L S : E N T E R P R I S E T E C H
Modern Applications
Modern Applications
Vertical SaaS / SMB Tech
Enterprise
Tech Vertical Marketplace “产业互联网”
JD MRO
Cyber Security Vertical SaaS / SMB Tech
TodayCamera
Cloud Infrastructure Cloud Infrastructure
1st Generation Applications & Services 1st Generation Applications & Services
O P P O R T U N I T I E S
US
China
Selected logos shown. 24STRATEGY
S E C TO R F LY W H E E L S : S M A R T T E C H
Robotics / Automation
Machine Learning / AI
Smart Tech
Mobility & Autonomous Driving
Internet of Things / OS / Smart Cities
COVID-19 has accelerated adoption of smart
technology by ~5 years
Manufacturing of Sensors,
Mobile Components & Outsourcing
• Contactless-free economy
AAC Acoustic • 5G Powered Smart Cities
O P P O R T U N I T I E S
Selected logos shown. 25PORTFOLIO CASE STUDY
S O C I A L / I N T E R N E T: P O S H M A R K
Initial Investment Date Entry Stage and Valuation Last Round Valuation
March 2016 Series C, $130M $1.7B
US-based social commerce marketplace
Investment Thesis Value Creation Forward Looking
• Hans appreciated that Poshmark was the • As a board member, Hans (the first VC to • Successfully expanded into home
only C2C mobile commerce platform in the support Poshmark) brought his cross-border decoration, beauty & wellness, games and
U.S. with a style graph. learnings from the successes of Taobao and toys. Launched in Canada in 2019 and is
Tmall in China to help the company with its launching in Australia in Q1 2021.
• Our investments in Totspot and XHS had also product design roadmap and category
led us to understand the potential of expansion from women, to men and recently • Huge GMV growth with lower marketing
Poshmark vs. our peers – a company that to home décor. spend.
could combine a social community (buyers
follow sellers’ closets) with ecommerce • Hans also helped Poshmark with its plan to • We expect Poshmark to file for IPO in the
could have tremendous value and growth. expand from the U.S. to global markets, next 12 months.
starting with Canada.
• The company’s growth has been fueled by
the strength of its social community, with
over 60M community members, including
7M sellers sharing over 30M listings daily.
Investment data as of June 30, 2020. 26PORTFOLIO CASE STUDY
SMART TECH: XPENG
Initial Investment Date Entry Stage and Valuation 8/31 Market Cap
March 2018 Series A, $600M $15.1B
Electric car maker in China
Investment Thesis Value Creation Forward Looking
• The Chinese auto market is the largest in the • Under the encouragement and motivation of • China has the biggest auto market in terms
world, with 25M+ cars sold annually, ~1/3 of Jixun, Xiaopeng left his role at Alibaba to of numbers. In the next 5-10 years, the
the global market. There is also a growing embark on creating Xpeng Motors. Jixun’s market will transition from featured cars,
demand for smart electric cars: in 2019, and Xiaopeng’s relationship started when he to smart cars with self-driving capabilities,
electric and hybrid car sales in China rose to first founded UC Web, a Fund III deal invested smarter UEs, and voice recognitions
800k, representing ~5% of total sales in the by Jenny and Jixun. capabilities.
country.
• This strong personal relationship has given • The team believes that China on many
• The company delivered 12k+ vehicles to GGV access to the proprietary first look at fronts will be able to innovate ahead of this
customers in 2019, ranked first among the Xpeng’s prototype in the early days and an curve in developing a “Smart Car”.
EV startups in China. With the Model P7 early entrance into the deal.
delivering to customers in Q2 2020, Xpeng • Xpeng recently listed on NYSE in August
expects sales of 50k+ units in 2020. • Jenny also introduced and set-up meetings 2020.
for Xiaopeng with startups in the EV charging
and autonomous driving space in the U.S. as
part of new technology learning.
Investment data as of June 30, 2020. 27PIONEERING GLOBAL VENTURE CAPITAL September 2020 Employees’ Retirement System of Rhode Island
You can also read
