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June 11, 2006

Mary Meeker's game changers

Morgan Stanley Internet analyst Mary Meeker's presentation at the Stanford business school provides an overview of Internet and Technology industry trends including a lot of interesting data and analysis.

Mary Meeker

Especially telling is the chart on how the combined market caps of the Top 5 global Internet leaders (Google, Yahoo, eBay, Yahoo Japan and have moved from the year 2000 via the "Internet bust" of 2001-02 to 2005.

Top 5 Global Internet Market Cap Leaders

Google + Yahoo! + eBay + Yahoo! Japan +

• $ 2B = market value - pre-2000 IPO
• $178B = market value - Nasdaq peak – 3/10/00
• $ 32B = market value - Nasdaq trough – 10/9/02
• $262B = market value - 11/11/05

As Meeker points out in another slide, what we have witnessed is that while there has been a "Boom -> Bust -> Boom-let" pattern in Company Creation, the trend is atually "Boom-let -> Bust -> Boom" in terms of Wealth Creation.

Going forward, here is what Meeker considers as current and potentual "Game Changing" technologies:

Wireless (Duh!) - as mobile leads Internet is most markets outside the US. She points to an emerging "Mobile-PC" paradigm (similar to client-server) where users program their PCs to serve abbreviated version of their content wirelessly to their mobile devices.

Storage - an iPod Nano packs 4GB in < style="font-weight: bold;">


Video applications

VoIP - 61 million Skype users as Oct. 2005

User Generated Content

On Demand Software

Open Source?

Click Here to download the presentation.

Hat tip: Matt MaCall

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.