At a Glance:
China vs. U.S. Internet

Although China’s internet penetration is just over 50%, its sheer scale means that there are 3x the number of smartphone users and 11x the number of mobile payment users in China than in the U.S.

China vs. U.S.
Top Players for Key Verticals

Top Chinese
Internet Players

Source: Crunchbase, ITjuzi, Zero2IPO. As of July 9, 2018

Top Chinese
Startup Exits (IPO)

Source: Crunchbase, ITjuzi, Zero2IPO.
From Jan 2017 to Jun 2018.

Notable Chinese
Startup M&A

(1)$9.5B is the enterprise valuation of Ele.me;
Alibaba and Ant Financial owned 43% with Alibaba
acquiring the remaining shares.
Source: Crunchbase, ITjuzi, Zero2IPO.
From Jan 2017 to Jun 2018

Most active Chinese
Venture Capital Firms

Source: Crunchbase, ITjuzi, Zero2IPO.
From Jan 2017 to Jun 2018

1.
The Chinese Internet
Giants are doing everything

Whether it’s building, investing, or acquiring, Baidu, Alibaba, and Tencent are present across the internet ecosystem.

Source: Crunchbase and press research

The internet has contributed significantly to the development of ecommerce, education and media in rural China.

Sources: Alibaba, QuestMobile, State Council Leading Group Office of Poverty Alleviation and Development, Ministry of Education, Research Institute of Rural Education at Northeast Normal University

3.
China’s Internet Companies
Embrace New ‘Social+’ Model

Chinese ecommerce companies have adopted a Social+ model where their business is anchored by a social pillar that drives user engagement and growth.

Sources: SCMP, 36kr

Ecommerce platforms aren’t the only ones who have adopted the Social+ model though… other verticals such as media and education have incorporated these social elements into their business model.

Sources: SCMP, Nasdaq

4.
Government
Is The Visible Hand

Success or failure in China’s internet landscape, especially media or fintech, is contingent upon government authority.

Sept 2017:
Cryptocurrency exchanges and initial coin offering banned by the government.

Dec 2017:
China’s central bank and regulatory commission tightened rules around internet financing and peer-to-peer online lending, wiping out smaller players. The last three years have seen the number of P2P companies shrink from 6,000 to 2,000.

Feb 2018:
17 online quiz app makers were halted by the State Administration of Press, Publication, Radio, Film and Television and told to clean up their act.

March 2018:
Beijing cyberspace authorities ordered Zhihu, ‘China’s Quora,’ to delist from all app stores from March 2 to March 9 due to their inefficiency in purging “illicit information” on the platform.

April 2018:
China’s media regulator ordered news aggregator Toutiao and live-streaming app Kuaishou to clean up content on their platforms, singling out both platforms for disrupting order in the online media industry.

Sources: SCMP, Abacus, Sina

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