Insead aug 22

Top  10  Trends  For  This  Decade  

Sramana  Mitra,  Founder,  1M/1M  

5  Billion  people  on  the  Internet  by  2020  

30-­‐40%  cost  savings  experienced  by  early  adopters;  Intel  $650M  target  

Huge  penetration  of  technology  into  SME  businesses  

Massive,  global  entrepreneurial  opportunity  

Opportunities:  Collaboration,  Infrastructure,  Analytics,  Vertical  Apps  

Geographies  are  changing  • Latin  America,  Africa,  South  East  Asia,  Eastern  Europe,  China  Rising  

• Second,  third  tier  cities  in  India  becoming  relevant  

• Near-­‐shore  USA  • Huge  opportunity  for  global  development,  including  rural  

Facebook:  750M+  |  Tencent:  600M+  |  LinkedIn:  115M+    

Social  News,  Social  Games,  Social  Shopping  

Specialized  Social  and  Professional  Networks  

Enterprise  Social  Networks  

Crowd  Sourced  Business  Apps  

Mobile  Social  

Niche  e-­‐commerce  

Niche  community  

Niche  content  apps  

Vertical  search  

Local  search  and  services  

Location-­‐based  services  

Personalization  

Vision:  The  Contextualized  Web  

Business  Models  

Robust  monetization  numbers  

Huge  movement  from  TV  and  print  over  to  online  

Search  Advertising  is  massive  •  PPC  and  SEO  –  great  customer  acquisition  strategies  •  Display  –  Vertical  Ad  Networks,  Social  Media  -­‐  big  

Interesting  innovations  in  monetization  models  

Fastest  growing  company  in  the  history  of  business?  

Quiz:  

Notable  Trend:  

Big  sites  leaving  money  on  the  table  

Gap:  

Zynga  –  one  of  the  fastest  growing  companies,  ever  •  Riding  on  Facebook  

Many  entrepreneurs  doing  niche  games,  also  

Main  monetization  model:  Virtual  Goods  

In-­‐game  advertising  gaining  ground    •  as  a  monetization  model  •  as  a  customer  acquisition  model    

iPhone,  iPad:  Fastest  adoption  of  a  new  technology  in  recent  memory  

Move  from  thin  client  to  rich  client:  Apps  

Opportunities:  • Gaming  &  Entertainment  |  Media  |  Business  Apps  |  Education  |  Healthcare  

Rise  of  tablet  as  a  media  consumption  device  =>  huge  uptick  in  online  video  consumption  

Beneficiaries  •  Netflix  |  Akamai  |  Finisar  |  Polycom  

Opportunities:  Online  Video  Collaboration,  eLearning,  Entertainment,  Media    •  Example:  Vivu  

Finally  taking  off  in  the  Western  world  •  Not  yet  everywhere  

Disintermediation  •  Opens  up  opportunities  for  authors  and  creative  types  to  work  directly  with  Amazon  and  Apple  to  build  franchises  

Opportunity:  The  ‘book’  experience  will  change  •  Example:  Children’s  books,  Text  books  –  multi-­‐media  experience  

Misconception  

Truth:  Financing  is  optional  

Fact:  

99%  Rejection  Rate  

Reasons:  

Worth  building,  especially  if  you  own  a  large  %  

90%  OWNER  OF  $5M  COMPANY  SOLD  FOR  $25M   5%  OWNER  OF  $25M  COMPANY  

SOLD  FOR  $100M  

$22.5m $5m

First  two  rounds:  

Misconception  

Truth:  Financing  is  optional  

Entrepreneurs:  

Scarce  resources  

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