Corporate participation in venture deals in Asia 2014 — Q2'17 $18 25% Capital invested ($B) % of total deal count $16 $14 20% $12 15% $10 $8 10% $6 $4 5% $2 $0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2014 2015 2016 2017 Source: Venture Pulse, Q2'17, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 13, 2017. With much of the emerging venture scene in Asia already dominated by businesses affiliated with or spun out of established tech giants, the elevated rate of corporate participation in VC activity is perhaps to be expected. That said, the surge upward to a new high of 22.5% of all venture activity is not only indicative of the decline in volume but also the robustness and resilience of Asian corporate interest in staying on top of innovation. “Enhancing the overall customer experience is becoming a key driver as more developed businesses refine their business models to boost their path to profitability. Apps like food delivery and ride-share are starting to heavily invest in training staff.” Lyndon Fung US Capital Markets Group, KPMG China © 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. #Q2VC