First Thoughts on Meeker’s Internet Trends

I’ll always remember how excited I was every time Mary Meeker’s report came out – especially when I was still a banker at Barclays. It not only contained tons of useful market data (a gold mine for analysts), but it also marked the steady passage of time. You could always count on a new Meeker presentation every 6 months, or so, and the topics she discussed often had a nice continuity. Today, these reports are a pleasant reminder of how lucky and excited I am to work with companies that will shape our future.

Some of my initials thoughts:

  • Slide 8: Very surprising that PC users are still lagging global TV users. This data shows that technology platform shifts can leapfrog each other. The “next big thing” (in this case, PC’s) may not be as big as the “next next big thing” (mobile phones). 
  • Slide 9: It’s no longer enough to be the “largest in the U.S.” – companies need to think globally. It’s disappointing that those of us in the Valley still tend of think of tech as being very US-centric. For example, most people can name tons of early-stage startups in SF, but haven’t heard of companies like Alibaba or Baidu. Meeker goes long on China later in the presentation (slides 127 – 136).
  • Slide 10: If it wasn’t clear enough already, platform wars are over and Android is a clear leader (though not without its problems).
  • Slide 15: Meeker has underlined the disconnect between “time spent” and “ad spent” for years now. The hold that print advertising has comes from the strength of traditional advertiser/publisher relationships and the traditional budget split between branding and performance campaigns. 
  • Slide 55: Meeker positions the “Internet Trifecta” as getting a critical mass of content, community, and commerce. I believe these criteria mainly fit e-commerce companies. Other consumer web startups, such as Dropbox or Uber, have focused instead on delivering unparalleled value to the user, without the 3 C’s.
  • Slide 161: This slide is probably the most valuable to founders & entrepreneurs. Particularly this piece of advice: great companies grow revenue, make profits, and invest for the future. 

I’m an investor, and since most of Meeker’s analysis is backward looking (historical trends and “re-imagined” use cases), I try synthesize some of her forward-looking takeaways. Most prominently, Meeker’s presentation sheds light on three major markets: Online Video, Healthcare, and Education. Some of our most recent IVP investments tie directly to these themes, such as ZEFR and General Assembly, and I’m excited to discover other great startups in these verticals.

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