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Private Company Human Capital Management Tech Exit Valuation Multiples Heat Up Exit valuation multiples (price/sales) of private Human Capital Management tech companies have bumped up in recent years. According to the CB Insights HCM tech valuation data, the average price-to-sales (P/S) ratio has been 4.6x while the median stands at 2.6x. While funding activity in the space has been picking up over the past few years, the HCM tech exit valuation multiple trend has been pretty inconsistent but do seem to be climbing. The average P/S ratio has climbed from 2.4x in 2010 to 4.1x in 2013 while the median grew from 2.4x to 3.7x in the same period. Mobile PCs and smartphones to be top revenue opportunities for IC suppliers in emerging high-speed wireless device market, says IHS According to IHS, mobile PCs and smartphones will represent the top revenue opportunities for high-speed wireless integrated circuit (IC) suppliers by 2018, as these devices are projected to be the highest-volume applications in this market over the next five years. Between 2013 and 2018, more than 400 million high-speed wireless ICs are projected to ship cumulatively into the mobile PC market, generating global revenues of US$2.5 billion. During the same period, more than 80 million high-speed wireless ICs are projected to ship cumulatively into the smartphone market, with worldwide revenues forecast to exceed US$260 million in 2018. Tablet processor market to rise 23% in 2014, says IHS According to IHS, Global shipments of tablet processors will reach an estimated 299.7 million units in 2014, up 23% from 243.1 million in 2013. Another robust increase is expected in 2015 when volumes spike 18%, with tablet processors then exceeding 400.0 million units by 2016. Worldwide smartphone shipments top 1 billion units in 2013, says IDC The worldwide smartphone market has reached another milestone, shipping one billion units in a single year for the first time. According to IDC, vendors shipped a total of 1.0042 billion smartphones worldwide, up 38.4% from 725.3 million units in 2012. This aligns with IDC's most-recent forecast of 1.0104 billion units, a difference of less than 1%. Smartphones accounted for 55.1% of all mobile phones shipped in 2013, up from 41.7% in 2012. Worldwide mobile phone shipments totaled about 1.82 billion units in 2013, up 4.8% from the 1.74 billion units shipped in 2012.
IDC: Top-5 smartphone vendors shipments and market share, 2013 (m units) Vendor Samsung Apple Huawei LG Lenovo Others Total 2013 shipments 313.9 153.4 48.8 47.7 45.5 394.9 1,004.20 2013 M/S 31.30% 15.30% 4.90% 4.80% 4.50% 39.30% 100.00% 2012 shipments 219.7 135.9 29.1 26.3 23.7 290.5 725.3 2012 M/S 30.30% 18.70% 4.00% 3.60% 3.30% 40.10% 100.00% Shipment Y/Y 42.90% 12.90% 67.50% 81.10% 91.70% 35.90% 38.40%
Emerging market volatility, mobile saturation will weigh down IT spending in 2014 IDC is now predicting worldwide IT spending growth will increase by 4.6% this year, slightly lower than 2013's 4.8% improvement. IDCs report cited the inevitable deceleration of the white-hot demand for smartphones and tablets as well as currency devaluation and inflation concerns in emerging markets as the main reasons for the downward revision. Regardless, everything points toward merely moderate growth over the next year as mobile devices are now bumping up against the same kind of pricing pressures and commoditization issues that have afflicted the PC, software and server sectors in recent years.
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Asia Pacific
Korea
Samsung cuts target notebook shipments to 7 million units for 2014 Samsung Electronics has set a goal of shipping seven million notebooks globally in 2014, a reduction of 41.7% from the 12 million units shipped in 2013, and will no longer launch conventional notebook models except Chromebooks in 2015, according to Taiwan-based supply chain makers. Samsung aimed to ship 17 million notebooks in 2013 but actually shipped 12 million units, the sources said. Samsungs Galaxy Note Pro and Tab pro tablet series will go on sale in the US from Feb. 13 Samsung took the wraps off a new series of four tablets last month at CES the 12.2-inch Galaxy Note Pro, and the Tab Pro which comes in three sizes of 12.2, 10.1 and 8.4 inches. The company announced that three of these devices will be available in the US starting February 13. The exception is the 12.2-inch Tab Pro, which will arrive in March. South Korea just issued its first startup visa South Korea at the end of 2013 issued its first ever startup visa to Jason Lee, founder of J.J. Lee Company. The D-8 visa requires a Bachelors degree, ownership of intellectual property approved by domestic law, and, a properly registered company. Once finally obtained the visa, Lee had access to national health, employment, and accident insurance as well as a pension. He could also use financial services normally only offered to citizens. This year, the South Korean government plans to expand the startup visa program with a mentoring system. South Korea first announced back in June that a startup visa would be made available to facilitate foreign investment and employment. Once a startup hires at least two Korean citizens and attracts at least KRW 300 million ($280,000) investment, the entrepreneur will be eligible for a permanent resident visa. The government is one of the main investors in the countrys venture capital scene. Last year, it pledged $2.9 billion in funding and loans for startups in the tech sector. Samsung, Cisco sign cross-license pact for tech patents Samsung Electronics signed yet another agreement to safeguard against future litigation risks over technology patents, this time with Cisco Systems Inc. The cross-license agreement with Cisco, the biggest maker of networking equipment, gives the two companies access to each other's existing patent portfolios as well as those filed over the next 10 years, covering a broad range of products and technologies. Financial terms weren't disclosed. For Samsung, the deal hints at its need to remove any potential threats in wireless technology, which is valuable not only in smartphones but increasingly in consumer-electronics devices, cars and other products. This new app helps Koreans and Japanese speak English like its their first language Korean educational startup Smatoos, known for its BeNative apps, has just launched an iOS app called Formula for English Conversation (our translation) for people in Japan and Korea, which focuses on improving English speaking skills. Its free, and the Android version will be released within the first quarter of this year. This app is available only in Japan and Korea now, but Smatoos is planning China and Taiwan releases by the end of February. The team is targeting 500,000 monthly active users for the app. A win for Asia at Seedstars World event thanks to Korea-made app Flitto Seedstars World, a global startup competition that focuses on emerging markets and fast-growing startup scenes, has crowned its newest winner at a ceremony in Geneva, Switzerland. In a boost to Asias startup ecosystem, the winning team is Flitto from South Korea. Flitto is now eligible to get up to $500,000 in funding from Seedstars SA, but the actual sum hasnt yet been revealed. Flitto is a crowdsourced, hive-mind, fastpaced translation service that, unlike similar web services, is oriented towards normal people, not enterprises.
China
Chinas second biggest e-store files for US IPO, aims to raise up to $1.5 billion After years of speculation, one of Chinas top e-stores, JD, has filed to list publicly in the US. According to JDs filing with the SEC, its aiming to raise up to $1.5 billion with its US IPO. JD is second to Alibabas Tmall in
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 2
Japan
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 3
India
Indias fashion-commerce site Myntra gets $50 million funding ahead of potential merger with Flipkart Bangalore-based fashion e-commerce site Myntra announced it raised $50 million led by Premji Invest. The money will be used to strengthen its technology, infrastructure and customer experience; and fund future growth initiatives. The Times of India reported last week that Myntra is in talks with Flipkart, Indias biggest general e-commerce site, for a potential merger. Myntra reports 50 million visits on its site every month. The latest funding round brings Myntras total investment to about $75 million to date. It aims to be the largest fashion destination in India by 2016. Indias $3.1 billion e-commerce market is expected to grow by over seven times to $22 billion in five years excluding online travel, according to Hong Kong-based investment bank CLSA. Apple resurrects the discontinued iPhone 4 just for India, Indonesia, and Brazil Apple will resume manufacturing of the iPhone 4 specifically for sale in India, Indonesia, and Brazil, according to sources cited by Indias Economic Times.This is the first time for Apple to restart production of a discontinued iPhone. The Times estimates an additional 50,000 to 60,000 iPhone 4 units were made by Taiwan-owned Foxconn to be sold this quarter for about Rs 20,000 ($320) each in India. Apple holds two percent of smartphone market share in India, and growth slowed in the country last year after the latest generation hit shelves. Overall, Apple sold about 250,000 iPhones (all models) last quarter there. Rocket Internets clothing e-store for India raises $100 million in funding Jabong, one of Indias top online clothing stores, has secured $100 million (Rs 628 crore) in funding, according to the Economic Times. Jabong, which sells mens, childrens, and womens clothing and home furnishings, is backed by Rocket Internet, the German startup dynamo that runs many ventures across Asia and the globe.
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 4
Indonesia
Australias music streaming service Guvera launches in Indonesia Guvera, Australia-based music streaming service company, is working together with Skybee (SKYB:Indinesia), a IT company listed on the Indonesian stock market, to enter the archipelago country. However, in contrast to Guveras freemium business model in Australia, Indonesia is a full-on subscription service. A monthly subscription costs IDR 55,000 ($5). Guvera aims to help fight music piracy in Indonesia. They believe the services ease of use, price, and payment options can encourage more Indonesians to use their service and stream legal music. Bitcoin will not be regulated in Indonesia, but its still illegal Indonesias central bank has stated today it will not regulate Bitcoin. Still, Bank Indonesias initial stance made public in January still stands, which states Bitcoin is an illegal and unsupported exchange method. Bank deputy governor Ronald Waas said in January that Bitcoin violates three Indonesian laws, but that the bank doesnt have the authority to punish or sanction users. Therefore, consumers may use it at their own risk. Foxconn signs letter of intent to build factory in Indonesia Foxconn signed a letter of intent to build a factory in Jakarta. The letter states that the city has committed to provide a 200-hectare plot of land in Marunda, Central Jakarta, for the upcoming factory. The agreement was signed jointly by Foxconn chairman Terry Gou and Jakarta governor Joko Widodo on Feb 7th. The Jakarta Post quoted the governor as saying Foxconn would invest around $1 billion in Indonesia over next three to five years. BlackBerry!s upcoming phone codenamed #Jakarta$ is planned to be the first BlackBerry phone built together with Foxconn.
Thailand
Thailands one tablet per child faces another dead end as a Chinese manufacturer cancels the deal With the political crisis ongoing, one of the governments most popular policies, One Tablet Per Child has hit another dead end. According to Thai Post, Shenzhen Yitoa Intelligent Control Co Ltd., which won a bid to become the tablet manufacturer for the schools in the Central, South, North, and Northeastern zones, has shut down its business in Thailand after refusing to pay a penalty fee of 2.2 million Baht ($67,000) per day due to the companys inability to deliver the tablets on time. The company sent its representative to cancel the contract with the Thai government. The Thai government is now in the process of seizing the companys assets, valued at 120 million Baht ($3.5 million). Wongnai, Thailands answer to Yelp, now has 1 million registered users Founded in 2010, Wongnai, the restaurant review site often called Thailands Yelp, has now grown to one million registered users. It has about 220,000 active users per month. Wongnai also shared some interesting data regarding its users: 56% of its members are female; the majority (more than 72%) are aged 18 to 34; and 66% of its users live in Bangkok. Available both as a website and mobile apps, 79% of its one million members access the service using smartphones. The company notes that its desktop and mobile users behave differently. Smartphone visitors use the Wongnai app during the time between meals and before bedtime, while computer-based users visit the site right before meal times (11 am, 4 pm) and also before bedtime. On workdays, more people use Wongnai in the afternoons, while on weekends, usage is more consistent throughout the day.
Singapore
This black box that turns your car into an intelligent beast is now up for crowdfunding Singapore-based startup Clickdrive is one of many companies driving this trend forward. Today the company
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 5
Vietnam
Vietnams biggest telco wants to acquire KakaoTalk for $5 billion According to an article in VNExpress, the vice president of Viettel, Vietnams biggest telco, wants to acquire Korea-based messaging app KakaoTalk for $5 billion. KakaoTalk which has over 100 million registered users, mostly in South Korea but with about three million in Vietnam could be useful to Viettel as a mobile and social service thats already established and grown into a platform for many web services, such as social gaming and web publishing. However, KakaoTalk co-CEO Sirgoo Lee said that the Kakao Talk has not heard of such a deal and they are currently not in any talks. Such a deal would put Viettel on the map in the consumer space. Viettel has long been ambitious about expanding outside of Vietnam with its telco services and acquiring KakaoTalk would allow them to access the large user-base on the chat app platform spread across Asia.
United States
Coupons.com files for $100M IPO on the NYSE Coupons.com has just filed S-1 papers with the SEC for an IPO on the NYSE, trading under the name COUP, and raising $100 million. As one of the earlier movers in the online coupons space, Coupons.com is also one of the biggest. It notes in the IPO that in the first nine months of 2013, its sales were generated from 940 million transactions on its site. Those included customers picking up digital coupons and also redeeming codes over its platform. That figure is up 49% YoY. Coupons.com says that today its platform includes more than 700 consumer packaged goods companies, representing over 2,000 brands, and retailers covering some 58,000 physical stores in North America. It had 17 million monthly unique visitors on average across Coupons.com and affiliated sites over 2013 and visited the sites of its CPGs, retailers and publishers. Its mobile apps have been downloaded some 7 million times. Twitter acquires over 900 IBM patents following infringement claim, enters cross-licensing agreement Twitter announced that it has acquired over 900 patents from IBM, and that it has entered into a crosslicensing agreement with the Internet services and software company. IBM had issued a complaint against Twitter previously for patent infringement. IBM was seeking a settlement according to that document, and while Twitter appeared ready to defend itself, potentially in court, this deal today indicates that instead the two companies have come to an agreement that involves Twitter buying some of IBMs intellectual property. Twitter partners with 300 Entertainment to give full access of its user data to the music industry Twitter is focusing on unlocking the potential of its platform for the music industry. The company announced a
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 6
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 7
LinkedIn to acquire job-seeking site bright for $120 million LinkedIn announced that it plans to acquire Bright, a data-driven job search startup, for $120 million. The buy is LinkedIns largest acquisition to date, topping the companys earlier major acquisitions of SlideShare ($119 million) and Pulse ($90 million). Terms of the deal included 73% of the $120 million in stock, with the remaining 27% ($32.4 million) in cash. To date, Bright has raised upward of $20 million in venture funding from Toba Capital and Passport Capital. LinkedIn expects the deal to close by the end of its first financial quarter.
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 8
Europe
GetYourGuide gets $4.5M Series A expansion, from ex-Booking.com CEO, to help it scale globally GetYourGuide closed a $14 million Series A funding round about a year ago. And now its bulked up that round with a further $4.5 million in what its describing as strategic expansion funding owing to two of the new investors the round brings on board.The funding is led by Kees Koolen, former CEO of Booking.com and also (since 2012) an advisor to Uber on scaling globally; with Fritz Demopoulos, founder and former CEO of Chinese-language travel info portal Qunar.com, also joining in. GetYourGuide, a Berlin-based startup, has been ramping up its efforts to push beyond its home market of Europe. The challenge for the business is scaling to support that global goal hence the importance of bringing on board investors such as Koolen who bring experience of building global online booking companies. Hackers access 800,000 Orange customers' data Orange customers in France could see a spike in phishing attempts after hackers nabbed hundreds of thousands of customers' unencrypted personal data in an attack on the operator's website. Hackers accessed the personal data of three percent of Orange's customers in France, the company confirmed, using the 'My Account' section of orange.fr. According to local reports, the attack took place on 16 January, and affected nearly 800,000 individuals. London gets another Fintech accelerator, as Startupbootcamp partners with MasterCard, Lloyds & Rabobank A new fintech incubator has been announced, by pan-European accelerator Startupbootcamp, which will be based in London. The three-month program which is accepting applications from startup anywhere in the world for its first intake, due to kick off in August is backed by a roster of corporations, including financial services groups Lloyds and Rabobank, and payment giant MasterCard. Although Startupbootcamp FinTech doesnt start for several months, the incubator will be running a global innovation program. This program will comprise a range of events taking place in FinTech hotspots across the world, including New York, Singapore and Shanghai which will include FinTech hackathons, networking events for later stage startups to rub elbows with FS execs, and worldwide pitch days where startup communities around the world will be invited to pitch in front of Startupbootcamp FinTech experts. Website building platform BaseKit raises further 4.5M Website building platform BaseKit, a Seedcamp winner from all the way back in 2008, has raised a further 4.5m in funding. The round was led by Angel CoFund. The additional funding brings total investment to ~14.5m, and will be used to continue development of the BaseKit platform and pick up more partner
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Israel
App that teaches you how to play piano is number 1 on iTunes store JoyTunes iPad app has become the most popular on the US App store. JoyTunes was founded in 2011, by two brothers, Yigal (a musician) and Yuval (a computer programmer) Kaminka. Piano Mania, Joytunes piano practice game that teaches beginners the basics of playing the piano, achieved great rankings on the Canadian, Russian Norwegian and other App Stores. It is used by at least 10,000 piano teachers worldwide. JoyTunes operates out of Tel Aviv and has raised a total of $2 million to date. This electric city car can fold to the size of a motorcycle The Israeli company, City Transformer, has created a foldable car that takes up just a quarter of a regular parking spot. Its also eco-friendly. City Transformer!s invention takes up the room of a regular car on the road and that of a motorcycle when it!s parked. With the press of a button, the car goes from 1.6 meters (approx. 5!3!) to 1.0 meters (approx. 3!3!) in width. For now, the company plans to focus on building its final prototype and selling the platform to other companies. They are currently seeking additional funds to begin advancing towards manufacturing. BioBlast Pharma plans $37.5m NASDAQ IPO Less than a year has passed since the IPO of Alcobra Pharmaceuticals Ltd. and the companys founders are preparing the IPO of another drug development company. BioBlast Pharma Ltd. Has filed to raise up to $37.5 million at a company value of more than $100 million before money. BioBlast Pharma is developing a platform of products for rare and ultra-rare genetic diseases. The company's most developed product is Cabaletta a mutant protein stabilizing platform based on a small re-purposed molecule. BioBlast is currently conducting a Phase II clinical trial to assess its efficacy in treating Oculopharyngeal Muscular Dystropy (OPMD). Mobile shopping company Tapingo raises $10.5m Mobile shopping platform Tapingo Ltd. has raised $10.5 million in its second financing round. Khosla Ventures led the round, and was joined by Carmel Ventures, which invested in the company's first round. Tapingo, launched in January 2012, is headquartered in San Francisco and Tel Aviv. Its app can be downloaded from iTunes, Google Play, and Facebook. Tapingo is currently fully live at 25 major universities across the US from New York University on the East Coast to the University of Southern California on the West Coast.
SparkLabs Global Ventures (http://www.sparklabsglobal.com) is a global seed-stage fund with partners in Silicon Valley, Chicago, London Tel Aviv, Singapore, and Seoul. 10