Mobile Internet in China: Opportunities for U.S. Firms David Chao DCM

Agenda DCM Proprietary and Confidential2 DCM Introduction Growth in China Areas of Mobile Opportunity in China Recommendations for U.S. Companies What U.S. Companies Can Bring

DCM Overview Established early stage venture capital firm with unique access to the U.S., China and Japan – Golden Triangle Leveraging One Firm – One Fund culture to deliver consistent high performance Managing over US$2 billion across six funds from our offices in Silicon Valley, Beijing and Tokyo Experienced team with deep sector expertise investing in TMT (Technology, Media, Telecom) and Cleantech Backed industry pioneers and creators of paradigm shifts across the Golden Triangle: About.com, Foundry Networks, Sling Media, 51job, Dangdang and AllAboutJapan DCM Proprietary and Confidential3

DCM China IPOs DCM Proprietary and Confidential 4 Amazon of China Largest auto media (NYSE: BITA) (NYSE: DANG) Facebook of China (NYSE: RENN) Leading packaging company in China China Local Listing (SZSE: ) Monster.com of China (Nasdaq: JOBS) Leading outsourcer in China (NYSE: VIT) Multimedia semiconductor (Nasdaq: VIMC) Semiconductor foundry (NYSE: SMI)

China is Experiencing Phenomenal Growth in Mobile and Spending DCM Proprietary and Confidential5 RMB Billion China E-commerce Market Estimation(GMV) Source: CCID, Source: Innovation Works / Umeng estimates CAGR: ~150% CAGR:50%

China has the 2 nd Largest Android App Store in the World Source: Techcrunch, Cnet,, BGR, industry research Worlds Top Apps Stores (Daily Downloads) DCM Proprietary and Confidential6 Wandoujia #2 in Android globally

Opportunity Mobile Leaders in U.S. Mobile Leaders in China Application/content store Social networking services Storage Browser / News browser Advertising POS Payment Category Leader Parallels in Mobile Show Many Similar Opportunities DCM Proprietary and Confidential7

Capabilities U.S. Companies Can Bring to Mobile in China Content and branding – recognized, branded content and existing products (games, apps, etc.) Product design and process – mature product development process, data-driven analysis, A/B testing, understanding virality etc. Technology – mobile handset technology and design, cloud services technology Business models – business model innovation to create new categories DCM Proprietary and Confidential8

U.S. PartnerChina PartnerPartnership Develop and launch Fruit Ninja in China PapayaMobile to help Kiloo deploy on Android and in China Tom to help develop a Chinese gaming storefront for Glu (glu.cn) Develop tablet computers and mobile phones Many U.S. Companies Have Partnered Locally for Mobile in China Source: Industry research U.S. companies utilizing China partners for local distribution; going at it alone can be difficult DCM Proprietary and Confidential9

U.S. Companies Who Want to Go to China Market Should Consider Partner with right distribution channel and go to market partners Social networks Game developers and platforms Handset providers and carriers Adapt product and monetization to local habits Virtual goods instead of just paid apps DCM Proprietary and Confidential10

Summary Mobile in China is large and growing – mobile smartphone usage, particularly in Android, is growing; China consumers have money to spend Many opportunities – many mobile opportunities in the U.S. have parallels in China U.S. resources – U.S. companies have existing content, products, and resources that can be helpful in China Partner locally – U.S. companies should consider partnering locally to distribute and adapt their products and services for China DCM Proprietary and Confidential11

global connected experienced successful

Cloud and Mobile-Centric Apps Have Investment Traction Within China Cloud – cross-platform device usage increasing cloud and syncing needs App store Storage Mobile-centric apps – applications / services need mobile-feature centricity; China internet incumbents copy very quickly Tablet-focused apps Mobile advertising LBS DCM Proprietary and Confidential13

Internet /Digital Media Social and Gaming Software & Services Components Other Cross Border DCM China Portfolio NYSE: RENN NYSE: DANG NYSE: BITA SZSE: Nasdaq: FTNT Nasdaq: JOBS NYSE: VIT NYSE: SMINasdaq: VIMC DCM Proprietary and Confidential14