1

Investing in Women-Led StartupsDeborah Weinswig

Managing Directordeborahweinswig@fung1937.com

US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016

June 8, 2016

2

AgendaABOUT US

OVERVIEW

DRIVERS FOR WOMEN-LED STARTUPS

CHALLENGES FOR WOMEN-LED STARTUPS

CASE STUDY: CHINA

3

About Fung Group

TRADING

LOGISTICS

DISTRIBUTION

RETAILING

Li & Fung LimitedListed on SEHK

Global Brands Group

Listed on SEHK

Fung Retailing Limited

Privately Held Entity

Convenience Retail

Asia LimitedListed on SEHKTrinity LimitedListed on SEHK

Branded Lifestyle Holdings Limited

LiFung Kids (Holdings) LimitedToyrs “R” Us (Asia)Suhyang Networks

UCCAL Fashion GroupPrivately Held Entities

Fung Holdings (1937) Ltd. A privately held entity and major shareholder of the Fung Group

4

About Fung Global

• Fung Global Retail & Technology advises retailers, real estate developers and tech companies on projects situated at the intersection of retail, tech and/or fashion.

• Our team offers a robust knowledge bank and significant experience in the retail, fashion and tech fields. We are involved in many areas of the business and believe this allows us to offer a unique perspective by focusing on the future and where the sector is heading.

A Unique Combination of Retail, Fashion & Tech

RETAIL FASHION

TECH

5

AgendaABOUT US

OVERVIEW

DRIVERS FOR WOMEN-LED STARTUPS

CHALLENGES FOR WOMEN-LED STARTUPS

CASE STUDY: CHINA

6

Overview

7

Global Overview & Regional Comparison

• Higher women early stage entrepreneurship rates in developing economies

• Lower early stage entrepreneurship rates in developed countries

• Asia has a high concentration of female entrepreneurship

• In North America, female TEA rate is only 11%

Region Female TEA Rate

Male TEA Rate

F/M Ratio

Africa 25 26 0.96

Asia & Oceania 14 15 0.93

Latin America& Caribbean 15 19 0.79

Europe 6 13 0.46

North America 11 16 0.69

Middle East 8 14 0.57

Europe 5 9 0.55

Total Early-stage Entrepreneurship Activity (TEA) Rate by Region and Gender (% of Total Adult Population)

Total Early-stage Entrepreneurship Activity (TEA) rate, which measures the percentage of the adult population (18 to 64 years) in the process of starting a business and those who have recently started one.

Source: Babson College

8

Our Accelerator Partnerships

ENTREPRENEURSROUNDTABLEACCELERATOR

9

Our Accelerator Partnerships

Percentage of Women-Led Startups

ENTREPRENEURSROUNDTABLEACCELERATOR30% 100%

100% 15%

30% 30%

40% 100%

10

NAME UR PRICE

SELF-CHECKOUT

EVANGELIZE THRIVE

EXPERIENTIAL RETAIL: MAKE THE STORE AN AWESOME PLACE

CUSTOMER ENGAGEMENT: HOW DO YOU CONVERT THE CONSUMER

ALL CHANNEL: The CONSUMER CAN SHOP WHEREVER + WHENEVER

REACTION COMMERCE

NEW RETAIL MODELS:HOW WILL THE CONSUMER SHOP IN THE FUTURE

Four-Quadrant Disruptors Framework with Women-led Startups

11

Women & Business: General Trend

• 10 M+ US business owned by women entrepreneurs: the highest rate of women founders than anywhere else

• 19.2% board seat in S&P 500 companies versus 11.7% in 2000 (Catalyst.org)

2014 S&P 500 Board Seats Held By Women

Source: Catalyst.org

x

19.2%Women

88.8%Men

12

Women In The Tech Sector

Tech Leadership Roles Held by Women

13

Women In The Tech Sector: Global

Source: Next Shark.com

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage of Global Employees by Gender

% Male

% Fe-male

14

Women-Led Startups: General Trend

15%Of the companies receiving venture

capital had a woman on the executive

team

5.6%Of firms with women

decision-makers raised more than

$100M since 2009

3%Of total venture capital

goes to companies with women CEOs

($1.5B out of $50.8B between 2011-13)

9%Of total seed stage

investments are given to companies

with women entrepreneurs

13%Of total early stage

investments are given to companies

with women entrepreneurs

86%Of venture-funded businesses have zero women in management

positions

Source: Womenwhotech.com

15

Women-Led Startup VC Funding

0

500

1000

1500

2000

2500

3000

3500

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

117209342486523555

1100

15002000220025002450

9.5%11.7%14.3%17.4%16.8%17.9%

U.S. Venture Funded Companies by Founder Gender

Source:Crunchbase

# of Funded Companies [by First Funding Round Recorded]

% of Total Companies w/ Female Founder

16

Drivers1. INSTITUTIONAL AND ORGANIZATIONAL

2. THOUGHT LEADERSHIP

3. GLOBAL WOMEN ENTREPRENEURSHIP EVENTS

4. INCREASING VC FUNDING

5. IMPROVED ANGEL INVESTMENT

6. EMERGING CROWDFUNDING FOR WOMEN

7. BETTER ROE FROM WOMEN-LED BUSINESSES

17

1: Institutional and Organizational

Funding Institutions and Organizations

18

2: Thought Leadership

19

3: Global Women Entrepreneurship Events

Alibaba“Global Conference on Women

and Entrepreneurship”

Women Who Tech“Women Startup Challenge”

Fung Global“Breakfast with Disruptors: Women-Led Startups with a

Focus on Beauty and Fashion”

20

4: Increasing VC Funding

• In 2013, 18% of venture capital deals went to women-led companies, while only 5% of women-led companies received funding in 1999 by US VC funds

• Female-founded companies received the largest investments

• Retail (43%) • Media (17%) • Software(6%)

Source: Pitchbook

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

8%10% 10% 10% 11%

12%

16% 16% 17% 18%

Percentage of Global VC Deals Investing in Companies With Female Founder

21

5: Improved Angel Investment

• In 2014, there were 82,633 women angel investors in the US an increase from 57,967 in 2013

• This figure has grown by over 7x since 2004, when there were 11,250 women angel investors

• In 2014, women angels represented 26.1% of the angel market, a significant increase from 19.4% in 2013

• Angel investment is a long-term, relational process which attracts more female investors

• Rise in the number of women-only angel networks

Source: AngelList

Developer Tools

Entreprise Software

Fashion

Organic Food

Women Focused

4%

8%

11%

14%

22%

Percentage of Women Investors by Market as of 2014

22

6: Emerging Crowdfunding For Women

Equity-Based Crowdfunding• The overall success rate was 20% while

women-led companies had a 23% success rate

• On average, women-led companies raised $422,370 versus $405,295 overall

Reward-Based Crowdfunding• Women had a 70% success rate versus

61% for men in reaching their goals on Kickstarter

• Women-owned technology companies have a 65% success rate compared to a 30% success rate for male-owned technology companies

23

6: Emerging Crowdfunding For Women

Plum Alley is crowdfunding for women by women,

founded by Deborah Jackson.

Indiegogo, with Danae Ringelmann as one of its

founding members, reported that 42% of its crowdfunding

campaigns are run by women.

Crowdfunder has Rita Ravindra as its Chief Operations Officer.

24

7: Better ROE From Women-Led Businesses

• Women-led private technology companies are more capital-efficient, achieving 35% higher return on investment

• Women-led venture-backed companies are bringing in 12% higher revenue than male-owned tech companies (Kauffman Foundation)

• 80 women CEOs produced equity returns 226% better than the S&P 500 from 2002 to 2014 (Quantopian)

25

Challenges1.UNDERREPRESENTATION IN STEM JOBS

2.PERCEPTION OF WOMEN’S LACK OF ENTREPRENEURIAL SPIRIT

3.PERSONAL EXAMPLES

26

1: Underrepresentation In STEM Jobs

• Women’s share of STEM degrees remained largely unchanged between 2004 and 2014

• 15% of women finding a job in a STEM profession versus 31% for men

• The average male make $91,000 compared to $75,000 for a woman

• Women hold 57% of jobs in the workforce vs 25% in computing technology

50%57% 60%

Women’s Share of STEM Degrees by Degree Level

FemaleMale

2004 | 2014 2004 | 20142004 | 2014Bachelor’s Degree | Master’s Degree | Doctoral Degree

Source: Golden Seeds, WhoIsHostingThis

27

2: Perception Of Women’s Lack Of Entrepreneurial Spirit

• Women reported lower perceived opportunities, higher fear of failure, lower perceived capabilities, and knowing fewer entrepreneurs than men

18-24 25-34 35-44 45-54 55-64 65+0%

5%

10%

15%

20%

25%

Entrepreneurial Rates for Males and Females

Male Female18-24 25-34 35-44 45-54 55-64 65+0%

5%10%15%20%25%30%

Entrepreneurial Intentions for Males and Females

Male FemaleSource: GoldenSeeds

28

3: Personal Examples

Kelsey ConophyFounder & CEO

WorkZeit

Fang ChengCEOLinc

Wendy ChenCEO

Omnistream Co

Sue WelchCEO

Bamboo Rose

29

Case Study: China

30

Case Study: China

Saudi ArabiaIndiaItaly

South AfricaAgentina

FranceIndonesiaGermany

USUK

RussiaBrazilJapan

AustraliaCanada

China

0% 10% 20% 30% 40% 50% 60% 70%

Source: WorldBank

Labor Force Participation Rate by Country in 2014

31

Case Study: China

• Venture capital is the top funding source for Chinese startups

U.S. U.K. China9% 13% 16%

11%16% 4%

42%40%

38%

38%31%

42%

Private Equity

Angel/Micro VC

Venture Capital2

Other Sources

% Breakdown by Fund Sources

Source: Silicon Valley Bank

32

Case Study: China

• Chinese startups have more women in leadership

Source: Silicon Valley Bank

% Companies Having at Least One Woman CEO

US

UK

CHINA

x

x

x

54%

53%

79%

33

Case Study: China

Key Stats of Female Entrepreneurs in China• Average Age: 47• Education-Level: 36.8% have

bachelor’s degrees and 12.7% have graduate degrees

• Company Size: 66.8% small; 26% medium enterprises; 7.2% large

Finance2%

IT2%

Professional Services

4%Enter-

tainment 6%

Education8%

Medical Services

11%Lodging/Tourism/

Restaurant 15%

Fashion25%

Toys and Baby Care

27%

Women-led Startups in China by Sector

Source: AliResearch

34

Case Study: China

Popular Women-Led Startups

Liu QingPresident of Didi Chuxing, a mobile platform taxi-calling appCompany Size: $20 Billion

Zhao KokyingCo-Founder of Uboche, a car-parking appCompany Size: $1.42 Million

Chen FengFounder of Meililai, a beauty-O2O appCompany Size: $1.53 Million

35

Case Study: China

• TechBase is China’s first tech accelerator for women-led start-ups launched in 2015

• Services include business consulting, fundraising, media, talent recruitment, law, etc.

• CEO Ling Zihan: "If women fail to get deeply involved in the internet, their future economic status will be at great risk,“

• Co-hosting the 2016 “HER STARTUP” Women-led startup competition

Accelerator: TechBase

36

Case Study: China

Accelerator: TechBase

116Entrepreneurs interviewed

20+Interviews by media home and abroad

14Startups incubated

14Online and offline

events hosted

400+

Women entrepreneurs

connected

37

Case Study: China

• SOSV is a $235 million USD venture capital fund founded by technology visionary Sean O’Sullivan in 1993

• China Accelerator is Asia's first mentorship-driven seed funding program since 2009

• The program runs 2x per year in Shanghai• By today, 76 startups have participated• 28 / 76 startups had at least one female

founder = 37%• In the last 3 cohorts, 17 / 32 companies

had at least one female founder = 52% female-founded

• 12 / 32 companies had a female CEO = 38% female CEOs

Accelerator: SOSV’s ChinaAccelerator

Female-Led Startups in 2014 Cohort:

CEO, Lu Guo CEO, Miranda Tan

38

Thank You!Deborah Weinswig

Managing Directordeborahweinswig@fung1937.com

US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016

June 8, 2016