SparkLabs Gl obal Ventures Technol ogy

and Internet Market Bi -Monthl y Revi ew

October 27, 2014

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.
1
Weekly Highlights

Global Trends

VCs have already invested US$3B more in 2014 than they did in all of 2013
Venture capitalists are already surpassing last years investments in terms of dollars and are increasingly interested
in later stage companies, according to a new report by PwC/NVCA MoneyTree based on data from Thomson
Reuters. The report says VCs have invested US$33 billion dollars this year, compared to last years total investment
of $30 billion. Much of this years investments went towards software startups, which took home a little more than a
third of the $9.9 billion invested in quarter three, the report shows. The media industry followed, with $1.8 billion
invested, a 23 percent increase from the previous quarter. Investment in life science trailed behind, with $1.1 billion
invested in 110 deals. While Q3 showed investment was down from the previous quarter for seed and expansion
level companies, there was some investment growth in later stage companies. Investment in later stage companies
increased 3 percent to $3.3 billion. This is the largest quarterly total of dollars invested in later stage companies
since Q3 2007, the report notes. Though expansion stage companies saw the largest investment of $3.4 billion, it
still saw less investment than last quarter. The slight increase in investment for later stage companies may mark the
beginning of a shift. Early stage investments took less investment this quarter than their later stage counterparts and
were down 22 percent from the quarter before. It shows that VCs may be beginning to put more faith in later stage
companies than fledgling startups.

The Digital Video Advertising Report: Growth Forecasts And Viewability Scandals
Online video ads are one of the fastest-growing ad mediums, far outpacing growth in spending on television and
other digital formats. Online video ad viewing exploded in 2013. Over 35 billion video ads were viewed in the U.S. in
December. Video ads provide a level of visual and narrative richness that nearly equals television, while offering all
the advantages of digital, including advanced targeting, tracking, and increasingly, automated buying of video ad
units. In a new report from BI Intelligence we explore the key drivers of the skyrocketing growth of video ads,
examine the cost and performance of the emerging digital ad format, and look at the major players that are shaping
the industry. Here are some of the key trends we explore in the report: Online video ad revenue will reach nearly $5
billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same
time period. Video ad views exploded in 2013, topping over 35 billion views in December, averaging over 100%
year-over-year monthly growth during the year. Online video ads are significantly more expensive than other
formats, but prices are steadily declining as more publishers rush into video, and placements open up. Video ads
have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all digital ad formats.
Viewability, the question of whether video ads are actually seen by multitasking online viewers, has emerged as an
issue, but we believe that overall demand for online video is too high for viewability to put too much of a crimp in the
video ad market.

'Internet of Things' Will Be The World's Biggest Device Market And Save Companies Billions Of Dollars
The Internet of Things (IoT) is beginning to grow significantly, as consumers, businesses, and governments
recognize the benefit of connecting inert devices to the Internet. In an all-new report from BI Intelligence, we
examine what is currently driving growth in the Internet of Things and how various sectors of the economy will
embrace IoT innovations. Here are a few of the key findings from the BI Intelligence report: The Internet of Things
will be the largest device market in the world. The report estimates that by 2019 it will be more than double the size
of the smartphone, PC, tablet, connected car, and the wearable market combined. The IoT will result in $1.7 trillion
in value added to the global economy in 2019. This includes hardware, software, installation costs, management
services, and economic value added from realized IoT
efficiencies. Device shipments will reach 6.7 billion in 2019
for a five-year CAGR of 61%. Revenue from hardware sales
will be only $50 billion or 8% of the total revenue from IoT-
specific efforts, as software makers and infrastructure
companies will earn the lion's share. The enterprise sector
will lead the IoT, accounting for 46% of device shipments
this year, but that share will decline as the government and
home sectors gain momentum. By 2019, government will be
the leading sector for IoT device shipments.

SparkLabs Gl obal Ventures Technol ogy
and Internet Market Bi -Monthl y Revi ew
October 27, 2014

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

Asia Pacific
China
Tencent invests in Chinese health portal Guahao
Chinese health information portal and search site Guahao.com announced that it has completed a new round of
fundraising. The round, which totaled more than US$100 million, was led by Tencent, although precisely how much
Tencent invested has not been revealed. The companies are also likely to begin working more closely together later
this month as Guahao will launch a mobile platform to connect patients and doctors that is expected to be
accessible through QQ and WeChat accounts. The app will allow patients to do things like take a number to reserve
appointments, check the results of recent tests, make mobile payments to hospitals, and more. Founded in 2010,
Guahao already has coverage of over 900 hospitals nationwide, and over 37 million real-name-registered users.
Tencent likely isnt placing all of its chips on the Guahao side though; the company also reportedly invested $70
million in Dxy.cn, another medical platform, just last month.

Alibaba invests US$50M in Peel, a US startup that makes apps for TV junkies
Alibaba the ecommerce firm might not be heading to the US anytime soon, but Alibaba the VC firm is making its
presence well-known there. Alibaba VC firm has invested US$50 million in Peel, a Mountain View-based startup that
makes a mobile app for the TV addicted. Available for iOS and Android, Peel lets users control their televisions,
DVRs, or satellite dishes through its mobile app. Recommendations, reviews, and other social features also come
built in. It looks like the sort of app that could pick up a following of loyal users, for whom the living room flatscreen
trumps the laptop for movie watching. Peel CEO Thiru Arunachalam says that the app has 96 million users and that
neither firm has plans to integrate Alibabas ecommerce or media ecosystem into Peel. Alibaba has made a string of
investments in North American companies over the past year, perhaps most notably Tango, a runner-up messaging
app that picked up US$215 million from the Chinese firm. None of the startups that received funding from Alibaba
have aggressively pursued the Chinese market, however.

Alipay Wallet has 190M annual active users, processing over 50% of Alipays daily transactions
Alipay Wallet, the mobile app operated by Alibabas finance arm, announced that it has had 190 million annual
active users. The number of daily transactions through mobile has reached 45 million, over 50% of the total through
Alipay (The Alipay online payment solution doesnt only support Alibabas own marketplaces such as Taobao and
Tmall, but also third-party businesses). A little less than one year ago, Alipay Wallet had 100 million users and was
processing one third of Alipays transactions. As of the end of 2013, Alipay had a total of 300 million users. The
mobile version of the Alipay online payment service was rebranded Alipay Wallet, a mobile app not only for mobile
payments but also for users daily lives, at the end of 2012. From then on the app began to add functions and
features such as e-loyalty programs, e-ticketing, scanning-to-compare prices, credit card management,
bookkeeping, and real-time information on stocks, among others. Alipay Wallet has become a competitor to
Tencents WeChat in terms of mobile commerce and mobile content. More than 60 APIs were released one month
ago that enable third-party developers to create more applications on top of Alipay Wallet. Xinxiwang Shuangfeng, a
provider of dairy products, has integrated into Alipay Wallet and is now selling bottled milk on it. Alipay Wallet began
expanding to markets outside mainland China earlier this year.

Chinas Xiaomi plans to buy US$13 million stake in GPS mapping company Careland
Red-hot Chinese startup Xiaomi has long since ventured out from its initially territory of smartphones, getting
involved in everything from blood pressure monitors to game controllers. But according to a Tencent Tech report,
the company is also expanding into the world of GPS and mapping via a planned investment in Careland. Careland
recently announced that it will sell 7 million shares of its stock at the price of RMB 12 (US$1.96) per share. Xiaomi
plans to purchase all of those shares via two subsidiary companies, for a total investment of RMB 84 million, or
about US$13.7 million. One company, Tianjin Jinxing Investment Limited, will buy 4,666,667 shares while the other,
Tianjin Shunmi Investment Limited, will buy the remaining 2,333,333 shares. Careland is one of a small group of
companies with a license to do GPS mapping in China, and it posted more than RMB 25 million (US$4 million) in
profits and strong growth during the first half of 2014. But whether Xiaomi is simply bolstering its investment portfolio
or whether it hopes to integrate Carelands products into its own software remains unclear.

Chinese tourism booking site Lvmama gets $49M funding to stay competitive in ongoing price war

SparkLabs Gl obal Ventures Technol ogy
and Internet Market Bi -Monthl y Revi ew
October 27, 2014

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
Lvmama, a Chinese tourism booking site, has secured US$49 million in fresh funding. The investor or investors were
not disclosed. Lvmama is one of the oldest and largest DIY travel and tourism sites in China (tourism in China is
typically split between group tours and private DIY). The site aggregates and sells tours, attraction tickets, visa
services, trips to resorts, and cruises. Most of the offerings are based in Asia. Founder Hong Qinghua mentioned the
site is currently undergoing a price war with its competitors. He hopes this investment should help Lvmama weather
the battlefield and come out on top. As of November 2013, Lvmama sold the fourth-most tourist site tickets behind
17u, Yiquaiqu, and Ctrip (NASDAQ:CTRP) according to China Internet Watch. It beat out Tuniu by a relatively slim
margin. Lvmama was the third-largest in terms of revenue share in Chinas 2013 online vacation travel market behind
Ctrip and Tuniu. Founded in 2008, Lvmamas previous funding rounds include a US$15 million series C round from
South River Capital and Sequoia Capital in 2011, a roughly US$15 million series C round from Sequoia and CDH
Fund in 2010, and a US$8 million series A from HuaQiao Capital and DoJane Capital in 2009.

Korea
Korean ride sharing service Socar lands massive US$18M investment
Bain Capital has today announced that they have led a series A investment into Korean car sharing company, Socar.
The total investment raised in this round is around US$18M. Insiders point to a dramatic rise in industry and market
interest in the sharing economy as a key trigger in this landmark investment. Car sharing in particular has been
growing at speed for some time in Korea, with Socar at its lead. This is largely thanks to Koreas exceptionally high
population density (26 million people reside in greater Seoul) and excellent public transportation infrastructure. The
fact that Uber has been struggling with legal issues in Seoul will also be a positive factor for the team at Socar. Socar
launched in 2012 and rapidly grew thanks to its ability to meet demands of a Korean culture that values convenience.
Starting with only 100 Hyundai Sonatas, the company expanded its fleet to over a thousand vehicles within two
years. Now the company claims to have a database of over 50,000 users. Socar is now the largest car sharing
service in South Korea.

Korean Government to Develop Smart Media Industry Worth 14 Trillion Won by 2020
The Ministry of Science, ICT and Future Planning (MSIP) has established a plan to nurture the local smart media
industry to until it grows to US$13.2 billion by 2020. The decision is attributable to the fact that N-Screen services
such as over-the-top (OTT) services, where it is possible to use broadcasting service using a USB dongle, are
expanding with the expanding use of mobile devices. It is also due to the fact that new smart media industries such
as digital signage and smart home industries are in the spotlight as new growth engines. The MSIP held a public
hearing on its plan for the development of the smart media industry at Gwacheon National Science Museum on Oct.
15, saying that it will increase the size of the local smart media market from US$2.5 billion to US$13.0 billion by
2020. Under the plan, the number of people working in the related industries is expected to increase from 26,000 to
136,000. The MSIP is planning to invest US$194.9 million in the R&D of major smart media platforms and related
technology by 2020.

SoftBank to buy online video giant DramaFever
SoftBank announced that it has reached an agreement to acquire DramaFever. DramaFever, known for its catalog
of Korean dramas, was founded in 2009 and raised a total of US$12 million. The company calls itself the largest
online video destination for premium international television shows and counts YouTube cofounder Steve Chen
among its investors. SoftBank and DramaFever declined to share the terms of the deal. Prior to the announcement
of this deal, it was rumored that IAC would acquire DramaFever. We are delighted to welcome DramaFever to the
SoftBank family and look forward to working with their talented team, said SoftBank Internet and Media chief Nikesh
Arora. In five short years since going live, DramaFever has built an impressive Internet-based streaming video
business operating at scale. [DramaFever cofounders] Seung Bak and Suk Park have a proven business model in a
dynamic industry, and we look forward to helping them bring their highly popular video content to an even larger
global audience.

Daum Kakao goes public on October 14 with KRW 8 trillion (US$7.5 billion) market capital...
An IT stock will become the largest cap on the KOSDAQ when Daum Kakao goes public on October 14. On 13
October 2014, the KOSDAQ Market Division of the Korea Exchange announced that Daum Kakao would list
43,000,434 additional shares that have been newly issued upon the merger between Daum Communication and
Kakao. According the Korea Exchange (KRX), the total post-merger outstanding shares of Daum Kakao will be
56,563,063 on October 14. Based on the closing price of KRW 139,200 on October 10, its market capital will be KRW
7,873.5 billion, the largest on the KOSDAQ. Its par value is KRW 500. Major shareholders of Daum Kakao are Kim

SparkLabs Gl obal Ventures Technol ogy
and Internet Market Bi -Monthl y Revi ew
October 27, 2014

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
Beom-soo (22.23%) and 14 others, including Chinas Maximo (9.90%) and WeMade Entertainment (4.13%). The
company will hold an extraordinary shareholders meeting on October 31 and change its name to Daum Kakao.

Japan
Softbank announces partnership with ad tech startup Geniee
Softbank, Japans robot-loving telco, announced a business tie-up with Tokyo-based ad tech startup Geniee.
Starting next month, Softbank will launch a supply-side advertising platform (SSP), in collaboration with Geniee,
which the wireless carrier hopes will give a boost to its Internet advertising business. As part of the deal, Softbank
will purchase a minority stake in Geniee that accounts for 32.9 percent of the startups outstanding shares. Founded
in 2010, Geniee utilizes real-time bidding (RTB) the buying and selling of online advertising impressions via real-
time auctions that occur in milliseconds. Auctions happen in the blink of an eye because they are done through
programmatic buying, an automated system for bidding on ad slots based on factors (like demographics and
placement on the website itself) that are predetermined by the advertiser. RTB boots efficiency for advertisers by
making sure impressions arent wasted on the wrong audience while also cutting costs associated with hiring actual
human ad buyers. Geniees RTB network facilitates 20 to 30 billion impressions per month by processing a mind-
boggling one trillion monthly bid requests.

Papelook becomes latest Japanese photo app to get US$1.12M funding
The photo app craze shows so no signs of slowing down. There are definitely some signs their supply should be
outweighing demand by now but the funding money continues to roll in. In July, Instagram challenger Snapeee
grabbed a sweet US$4 million. Now, scrapbook app Papelook has earned itself a US$1.12 million funding round.
Jafco was the lead investor in Papelooks first significant fundraising round. Prior to this, the company had only
US$336,000 in capital. Some of that amount was bootstrapped and the rest came from Mitsubishi UFJ Capital, DG
Incubation, and Open Network Lab. Papelook tries to distinguish itself with its scrapbook features. Users can make
a collage of their photos and videos inside the app, a feature that has led to the global downloads. Not only is the
service spreading around Southeast Asia, the United States is its second largest market with over one million
downloads.

Mercari nets an unexpected US$21M windfall
There should be no more doubt that investors are convinced that Mercari is the next big thing for ecommerce in
Japan. Following a US$14 million round in March, Mercari confirmed today that it had raised a further US$21.8
million. Many repeat investors, like Global Brain, Globis Capital Partners, GMO Venture Partners, and East
Ventures, participated. But the most notable new investor is the World Innovation Lab (WiL). Founded by Gen
Isayama, WiL describes itself as a change agent bridging the US and Japan, startups and enterprises. Mercaris
ability to secure WiL as an investor shows the company is ready to make an aggressive, determined push into
America. Mercaris app offers a digital resale market for users, which has caught on in Japan. As of last month, it
recorded over five million total downloads and tens of millions of dollars of goods sold every month. The company
launched an English-language app in America last month as well. In August 2013, just six weeks after launching, the
company nabbed US$3 million in funding. Over the past year, Mercaris management team have steered the firm on
a rapid ascent, hitting numerous download and funding milestones along the way.
India
Indias ecommerce market rocketing to $6 billion next year nearly double the current level
Ecommerce might be young in India but its growing super fast. Indias ecommerce market will reach US$6 billion in
consumer spending in 2015, leaping from US$3.5 billion in 2014, according to the latest data from Gartner. This
makes it one of the fastest-growing ecommerce markets in Asia/Pacific. The potential for a 70 percent growth rate to
be maintained or even accelerated can be seen from the low base from which it is emerging. Ecommerce in India
still represents less than four percent of the total retail market. And less than five percent of total digital commerce
happens through mobile. But as the number of smartphone adopters is growing fast, so is mobile commerce. Thirty
percent of traffic for ecommerce sites comes from mobile and tablets. The top ecommerce sites in India include
Flipkart, Amazon, SnapDeal, and Paytm. With increasing penetration of low-cost smartphones and a rapidly growing
ecosystem to engage customers on mobile, new players like Paytm leapfrogged to mobile commerce, skipping the
desktop wave.

CarTrade bags US$30 million to take on Sequoia-backed CarDekho

SparkLabs Gl obal Ventures Technol ogy
and Internet Market Bi -Monthl y Revi ew
October 27, 2014

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.
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Auto classifieds portal CarTrade has raised over US$30 million in a funding round led by international private equity
fund Warburg Pincus. Canaan Partners and Tiger Global, CarTrades earlier investors, also participated in this
round. Another previous investor, Epiphany Overseas Ventures, declined to re-up its stake. CarTrade is one of
Indias leading online marketplaces for buyers and sellers of new and used vehicles. It has over 100,000 vehicle
listings, price profiles, and certifications for used cars. It conducts car auctions in 80 Indian cities, in which over
1,200 dealers take part. For new buyers, it offers reviews, on-road prices, car comparisons, and auto news. The
company plans to use the funds to expand their services and to focus significantly on the mobile space and provide
products and services which will be best in class and in many cases the first of its kind. In recent years, Indias used
car market has been growing fast, riding on the backs of portals like CarTrade, OLX, and Cardekho. Most of them let
individual sellers post ads for free. OLX, for instance, has almost half a million ads for used cars.

PayU India acquires Eashmart, brings cashless mobile payments to your doorstep
Online payment solution provider PayU India acquired mobile payment provider app Eashmart for an undisclosed
amount. Nitin Gupta, CEO of PayU India added that the acquisition will boost the companys payment solution for
small merchants PayUMoney. Delhi-based startup Cobboc built Eashmart to help users to pay for products using
their mobile phones without having to pay surcharges or save card details. Following the acquisition, Eashmarts
Android-only app has been renamed as a PayUMoney app. Its five-member team will continue working through the
transition period. The Eashmart website now redirects to the PayUMoney website. Eashmarts existing clients
across Delhi, Bangalore, and few other cities will now migrate to PayUMoney. They will get the added advantage of
PayUMoneys merchant dashboard interface. Like Eashmart, PayUMoney allows also users to pay merchants
without swiping their credit or debit cards. In total, we have over 40,000 merchants growing at a rate of roughly
5,000 new merchants per month, Gupta said.

Recruitment platform TalentPad raises funding from Helion Ventures
Indias numerous engineering colleges produce over a million engineers every year. Only 18 percent of them are
employable, a recent study found. Top employers in the country, IT biggies, and tech startups find it tough to spot
the most eligible ones especially in the internet and analytics space among those million freshers. This is the
problem that Delhi-based startup TalentPad attempts to solve. For employers, it promises to find premium
candidates, and find them fast. To scale this up, TalentPad just raised its first round of institutional funding from
Helion Advisors. Mayank Jain, Nikhil Vij, and Raghav Jain alumni of IIT and IIM founded TalentPad in February
2014. The startup runs on a curated marketplace model. It screens candidates as well as companies looking to hire
them. About 150 employers use it currently, including InMobi, MakeMyTrip, Snapdeal, and BookMyShow. The
companies get to access a ready pool of about 100 pre-screened candidates every month, thus reducing the time
and effort required in hiring. While TalentPad services are free for job-seekers, it charges employers a percentage of
the gross salary for every candidate hired.
Malaysia
MOL raises US$169 million in its initial IPO round on Nasdaq
The Malaysia-based online payment company MOL has just finished wrapping up its IPO on the Nasdaq stock
exchange, raising US$169 million in the initial round of offering with the price of each share being US$12.50, the
bottom of the initial US$12.50 to US$14.50 price range. This is much less than what the company anticipated. It
initially announced that it expected a nearly US$300 million IPO. MOL is the first Asian company to launch on the
Nasdaq after the legendary Alibaba IPO last week, and is also the first Malaysian company listed on the US stock
exchange over the last ten years. The primary shareholder of MOL is Tan Sri Vincent Tan, a Malaysian billionaire
and owner of 7-11 Malaysia which went through an IPO earlier in the year that raised US$227 million. MOL, also
known as Money Online, is currently the largest online payment service in Southeast Asia by volume of transactions
and the company states that its physical distribution network comprises more than 970,000 locations in 13 countries
across four continents. The IPO consisted of 13.5 million American Depositary shares, less than the 19.5 million
originally planned.

Indonesia
Indonesian government launches high-speed internet initiative
According to Indonesian news outlet Tempo, the local government launched a nationwide high-speed Internet
access initiative yesterday. The goal of the program is to boost economic competitiveness throughout the
archipelago. Titled the 2014-2019 Indonesia Broadband Plan, it will require US$23.2 billion in financing. Minister of
the National Development Planning Agency Armida Salisah Alisjahbana claimed that the program will have a

SparkLabs Gl obal Ventures Technol ogy
and Internet Market Bi -Monthl y Revi ew
October 27, 2014

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
positive impact on locals by increasing work productivity and hopefully reducing economic gaps in the long run. The
broadband infrastructure is expected to cover 49 percent of households and six percent of the population. The plan
would also provide mobile Internet access to 52 percent of the population. The total budget allocated for the
program is US$23.2 billion, with 10 percent of the total budget coming from the state.

Opera has over 30 million active users in Indonesia
Opera Software released its annual State of the Mobile Web report, announcing Indonesia as its second-largest
user base for its mobile web browser Opera Mini. The archipelago ranked just behind India, and Operas report
claims more than 30 million monthly active Indonesian users of Opera Mini between July 2013 and July 2014.
Thats three times the population of Jakarta. Peko Wan, Operas head of PR and communications in Asia, says that
among the top 100 handsets used by Opera Mini users in Indonesia, Samsung has the largest market share at 47
percent. This is followed by local mobile phone brand Advan at 13 percent, Sony at 11 percent, Smartfren at 10
percent, and Evercross at 9 percent. Opera claims in the year leading up to Indonesias presidential election, 59
percent of its Indonesian users preferred domains related to law, government, and politics. Traffic spiked during the
election, as locals visited blogs and forums to discuss preferred candidates. Indonesian Opera Mini users on
Android phones viewed an average of 1,225 pages during the election period, which was 53 percent higher than
users on other operating systems, including iOS.

Singapore
Singapores Migme buys LoveByte, enters apps for couples space
Two of Singapores chat apps have joined forces. Migme, a social network with about 5 million monthly active users
in August, has bought the smaller LoveByte for an undisclosed amount of cash and equity. The actual payout will
largely be based on performance. LoveByte was founded in 2012 by Amelia Chen and Steve Sng. It received a
six-digit investment from Ruvento Ventures and Crystal Horse Investments. It has an iOS and Android chat app for
couples which, at last count, has over 237,000 monthly active users, of which 131,000 are on iOS and the rest
Android. Thats a slight increase from August 2014, where the app had 700,000 registered users and 210,000 (or
30 percent) monthly active users. By comparison, the Asian leader in the couples app space is Between, which has
9 million registered users.. Migme listed recently in the Australian Securities Exchange. It operates an app where
users can chat, blog, as well as send stickers and gifts.

Location-based Mobile Advertising Service AdNear Raises Series B Funding for Market Expansion
AdNear Pte. Ltd., a Singapore and Bangalore-based mobile advertising service, has secured US$19 million in
Series B financing from GB-V Growth Fund Investment Limited Partnership, an investment unit managed by
Japanese VC firm Global Brain Corporation, Telstra Ventures and incumbent investors of Sequoia Capital and
Canaan Partners. The capital will be used to expand in the Asia-Pacific region. AdNear has previously received
US$6.5 million in Series A from Sequoia Capital and Canaan Partners in 2012 and undisclosed angel investment in
2009. AdNear is a location intelligence company that leverages location and context data for advertisers. Historical
location data combined with user behavior and other statistics generate powerful audience insights. The companys
data platform is built on proprietary technology, giving it the strength of location awareness without the need for
GPS or operator assistance. AdNear claims to have profiled more than 320 million users across Asia-Pacific and
has worked with brands such as P&G, Woolworths, Audi, Unilever, BMW, Vodafone, Ford, Samsung, and IKEA.
Founded in 2012, AdNear is now headquartered in Singapore with a presence across Australia, South East Asia,
Japan and India.


United States
Osmo raises US$12M to create a new way for kids to play and learn with iPads
Osmo is a small company that wants to start a Play Movement, or change the way that kids interact and socialize
with electronic devices. Now the maker of the innovative Osmo platform for social and educational iPad games has
US$12 million to help do so. The Palo Alto, Calif.-based company is announcing the first round of funding, led by
venture capital firm Accel Partners. Rich Wong, a partner at Accel, will join Osmos board of directors. The firm has
invested in companies such as superstar mobile publisher Supercell (Clash of Clans), Rovio (Angry Birds), AdMob,
and Facebook. The deal comes on the news that Osmo had, as of Sept. 18, generated more than $2 million in
preorders for its game. The Osmo hardware and software platform is sophisticated yet remarkably simple to
understand and use. You set an iPad in a vertical stand and then attach a small mirror in front of the tablets camera

SparkLabs Gl obal Ventures Technol ogy
and Internet Market Bi -Monthl y Revi ew
October 27, 2014

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
so that the lens uses the mirrors reflective capability to see downward. You can then play games where the camera
recognizes small objects that you put in front of the iPad. In the case of Osmo Words, one of the downloadable
apps, the camera recognizes blue or red letters tossed in front of it. Under the name Tangible Play, Osmo went
through the Stanford University-affiliated StartX Summer 2013 accelerator class.

Funding from Intel values Razer above US$1 billion
Intel appears to be the latest partner to climb on the Razer bandwagon. The San Diego-based gaming hardware
company, which has been racking up a string of big announcements this year, has apparently scored a new
investment from Intel Capital that values the company at more than $1 billion. Were already one of the billion dollar
unicorns in the tech start-up world, and now weve got more resources than ever to allow us to focus on designing
and developing the best experiences for gamers worldwide, reads an internal Razer memo that TechCrunch says it
obtained. The report doesnt specify how much Intel invested or whether there were other firms participating in the
round. In August, Razer announced a partnership with Chinas Tencent to use its Nabu smartband, a wearable
computer that lets players earn rewards for games based on achieving their exercise and fitness goals in the real
word. And back in March, Razer unveiled new high-end gaming laptops.

Word-parsing wizard Idibon picks up US$5.5M
Idibon, a startup that has developed applications that make sense of text in scores of languages, has raised US$5.5
million in new funding. Following its launch in January, Idibon has attracted business from Edmunds.com, Samsung,
the United Nations, and some global consulting firms, among others. And the startup has worked with text from
sources in more than 50 languages. Idibon is not satisfied, though. Meanwhile other startups offering services for
natural-language processing like AlchemyAPI, Babel Street, Narrative Science, and Synapsify have also
picked up funding recently. Oftentimes, homemade systems represent competition for Idibon, which came out with
easy-to-use cloud-based applications at the beginning of this year. The startup boasts of its ability to go into new
languages within 48 hours. Before Samsung reached out, Idibon hadnt worked with Korean. Within two weeks, our
machine learning-based approaches were smarter in Korean analytics than any of the Korean-speaking vendors. A
dozen people now work for the startup full-time in San Francisco, alongside 50 part-time analysts around the globe.

Welltok raises US$25M for its health optimization platform
Recently, consumer health engagement platforms like Welltoks have been attracting both new customers and new
investment dollars. Welltoks platform, called the CafWell Health Optimization Platform, lets risk-bearing population
health managers offer their members customized wellness and condition management programs, including various
incentives for positive wellness behavior. The platform also provides ways for health plans and providers to offer
condition management programs and incentives to people dealing with health conditions like diabetes. The platform
integrates with popular fitness wearables, like those from FitBit, and with fitness apps like Fatsecret. So an insurer or
provider could use the platform to reward members for walking a certain number of steps each month, as measured
by the FitBit device. Welltoks platform has been getting traction in the marketplace and is poised to expand further.
The Denver-based company has now closed $25 million of a planned $37 million funding round led by Bessemer
Venture Partners. Welltok expects to raise the other $12 later this year. Welltok was funded in earlier rounds by
Emergence Capital Partners, InterWest Partners, New Enterprise Associates, Qualcomm Ventures, and IBMs
Watson Group, among others.

Thismoment scores US$17.6M to add more YouTube videos to brand marketing
User-generated content (UGC) can be a wildcard for marketers, but its a card that content platform Thismoment has
learned to play.The San Francisco-based company announced it has raised an additional US$17.6 million to deal
out more homemade photos, posts, and videos, combined with news stories or brand-created content. UGC is
essential [for a brand] to create an authentic connection with consumers, said Thismoment CEO and founder Vince
Broady. The companys stated original focus was allowing users to create a moment, a collection of photos or
videos from several users that can be linked to a place or a time. The company currently emphasizes the platforms
ability to allow a marketer to find and mix-and-match UGC as needed, as in a playlist, which can then be rendered
for Facebook, Pinterest, or other environments. The Series D funding round was led by Sierra Ventures, Trident
Capital, and UMC, and it brings the total raised to date to $54 million. The new money will be used to continue our
development of our user-generated content technology, Broady told us. That means, he said, building out more
sources, [acquiring] more rights, integrating with more enterprise systems, including digital asset management,
publishing systems, and social media management. Founded in spring of 2008, the company launched its digital
storytelling platform in the summer of 2009.


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Blue Box Closes US$10 Million Series B Financing
Blue Box announced that it closed US$10 million series B funding round led by a strategic investor and included
participation from prior investors including Voyager Capital and Founders Collective, as well as the Blue Box
executive team. This round follows a $4.3 million Series A closed in December of 2012 and led by Voyager Capital.
In May of this year, the company announced general availability of its private cloud as a service offering, Blue Box
Cloud. Since that release, the company has demonstrated market validation through customer adoption, positive
reviews from industry analysts and key additions to the companys technology and commercial teams. This financing
will allow the company to build on its successes over the past year and fuel continued technical innovation,
significant growth of the engineering team and continued expansion of the companys partnership, sales, and
marketing programs. Specifically, the company will increase development of its proprietary management suite, Box
Panel, with additional capabilities to support features valuable to customers and partners. The company will
increase investment in both technical and channel partnerships while expanding sales and marketing teams and
programs.

Viewics orders up US$8M to help control hospital lab test costs
The government and, increasingly, commercial insurers, are reimbursing health systems for caring for patient
populations based on the value of care given, not on the amount of care given. So hospitals and clinics are hell-bent
on finding ways to cut costs, and lab tests are seen as one of the biggest culprits for waste. A startup called Viewics
hopes to cut that waste with an analytics platform that gives doctors, administrators, and lab managers a clear look
at the cost and real diagnostic value of the tests being ordered. Studying and understanding this, the thinking goes,
might change test ordering habits for the better. The Sunnyvale, Calif.-based company said today that it has secured
a new US$8 million in funding in a round led by Canvas Venture Fund. It will use the money to further develop its
platform and expand sales and marketing efforts. Our data aggregation technology has become integral to our
customers, with over 80 percent of them significantly expanding on their initial scope within months of use, said
Viewics CEO and founder Dhiren Bhatia in a statement. Viewics has already sold its software-as-a-service platform
to more than 100 hospitals and labs as well as a good number of lab management companies.

Fresvii raises US$1.8M, launches mobile game voice chat service called AppSteroid
The startup Fresvii is coming out of stealth with a new platform dubbed AppSteroid that allows smartphone gamers
to use voice chat with other players in mobile games. Fresvii also announced that it has raised US$1.8 million in
funding from Japanese venture capital firm Nissay Capital. Fresviis chat solution, dubbed Chatter (AppSteriod is its
platform), enables players on iOS and Android devices to talk to each other while theyre playing games. Its a lot
like Skype, but it allows you to continue playing your game while youre using the chat service, said Hiro Nakagawa,
chief executive and founder of Fresvii. Fresvii is integrated into Unity Technologies game engine. Fresvii believes
that Chatter will keep players more engaged in a games community. That makes the games stickier, and more likely
to be monetized over time. Fresvii is launching in both in the U.S. and in Japan, and that means a player in the U.S.
can talk to a player in Japan. Besides Nissay, various angel investors have also put money into Fresvii. Fresvii has
10 employees. The company expects it will have games with the voice chat integrated within a few weeks.

Cratejoy grabs US$4M to give anyone their own monthly subscription service
Its becoming increasingly apparent that monthly subscription services are on the rise, as evident with the relative
success of The Fancy (Fancy Box), Bark Box, Dollar Shave Club, LootCrate, and many others. Austin, Texas-based
startup Cratejoy wants to bring the same kind of monthly subscription business model to all businesses with its
Subscription as a Service platform. Additionally, the startup announced that it closed a fresh US$4 million series A
round of funding led by Charles River Ventures, which previously invested in Twitter and Zendesk, among others.
Cratejoy gives pre-existing businesses or really any business with an existing audience or loyal clientele a way
to launch a monthly subscription service that makes sense for their individual companies. Cratejoy handles all the
financial transaction activity, gives you tools to track and manage inventory, prints shipping labels, a custom-
designed splash page, and offers a set of analytics to see how people are responding to those shipments month-to-
month. The company, which previously launched its service in beta, already has 200 businesses using its
subscription service platform.

Europe

Virtual fitting room Metail raises another US$12 million, opens satellite office in Singapore

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UK-based virtual fitting room Metail announced it has raised US$12 million in funding to push forward efforts in
eliminating mismatched sizing. The round was led by TAL Apparel, which is part of HK-based garment manufacturer
TAL Group, and participated in by existing investor John Gleasure, commercial director of Perform. This will bring
Metails total amount of funding raised so far to US$20 million their last round was raised in December. Metail lets
users create a virtual version of themselves what they call a MeModel to see how the clothes would look on
them according to their body shape. The companys vision, according to founder and CEO Tom Adeyoola, is to be
the Google of sizing and shape. According to an official statement, the funds will go towards expanding the firms
overseas presence across South America, Asia, and Europe. For Asia, the company will be building out its existing
operations in Singapore. The investment will also be used to develop Metails mobile app, which is scheduled for
release early next year, as well as to drive user acquisition and hiring.

Polish startup Brainly raises US$9m to make a major push into the US with its social learning platform
Brainly, the Polish edtech startup has closed a US$9 million round from lead General Catalyst Partners, Point Nine
Capital and Runa Capital. The fresh cash will allow Brainly to accelerate its expansion to the US, where it launched
operations earlier this year. Krakow-headquartered Brainly will be opening a new office in NYC to underscore the
importance of the US market for the startup. Brainly, originally founded in 2009, offers a social learning network that
essentially allows students to help each other with schoolwork. The company claims more than 30 million people
around the globe visit Brainlys websites to seek homework help every month. Now live in 36 countries, Brainly has
more than doubled its user base during the past year, and today more than 8,000 questions are asked on Brainly
sites every hour. Says Michal Borkowski, who will stay on as CEO of Brainly as he fleshes out the US-based
management team: Every student in the world eventually becomes stuck on a homework problem, causing
frustration and loss of confidence. Our vision is to help students become unstuck by turning homework into an
opportunity to inspire learning and collaboration.

Wearable tech is coming into its own as Europes first incubator launches
Wearable tech is primed to make its mark. Technology like Jawbone, Fitbit, and Pebble have been increasing in
popularity over the years and last month Apple unveiled the new potential gold standard in wearables, the Apple
Watch. Now, San Francisco-based venture company Wearable World is set to launch Europes first wearable tech
incubator, based in London. Officially launching on Oct. 22 at GLAZEDcon, Wearable World Labs will be headed up
by Marcus Sandberg, co-founder of Proleads. He will be leading a team of five to drive the European expansion
headquartered in London. Wearable World Labs launched in the U.S. last year, and the 35 companies in the first
cohort have collectively raised more than $9 million in investor backing, and more than $5 million from crowdfunding.
Wearable World wants to have a transformative effect on investment in wearable tech in Europe, inspiring others to
follow our lead so we can create a really strong, localized angel class and ecosystem for this market.

German iPad software provider Orderbird secures US$10M
Orderbird, a Berlin-based iPad point-of-sale (PoS) provider focusing on the food industry, took in US$10 million in
funding today. The second round was led by investor ConCardis. Private investors in the U.S. and Western Europe
also participated, as well as some of the investors who ponied up cash for the first round of funding. Orderbird has
been described as cash register in a box. The company produces a PoS software program that runs in conjunction
with the iPad. The startup said it has made it easier for customers at food trucks and cafs, for example, to pay
using the iPad. The software and hardware, in this case an Epson printer for receipts, come as a package. Indeed,
the software creates consumer profiles that sync with shoppers smartphones when they enter an establishment.
That customer profile is linked back to the customers PayPal account, if they have one. The cash will also be spent
investing in further product development and breaking into new markets in Europe and beyond. Schreyer said his
startup has more than doubled its customer base in the last 12 months. Its worth noting that Orderbirds main
investor ConCardis is also a strategic partner. ConCardis, itself a joint venture with European banks, produces a
mobile payment solution called ConCardis OptiPay. So in addition to helping bankroll the Orderbird enterprise,
ConCardis is now positioned to make money with them.

Israel
Imperus Technologies agrees to US$100M deal to acquire social-game developer Diwip
Game acquisitions are not slowing down. Gaming-technology platform company Imperus has announced its plan to
acquire the Tel Aviv-based social-game developer Diwip. The deal would have Imperus spending nearly US$100
million to purchase all of the shares in Diwip. Once completed, this acquisition will give Imperus control over Best
Casino, which is one of the higher-grossing games on mobile and Facebook. Mobile gaming generated $16 billion in

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consumer spending worldwide last year, and social casino games are one of the biggest reasons for that. Imperus
likely found Diwip particularly appealing due to its recent growth. The developer went from revenues of $7.8 million
in 2011 to $28.3 million in 2013. Diwip also claims to have 24 million registered customers across its numerous
games. In addition to its original games, Diwip also supplies proprietary game-making software to other companies.
Licensing technology like that is a lucrative business, and it was another draw for Imperus. This deal continues 2014
as the year of the games-industry mega-acquisitions. Through the third quarter, deals like Facebook buying Oculus
for $2 billion and Amazon acquiring Twitch for $970 million have pushed total industry acquisitions to over $12
billion. Imperuss $100 million has the industry well on its way to $13 billion in acquisitions before the year is out.

Russia
Russian VC Life.SREDA doubles down on fintech startups with new US$100 million fund
Moscow-based VC firm Life.SREDA, who claim to be good guys who are going to make it, has raised US$20
million from existing shareholders for what should eventually become a $100 million fund. The fund, Life.SREDAs
second, will serve to invest cash in mature mobile and online fintech startups from around the world, but particularly
in the United States and Europe. Life.SREDA boasts investments in online bank Simple (acquired by BBVA for $117
million earlier this year), mobile payment startup SumUp, fintech holding company Anthemis Group and Instabank,
among others. The firm has deployed over $40 million in capital for fintech startups to date. Approximately 10% of
the fresh funding will be allocated to Russian projects, Life.SREDA says, and the average check for each investment
is expected to be in the range of $5 million to $10 million. The VC firm, which was founded two years ago, says it is
currently in fundraising talks with several large banks and telecom operators, with an increasing interest in Chinese,
Hong Kong and Singapore bank investments. The amount invested in fintech venture deals in Europe in the first six
months of the year has already more than doubled what was raised in 2013, according to figures from data provider
Pitchbook, but mid-size firms might be stuck in a funding gap.