SparkLabs Gl obal Ventures’ Technol ogy

and Internet Market Bi -Monthl y Revi ew
June 30, 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
• Mobile games will bring in nearly $29B by 2016
Juniper Research, a technology-consulting company, released a report that claims the mobile games will
generate $29.8 billion by 2016, up 38% from the $20.9 billion that the gaming industry plans to bring in 2014.
To reach these new heights, Juniper expects mobile developers to shift their strategy to focus on squeezing
more money from their most dedicated players. Globally, consumers spent about $16 billion on mobile games
in 2013. This is largely due to free-to-play mega hit games like developer King’s Candy Crush Saga and
Supercell’s strategy title Clash of Clans. If the previous strategy in the gaming industry was “user acquisition”,
Juniper sees a new trend emerging. According to the report, tablet users tend to spend more money on in-
game purchases than smartphone players. This could be explained by the migration of traditional gamers from
dedicated handhelds, like Game Boy and DS, to iPad and other large mobile gizmos. The report also speaks of
the importance of Latin America, Eastern Europe, and Southeast Asia for gaming. People in those regions
adopting smartphones at a high rate while also earning more disposable income.
• Google Play is growing! Downloads are up 1.5x and Revenue up 2.5x
According to App Annie, 90% of Google Play’s revenue come from games and 98% of that game revenue from
freemium apps. Japan still leads all countries in pouring cash into Google’s coffers. The number of apps grew
by around 60% between July 2013 and June 2014, with over 1.5 million apps available on Google Play now.
Downloads are up 1.5 times from last year, while revenue jumped 2.5 times. The figures show that Google is
getting better at monetizing mobile apps and that consumers, especially those in Japan, Brazil, Russia and
India, are spending a lot of money inside the “free” apps they download. Besides games, entertainment app
downloads increased by around 35%, social app downloads by 50%, and communication apps by more than
100%. Surprisingly, most of the increase in revenue in Google Play comes in via freemium apps. In fact only 2%
of Play revenue is from pay-to-download apps, with an exception in one country, Brazil that has more than 10%
of its revenue coming in via paid apps.


• Fitness App Usage Is Growing 87% Faster Than The Overall App Market, says Flurry Analytics
According to a new report released by Flurry Analytics’, health and fitness apps are growing at a faster rate

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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
than the overall app market so far in 2014. Health and fitness app usage (measured in sessions) has increased
62% in the last six months compared to 33% growth for the entire market. The analytics firm made this
conclusion after looking at data from more than 6,800 apps in the health and fitness category on the iPhone
and iPad. The study also took a close look at the demographics of health and fitness app users and found that
the most avid users of these apps were middle-aged women--62% of users were female and those ages 25-54
were over-indexed compared to average app use.

Asia Pacific
China
• Chinese cloud provider UCloud receives $50M to expand into North America
Founded in 2012 by former Tencent executives, Chinese cloud provider UCloud announced $50 million in
funding led by Bertelsmann Asia Investments and Legend Capital. UCloud is specialized in game hosting and
related cloud services and will use this round of funding to build a data center in North America and BGP data
centers. UCloud now hosts and serves some of the top revenue-generating games in China. It also has a data
center in Hong Kong to help Chinese games that have users in Southeast Asia. The data center in North
America is expected to serve users of Chinese games in the respective region.
• Alibaba chooses NYSE, not Nasdaq, for what may be world’s largest IPO
Chinese technology giant Alibaba’s updated prospectus has confirmed that the company will make its U.S.
public market debut on the New York Stock Exchange (NYSE) and not on NASDAQ. Last year alone, the total
gross merchandise traded on Alibaba was valued at $270 billion, according to the research firm IDC. Alibaba is
valued at around $168 billion and if it sells of roughly 12 percent stake in the company, it could raise as much
as $20 billion making it the largest IPO in history ahead of Facebook by $4 billion. Alibaba intends on going
public in early August and plans on listing under the ticker BABA.
• PICOOC, Chinese clone of Fitbit Aria, gets $21M Series B Funding
PICOOC, China-based health-tracking device maker, has completed a Series B round of funding that raised
$21 million, led by existing investor Gobi Partners and joined by Tencent and JD.com. The company’s main
product is Latin, a Fitbit Aria-like smart scale. The scale is sold for RMB449 ($72) on JD.com and has joined
JD+, the smart hardware incubation program run by the leading Chinese online retailer. JD has previously
invested in Broadlink, a Smart Home WiFi solution developer and consumer-facing product market that made
deals with smart device maker Sizomi and Chinese traditional home appliance manufacturers. In addition JD
has a site devoted to smart hardware, launched earlier than Amazon’s, that boosted the sales for devices such
as Misfit Shine. In China, there are other devices that are clones to Aria, such as RySmart. However, they
have succeeded in attaining rounds of funding. The biggest appeal to Chinese products is the price – Fitbit Aria
is more than twice the price of Latin and Ryfit, the scale made by RySmart.
• Tencent, Innovation Works cash out on a $434 million acquisition of a Chinese company you have
never heard of
A US $434 million acquisition between two Chinese companies has been announced. Chinese Universe Publishing
and Media Company bought 100% stake in Elex Technology Company for RMB 2.7 billion, according to QQ Tech.
Chinese Universe distributes and publishes books, teaching materials, and other publications including audio and
video products. Founded in 2008, Elex helps Chinese corporations go international by localizing their products for
different global markets. Elex has partnered with Baidu, Tencent, and Alibaba, along with other big gaming
companies such as Perfect World, Giant Interactive, and DD Tank. The company operates in around 40 countries,
and has helped export some of the biggest games such as Happy Farm, Age of Warring Empire, and Chi-Star.
Chinese Universe paid with 130 million shares and about RMB 1 billion (US$160 million) in cash.
• Light Chaser Raises $20m From GGV Capital
Light Chaser, the Chinese animation studio that seeks to be the next Pixar, has just raised $20m in Series B funding.
This round was led by GGV Capital and joined by Hillhouse Capital and returning investor IDG. This animation studio
was founded in March 2013 by Tudou founder Gary Wang after Tudou merged with Youku to create China’s biggest
streaming video site. Light Chaser has released a short film called “Little Yeyos” to briefly showcase the studio’s

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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
capabilities and plans on releasing its first 3D animated feature called “Little Door Spirits” with a budget of 70m RMB
($12m USD) by July 2015.
• Meet You Attracts a $35m Series C Round
Meet You, a Chinese app for period tracking and the female community, has just raised US$35m in Series C funding
led by SIG and followed by Matrix Partners China and China Renaissance K2 Ventures. So far the company has
raised three rounds in about a year: millions of dollars of Series A financing in June 2013, and US$15 million in
Series B led by Matrix Partners China and followed by founding team of the company. Launched in April 2013, the
app now claimed more than 50 million registered users with over 3.5 million active users. Its competitor Dayima
recently announced US$ 30m of Series C funding. Meet You started as a menstruation period tracing app but has
now gradually shifted its focus to constructing a female community where users can discuss topics such as parenting,
fashion, fitness and relationships. The newly acquired funds will go towards further constructing the company’s team
and its female community.
• Online Vacation Home Rental Service Tujia raises $100M of Series C Funding
Tujia.com, an online vacation rental service in China targeting middle to high-end Chinese travelers, raised $100
million of Series C funding. Founded in late 2011, Tujia cooperates with real estate companies and landlords to
attract high-end apartments that would fit for the demands of travelers. It also plays a major part in standardizing the
services provided by the hosts. Tujia is now staffed by around 1,000 and now operates in 128 Chinese cities and 68
overseas cities with more than 85K suites available on the platform.
• Hong Kong-based Internet finance startup, WeLab raises $14 Million
WeLab Holdings, a Hong Kong-based Internet finance startup, raised $14 million from Li Ka-shing, Asia’s richest
man, and Sequoia Capital, a stalwart of Silicon Vally. WeLab plans to use the funding to finance an expansion into
mainland China, where it plans to bring ”big data” to finance, employing vast amounts of information to help
companies better evaluate and price their credit risk. It secures backing from Mr. Li’s TOM Group, which invests in
the media and Internet businesses and has a joint venture ecommerce business with mainland China’s postal
service operator. Up to now, WeLab’s core business has been WeLend.hk, Hong Kong’s first peer-to-peer online
lending business which had attracted 6,000 members and loan applications from consumers totaling more than $50
million.
• Xiaozhu Raises $15m in Series B Funding
Xiaozhu, a short-term home-rental service, has just raised $15m in Series B Financing. This latest round was led by
Legend Capital and followed by existing investor Morningside Ventures. Capital from this round will be utilized
towards team construction, R&D and branding. Xiaozhu was founded in 2012 by two former executives of Canji.com
and is currently one of China’s leading Airbnb-like sites. It has strived to differentiate itself from other similar services
by integrating more social elements into its platform.
• Chinese startup gets $30 million investment to put all the country’s pawn shops into a single
marketplace
Taodangpu, China’s online pawn shop marketplace, has just raised US$30m during its latest Series B round of
financing from BlueRun Ventures, Heli Capital, and Northern Light Venture Capital. The startup currently runs two
interconnected websites: 51dang.com, a peer-to-peer lending website that uses pawned goods as collateral, and
Taodangpu.com, the online store where goods are sold if users fail to pay back their loans on 51dang. Taodangpu
currently has over 1,000 pawn shops on its network and the plans on using this capital to expand in Chinese cities
beyond Beijing and Shanghai (where it is currently operating).

Korea
• A Team of Korean Neuroscientists and Engineers Develops Wearable Tech To Slow Effects of
Alzheimers
A team of Korean Engineers, PhD-level neuroscientists and ex-Googlers, is tackling Alzheimer’s Disease (AD)
one of the most feared brain diseases people face today. Alzheimer’s Disease is responsible for around
500,000 deaths each year and costs around $220 billion per annum globally. While this disease has no cure,
YBrain has developed a solution for slowing the effects with a rate of success believed to be greater than any
other clinical solution in the market. The team has already raised funding, built a fully operational prototype and
will commence full clinical trials in Korea starting in July, aiming to launch the service early in 2015. The device
has two sensors embedded in the front of a wearable headband which provide electronic signals at 2-milli-

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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
amperes. These stimulate brain activity in order to combat the effects of Alzheimer’s. Due to legislation around
medical devices and the need for extensive testing in a small market, YBrain will take a step by step global
approach, and they have already secured $700k in funding for the first stage. They hope to close their series A
round by the end of July 2014 to fuel final development stages and market launch.
• KakaoTalk Releases Kakao Lab
Kakao, a messaging app maker, has just launched Kakao Lab, a feature that lets Android users test new
features before they are officially launched on KakaoTalk. This new feature comes a month after Kakao
merged with Daum to create one of South Korea’s largest internet companies. Users can gain access to new
features by choosing to sign up for Kakao Lab through the messaging app’s settings menu. Currently, two
prototype features that are being tested are “keyword alerts” and “move unread chatrooms to top”. Kakao Lab
is the latest attempt by KakaoTalk to perform wide scale beta testing of their new ideas as well as to attract
and retain users while the mobile messaging app market continues to consolidate.
• Samsung’s New Gear Live Smartwatch
At Google I/O, Samsung showcased a new smartwatch called Samsung Gear Live. This is Samsung’s first
product to run on Google’s Android Wear operating system. The Android Gear OS is organized by “cards” for
messages, reminders, and other functions. Although the whole OS was not available on the day, the demo
watches were loaded with a preset group of cards. The smartwatch had the following functions. The compass
function in the watch lets the user keep being oriented on a hike. The sensor on the back of the smartwatch
senses heart rate, displays it on the watch or any other Android device, and logs the results of multiple
measurements. Using the accelerometer, the watch also counts and graphs the user’s steps throughout the
day. Gear Live also presents travel information like the status of a flight or reminder about a hotel reservation.
• Korea-based travel guide marketplace MyRealTrip raises $1M
Korea-based startup MyRealTrip that provides the country’s overseas travelers with personalized guided tours
in Korea, raised $1 million in its third round of funding led by SmileGate Investment. The startup plans to use
the funding to build mobile apps and expand to include Chinese travelers visiting South Korea. MyRealTrip is
an open, crowdsourced marketplace for local guides and travelers that offers authentic, customized guide
services. MyRealTrip differentiates itself from the traditional tours that often lack personal touch and are very
commercial, by inviting locals with a profound knowledge of their local area to upload their own recommended
tour itineraries. The startup’s sales numbers have increased more than eight-fold since last year, with weekly
visits this May over five times the figure of 5,000 from a year earlier. Reservations have also increased from
around 50 per week last summer to around 250 at present.

Japan
• Japan-based Moi Corporation Raises $5M For Mobile Live Streaming App TwitCasting
Moi Corporation, the company behind Japanese mobile live stream app TwitCasting, raised $5 million in
funding led by Indonesia’s Sinar Mas Group. The company plans to use the funding to extend its reach outside
of its home market and to expand globally. Built in 2010, TwitCasting has two different apps, one for broadcast
and one for viewing, and allows both broadcasters and viewers to chat with one another. The company has
gained momentum over time, as it took two years to reach its first million users and has grown to around 6.5
million users over the last year. According to the founder, the key to its growth is a live-streaming technology
that allows for quick and easy broadcasting, regardless of network connectivity. The app also allows up to four
users to broadcast on mobile or online together.
• Japan News App Developer Gunosy Raises $11.8M
Japanese developer of a news reader application for smartphones and tablets, Gunosy raised $11.8 million in
funding led by KDDI and Jafco. KDDI, Japan’s third-largest wireless carrier by market value, has been
investing in mobile app developers as race for new subscribers intensifies amid a declining population.
Gunosy’s application, which presents news content from more than 50 Japanese media and divides them into
customizable categories, has been downloaded more than 3 million times since it was introduced in January
2013. According to App Annie, Gunosy is the second-most popular news application on Apple’s Japanese app
store and on Google Play this month, after software developed by Yahoo Japan Corp. Gunosy targets 100
million downloads globally in three years.

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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.
5
• Japan’s CyberAgent Ventures forms $50 million fund
Japan’s startup-focused investment firm CyberAgent Ventures has formed a new fund worth $50 million called
CA Startup Internet Fund No.2. Their previous fund CA Startup Internet Fund No.1 has been closed. The
investment firm is planning to invest an amount ranging from $100,000 to $1 million in every single startup they
choose. The company is focusing on companies in the Internet business space but plans to expand beyond it
as well. It is also planning to increase opportunities to meet up with aspiring and active entrepreneurs through
events such as a meetup event called Startup Workout on July 2nd where Loco Partners CEO will be the
guest-speaker.

India
• Indian ticketing site BookMyShow raises $25 million, hints at IPO plans
BookMyShow, India’s largest entertainment ticketing portal, just crossed the US$100 million barrier in valuation,
says The Economic Times. Bigtree Entertainment, which owns BookMyShow, raised US$25 million from
investors led by SAIF Partners, who valued the site at Rs 1,000 crore (US$166 million). This is a three-fold
increase in valuation from the time it last raised funds two years ago. The new funds will be used to further
drive mobile ticket sales. BookMyShow launched in 2007 starting out with movie ticketing, but quickly
expanded to cover sporting events and music concerts. BookMyShow’s founder Ashish Hemrajani says SAIF
Partners’ “experience of having helped companies like MakeMyTrip and JustDial go public will be of immense
value to us”, suggesting that an IPO is not far away.
• Housing.com Raises $19m in Funding
Housing.com, one of India’s leading real estate portals, has just raised US$19m in its fourth round of funding
from Helion Venture Partners (US$8m), Nexus Venture Partners (US$7m) and Qualcomm (US$7m). The funds
from this latest round will go towards helping the company expand in more cities across India, map more
houses and invest in more technology. Founded in 2012 by 12 engineers from IIT Bombay, Housing.com was
the first startup to use technology to create an easy and reliable way to look for housing in India. Currently, the
portal has 109,035 verified property listings across 23 Indian cities.
• HelpShift, India-based Rising Customer Care Startup, Raises $10M
Helpshift, an Indian startup that pioneered customer support in mobile apps, raised $10 million in series A
funding led by Intel Capital. Founded in 2011, the company first started with the idea that desktop-based
customer care was not good enough in a mobile-first world. The company came up with a software
development kit (SDK) last year to embed customer relationship management (CRM) within mobile apps. The
startup now allows customers to get in-app help or connect with a support provider for a two-way chat if a
customer has a problem with an app. According to the CEO Abinash Tripathy, their SDK has been installed in
over 150 million devices globally and is serving over 1 billion app sessions weekly. The startup is serving
hundreds of clients such as Flipboard, WordPress, Flipkart and Supercell.
• India snaps up 52.4 million smartphones in past year, but tablet boom slows dramatically
India!s smartphone sales drastically increased by 244% during fiscal year of 2013-2014 while tablet boom
slowed down dramatically. According to MAIT, the body representing India’s IT hardware, training, and R&D
services sectors, 52.4 million smartphones were sold in India in that time period, thanks to the proliferation of
low-cost phones and reduced data tariffs. Unsurprisingly, desktop computer sales were down. Tablet sales
saw a growth of 76%, which is a big fall from the 424% growth rate in 2012-2013. MAIT projects that India’s IT
hardware market to be US$ 12.43 billion in 2014, up 37% from a year earlier.

Indonesia
• Indonesia’s Online Food Catering Service, Berry Kitchen Receives Seed Funding
Indonesia-based online food catering startup, Berry Kitchen has received an undisclosed amount of seed
funding from East Ventures. The startup plan to use the investment to be more aggressive in online marketing
and develop its technology. Berry Kitchen makes lunch boxes and bento meals, typically targeting office
workers. The startup is responsible for the entire process – it deals with suppliers, makes the food, does the

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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
packaging, and then delivers the food to clients. The startup has 40 employees and currently handles 600
lunch box and bento orders every day. Its target is to increase its order to 2,000 every day in six months.
• Facebook has 69 million active users in Indonesia, launches election tracker
Facebook launched an election tracker called Facebook Suara Indonesia for a country that claims one of its
largest user bases globally. The Indonesian election tracker can monitor who’s the most popular presidential
candidate based on the number of mentions posted on Facebook. According to Facebook Indonesia head
Anand Tilak, the country now has over 69 million monthly active users on the social network. The tracker is
developed alongside digital agency Bubu, which believes that around 70% of conversations about the
Indonesian general election happen on Facebook. Indonesians are also heavy users of Twitter. Twitter
revealed earlier this month that Indonesians have sent out over 42 million tweets related to the election so far.

Taiwan
• Yahoo Taiwan Predicts Ecommerce to Dominate Retail Stores
Yahoo Taiwan Holding Ltd stated that the growing popularity of handheld devices and rapid changes in
consumer behavior mean that e-commerce will soon outperform traditional retail stores. Taiwan’s e-commerce
market is expected to reach $33.7 billion by next year and can be expected to soon dominate more than half of
the local retail market. The market is growing at an annual rate of about 20%. Mobile e-commerce in particular
has great potential, as almost 40% of Yahoo Taiwan’s shoppers surf the Web via their tablet computers and
smartphones. The value of the nation’s ecommerce market is forecasted to increase by 15% this year from
NT$451 billion last year to NT$517 billion and also by another 14% to NT$590 billion next year.
• Taipei-based Cross-Screen Ad Tech Startup Appier Raises $6M Series A From Sequoia Capital
Taipei-based an advertising technology startup, Appier has raised a $6 million Series A funding from Sequoia
Capital. The startup has offices in Taiwan, Singapore and San Francisco, and develops technology used for
cross-screen targeted marketing across a wide range of devices, ranging from wearable tech to smartphones
and tablets. According to the founder Chih-Han Yu, the startup will use the funding to finance product
development and further research for its integrated cross-screen targeting platform as well as expand its
international sales offices. The founder believes that there is a huge growth in Asia for mobile and multi-screen
marketing as the end users are starting to get second, third, fourth screens. Appier’s platform uses artificial
intelligence to match the right recipients with ads, and claims to be the first cross-screen marketing solution in
Asia.

Singapore
• Singapore’s Smart Nation Ambition and its Data privacy Ambiguity
Singapore government unveiled its big plan to become “the world’s first smart nation”, tapping on data sensors
and analytics to enable smart urban living. There are still unanswered questions on the management of such
data, which cuts across government agencies and private entities, and these could prevent Singapore from
realizing its smart nation dream. The government has initiated several initiatives such as a smart nation
operating system, Internet of Things scheme targeted at homes, and pilot trials at a designated residential-
business estate. Pilot trials will be run at residential-business estate and will serve as a crucial testbed for the
country’s smart big plan as they produce more than 1,000 data sensors in the area. However, with so much
data involved, there inevitably will be concerns about data privacy and security.

United States
• Google-owned Nest Acquires Dropcam for $555m
Google-owned Nest has officially acquired connected-camera company Dropcam for $555M. Dropcam will
remain independent from Nest until the deal is closed but afterwards will work towards integrating with nest.
Nest announced that for the time being Dropcam products will be sold online and in stores but its plan is to

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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
work with Dropcam to reinvent products that will help shape the future of the conscious home and bring its
shared vision to more people globally.
• Amazon Announces The $199 Fire Phone, The First Smartphone With Head-Tracking Technology
Amazon has released the Fire Phone, Amazon’s first venture into smartphones. Jeff Bezos states that it is built
for the Amazon Prime customer and also offers one year of Prime for free for every Fire Phone purchaser. It is
an AT&T exclusive for $199 with a two-year contract. The Fire Phone has four corner-mounted, front-facing
infrared cameras that produce wild 3D effects, called Dynamic Perspective, which redraws 3D images at 60
frames per second. The Fire Phone packs a new feature called Firefly that can detect, through the camera,
phone numbers, movies, books, games, CDs and food. It allows Fire Phone owners to buy things instantly that
are found in the world. It is Amazon’s version of Flow and undoubtedly a big marketing hook for Amazon.
Amazon has also loaded it with the most popular music streaming apps: Pandora, Spotify, and iHeartRadio,
and more will be on the phone.
• Instacart Attracts A $44m Series B Round
Instacart, an on-demand grocery delivery startup, has secured $44m in Series B financing. This latest round
was led by Andreessen Horowitz (investors in Airbnb, Facebook and Foursquare). In addition to the funding,
a16z partner Jeff Jordan will be joining the Instacart’s board. Instacart is currently offered in 10 cities across
the U.S. including San Francisco, Austin, Boston, Chicago, Los Angeles, New York City, Philadelphia, San
Jose, Seattle and Washington, D.C. and hopes to be operating in all major U.S. cities by the end of 2015. It
takes less than six weeks to get Instacart up and running in a new city because it has a crowdsourced,
marketplace model that can directly connect personal grocery shoppers to their users. Altogether, Instacart has
raised about $55m from investors such as Sequoia Capital, Khosla Ventures, Canaan Partners, Box CEO
Aaron Levie and Y Combinator president Sam Altman.
• A16z Invests $90m In Tanium
Tanium, an enterprise security and system management startup, has just secured $90m in funds from
Andreessen Horowitz (investors in Airbnb, Facebook and Foursquare). The company was founded in 2007 and
managed to become profitable and operate at full scale without raising any venture capital; this latest
investment from Andreessen Horowitz was the first venture capital investment in Tanium since its founding.
Tanium works with large-scale, established enterprises across a range of verticals, including banking and
finance, telecommunications and retail.
• Food startups, HelloFresh raises $50M
The food-centric startup, HelloFresh has raised $50 million in a new funding round led by New York-based
Insight Venture Partners. Insight Venture Partners also have a list of portfolio companies, including Indiegogo,
Hootsuite, and Shopify. Founded in late 2011, HelloFresh delivers several ready-to-make meals a week to
subscribers, who follow the included recipe cards to cook up their dishes. Each meal costs around $9 to $11
per person, although they are a bit pricier if you order a single box without subscribing. There are other
startups that offer similar services, such as Blue Apron and Plated. All three startups forecast demand based
on their subscriber numbers, keeping food waste to a minimum. HelloFresh is data-driven as it uses data such
as its historical order data and solicited subscriber feedback, to ensure it successfully caters to its customers.
• ThoughtSpot’s Google-style search for business intelligence raises $30M
ThoughtSpot, a startup that has built business-intelligence (BI) software that accepts analysts’ queries in
regular words instead of technical query language, announced $30 million in funding. The startup plans to use
the funding to add more sales and marketing people to help expand its customer base. Rather than analyze
data exclusively as a cloud-based service, ThoughtSpot sells software that runs on commodity servers that
companies install in their on-premises data centers. This is an uncommon action in the age of increasing
reliability on cloud applications. Prices start at $75,000, and companies can handle more and more data by
adding commodity servers to run ThoughtSpot’s program. There are other companies that provide similar
service, such as Birst and DataRPM, which have followed Google’s lead in creating data queries based on the
ordinary words that someone types into a ”search” box. But ThoughtSpot distinguishes itself that the other
tools don’t tend to give precise answers to users’ questions. ThoughtSpot will continue to build one of the most
talented teams in Silicon Valley and bring a Google-like experience to the $14B business intelligence market.

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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.
8
• Enterprise mobile app firm Kony raises $50M round led by Softbank
Kony’s cloud-based development tools for enterprise mobile apps raised $50 million in funding led by Softbank
Capital. . A number of other venture capital firms participated, including existing investors Insight Venture
Partners, Telstra Ventures, and Georgian Partners, as well as new investors Delta-V and Hamilton Lane.
Founded in 2007, the Florida-based company makes a cloud-based mobile application development platform.
Enterprise customers use said platform to build smartphone and tablet apps. Its mobile backend service
includes a variety of prebuilt, cross-platform services for business processes such as human resources,
customer relationship management, field services, and more. According to Kony, the company serves 20
million mobile app users across 45 countries each day and has added 100 new customers last year, including
Aetna, SunTrust Banks, Sirius XM, and Coca-cola.
• Disaster recovery ain’t hip, but it’s important. So Zerto gets $26M more
Zerto, a startup with software for copying data to multiple storage media in order to simplify disaster recovery,
has raised $26 million in new funding. The startup is currently based in offices in Boston and Herzliya, Israel,
and plans to use the funding to keep expanding around the globe and continue product development. Although
disaster recovery is not as trendy compared to the Internet of Things, for example, big companies and cloud
providers believe it is worth spending money to ensure that their information is available even if their data
centers go haywire. Zerto’s take on disaster recovery is to use hypervisors which enable physical servers to
host virtual machines, each of which can run applications. The software works well with VMware’s popular
software for virtualization and can handle a variety of storage hardware. According to Zerto, it is serving 500
enterprises and 100 managed cloud providers as customers, including ING, Fujitsu, and Verizon’s Terremark
cloud division.
• SAP and Oracle security-provider Onapsis raises $9.5M
Cambridge-based security provider Onapsis raised $9.5 million in funding led by .406 Ventures. The company
has staked its position on countering cyber threats and hacks that target business infrastructures. It currently
serves 100 clients in both the private and government sphere, including Siemens, Westinghouse, and Deloitte.
Onapsis is an outward-facing program designed to detect and prevent hacks and malware breaches. There
exists other programs that sit inside client’s system and internally look for trouble, but Onapsis differentiates
itself by preventing viruses from breaking the walls. Onapsis’ solutions focus on protecting “business-critical
applications that manage highly sensitive business information and processes including enterprise resource
planning, supply chain management, and business intelligence.” The company will use the funding to ”enhance”
its product line and expand sales internationally.
• Home Care Cloud Service ClearCare raises $11M
ClearCare, a front- and back-office solution for private duty home care agencies that the company delivers as
software-as-a-service, raised $11 million in funding led by venture capital firm Bessemer Venture Partners
(BVP), with Cambia Health Solutions also participating. Home care like ClearCare has become seen as a
bright spot with an aging population and out-of-control healthcare costs. ClearCare’s web and mobile platform
enables paperless scheduling, integrated telephony, two-way caregiver messaging, and marketing functions.
The startup plans to use the funding for product development. ClearCare already serves more than 1,300
home care agencies, including three of the top five national franchises. ClearCare CEO Geoff Nudd believes
that home care is the lowest-cost institutional provider of care serving the highest-cost patient population.
• CloudPhysics Grabs $15M And Announces New Virtual Storage Predictive Analytics
CloudPhysics has raised $15 million in Series C funding led by Jafco Ventures. The latest round brings their
total funding to $27.5 million, more than doubling their previous contributions. CloudPhysics has a vision for the
data center: it wants to give sysadmins clarity and insight into possible issues that create bottlenecks in a
virtualized environment, offer solutions when they happen, and help prevent issues before they even happen
— all as a cloud service. The company also announced the release of the latest version of the CloudPhysics
platform, which enables sysadmins to predictively troubleshoot storage problems in a virtualized network. The
company uses data from its entire network of customers and combines that with data it collects from each
individual customer data center to build a big-data collection of information that it can then use to help make
predictions about the data center behavior, presenting it in a visual manner. CloudPhysics claims to collect
140B samples a day, 50T to date and that this is only going to grow as they gather more customers, partners
and third parties using the platform.

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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.
9

Europe
• Kreditech Attracts A $40M Series B Round
Kreditech, a credit rating service for enterprise which offers micro-loans to customers based on social and
commerce data, has recently secured $40m in Series B financing. This latest round of financing, which was the
largest ever for a German financial services technology company, was led by Värde Partners (a PE fund) and
joined by existing shareholder Blumberg Capital and Point Nine Capital. Additionally, this funding comes not
long after the company secured $15m in debt financing from Kreos capital last January. The company plans on
using its newly acquired funds to broaden its financial products and expand into new markets.
• Cisco buys software-defined networking startup Tail-f for $175M
Cisco announced to buy Sweden-based startup, Tail-f Systems for $175 million. Tail-f Systems offers “multi-
vendor service orchestration”, which means it provides a software layer that allows you to manage a wide
range of networking devices via a single interface. According to Cisco senior VP Hilton Romanski, the
acquisition of Tail-f will extend Cisco’s innovation in network function virtualization. This deal brings Cisco’s
recent SDN acquisitions to over a billion dollars, as the company bought another startup, Insieme, for $900
million. Cisco also states that the acquisition will position it better for helping companies manage the explosion
of people, devices, and sensors being interconnected across the “Internet of Everything”.
• CozyCloud that lets you build your personal cloud server raises $1.1M
A Paris-based startup, CozyCloud that builds an open-source platform for personal cloud storage, has raised
$1.1 million earlier this month. Founded in 2012, CozyCloud lets the user set up a server (based on Android)
that provides contact, calendar, file storage, and email –all under your own control. The server supports
synchronization with mobile devices and laptops. Previously, other companies such as Tonido and BitTorrent
Sync, have attempted to build a “personal cloud”, in response to concerns about privacy and security with the
big public cloud providers. However, few have succeeded. CozyCloud faces challenges in making its tech as
easy to use and as convenient as popular cloud services.
• Etsy Buys French Startup A Little Market In Its Largest Acquisition So Far
Etsy has acquired A Little Market, a Paris-based startup that acts as an online marketplace for handmade
items. Although the terms of the deal were undisclosed, Etsy says that the deal was its “sixth and largest
acquisition to date”. Even after the acquisition A Little Market will continue to operate independently. According
to Etsy, its business in France is more than 90% import/export and therefore believes that A Little Market,
where most goods are sold domestically, will complement its existing business in France. As Etsy focuses on
international growth, its top priority is to capitalize on the strongest economies in the world – France being the
fifth largest economy, the seventh largest e-commerce market globally, and the strongest non-English market.
• UK-based Online Investment Management Startup Nutmeg Raises $32M
UK-based online investment management startup, Nutmeg raised $32 million from Carphone Warehouse
founder Charles Dunstone, asset management house Schroders, and top-tier European Balderton Capital.
Nutmeg wants to disrupt the world of financial investing by making it affordable for the masses. The startup
offers portfolio management services to anyone with as little as £1,000 to invest. It has over 35,000 registered
users now and claims that its customer acquisition in Q1 increased by 350% last year and is already in the top
25 of wealth managers in the UK. The UK market of financial investing is worth £500 billion, and while
traditional investment managers pay 1.36% commission in fees, Nutmeg’s charges start at 1% and go as low
as 0.3%.

Israel
• Tel Aviv University and Tsinghua University Sign a $300m Deal to Trigger Nanotech-Computer Science
Innovation
Two prominent tech universities in Israel and China, Tel Aviv University and Tsinghua University, recently
signed a $300 million deal that will enable an exchange of PhD students from two countries. The deal will

SparkLabs Gl obal Ventures’ Technol ogy
and Internet Market Bi -Monthl y Revi ew
June 30, 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.
10
eventually lead to having satellite offices on both campuses. Tel Aviv University president Joseph Klafter sees
this new relationship as a way for students to collaborate and eventually launch IT-based startups of their own.
This deal marks the largest exchange in the history of the two countries and has profound implications for
global tech innovation. Both countries produce some of the best developers globally and the deal depicts
Chinese interest in tapping the tech know-how of the so-called “startup nation”. The deal is called Xin, which
means heart or mind in Mandarin, and initially seven graduate students from Tel Aviv University and 14
graduate students from Tsinghua University will take part on the exchange. Part of the $300 million will go
toward designing prototypes and connecting the academic sector to the broader business world and to
commercialize joint projects.
• Israeli-Canadian Entrepreneur Benny Landa Raises $130M for His Digital-Print Startup
Benny Landa, the Israeli-Canadian technology entrepreneur whose Indigo brought digital printing to the world,
has raised $130 million in funding led by the German specialty chemicals group, Altana for his latest digital-
printing startup. The startup plans to use the funding to build manufacturing plants in Israel for the printers and
inks, as well as for further development of Nanography, Landa’s water-based digital printing process.
According to Landa, the startup has received orders of about $1 billion and up until now has financed
everything by himself. He believes that Altana, which had 1.8 billion Euros in sales last year from chemicals
such as ink supplements and pigments will bring in industry and market experience as well as manufacturing
expertise to his company as it expands globally.

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