Wednesday, November 19, 2014

China’s Qihoo 360 To Invest In Israel

The Chinese Internet-security company Qihoo 360 Technology Co. will spend some of its new a global, early-stage $60 million fund on investments in Israel, according to a report in the Wall Street Journal.

This is just the latest example of the growing relationship between China and Israel.

The business ties between Israel and China just keep on getting stronger and stronger. Corporations from both nations have invested in the other and as cultural and educational ties have also been strengthened of late.

The intended fund, called “360 Capital—IoT Fund,” will focus on investments in China, the U.S. and Israel.The plans for the new fund were revealed by a company executive during a presentation that he gave in Israel last week.

Qihoo has already made investments in Israel over the past year, including ones in two funds, Carmel Ventures and Jerusalem Venture Partners. It also invested in Israeli image-recognition-technology company Cortica Inc., gesture-control-technology company Extreme Reality Ltd. and messaging-app maker Glide Talk Ltd.

Founded in 2005, Qihoo provides Internet and mobile security products and services in China. Its core Internet security products include 360 Safe Guard, a solution for Internet security and system optimization; 360 Anti-Virus, an anti-virus application that uses multiple scan engines to protect users’ computers against various kinds of malware, as well as 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Windows smartphone operating systems.

A Qihoo rep met with a number of Israeli startups over the past few weeks, including ones developing technology for wearable computing and connected homes.

Tuesday, November 18, 2014

Fitness Wearables Will Bounce Back From Smartwatch Threat, Says Gartner

Posted 11 hours ago by Natasha Lomas (@riptari)

Next Story

What’s the short term trajectory for fitness wearables? Down. Analyst Gartner is projecting a dip in overall shipments next year, owing to overlapping functionality between different types of fitness wearables and because smartwatches are eating into their functionality (while also offering more in the way of communications features).

But the analyst expects the fitness wearables category to bounce back in 2016 because of better, more versatile designs and lower cost displays. In other words, fitness devices are going to up their game.

In a global forecast on fitness wearables, the analyst projects shipments will reach 68.1 million units in 2015, down from 70 million in 2014, as a larger proportion of buyers opt for smartwatches instead (it estimates that half of people considering buying a smart wristband will purchase a smartwatch instead next year — which is, of course, whenApple is expected to launch into the space). But by 2016 it sees shipments bouncing back – to total 91.3 million units.

Gartner segments the fitness wearables category into five main form factors: smart wristbands, sports watches, other fitness monitors, heart rate monitor chest straps, and smart garments.

While smart wristbands and other fitness monitors are currently the most popular form factors, the analyst identifies the latter emergent category as having the “greatest potential for growth” being as it’s emerging from the testing phase. It’s projecting shipments here will grow from practically nothing (0.1 million units) in 2014, to 26 million in 2016.

Gartner adds that it expects continued overlap in functionality between smart wrist bands and smartwatches, but sees fitness bands and other fitness monitors carving out a non-retail niche in the future – by being increasingly offered by gyms, wellness providers, insurance providers, weight loss clinics and employers, sometimes at subsidised prices or for free. It said it expects a quarter of these fitness devices to be sold through non-retail channels between 2018 and 2020.

“These companies will serve as a growing distribution channel for device manufacturers,” it adds. “The new channels also result from fitness monitors being integrated into employee badges or identification bracelets for access control. Business-to-consumer companies will have rewards or gamification linked to the use of wearables as a way of keeping customers engaged with their brands.”

A key driver for fitness wearables to continue to proliferate, according to Gartner, are the big funding initiatives from the likes of Apple (HealthKit), Google (Google Fit), Samsung (S.A.M.I.), and others, which will allow consumers to integrate data from multiple wearables into a single account where it can be analyzed and yield useful insights for the wearer.

Wearables are a subset of the IoT....

IDC: Internet of Things Market Will Grow to Over $3 Trillion by 2020

by Saroj Kar on November 14, 2014 · Leave a Comment

The convergence of the cloud, mobile, big data, social and other sensors, is generating huge new opportunities for companies to offer their customers and employees services and modes of interaction that were previously unimaginable. People, things, machines and processes are becoming increasingly networked, creating a permanent channel between the real world and the virtual dimension, and revolutionizing the way we interact with all not only in the private sphere but also in the work context and business.

At the center of this revolution is the Internet of Things (IoT), which allows you to create new generations of solutions in diverse fields. Globally, the turnover associated with this market (sensors, services, platforms and analytics) will grow from $1.3 trillion in 2013 to $3.04 trillion in 2020 with a compound annual growth rate (CAGR) of 13%, says IDC. At the end of 2014, the value could reach $2.3 trillion, of which about 27 percent resulting from the scope commercial, 19 percent by the public sector and the rest from the set of industries.

IDC defines in the report, “Worldwide and Regional Internet of Things (IoT) 2014–2020 Forecast: A Virtuous Circle of Proven Value and Demand”, the Internet of Things as a network of networks with uniquely identifiable endpoints that interact without human intervention, using an IP connection, both locally and globally. The early stage of formation of the market, according to analysts IDC, provides an unprecedented opportunity for governments, suppliers and consumers. With the development of IoT, various strategies of key players will lead to an understanding of consumer needs and increase their satisfaction, and revenue growth.

This revolution implies a profound transformation of production processes and an increasing convergence between the industrial system, ICT technologies and communications infrastructure. According to IDC, over the next few years devices, sensors, applications and data center will talk more and more in a heterogeneous technology environment, where the evolution will be driven by the ability to experiment and collaborate the most innovative companies.

The report noted that the opportunities presented by IoT are driving widespread attention among both traditional and non-traditional ICT vendors looking to take advantage of emerging revenue opportunities. The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions.

It is also noted that the startups in this area are working very hard, trying to quickly decide on strategies that will attack the market. And this activity is stimulating the pace of learning and innovation among the major players.

The European IoT market promises fast growth with a CAGR of 21.3% from 2013-2018, exceeding that of the world market, thanks to widespread environmental awareness and a strong propensity for experimentation of public and private companies.

The areas where the Internet of Things will have the greatest impact over the next few years, ranging from construction (construction industry) to manufacturing, from the environment to the utility, the Smart city to advertising, from transport to the smart home (homes hyper-connected), from shopping to healthcare. The structure of the IoT ecosystem includes devices such as intelligent surveillance systems, network equipment, network services, appliances and software products.

Monday, November 17, 2014

Techcrunch analysis here...

http://techcrunch.com/2014/11/15/the-kingmaker-strategy-pioneered-by-the-chinese-internet-giants-coming-to-america/

The Kingmaker Strategy: Pioneered By The Chinese Internet Giants, Coming To America?

Posted Nov 15, 2014 by Jeff Richards, Jixun Foo

Editor’s note: Jeff Richards and Jixun Foo are Managing Partners at GGV Capital, a $2.2 billion venture capital fund focused on the U.S. and China. GGV is an investor in Alibaba Group, MediaV, Meilishuo, Quixey, Qunar, UCWeb and Youku Tudou.

A few weeks ago, Chinese e-commerce giant Alibaba made a number of announcements at its annual developer conference. Several announcements surrounding its mobile strategy related to a Silicon Valley startup called Quixey. What is a $200 billion+ e-commerce giant doing with a startup based in Mountain View, Calif.?

It’s the latest example of the kingmaker model we’re seeing the Chinese Internet companies execute very well:

1) Pick a fast-growing leader in an important emerging category

2) Make a sizeable (more than passive or minority) investment in the company, often taking a board seat

3) Go “all in” to help drive the smaller upstart to new heights and outright leadership in its category

a snip from another item...

For instance, the Alibaba association has helped Peel to acquire two companies in China. The deals give Peel access to talent in China and leverage in what is the startup’s fastest-growing market, he told Silicon Dragon attendees.

It’s a pattern we haven’t yet seen take hold in the U.S. but believe we might.

Alibaba's U.S. Startup Stakes Offer Strategy Clues

By DOUG TSURUOKA, INVESTOR'S BUSINESS DAILY

Posted 10/29/2014 05:07 PM ET

While it may make a U.S. mega-acquisition, Alibaba is also pursuing a lower-key strategy here: investing in promising U.S. tech startups.

The exact purpose of its investments is unclear. Some appear aimed at tapping technology that Alibaba Group (NYSE:BABA) needs to compete vs. Chinese Internet giant Tencent (OTCPK:TCEHY) and other rivals. Others may be more strategic and have a long-term focus on the U.S. and other markets. One key area seems to be mobile and entertainment content, where U.S. players like Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) are already entrenched.

Alibaba's taking the long view, some analysts say.

Alibaba was among exhibitors at this trade show in its home market of China, but the firm plans to be a big presence in other markets soon. View Enlarged Image

"Investing in U.S. startups is a really long-term strategy, a strategic investment," said JG Capital analyst Henry Guo.

Others say that Alibaba is keen on introducing into China the cutting-edge apps and other tech that these firms have been developing. Getting an Alibaba stake is also a fast way for these startups to access the Chinese market.

Whatever its purpose, Alibaba is engaging in a stateside investment spree. On Oct. 9, Alibaba said that it had invested $50 million in Mountain View, Calif.-based startup Peel Technologies, developer of an app that turns iPhone and Android phones into remote controls for TVs. The investment follows smaller investments in Peel by Alibaba earlier this year.

Analysts view the stakes as an effort by Alibaba to move outside its core e-commerce business into the smart-home market and mobile entertainment apps.

commentary...I use this as a model on how the adjacent possible has shifted for QUIK, more and more as the dots are unveiled they will be unexpected good stuff, as opposed to unexpected bad stuff. For those who have been invested a looong time in this business it is/will be a very nice change.

In January, Alibaba invested in 1stdibs, an upscale New York City-based startup that sells luxury goods, plunking down $15 million in series C third-round venture funding.

It also poured $215 million into Mountain View-based Tango, the developer of a messaging and free-calling mobile app. Some analysts viewed the Tango investment as a defensive move against Japanese online retail powerhouse Rakuten, which is expanding globally and which said in February that it's buying Viber Media, a Tango rival, for $900 million. Viber is a Las Vegas and Cyprus-based Internet messaging and calling service.

Other U.S. startup investments by Alibaba include $250 million in series D fourth-round venture funding for San Francisco-based ride-summoning firm Lyft in April, and a $120 million investment in Kabam, a San Francisco-based video game startup.

Not to be outdone, Tencent has made over a dozen investments in U.S. startups in the last year. And Chinese search leader Baidu (NASDAQ:BIDU), another Alibaba rival, acquired TrustGo, a Santa Clara, Calif.-based mobile security app provider for $30 million in February 2013 in a push into mobile search technology.

As its rivals maneuver, JG Capital's Guo says that cash-flush Alibaba is looking far into the future where the U.S. market is concerned. With pockets bulging from its $25 billion U.S. IPO , Alibaba can take its time selecting the best mobile social apps and U.S. startups in which to invest.

"Investing in Tango doesn't make much difference to Alibaba's top line right now," Guo noted. "It's still too early."

QUIK, sensor hubs and the "adjacent possible"