2007 February - - 500kfund prophet cast Innovation - Innovation + Passion + faith + capital ...

Sender: NEWUPMAN (upman), the letter area: StartUp. .


Title: Re: about venture capital.


Letters stand: BBS Unnamed Space Station (Wed Feb 7 02:33:59 2007). .


VC series: an engineer in the eyes of a venture capitalist.


The writer Nick Tredennick is an American engineer who played 10 years with the VC's dealings, both good and bad,. .


Are reflected in article · · · · · ·.


With my first venture capitalists (VC, venturecapitalist) deal in 1987, when their. .


The impression is not very good, but in the process of contact with them I found venture company revealed a lot of universality.


Since then, I participated in more than 30 companies founded and done founder, consultants, engineers, managers and directors. .


It acts as a "than in the past only matchmaker" (as do technical engineers and rich venture formed the "marriage".


The "go-between") to be more complicated than that, in the process of engaging in this business I naturally developed some ideas and see. .


Method.


Now, many books and articles in praise or praise VC, but I just want to talk about from the perspective of an engineer on the VC. .


Understanding, perhaps this article seems to imply some defamation VC, I do not mean tinted glasses to judge.


Them, I just objectively describe my feelings, I did not try to change human nature and hope for them. .


Change your style and principles.


In fact, the engineers belonging to vulnerable groups, VC know how to deal with engineers, but engineers do not know how to right. .


Payment of VC, this is an objective fact, VC is the use of this advantage "Bully" engineers, their goals.


Is to venture funds and their investors to maximize the return, without taking into account the interests of engineers. But engineers also have their own. .


Strengths, they are solving technical problems for campaigner, if on the basis of this understanding some knowledge of operational risk investment.


, They can be relatively fair treatment of some, but I will not provide a detailed way here, those content enough. .


Enough to write a book, I just want to wake the engineer, allow them to realize their own embarrassing position.


See the nature of VC. .


VC is linked to the wealthy investors and technical staff of bridges, under normal circumstances, the engineers at start-up needs help.


In the VC, it is to attract investment the most direct and rapid way. Of course there are other choices, for example, you can rely on its own. .


The original savings, but you probably don't have much money; you can also find a friend or family member to raise funds, but that was the friendship and. ..


Affection for the risk; you can find "angel investors", but that could take a long time, and time. .


Very high.


VC is a close link between each other, they have their own communication circles, and also relatively close, in fact, if not. .


Personal recommendation or introduce your is very difficult to be favored, and I hope the VC VC plans from thousands of business books are like your own.


Idea is very naive and childish. .


VC will not sign non-disclosure agreement.


If you think that VC is very trustworthy and will not disclose any of your secrets, then you really is a big fool, reported. .


V. you something, VC will not sign any non-disclosure agreement with you, with you in the process of dealing with the VC is always beneficial.


Status, they may like your idea, but want to subsidize someone else to do. I have at least two friends connected with the VC. .


Touch is a deception, VC bet with them after holding their creative financing of others.


The first example is the obvious plagiarism, my friend John a lot of drafting the business plan the contents of the book actually being copied. .


The VC funded by another program, John sued venture capital company, finally won the lawsuit, obtain a..


Some compensation and spiritual victory, but completely lost the business, and stole John innovative startup company that was listed. .


The integration into a large sum of money to the VC made a lot of money. John's experience is not bad, more,.


Entrepreneurs simply do not have time and enough evidence to prosecute VC, only watched people get their things to make. .


Money. Another friend Peter is also a VC pit, he talked to several venture capital firms when dealing with a VC times.


Peter's company sent experts to examine technical conditions and Pete obtain investment from VC after another has found it to invest in public. .


Division for their own experts to launch the same creative projects.


VC like to follow suit. .


Now e-tech industry and more like fashion and toys, fashion has become a very significant driving force, and a variety of.


New programming language, design technology after another, even the high-tech company's business model to make money once fashionable way to go. .


Line. In fact, the VC is the craziest fashion obsessed fan, what hot they ran. If a famous wind.


Risk investment funds to invest in a configurable electronic weaving machines, then the other VC investment money will follow. VC go with the big. .


A field, or just get a lot of investment, or any investment. If you are very good at fashion.


The trend Qingwu flying, then get VC investment opportunity is very large, but if your idea is too new and look. .


Too different, then you have to invest more very large.


VC do not understand technology. .


In General, VC and don't understand technology, despite or learn engineering graduates. Engineering degree is only a starting point.


If you design and manufacture a product, you will become an engineer, if you engage in professional work, you can. .


To become a member of the Administrators or venture capitalists. Silicon Valley VC technology background is the best, your company from the technology industry.


Center farther, investors do not pay attention to the more technical content, they are money-centric. .


If you can't read, VC and new ideas, then they will abandon you, they are primarily concerned with their own familiar areas.


If not associated with technology and growth expectations such as marketing strategy. .


Experts do not exclusively.


If the VC is interested in your ideas, they will send at least one "expert" to assess your project, do not think. .


These "experts", in fact, they did not understand the technical details of the frontiers.


I have contacted a start-up companies, the company designed the firewall has a very innovative idea: Use Code. .


Cheng logic device to speed work. Speed means that there is no buffering, and does not require data to be stored.


Therefore, there is no need to use microprocessors and IP address, simple installation, management is also simple, but experts now see before. .


The mechanism of realization of the firewall too, even if the programmable logic device companies also do not understand how it works, in. ..


Their view, not to design microprocessors and IP address of a firewall is like a car without an engine manufacturer as absurd. .


It is clear that the company did not receive investment, the founder had to go back to the big companies, this result is not.


Well, a few industry innovations, technological progress has also been delayed. .


VC is not responsible for the risk.


VC has been translated into "risk investment (home)", so people generally think that VC investment to bear in the big risk, but. .


In fact there is no risk that they may undertake. VC investment fund is created mainly for rich management of money, for investment.


Who is responsible for the basic principles of investment decisions they make when they are very cautious, almost timid as in the conservative, a large. .


Investment Fund on a project and make a great investment, you must ensure that it is very good for creativity, and had a successful first.


Cases. In general, VC is pay attention to previous history, they had a lot of money like those who make the team or idea, which. .


As Hollywood would rather make some successful movie sequel does not take a new batch of original movies.


VC investment funds created after the investors on the money management fees and "into" the general investment into profit. .


20-30%, this determines the VC is engaged in almost steady even. Investment funds will generally not for investment.


With areas of the company, so the risk was spread a lot, sometimes VC or start-up companies members of the Board, can. .


Investment company for stock options, so that basically there is no risk of VC.


Wealthy investors Daoshi take some risk, although the structure of the reasonable risk of the portfolio can be reduced a lot. .


But after all, has not been completely eliminated. Genuine commitment to the greatest risk are those who have the entrepreneurial spirit of the engineer, who.


Company has invested a lot of time, mental or emotional, successful, VC too big head, failed, his years. .


Efforts will be futile.


VC shot very generous. .


If your company needs a lot of money, say $ 100 is, then you have the same return only need 1 million us.


Element of the company's access to investment opportunities on the big, because those who manage billions of dollars of investment funds prefer large items. .


Head, they simply don't have the time and manpower to manage hundreds or thousands of small projects, $ 100, even 500 million.


Project they bothered to do. In this environment, if you only need a few million dollars, get the investment opportunity. .


Relatively small. (Www. heck .haiguinet. .com).


Complicit in the VC. .


For project evaluation and pricing, VC will often permit, they often get together to discuss some alternatives for the public.


Division of investment and pricing, pricing, mainly related to the total capital stock number and price, these will be in the VC to start-up companies. ".


Provision sin ". VC follow the principle of automatic optimization, they are not in an industry in a specific area of investment in seven.


Companies, generally only the limited number of investment objectives within two or three, on the one hand to prevent their own interest groups competing with each other. .


On the other hand, to ensure the success of individual companies. This of course has many negative effects, the biggest thing.


Restrict competition and thus limiting innovation, technological progress slowed. .


But we know that in nature, competitive environment can foster healthier, more dynamic, living organisms.


Before the high-tech industries, competition is also very useful "gene mutation", competition will only result in reducing stagnant. .


Of the situation. For example, in the area of the hard disk, in 41 companies competing for market share, the hard drive in the advancements.


Clearly, comparison, only three major manufacturers floppy disk in the field of competition is almost stagnant. I'd did not. .


There is talk about market size and market opportunities (hard drive business operations than a floppy disk), I only say that competition and innovation speed.


Relationship. (Returnees Forum www.. Haiguinet.. Com). .


VC does not explicitly say no.


If the VC you do, please be assured that it certainly will give you a call, the last will give you a check, but. .


If it doesn't interest you, and you won't receive a reply. Long silence means refusing, VC is very cunning.


They do not explicitly say "no", as equivalent to encourage you to look elsewhere for money and, on the VC for the self. .


So bad that they most want is to have you been hanging in a tree. VC sometimes holding a "wait and see" attitude.


Because fashion is constantly changing, and technical staff will continue to improve their products, perhaps next year will be your proposal. .


Better. In addition, VC also want you to get more inspiration, innovative ideas to add to other start-up companies.


The plan to go. .


If there are other VC know you choose, they often will deceive you: "I'd tell you to do the deal, but I. ..


Take some time to find some partners. "" We need more time in order to get expert advice. "." .


We very much hope on your investment, but now we are in the process of liquidation of a $ 500 million fund that will occupy us all.


Time. "" I'll give you a few days call it. . ".


Once you have no other choice, they mastered manipulation you..


VC adoption "pet." .


In VC, "pets" is "residency to start-up companies in the implementation of management personnel". Many venture capital firms are reservoirs.


With a large number of managers, even when not living doing one a month you can get 20,000 U.S. dollars, a figure on one. .


Like engineers, or very high, but only enough to them that people in the circle with the meal. "Pet" in management.


Start-up companies have very extensive experience, usually primarily a consultant. When the VC is ready to invest in your company, they are. .


"Pets" will carry out a detailed questioning your management team's experience, there is no need to worry about your team is not good, will give you a VC.


With the necessary personnel, they will send you a new CEO, to start a band of buddies you had all replaced. .


Your ideas, your work, and their company.


In general, VC will be sent to the CEO a 10% stake, will be assigned to each member of the board 1% stake in the whole. .


A company's technology team can only get up to 15% of the shares, the rest be venture capital company, and later additional investment.


Shares when the company's technical team will be further diluted. VC controls the board of directors of start-up companies, they may be one. .


Month or quarter-to-company visit and listen to company managers do report, publication, advice and debt.


Take some personal stock options (the only possible exception is the CTO and vice president in charge technology). In short, VC control you. .


The firm, you and other engineers only work share.


I know a company, its valuation a year ago was a good investment, the company's rapid business growth that year. .


The development of a new product that meets or exceeds the expected objectives, as well as planned to spend all the money.


It was later also need money when the investment environment has changed, and last year's major investors do not want to re-enter the company's stock. .


The "pricing" to "lead" to do the next round of investment. The "pricing" is on the stock price and the value to the company.


Assessment, if the company as a pie, it is equivalent to divide it into many small pieces (shares), an investor. .


The "first" on the next round of a major block of shares to price other investors have followed his bid, in the end, engineering.


VC in the hands of the toy division only. The end result is that, after an investment valuation of this company only last year's three. .


One of the points.


Later, investors prepared to pull back, asked to renegotiate the previous round of investment, they said, "Given that a valuation..


Relatively low, and we think that a wheel valuation is too high, so we hope to get more shares to make up for previous investment.


Loss of time. "If entrepreneurs sham, then re-invested on the last round of negotiations is reasonable, but the question..


Yes, they do a very good, however, whether these be VC, they want to go back on when you can recover the previous bid.


Promise. .


Think about it another way, if the agent is in a privileged position, VC will often say, "taking into account market.


Development, your ideas clearly than we first expected, more valuable, so we think should be the last investment. .


Half the proceeds from the shares back to you. ” 。.


Unfortunately, this situation does not exist, so we have to accept a harsh reality: entrepreneurs are weak. .


Potential group.


Engineer is the creator of value. .


VC is good to play the game, but not capital understand technology entrepreneurs understand the technology, but do not have the money to each business has the company's technology.


Own characteristics, but the knowledge is applicable to all capital start-ups. VC does not care about a technology, they capture the machine. .


Just to make money, so do capital VC often do not pay attention to the valuable technology, for example, one year ago a VC.


Crazy camel rushing to the Internet company to vote the money, but this year they went to the other extreme, even if you can create a planet. .


Wars of the conveyor, they may also have no interest to you.


This is not a technical or personal problems, but financial problems in the VC view, engineers, and their creativity is just business. .


Products only. Venture capital firms can press technology team, because they can, but VC think to do that is to carry out its for.


Themselves and to create the best interests of fund investors responsibility. .


But in fact, the agent is not a commodity, to reduce the share of the stock could engineer the opposite: they demoralising, hygiene.


Productivity will suffer, eventually they leave, the company finished. .


Must recognize the fact that an industrial revolution is an engineer, not managers, created by VC is not possible.


Appreciate this. Moore's Law and technological genius of wisdom is the driving force of electronic revolution, the huge market demand for products. .


You have accumulated enough kinetic energy, so powerful, so that managers decision cannot affect.


Sub-revolutionary step forward. .


After all, in a word: an engineer is a creator of wealth, VC only beneficiaries.


Solution. .


Creating future engineers deserve fair treatment, but now they haven't, you want to change this situation, I have a..


Three proposals:. .


First of all, the wealthy engineer should consider investments in start-up companies in order to get what they deserve. You're not.


Necessarily have as rich as Bill Gates for the job as long as 100 million or more in net capital or income to meet the minimum. .


Limit, you can become a "qualified investors" and participate in the venture capital company of upfront investment. Now, the millionaire's Club.


Members more and more crowd in a lot of engineers. .


If you are a qualified investors, it is best to do venture company of angel investors, to provide seed money or do the former.


Rounds of investment, but to grasp their investment, if you can not pay too much money on less investment, because early. .


Investment risk is great. Start-up companies need your money, and more need your valuable suggestions. Capitalized, entrepreneurial public.


Division increased, technological progress will accelerate and create the wealth will be increased accordingly. Wealth is not only about profit. .


Money, but also reflected in the quality of life and standard of, of course, it is irrelevant.


Second, the engineers should together form a venture fund. Start-up companies need a lot of angel investors, but also need good organization. .


Good angel investment fund. I very much want to see the engineers do dozens of 1 billion dollars of venture capital funds, he.


Are mainly in the seed and the next round (A round) investments to provide seed money and advice, and receive professional financial people. .


Member of the Guide, they will represent a different from the traditional venture capital company of the forces nouvelles.


The third recommendation is that I very much want to see an engineer to do the public transport venture capital firm, which sold shares to the public. .


To raise funds, and to raise the money to invest in start-ups, and not necessarily only money investment talent to play.


As long as the purchase of stock, anyone can invest in business enterprises, such companies better understand the technology and engineers need. .


Investment result will be better.


"Unless you want to eat his savings, otherwise, we must constantly try new areas and knowledge. In 2007, you are sure to enter the new and unknown areas, in the end what does? Really do not know, just met, know." Not long ago , IDGVC Chapter soyo Gold investors an exclusive interview with our correspondents in the first throw with that, and received, including Shen Peng, VC, including their unanimous approval. .


Since 2006, a growing number of VC began looking for those in the iceberg below more valuable enterprises. Previously, VC are accustomed to TMT investment areas, areas of non-TMT, although there are many good business, "However, we do not understand, did not dare to vote. "But even if this individual VC is also trying to enters into new areas, such as new energy, medical equipment, services and other areas, it is a continuing trend toward today's MINDRAY, Sheung Tak, Canadian solar, results and other listed companies in the United States.


Admit that they do not know one side, with an open mind to learn, while quietly entered, this has become a VC had outstanding performance in 2006, has quite the feeling to cross the river by feeling the stones. Into 2007, they will continue to cross the river, but, more river to cross. Scheduled to reach the other side of the river can not be submerged, has become a VC in 2007 an important lesson. .


In 2007, VC will continue in 2006, investment patterns, the investment will also be more broadly used completely describe seems a little too much. However, even full flowering, it must be specific to each segment of the market, niche strategies will also play a role in the VC industry, we are called multiple niches.


On the other hand, when such as KKR's acquisition of a large fund, PE, hedge funds have entered the domestic situation Deng Jun, is also squeezing the VC investment in space, for most of the VC is concerned, will have to tilt forward. The forward tilt, move closer to the early, no doubt need to hard conditions, is to raise barriers to entry. Obviously, technology will undoubtedly become the core advantages of raising the threshold, so "early technology" will become the two major areas of VC investment in key words. .


In fact, biotechnology in 2006 has become the new sprout, 2007, will be as in-depth VC to learn, there are more and more into the VC industry. Since biotechnology alternative chemical industry era, will be a revolutionary change. New materials that, in respect of the Nano, polymers, ceramics and other new technologies have long been there, but how do I cut to produce large industry opportunities, for the sake of making a VC to chase. 2007, seems to see more Xu Shuguang, because end of the year 2006, several heavyweights join a VC institutions invest in new materials, as a direction indicator. A new business model, a proprietary IP-based, profit-source model began in the domestic horizon. .


In fact, some keywords over the following two key decisions, that is, the local capital markets and RMB Fund. RMB fund raising, investment in local enterprises, the ultimate in domestic capital markets, will become the 2007 most beautiful scenery.


Keywords Group One: Early & Technology. .


In 2007, VC regression early and technology will become a major trend.


Companies from the Qing dynasties statistics also can be seen, in 2006, the amount of investment in early stage than in any previous year, total investment has been accounted for 1 / 3. .


On the one hand, as foreign PE, mergers and acquisitions, hedge fund in place, the positioning of each Fund is becoming more and more accurate, objective C well-funded V should find the most suitable for their own position. On the other hand, in the late stages of the competition is becoming increasingly fierce, the valuation of the venture and the expected return is gradually being at low, mid and apparently high return earlier.


In particular, just out of SouFun IDG occurred near the high returns, people pay more attention to early intervention. Latest information display, IDG in early 2001 into the search room, in just 50% of the shares on sale, was nearly 100-fold return. Several times compared to other stages, ten times the return on the facts before us, no doubt speaking for many VC is a great temptation. .


At the same time, the supply of high quality projects also rendered scenes, who early intervention, who has more advantages.


Based on the above, VC more and more towards early, and technology as core competencies. Since the early projects are often filled with higher risk, of course, have the highest return, in order to avoid high-risk, the choice of projects done by setting the high threshold, then the technology and patents as the threshold is undoubtedly the best choice. .


There are VC said that China does not exist at core technology business model innovation, and the non-technological innovation. Today, technological innovation, the company gradually began to surface.


One Less. .


GSR ventures (GSR) is investing early and technical representatives.


Wu Nobutoshi partner openly to reporters will have to vote to cast high-tech, "We are in support of the world's leading technology innovation company established. We are not the same as with a number of VC is to cast high-tech projects, investment and technological innovation business, do not vote the hotel restaurant category. Early and technology, perhaps not yet clear, but soon became the focus of VC chase. ". .


Referred to as "Zhongguancun venture capital" of the jinsha River venture partners, prior to the arrival in's Zhongguancun IC, quietly close the project. Beginning at Tsinghua Science Park in Office, just a short time has been invested in 13 projects and are early and technology classes, the maximum amount of 300 million dollars.


Interestingly, they invest in companies, several are "crystal" character starts with, in addition to optical crystal - one located in Jiangxi's focus on R & D and manufacture of high-brightness light-emitting diode (HB-LED) of high-tech companies , there are crystal Baoli - provide high-definition television decoder chip IC solutions manufacturers. .


"It looks as if it is on the surface of the semiconductor chip signals — the ' Crystal ', on the other hand, also with the jinsha River ' gold ' or similar words. "It is interesting to note that the two companies is almost at the same time be the jinsha jiangxiang, at that time was in April 2006, and are in very early intervention.


Particular crystal Polly, in April 2006, Dr. Liu Ming, etc. when the team return home and work, was only a few people, several patents, and everything was not developed. But is this premise, the Jinsha River, founder of venture capital with these to find the same technology in a unique view of early Morningside technology, each a total of 2.5 million U.S. dollars invested five million U.S. dollars. "Liberty for the crystal, is really a thorough early projects." Wu Nobutoshi repeatedly emphasized their early strategy. .


Let JinShaJiang gratified that this company is developing very rapidly, half a year later, in December 2006, two venture capital and additional investment of $ 5 million.


In fact, the Jinsha River earlier investment in a technology project is the Shenzhen State Microelectronics. Not only as the first round of investment, then, also attracted Walden, MAYFIELD and other shareholders of several internationally renowned. Shenzhen State Micro-enterprises is also a technical background, specializing in the field of digital television, have engaged in machine card separation products with independent intellectual property rights product development of high-tech enterprises. .


Whether it is the oldest Shenzhen Smit or later of Crystal can photoelectric, and now jingbaoli, GSR ventures can be traced to the continuity of style, it is early and technology.


Preference techniques and early, perhaps with a partner background. Unlike other investment team, the Jinsha River Ventures team without a professional background in financial investment, but have senior management experience in multinational companies, and are experienced entrepreneurs. In addition to Wu Shen Jun, as well as PAN Xiao, Jian Ding, Jie Lin Renjun. .


For now, start early and an increasing number of VC.


Technology projects come its way. .


BLUERUN partner Jui has always stressed that "our investment focus is on the main stage, the case is a high technology content, we want to take advantage of this market consolidation, will resources of domestic higher technology content of the project to expand into foreign markets, creating a global, the world market-oriented company. ”。.


Spent many years in Silicon Valley, he saw most of the companies in Silicon Valley developing core technologies are the "old China", CEO and marketing are the "old America", from experience to actually have the opportunity in China is developing very good technology. .


Jui so-called early usually refers to the "team of 10-20 people, the technical development has begun, the product has not been made out, the market demand is also nearby. ”。.


In his view, even in the so-called TMT low threshold field, there remain high levels of technical factors, it is whether or not they are an important prerequisite for investment. Internet or wireless, in the country has gone through several conversion from Sohu, Sina's first generation, developed into today's third-generation, high technology projects more and more, unlike a few years ago we were in the market basis. .


"As a global fund to fight AIDS, tuberculosis, when we look at an area will be in different regions. I am convinced that China's case in the long run, are facing the world. But in the world, similar projects we can only vote for one, want to do the best in the world, is very important to technology, to such a project more and more. ”。.


Typically, the foreign VC investment is also more technology-based companies early, but many of the domestic VC said China did not have really good technique, how to judge what the technology content? . .


If you are a technology company, will go to the person who invests more appropriate? against a number of technology start-ups, Jui kindly throw — "If you think technology case come to me!".


TMT in the field of technology, he thought the video still has a chance. Because video requires the bandwidth is very large, if there is a good technology can do many things. In addition, the semiconductor technology is particularly important areas, such as to relate to 90 nm, 65 nm, are very advanced technology. In short, in different areas, technical judgments are also different. .


Preferred technology for Lenovo investment.


Actually, like VC early and there are many technologies, Legend Capital managing director Chen Hao has repeatedly said that the importance of technical content. .


"We have been very concerned about the technical investment, 40 investment project in half on the technical side. The so-called technology is the core technology, intellectual property rights. We have always supported, 3G standard TD-SCDMA company Spreadtrum — has invested more than three years. Recently, also to investment from IPTV chip and software direction. There is a speech technology company, has been a continuous investment in five years time. ”。.


Technology investment to spend more time and more patience. Chen Hao said that in their management of three funds, and a third investment fund that is now still focus on the technical direction. .


Each industry, technology of a high value, each industry has a lot of innovative technology, not necessarily in the TMT is technology, not just in the field of TMT technology. For example, they have invested in Sunshine paper, etc..


Similarly, another cutting-edge located in Zhongguancun Northern Light Venture Capital VC also showed love for technology. Although just recently entered, but in Deng Feng, led by the performance of very active and has already invested in 6 to 7 cases. .


Once a successful venture in Silicon Valley and then turn around and VC, technical backgrounds of the most respected technology Deng Feng nature and early. "On the one hand, from the investors ' perspective, we are very interested in the early; on the other hand, from the perspective of the entrepreneur is also interested. "Before the formal do venture capital, he has been an angel investment.


Speaking earlier and technology, can not fail to mention JAFCO. JAFCO is the most active in 2006, a veteran venture capital. Despite the departure of two generals, but under the leadership of Vincent Chan, was even better in 2006 (as of December 3) invested a total of 11 companies. .


In the case of its investment, early accounted for nearly half.


And the general VC into China on a different selection of early, Vincent Chan said that he himself came from the post-diversion. His first investment in late 2000 to do, but feeling more and more difficult to do later-stage investment. The point is, with some large compared to PE and hedge funds, as the late investors, they know how to provide value-added services to their own advantage to do what VC do? Businesses can invest how to add value? . .


For others, he says he is pessimistic retorted, late investment may earn a couple of times, but it is difficult to make money, to rely on luck and vision of special. Since this area do not really understand, don't wait until the last round of follow up, get into good. In fact, he also saw that many of the local Fund for special vision, at a very early age to enter into a lot of money. "The key is to understand the industry, and to a reasonable price. ”。.


In addition to the number of early stage technology VC side, there Qiming Ventures, GGV, red dot, the Economic Cooperation, intellectual base, DCM, joint source and so create policy. .


Do early, while high-yielding, but the risk is great, then why are there so many VC going?.


VC cutting-edge Representative - American Economic Cooperation in the words of Zhang Ying, managing director may represent a voice: "I think I have the best job in the world, the early investors and entrepreneurs who can grow together, if successful, that sense of accomplishment is indescribable. ". .


CDH venture partners is forging Yan believes that the brand of the Fund in early May.


Keywords Group II: Multiple & niche. .


In 2007, will continue in 2006, investment in a wide range of features, and to a certain width, depth, both $ niche.


Magazine has to Sequoia and IDG's investment in 2006 to do some comparative analysis, as of December 3, the two have invested in 19 cases, all the VC in the first. .


From the two areas of investment, nearly all over the country, which is its usual IDG style, thin; whereas in the Sequoia China after the enclosure movement, extensive layout. In particular, from the 2007 strategic layout, Sequoia has gone.


IDG has been known for a wide range of investments. Although the strengths of the Internet in the field, but in so many years of investment history, IDG has invested a lot of other areas. For example, in the chain in the field, investing, such as home and leisure chain restaurant brands - a tea and a sit and wait for the project. .


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There are Sandia pharmaceutical medicine, is the development of new drugs and medical services contract outsourcing (CRO business); Guangzhou Huasheng Ji because, in genetic engineering research and development of drugs; Guangzhou City, Hornsey pharmaceutical, pharmaceutical, health food, bio- medical engineering, plant herbs such as R & D, production and sales. .


In addition, the investment IT system solution, system integration services, as well as Jiangsu de engaged in new chip electronic components, electronic materials, electronic equipment, and other electronic information products, scientific research, production and export of Fenghua hi-tech.


Despite this, IDGVC areas of focus or in the TMT. Throughout 2006, as of October, the project ratio, TMT accounted for 60 to 65%, and other accounts for 35 ~ 40%. 2007, IDG will continue to enter new areas. .


IDGVC partners suyang told reporters, "in 2007, we will face a whole new area of investment, a lot we don't understand, so the ability to learn is of particular importance. In the future, from the perspective of traditional industries as a whole, the rendering broken down more. In other words, every segment of the industry will have a very valuable company and TMT industry itself is also extremely fast development speed.


In 2007, for every investor, the learning capacity would be very challenging. For example last year we voted in a medical orthopedic program, this year has been a great profit, and, frankly, this area was in fact we do not know, so I spent a long time to understand. The future, not just the IDG, all the other VC will face this problem, unless the original cast only good projects. China now there are opportunities in many areas, if you want to have the opportunity to intervene in other industries, you certainly have to re-study, research. . ".


To this end, Sequoia China partner Neil Shen, "in the United States venture, you typically only need training in several areas of expertise, but in China is not the case, just software expert or experts in diode, but also to become experts in other fields, is versatile, because you want to invest in a wide area. In this way, causing everyone to work under pressure are very large, you need to cope with more industry, this Fund is a great challenge. ”。.


He is a director of 8-invested enterprises, while chapter soyo more than one than he. If this pace continues, 2007, if re-invest in new projects, we will head for more board seats. .


For some of the Sequoia China investment too quickly, the judgment of Neil Shen is: Sequoia's investment style is: broad, uniform, balanced.


"Our investment is relatively broad, relatively uniform, for both the TMT industry opportunities, including the Internet or software, but also has been paying attention to opportunities for traditional industries, have been followed from the beginning we have created such a tradition." Proportion of their investment similar with IDG, TMT accounted for 60%, 40% of traditional industries. Among them, the more representative the two companies, one benefit of agriculture, vegetable growing enterprises in Fujian Province, one-stop service-oriented enterprises; second, macro dream cartoon, in Changsha, Hunan. .


Sequoia China Director Mr CHOW recently expressed similar views with Shen, "in China, we also care about TMT, modern service industry, consumer goods, energy, health, industry, and our interest is widespread, but there is no change in the way of doing things. ”。.


So the future, in the end market segments which have a chance? . .


Legend capital after he was of the view that the automotive services market will be a great opportunity for the market in the Chinese automobile consumption reaches a certain level in the future is on the horizon, China itself in this regard is not very good monopoly exists.


Another aspect is reflected in outsourcing, from general consumer products, manufacturing, moved to a brand of large-scale engineering machinery, petroleum machinery, and research and development outsourcing, including pharmaceutical research and development, establish an early competitive edge. .


Business opportunities for the 2008 Olympic Games, he particularly good. 3G is a big selling point, mainly reflected in the fields of application; and IPTV, or digital TV; a traditional novel like games, 3D animation, Visual effects. There is e-commerce, tourism or shopping. "Lenovo is the global sponsor, we are organizing Committee at various levels have AC, so we must be very concerned about this opportunity. ”。.


And Shen Peng, mentioned that a chain, "we have been concerned about this industry, a product and services in one place is successful, a good promotion out. For example, our investment in the public co-insurance, the insurance broker to do it, and no clear concept stores, is a national chain of distribution network. This business we will continue to see the future there will be many opportunities in the vertical field. ". .


How in a very detailed areas find industry leader, how to tap the niche market, probably every VC are actively expanding priorities. To this end, they are likely to push deeper into second-tier cities, to intervene more local businesses, identify the most hidden quiet money..


Keywords Group Triple: Biotechnology & new material. .


In 2006, the three landmark case opened a veil of high-tech investment, also marked investment fully enters into the field of high technology research and development, while also opening up a biotechnology and new materials investments. They are biological, HVM racing amp technology and Yasin technology.


About Kai Saike technology, we note that its shareholders not only have expertise in biotechnology investment company, more so leading investment bank, Goldman Sachs cut into, shows peep the capital market in the field of biotechnology in China. .


Kay Sykes bio.


September 2006, Cathay Biotechnology 26 million U.S. dollars to complete the first round of financing, investors from the 100 Aowei Da (China) led, HBM Bio Fund, New Horizon Investment Fund and Shanghai Pudong Science and Technology Investment Co., Ltd. to participate. .


Three months later, in December 2006, by Goldman Sachs, Gramineae Holdings Company Limited, GM Investment Company Limited and new horizon Fund invests $ 5200.


Cathay is a company engaged in bio-fermentation, enzyme technology industrialization of high-tech company, in April 1997 registered in Beijing (formerly Beijing Cathay), when the registered capital of 1.25 million yuan, mainly engaged in the field of biotechnology incubator technology, market and industry projects. Successfully transferred to foreign countries, six bio-fermentation technology. In 2000, the Company completed its first private placement, and moved to Shanghai Zhangjiang Hi-Tech Park, the registered capital to expand to 4. .4 Billion yuan. .


In a sense, Kay Sykes bio provides a platform-based technology, formed by this kind of technology products or applications can be extended to many other fields, such as medicine, agriculture, environmental protection, food, chemical industry, etc..


Investment in this case, special reference to 100 Ao Weida venture capital firm, is a specialized investment in the life sciences VC. .


In May 2005, up to a hundred aowei completed its new investment fund — away up to China in the first round of financing of the Fund. The Fund is a high-tech enterprise in China as a major investment in the investment object, including biotechnology, pharmaceutical, healthcare, medical equipment, etc. It is understood that this fund investor is the world's leading financial institutions, including the World Bank's International Finance Corporation (IFC), the Government of Singapore's Temasek Holdings and Switzerland HBM Fund institutional investors.


Although the start-up year, 100 Ao Weida has invested several biotechnology companies, including chapter Jiang NOD, which is like a current of oral insulin injection into the company. .


Apragaz bio.


Also in September 2006, also in Zhangjiang Hi-Tech Park Pudong, Shanghai AMP life in science and technology from Morningside 500 million investment. .


Apragaz biology was founded in 2002 by the Shanghai venture capital and Shenzhen Qianlong industrial co-financed RMB 20 million. Apragaz biological research focusing on medicinal herbs, the core technology is built to biotechnology-based screening platform, research and development areas including cancer, inflammation, diabetes and antiviral, etc..


In this case, requires special mention is the Sunrise Technology. Joint venture with the investment of the Jinsha River Liberty Morningside crystal technology itself, positioning itself as the Jinsha River, focusing on high-tech projects. .


1992 started investing in China's high-tech, media, communication and life science projects. Especially in the field of life sciences, Morningside technology with unique advantages. Up until now, has invested in a number of enterprises, and on the NASDAQ.


AMP from Cathay to give us a strong signal is shouting for a long time has finally begun to enter the biotech VC stuff. Moreover, the special access list of well-known before the IPO investment bank intervention, leaving the industry an attractive buy. However, biotechnology is a bit like a hot potato, sometimes, the key is what kind of VC have the ability to take over. .


The reality of the problem is that the biotechnology promise while attracting VC's eye, but because of the lack of appropriate professional background, only the most VC to despair, stagnant. More people are waiting for the professionals of the investment. In this context, has acted as a striker for VC probably should have went to the middle.


According to well-known angel investors Zhao Changgui introduction, in fact, biotechnology is a way to work in a sense, the future of biotechnology will be replaced by chemical technology, a large number of complicated process becomes simplified and low cost. Many large international companies are in great efforts to develop biotechnology. .


"This industry technical too strong, the threshold is too high, no professional background of VC investment in, losing money is very easy, especially the successful experience of the Internet is not entirely applicable to the life sciences industry!" have invested hundreds of Kay as Yong Chen, partner away so evaluation of biotechnology investment characteristics.


Yashen Technology. .


From Shanghai Science and technology, we still see Kay Sykes investment model, the famous VC Sequoia, plus investment bank Goldman Sachs's shadow.


December 2006, Advanced Materials R & D companies apply technology that was Goldman Sachs Asia Investment and led the second round of investment, Sequoia China and Lux Capital also participated in this round of investment. Although the sub-application technology has not disclosed the specific amount of investment, but sources said the financing amounted to 25 million U.S. dollars. Previous investors Nth Power, Technology Partners, Mobius VC and Advent International also continues to invest in a small follow-up. .


Asia's Tech is a wholly-owned American research and Development Center. The company's technical experts is a group of us went to the Chinese students, they are high in the fields of new materials and development of the world's leading scientists in the field of materials development, mastering the advanced core technologies have decades of experience and in the field of ground-breaking invention-creation, is more than 70 u.s. patents related to the inventor.


Located in Shanghai Zhangjiang Hi-Tech Park, Pudong New Area, is the key to support the Government's high-tech enterprise. Today the company introduced the most advanced high-tech materials international R & D, For the R & D center into an international leader in advanced materials research institutions. Founder and CEO William Chen, founder of software company previously OnePage, after Sybase acquired, and then move forward, also founded a network of paid company after eBay acquired, was head of several associations, the performance is very active. .


From the Kaiser's race to the amp, then to Asia's technology, we seem to find the next great investment opportunities, that is the high-tech achievements.


As CDH Venture Partners Huang Yan judge, as perhaps a decade or two down in China will become global, he thinks the opportunity is there. China is relatively a lot of technical reserves, each college has a lot of technical reserves in various places. The key is the lack of scientific research in industrial production. How a technology from the Institute of transition from school to commercialization, in China's lack of this thing, he believes this is the VC can be done step by step thing, perhaps the next biggest investment opportunities. .


Keyword Group restaurant: local capital market & RMB Fund.


In 2006, the local capital market and TMT in the field linked to a company called NetSun as the first purely Internet, the concept of domestic listed A shares to domestic VC industry have a signal, the future, TMT and related fields the same investment option in the domestic market, not all overseas capital markets. .


Recently, a well-known Investment Bank Home warm days na predicted that China's local capital market will become a major international markets, to a certain extent, it will replace the Chinese companies raising capital in Hong Kong as an international financial centre. Over a period of adjustment, the Chinese securities market could be in the next ten years to become one of the three major international capital markets. His words, were generally agreed with the VC 's.


On the one hand, the domestic relevant documents already issued to the red chips are affecting overseas (especially the U.S.) listed at the same time, wants listed companies to face the new Sarbanes-law to bring the cost; the other hand, the domestic capital market has been improvement in the domestic capital market may become active in the next couple of years. In this regard, and Qing dynasties, CEO Ni Zhengdong most thoughts and feelings before the meeting he attended more than a venture capital private class, but now they are constantly invited to participate in some meetings of the securities industry. .


Not long ago, he had just participated in a large domestic securities industry investment conference, an unprecedented scale, popularity, "to feel domestic capital markets, the future will be very active".


For Nasdaq, the New York Stock Exchange, Japan, London, Hong Kong, in the end how to choose? The future, companies will choose his investment in the local capital market, and ultimately quit? . .


Sequoia Capital, Neil Shen is of the view that where listing key enterprise industries. For example, some enterprises of Sequoia Capital to Japan because there has been a relatively powerful Japan shareholder background ctrip and home chose NASDAQ because the United States has the same type of ease of reference, because whether it is in Asia or in the China market, most hotels also are based on standard pricing as of real estate, with the United States with chain management model of pricing varies greatly.


Chen Hao said Legend Capital, a national policy guidance, the Government hopes his attention to domestic capital markets, "I think this may be a signal. Legend Capital grew up as from the local venture capital firm, and we are concerned about and consideration of the capital of China's domestic market, its future in the process of change and the opportunity. On the one hand, the capital markets for local, that we have strong confidence, Tong Shi Neng We have also introduced some of Huxuzhengfu Gengyoucujin of policy. ". .


The first known as eagle eye Joe is Saif, told reporters that this was still try, six months ago the situation was also not particularly uncertain, it is clear now. Usually they do market structure, in addition to the two cases, most of the overseas listing of red-chip structures. On the contrary, the domestic capital markets, the previous two very difficult to solve critical problems, circulation and listing of refinancing, now are gradually resolved. "All who wish to make a difference in China, may do some planning. "Although not very specific plans, but anyway, in the domestic capital market is increasingly becoming a possibility of..


From Shao Jun Detong answer more makes. Not long ago, they sent their representatives to the company by Shenzhen Stock Exchange opened the relevant seminars, brought back a lot of valuable information, such as the previous provisions, the provisions of the lock period of three years after the listing, the listing is now provides one year you can quit, "from this point of view, have almost the same with the overseas market."


But also skeptical, DFJ SUN Wenhai concern is that some of the problems so far have not been resolved, usually U.S. dollars of foreign funds are funds, their return to the LP necessarily need to take dollars, but the yuan is still not freely convertible "This is a huge obstacle. Another is the tax factor, 20% tax on interest and capital gains tax, or very large.". .


SAIF two years ago and Tianjin Municipal Government set up the first illegal-fund, around 2 million RMB.


Chief Andrew Yan is expected, "the next 18 months to 24 months will see the outcome, large amounts of yuan-based VC fund will appear, which is a few days in China's financial circles far the most exciting topic, that the renminbi Fund. All the people know me when they meet they talk about is the RMB funds, we ready to make trouble. of course there will be many problems, including the related policies and laws and institutional arrangements. ". .


IDG John wall also agree with him, "IDG is also on the establishment of RMB Fund".


RMB and U.S. dollar have both the Shanghai joint creation of two funds Feng Tao that "the future trend is invested in domestic funds of RMB funds, through the A-share listed more effective. Thus, VC will be divided into two camps, one is investment within the A-share listed companies, an investment in the overseas market. the future, the former will be close to or even exceed the latter. ". .


In addition to IDG, SOFTBANK these veteran venture partners, Sequoia, northern lights and some VC innovators are also actively explore RMB Fund model, i.e. find LP, the establishment of the Renminbi, fund management companies, themselves become a GP, with RMB investment projects in China, and finally in local capital markets, such as Shenzhen small and medium-sized version of the listing.


The first wave was undoubtedly felt RMB fund industry well-known lawyer Li Dacheng, before they seldom involved in the business of RMB funds, but now with many large enterprise groups in China began to look for them to understand how to set up a RMB fund, " there are already two are learning. " .


But he also said that the current legal obstacles still have a lot, mainly to Chinese law and international law did not, you may also need a few years, but even so there are a lot of progress.


Source: New Economy Guide. .


When the Internet began to thrive, he joined My Web, leading the company after a year of effort to obtain national television networks, market-leading position.


When the e-commerce in the ascendant, he and I special joint, I set up a special e-commerce Co., Ltd. Beijing flags, the first in China launched the "cement + mouse" new model of book distribution;. .


When the online bookstore at its peak, he jiliuyongtui, select regression of the ivory tower, becoming one of the North EMBA students.


When the EMBA class gradually formed, he joined an elite established a platform - International EMBA Club; now he is back, with a new virtual life platform - Hi Pi Hi back to the Internet. .


He is the Internet's "ashes-class"-Hui Jiarui, a connection to the capital and new industries. He has a famous saying: in the direction of where to run, regardless of the feet is a thorn or sludge.


February 3, 2007, Beijing Zhongguancun near an office, Hi Pi Hi, CEO offices, in accordance with the agreed time, Hi Pi Hi Hui Xu, founder and CEO sat smiling in front of reporters. .


Immediate Hui Jiarui, a Bi Red Sweater MBA, thus gentle scent of scholars, not thin lenses, but did not get in eyes of keen, perhaps, is the pair always found "sunshine" in turn leads to Hui Jiarui ran.


For the first time to give up: from the financial to the Internet. .


In 1998, Hui Jiarui was already in the field of financial investment in touch toss climbed 8 years of success, but "always feels fit." When you see the Internet tidal wave sound thinking, he also began consciously concerned.


Hui Xu do not understand technology, but still dove into the network, the network from learning the most basic knowledge, to participate in a site of investment, from friends My Web, to formally join the US-listed company, he decided to leave the familiar original area and began wholeheartedly into the emerging Internet industry. .


Hui Jiarui stated that after the age of 30, man must learn to give up.


In early 1999, Hui Xu provoked My Web Chinese director and general manager of the burden. This year, he was just 30 years old; this year, he led the My Web companies to strong market offensive, launched the Internet portal service boxes and the combination of new market model, far ahead of China's television network, he therefore a "99 top ten news of China's Internet" one. .


Hui Jiarui always think that the Internet is his "sunshine". "At this point, the most important action for action. Even if the failure and lessons learned. ”。.


I hand the first special test, "Cement + mouse." .


In the second half of 1999, Hui Jiarui at e-commerce, "network can do on the user's needs, all create demand, so that the value of the doubling, with unlimited imagination. ”。.


This year last Sunday, the Chinese entrepreneurs Century Forum held as scheduled. Hui Xu Shu --- I met a prominent figure in the domestic book industry, with the traditional book industry experience and a good brand system. .


Cosmos dream, a wish to bid farewell to the portal, one would like to say goodbye to traditional industries, both parties intend to engage in the online bookstore Amazon mode. Also from Jiangxi province of two young people "love at first sight".


Cafe night long talk, immediately, the two reached a consensus on co-operation. .


Beijing banners xishu e-commerce co., Ltd. was established, two people, Hui Jiarui was Chairman of the Board of Directors and CEO, responsible for the company's direction and major decisions, xishu Yam, responsible for the company's day-to-day work. Soon, the Hui Jiarui lightning-fast completion of the new company's first issue of 30 million Yuan, and the company's traditional business xishu comprehensive standards and banners online bookstore was unveiled.


As a result, Hui Xu doing e-commerce leader in China, the most influential "Mouse + cement" in a person. .


Second: the EMBA from the Internet.


After 8 months of life, unexpectedly, Hui Xu and I special "break up" and left the Internet. .


"Time is struggling, but now it does not matter. "Reminiscent of the period and xishu" love ", Hui Jiarui have new insights," doing the most important thing is to calm, don't be too concerned about others. ”。.


2001-2005, Hui Xu's name on the Internet disappears, his figure, but frequently appear in the Peking University campus. Hui Xu return to the ivory tower and became a student at Beijing University EMBA. .


"Read EMBA is actually an excuse into campus, ten years of entrepreneurial and business life, has made me feel tired and empty. "With the" plot "of College, start down the" Hui Jiarui burden "and experience the intimate life on campus.


EMBA brings Hui Xu, in addition to learning the system, the most important is a network of contacts, is the student resource. In this "era of relationship marketing" relationship is productive. And consistent discerning Hui Xu, found business opportunities in this vast reservoir of wealth. .


By the end of 2003, Hui Jiarui creates international EMBA Club. His entrepreneurial team in his EMBA students. That's the Club return for Hui Jiarui later Internet entrepreneurship provides 80%-90% of the resources, including the partners and investors.


From "China CEO Business Around the World" to "Young Chinese entrepreneurs summit first," someone said, EMBA like a key, Hui Xu found her and used her to open the door to a class. .


With the return of the Pi Hi Hi.


July 2005, Hui Xu and his "HiPiHi" who lives with a virtual platform --- Hi Pi Hi Teng jumped back. .


"In fact, I never leave the Internet, I was just watching the behind the scenes. "Behind the glasses, Hui Jiarui eye flicker jingrui prowess.


Years, the precipitation of campus life, more peace of mind to Hui Xu. He had been special lightning record --- and I built a company within a month of electronic platforms; and this time, "Hi Pi Hi world" research and development for a year and a half, but nothing yet ready to market. .


"Don't worry, the spirit of learning by carrying away small stones. "Hui Jiarui self-confidence in spirit filled in full," However, after the current closed beta, the limited beta and beta stages, Hi Pi Hi at least at the end of this year. ”。.


Hi Pi Hi offers a millions of individuals and groups of users to share "and driven" online virtual world, a virtual reality simulation of the world environment. "Hi Pi Hi nurture business opportunities in the virtual world is almost more than the real world, vast and immeasurable, huge advertising space, the virtual currency trading, online shopping, online education ... ...." .


Early Hi Pi Hi will depend on the land and the sale of virtual items to make money, but the virtual world of advertising and interactive marketing, is undoubtedly the most attractive model. Now the Hui Jiarui, every week to venture investment "harassment" and continued to negotiate advertising carriers.


"In 2005, a My Space, You Tube in 2006 and 2007 is the Second Life in" venture capital cycle came this voice. Others are still problems between the virtual and the real wandering, Hui Xu has already sniffed out one of the numerous business opportunities. He laughed and said: "2008 will be the Hi Pi Hi years.". .


In the future, it seems, Hui Jiarui world, reality and virtual fusion, the virtual character creating real business. His last words added, perhaps just an assumption. But perhaps, it is a reality.


Too many to count, may not loosing. .


Reporter: 2000 out of the Internet, why now political? you this time I have seen the truth?.


Orchestration: the Internet is cutting edge and innovative things, there are challenges, in line with my personality, the past few years I have never really left it, only watched in the background. The walk sets come mainly an inner call, because reading this a few years of life EMBA, I more clearly their goals and pursuit. In addition, some research on the Internet, and new business models of thinking, we explored a core value lies in "creating" virtual life network platform --- Hi Pi Hi. .


Reporter: in your eyes, and now Internet market and 2000 compared to what's different?.


Hui Xu: I think first of all Internet users increased, providing a large commercial space; second, hardware, bandwidth, improved technology for the development of new products laid the foundation; the third is the birth of a new generation of the Internet, a collection of all of the previous ten years, applications for the Internet becomes part of life. .


Reporter: this is your chance of winning?.


Hui Xu: Actually there is no chance of winning. The comeback, I also have friends that psychological burden, but a friend told me that a case as long as the stick, "natural human needs" concept without wavering, determined to do something meaningful, to promote the social, business , technological progress, and not just the money and ran from, so the case will not fail. .


Too many to count, it may not win. Such as Google, Bill Gates, they most · started nor too cause to do so. Because of the love and sincerity; on the contrary, the greater the chances of winning, "step". Of course, I also believe that our products will make money.


Reporter: Are you sure beat the new generation of network master? . .


Hui Jiarui: this problem does not exist. Because we have the absolute advantage, not just capital, connections, experience and potential of the product itself, but also the integration of markets, entrepreneurial team of enthusiastic, as well as a domestic in the best technical talent.


Simple is wisdom. .


Reporter: so many years in your career, always found in new industries. Such investment plans tend to make people feel new and bold, why is there such a keen eye?.


Hui Xu: In addition to luck, the individual concerned, nothing new things, hard to arouse my enthusiasm. President Must former president of Wuhan University, talked to me, to "be diligent thinking, sensitive thing, better than OK." Is the way business is everywhere, but the key is to stop and think more, with a keen intuition, quick action have a chance of success. .


Reporter: a few years will also hear about your business?.


Hui Xu: It is hard. Because Hi Pi Hi all-inclusive, a lot of things to do, the product itself is very consistent with my own character, I really want to do a thing. Unless I give up, otherwise no reason to re-start. .


Reporter: many business people a lot, do you have any experience you can share?.


Orchestration: the idea of a good start, but first of all do not follow suit, do not cater to the market, to listen to your inner voice; the second should not be afraid of failure, success is the experience of failure is learned, have meaning; Third, we must firm belief that action, do not hesitate to think too much simple wisdom. .


Source: Diario.


China has just known as the manufacturing plant, "New World" and now, boom the sky wave of innovation is to see China to become another piece of the "New World." China has such a huge market, which makes innovation in China are more likely to become a global industry standard. .


In 1993, in the United States learning resource management tiansuning and several network meet Chinese students registered with a company called Asiainfo. They have no start-up capital, no business model, there is no Government background, there is no management experience. They only have a dream: take the Internet back to China. At that time, no one knows, this is referred to as the company's establishment of AsiaInfo, becoming the rise of the Internet industry began.


After ten years, the field will be the first landing AsiaInfo to build for the U.S. Nasdaq market and Chinese companies, has been invited to do the newly established China Netcom CEO. In this long been called "the glacier under the calf," the firm, the field from the original innovators become innovative attempts by Chinese management. When Telecom Goes to integrate field created Netcom Holdings was incorporated into China Netcom Group, he also in this larger platform to continue to promote his broadband dreams.Tiansuning likes to compare broadband Internet is steam engine — a product creates a whole industrial chain — such as we have seen, rely on a network, a group of young entrepreneurs will China push the information age, at the same time, a great deal of wealth in the Sun.


Advocates for an innovation, the distance between ideal and reality are not always quickly reduced. China is now a reality, although there is no lack of wealth in China although the upstart, but not the emergence of a Chinese Google, or the one-China Bill - Gates. Why? . .


Entrepreneurs from sea turtles to large-sized enterprisers, from Internet to system integrators, telecom operators have two tiansuning watching Internet industrial chain. Field of view, this industry is made up of four forces: the Government, entrepreneurs, telecommunications operators and international capital and international Internet companies. One of the decisive factors are the wealthy entrepreneur spirit of entrepreneurs, this is also the most lacking in China today. Field on the entrepreneurial spirit of induction are: a great vision, not just a little bit of money; have strong faith, not afraid of difficulties; a passion for innovation that can tolerate failure.


He asked Netcom shareholders, the Hong Kong business giant Kuok, and former director of Netcom, News Corp. chairman Rupert Murdoch: The lack of in Hong Kong or Australia where a number of market conditions, to achieve such success, power lie? . .


The answer is: a sense of crisis and on the dignity of the treasure.


Kuok early in the rejection of the Malaysian Chinese Beishou development of the tragic death of his brother, allowing him to deal with great challenges of insecurity. While Murdoch was born in exile by the British as a prisoner of the land in Australia, not by the British media "elite" are recognized. However, he determined, in the press under the control of the British aristocracy flagship Street, make a greater success than all the newspapers. .


Innovation is needed, it is precisely this kind of entrepreneurship. It takes strength when tiansuning, he will take a look at the past hundred years of entrepreneur biography, from Steve-Steve jobs and Bill-Gates, traced back to the Rockefeller and Ford. "They are, the more chaotic than we are, the more uncertainty. How do they have to change the dark times go? "he believed that the next 20 years the Chinese may not occur to Bill Gates-, but should appear Edison.


The following is an oral history of innovation in China -. .


Founded in 1993, AsiaInfo, China also has no Internet, no business model of AsiaInfo, tiansuning while "to @ home" slogan, but a more direct innovation dynamics: pressure.


The six individuals (founder of AsiaInfo team: Tian, Ding Jian, Liu Yadong, Zhang YF, Yao Zhao, Guo Fengying) fight all day, every noisy when they are felt to be collapsed, no way out, but pressure will result in that many can not imagine new things. .


Then we want to build China Telecom's 36 nodes is equal to the entire Internet Foundation is more than 800 people in the building, how to build?.


Zhang Yunfei proposal to build an "FBI." We rented a particularly large warehouse in the various provinces of the routers are put away, all connected to the circuit is good, then stamped package, sent to various places, "FBI" and the actual difference is that line from the very short into thousands of kilometers long. This innovative because Yunfei in the NASA (National Aeronautics and Space Administration) work, so I took NASA's Apollo program to take over the system. .


AsiaInfo created, proposed "the slogan of the passion and innovation", he felt that this will allow people to new ideas and feel the excitement. This also gives birth some ambition AsiaInfo frequently.


Netscape IPO, we have done Shanghai hotline, and we want to do a billing system, ready to cooperate with Netscape, I flew to Silicon Valley to go to the Netscape that building, the doorman will not let me enter, you must be a phone "interview." Phone over there asked me to see who I want to see Mark say? Anderson (Netscape co-founder), the other said: The whole world want to see Mark? Anderson, how can you see him? Finally, I just downstairs with him on the phone. .


In fact, at that time, Netscape software, Ding their AB8000 wrote a software, it is not worse than they are, not even to buy 3COM. Then we did the first Chinese version of IE browser, called "AsiaInfo Microsoft Internet Explorer". I took this to look for Microsoft, met with them a vice president, he asked me: Do you not many people can do what? I said: In the Internet era, are eaten by small companies, large companies, Kuai Yu beat the big fish that Netscape does not do this to you? He listened very shocked, I went to see Bill to pull? Gates, Bill Gates is not found, it led me to Microsoft's underground parking lot, specially to me a tour of the Gates of parking spaces. .


Passion, AsiaInfo rapid growth. But let tiansuning headache is that management has, to the Tin and his team created a lot of trouble, which makes its use in later years to standardized management.


The most painful is to do the financing, do not know too many things. At that time I did the six day road show, daily absurd. Business model people ask me and asked me company revenue model and cost model, I added a few of his own. Later, I find it very strange, this thing is not difficult enough for high school math, but at that time do not understand. Not only I do not know, Liu Yadong did not understand his own business before, but he is a management company should be financial. So I came to the CNC, people do very early revenue model, the good, the financing quickly. .


In order to save money, when I lived on a business trip and Ding a room. Make the final corporate valuation, this is a very critical moment. The first night, I asked him, what should be done us $ 66 million, or US $ 100 million, why such a big gap? "he says you go, I was given a 60 million.


And stock options to employees at that time, I do not know how to. Some employees came to me and give me options bar, I said OK, How much? AsiaInfo staff time and opened the General Assembly, the final analysis, what is my share? share is the share Well. Later, investment advisers tell me, how can you options so recklessly? . .


Although his tenure has long please do financial audit Deloitte, I even asked them: you could make my Finance Department are outsourced?, our company achieve 700, yet, there is no financial resources. Every play big, at that time two phone every day and constantly to meet.


And AsiaInfo the same age, is Tian's eldest daughter, his daughter from the "middle name" as the Wan, is the "WAN" stands for, 6 years later, when he went to China Netcom, the second daughter was born, middle, called the Lan is the "LAN" stands for. .


Old daughter, when I was in the hospital, Ding telephoned me to say: we now have the Internet in Shenzhen Stock Exchange, it was the largest Internet contract, $ 2 million. I was more excited to have this name, they are not sure what I mean, can't I..


In AsiaInfo, said Ding Jian Tian Zeng and good, this is their first and last a business enterprise. The two men also said that a good division of labor, small thus not positioning itself as the company's managers. However, in 2000, Tian sudden resignation, go to start a new enterprise: China Netcom. .


That year, Yan yixun Dean (the then Vice President of Chinese Academy of Sciences) to find me once, the first three months, I think all kinds of reasons not to go. After all, my premise that do not offend the leadership. At that time, Jichuan (then Minister of information industry) also talked to me, told me that you want to do something to help countries, it is also difficult to refuse. After three months I think can do a year, I wrote to the Board of Directors, said that his tenure and I first went out for a year, you can come back.


I had wanted to leave after dragging AsiaInfo listed, but here has been with the CNC evade six months, no solution. Fortunately, the basic work has been listed at that time is almost done before I left just completed an Intel-based 30 million U.S. dollars in pre-IPO financing. However, once things done, you sense of responsibility, and other aspects of your passion, let your hard backtracking. .


There is no doubt that the Board's tenure is difficult to accept.


Sun Qiang in China, Ping (AsiaInfo major investors) and partner Bill Janeway said to me: "You leave AsiaInfo will create a lot of legal issues, we can sue you.". .


Bill Janeway was a very good investment, investments in two companies, one is the Veritas, BEA, are very successful, in that the two companies have just one idea, he wrote the cheque for us $ 30 million to the founder. AsiaInfo is another perspective of the project.


He first came to China, living in Beijing Shangri-La Hotel, I went to see him, he is watching "The Wall Street Journal," I said, "Welcome to Beijing", he no rational reason I said: "Edward, I just Beijing to be 24 hours, stop bullshiting, do not tell me to waste time. " I think he was strange thoroughly, and I was with you said the word welcome. .


But I want to leave AsiaInfo, he particularly angry, said our energies in your body, you make me very disappointed. I think this is offensive, we are still friends.


Tian gone, AsiaInfo has experienced quite a lot of twists and turns. This can not help but make a lot of people assume: if field not left AsiaInfo what? . .


In 1999, we have to do is Board of Directors, listing, your next step is to do a asiainfo., I even .com to Chao do goal setting: to the end of 2000, allowing asiainfo. .com became China's first portal. This is actually the oldest AsiaInfo business model, but I still think that the portal and technology are inseparable. As you look at today's Yahoo, is actually a software company. But after I left, we were not in accordance with the tenure of the idea and I don't know why.


Of course, from another point of view like, if I did not leave, can complete this transformation, it may not. Ding Jian done a lot of very important work, and then the portal concept has not been optimistic about it. .


I would like to, I rarely give it is recommended that? I rarely go to the Board of Directors of AsiaInfo, but in order to avoid arousing suspicion, very few in Netcom yaxin business.


AsiaInfo's stock price is not high now, or with the entire software industry downturn. AsiaInfo not only many great companies, like Sun Microsystems and even Microsoft, have faced many problems. AsiaInfo listed, market price has to do four billion U.S. dollars, when you say that it really you? At the time, and now AsiaInfo AsiaInfo who in the end good, I said AsiaInfo better today. To be fair, AsiaInfo's software to do is still very solid, it has more than 2,000 people to do software. Now encouraged to go to be a core software company, not many in Asia. AsiaInfo to leave, I still to this company is proud of. .


The original "passion and innovation" slogan has not been brought to China Netcom to field, in his view, the telecom industry is a regulated industry, more stress, but he is still in innovation.


Can be regulated in a industry, in the case of countries can not support a market-based methods of operation, it was a need to spend a lot of energy to do things: how to conduct assessment? How to obtain income? How the employer? How the foreign staff and staff of state-owned enterprises integrate well to strive for a goal? The innovation here is to market the most advanced company narrow the gap. These, I feel the need for creative thinking to resolve. .


For example, to set up the Board of Directors at that time, I was the CEO of the company, by any rules and regulations, the CEO should be either a Director, but because at that time the Director is ex, I couldn't get in. Then I suggest you give me a one-year target, reach goals, I can become a Director, but this year, I attend meetings of the Board of Directors.


Another innovation is how to define our wages? Netcom many managers from multinational corporations, our revenue will be difficult, after all, is not possible here to open higher wages than foreign companies, public utilities are not available, we can not salaried. So I suggest that we pay the first year and our total revenue linked to the state to vote for us all the money for technology infrastructure, our revenues are earned from the market, this approach can easily be accepted. .


Then Netcom was the most impressed the market with extensive sales IP calling card.


After a year of income we do 4. .6 Billion, the goal of building a large network also completed. By this time, the board set up my confidence up, I joined the board of directors, and pay for my replacement. I am very excited to become director of the day, this is the recognition from the state, it was recognized with the CICA is not the same. .


I often think of an issue is that China's greatest innovators, it is possible that the Deng Xiaoping. At that time still relatively closed to China's reform and opening-up had very different views. He insisted on innovation, but made a compromise is not a comprehensive reform and opening up, but the first establishment of the Hong Kong Special Administrative Region, a place to do so, the ideology of everything aside, don't argue. There's something to debate the results of the debate is final. This is a very big inspiration.


Even with AsiaInfo's business experience, from a systems integration company into a telecommunications operator, CEO of CEO, the management challenges faced by field is still not small. .


AsiaInfo no capital expenditures, net capital expenditures, AsiaInfo, there's not much inventory management, Netcom, up to a maximum national 170 branches, it is important to properly manage inventory. During his tenure, I never thought the communication with the Government, it is understood to play a single approach is very simple. But in the Netcom, reporting, and on the experience of experience, these things are new.


I've read the famous words of a biologist, said: hard to learn a new knowledge, for six months can be started. When I test test geography graduate, I never learned that his reading of six months, admitted to the Graduate School of Chinese Academy of Sciences, in our class is still relatively high scores. Later I went to the United States, in Texas to study English, learn from these people less than the plant's name, learning the Internet. Self-study is one of my ability, I do not afraid. .


In the first year of entering the Netcom, give yourself out four priorities.


The first is the communication and shareholders, this is my power base, if they did not let me, I have nothing. Second, financing, Netcom is only 270 million yuan, but our goal is to build a network of more than 4 billion. Third, we must consider the construction of the core team. Fourth, an enterprise culture, AsiaInfo's experience, I know, CEO should avoid doing the daily management of the many subtle. Networking Ye Hao, business development but all these things are the work of the entire management team. But the CEO must take to lay a good corporate value system.Then we asked to help, they boshidunzixungongsi consultancy called David Michael, he told me that he studied many companies, the conclusion is that you only have six months to establish a corporate culture, we must think how you can use this time. I was impressed, so I spent a lot of effort in this regard.


At that time I spent a long time and discuss with management, we want to do in the end, that is, now that it's mission, vision, goals. We go to a very good basis of trust, I have confidence in the team, they told me to have confidence in, and only then should have a strong team spirit, there must be results-oriented culture. .


Instilling corporate culture, as soon as possible. Earlier we seldom find no ideal, of course, may sometimes wrong for some people, the other is not eligible, but the passion, vision, team spirit and commitment of these areas, will not be bad. This stage is equivalent to a hilltop shot down in the second year I introduced this fan star-based comparative figures-oriented people, began to spend a lot of time doing budget plan.


Highly value the communication with the board, which makes March 3, 2001 AsiaInfo listing, Tian could not attend. .


AsiaInfo listing of that day, my feeling is very complex. Listed on the previous evening, Ding call me in New York, said the reaction at the end of the road show is very good, and listing of tomorrow might even break the NASDAQ's record, you have to come over. But I was afraid of Netcom's Director, feels like I'm in the CAO Ying heart. And the first year at Netcom must be low-key, I go to the listing of AsiaInfo, how can a low-key? Ding says, you back and forth on a day or two, no, I didn't go because he was not too happy.


So AsiaInfo listed, I travel in Shanghai, and Shanghai SVA on network access. Back to the hotel, I just opened the TV, I saw on CNBC the reports listed in the release AsiaInfo, I was tears. I did not expect such a day, before other people are watching IPO. All companies listed on the following day, CEO are interviewed, I am also waiting to see Ding Jian. I was back to his phone, after congratulating warned: "You have to look after the interview video, not around the eyes to see ah.". .


But then the mood is also very complex, an entrepreneur, not doing an IPO as if designers of their own design house didn't cover. Then I said, I do the IPO.


It was on the eve of the Nasdaq collapse, there is no shortage of small domestic carriers such as CRC, Jitong, actively preparing for listing. But Netcom has not done Roadshow preparation. .


I've just done it enters a period of six months, a British banker at Merrill Lynch just like I said, I can give you listed. I am particularly surprised that the company is only 100 individuals, not for profit, why are you listing? "he said as long as you have a plan, I can meet you, I do not believe it. Later, Goldman's Tang Nicholas came up to me and bring me to a Level 3 of the listing of cases. You see, we use a four-page paper on melt 30 billion.


Inside and outside the company have a lot of people want to convince me, I deliberately wrote a letter, talking about we must first build the management infrastructure. I really want to do in a good company, laying the foundation to Built to Last, I am very worried about the listing, we care about capital market every day, do not mind their business. AsiaInfo listed, I rarely see its share price. .


But I'm thinking about this. If at that time, I may get a lot of money, a lot of things easier. Now that I think, maybe I was too inflexible.


Netcom before the bubble burst in the global telecommunications to financial capital is not rich, but money is not used, but on the bank. .


Our national direct financing, indirect financing, bank loans is very developed.


Netcom was established in the first year, creating a no small miracle: set up an IP-based network covering the whole country. .


Factors that can do that. First, the two shareholders (SARFT and railways) is a network and, secondly, that the State Development Planning Commission strongly supports this, let us have a better external environment. The third is that the strategy formulation on the tactical execution of the method is of particular importance. We let Boston Consulting to project management and planning, map and statistics on a daily basis. There is a fully authorized, your employees can burst out incredible energy. I remember they NG Chin-Jun 27-year-old, we gave him bring tens of thousands of dollars to get him to run a project. Came back he told me how hard it is more difficult, but the project eventually won. He now is vice president of Nanjing. .


At that time dreaming has its own fiber-optic, I'm also keeping our first, second, that the minutes of the Board of directors who appears to be impossible, for a year. When I travel, one day accessible from Beijing to Shanghai, a drive to Hangzhou, then open a night and then go back to Beijing.


In 2001, Tian found a breakthrough "last mile" approach, started a Netcom broadband. .


Before and after the year 2000, the most difficult or long-haul broadband, then hire one from China to u.s. long distance broadband lines to 700 million, has now been reduced to thousands of dollars. So we built after long-haul network, the most important task is to enter the "last mile".


In the United States, ADSL is a key to success is the use of cable networks, about 30% market share in the network side. We have to imitate, in the very success of places like Hangzhou, Hangzhou this year, the profits are 20 million broadband customers more than 50% market share, so I think the direction is right. .


But this is not easy to do, there is no money to do a financing, the underlying is a joint venture with local go. I had envisaged, Hangzhou or elsewhere better asset out separate listing, the listing for capital operation. At that time the structure has been adopted.


But a new challenge is to integrate China Telecom's fortune was about to come. .


When specific to the reorganization of the message, I have in mind. This is a lengthy process, have been talking about, I was in charge of a small network, also participated.


National Development and Reform Commission and Ministry of Information Industry of several discussions. In fact, I was an attitude that, no matter how to adjust, I will do what I do. Netcom with the association was almost a small, almost the Government is through the Board of Directors to manage one. .


Outside there are rumors that this split is to "help small Netcom", never excuse.


How do you debate such a thing ah? My original idea was to develop a small CNC can do joint ventures, some of the shares sold to foreign investors. Now, I also try to understand more about the history of the telecommunications industry, let us look back in years later, from a large pattern of Zhao Yan has a clear track, in the end China's telecommunications reform is, how, experience and the lessons are. .


In order to group fusion, tiansuning is committed, even in the United States, his wife and two daughters home. His contribution to the maximum strength is helping China Netcom listing.


China's telecommunications market is not smooth, so the global capital markets, our expectations are very low. We are really tired in 2004, to coordinate a lot of things: road shows, restructuring, run red chips, to be run at home and abroad, than I have tired in the shin, the pressure is greater. .


A European fund managers have commented: "I have never seen a company to be so many efforts".


Netcom Group, the composition, it is difficult to explain to foreign investors, they can not understand why it is the merger of three companies. So I met with the general investors three times, I first pre-road show, his lap, and Fan Xingcha (when he was Netcom Group CFO) to run a lap, the last official road show. Three down, investors feel that we can exchange. Can be listed at the last minute, I fear can not succeed. If unsuccessful, even if we can not say I am a sinner, but they still can not forgive myself. How to mobilize the human, several million people do this, I think I did not retreat. .


Mr loves reading books, most recently for a time he was reading the classics, but also the history of World War II love reading, look at history, he said that he thought the expense and the balance between the victory.


When you want to succeed, must find what will be lost. Like the Normandy landing, a very important decision is how far away from the shoreline paratrooper landing place. Paratroopers from the farther, the smaller the effect, but the lower mortality rate; the more recent the better, but the higher the mortality. Eisenhower made the decision at that time, he knew only through sacrifice, to win the war. 101 U.S. airborne divisions, 20,000 paratroopers, 45% mortality. Another example is the Battle of Stalingrad, Zhukov told Stalin: We must be prepared to sacrifice 40 million people, attracted Hitler's Germany, to enter from both sides, scattered his forces.The capture of 40 million people, this is the human history of one of the greatest sacrifices. But these sacrifices are worth it, because of the Great Patriotic War victory. The history of the war tell me, you can lose a battle, but you must win the war.


How to Build a Good Board, of Fred Wilson. Short text is the subject of a good board that is to be diversified, but also need a good chairman can manage and control operations for the company in order to play the role of guidance and monitoring. Meals and entertainment are also an effective way to control one. .


In fact this article is addressed to the Chairman of the Board. Of course, the entrepreneur is also good to know about.


I was the director of the early start-ups have been 15 years, good and bad in many years worked at the Board of Directors. Because I know the difference, so I always set up the board in consultation, when we adhere to certain principles. Do make a good number of the board of directors has increased considerably. .


The following are the most critical of 10 points (actually also added some more, because writing to the first ten brake not car). They are a pioneering early companies is applicable, but when a company size becomes very large, it may not be entirely appropriate.


1. . At least one seat to the company founder. Many venture capitalists like to think out of the board founder. They think that is difficult to deal with the founder and meddlesome. Of course there is always such a risk, but to stay in the board founder of the advantages far outweigh the disadvantages. Founder of the seats in the board is not too good. Because you need people of different backgrounds sit in your board, but not too much from a single group of staff. .


2. The representative of the venture's Board of Directors control in 2-3 months. The number of venture capital and venture capital project success is inversely.


3. . The local board members better. Because they will come to meet in person. Avoid too many board members there are people living in the field. They would call the meeting. Believe me, that's too bad. .


4. At least one to two seats to the industry. They are independent of the company founders and venture capitalists. They can bring operational experience, become a corporate CEO of mentors. They also have to live on the ground, to be able to attend the Board meetings.


5. . The meeting to be placed early in the morning, while still awake when the open and talk. In addition to doing presentations require a computer, no laptop computers or blackberries can not be brought in. .


6. Every year there are at least four times during the night before the Board of Directors held by all members of the Board of Directors to participate in the dinner. Don't let the senior managers are invited to attend. Dinner is used to enhance the feeling of the members of the Board, which is to guarantee the normal operation of the key board.


7. . Never to be held before the board, at least one day in advance, the agenda of the meeting and the information to board members and asked them to look at before the meeting. .


8. Do not put the meeting information page once again. They look at their own will, to believe that they will see.


9. . Meeting, take the time to review the operation of the past, the future of the business objectives and the need to make any kind of strategic decision-making to achieve goals. .


10. Remember that the Board of Directors is the company services, as is the Board of management. Do you want to allow the members of the Board you need them to do, and think of ways to ensure that they do so.


11. . The number of your board of directors control less than 7. Based on my experience, 5 personal ideal, but sometimes you need seven individuals to achieve real diversification. Once the company reaches a certain size, two people inside the company, 1-three venture capitalists, and 1-2 is the ideal industry. .


Reading: most entrepreneurs prepare speaker are very good, but the details of the differences. Although sometimes these details determine success or failure of the thing, but I really can't say what exactly out details determine success or failure. Because there is no uniform templates and content. You can explain your target market before you introduce your solution; if you are in a large number of industry competitors, you may have about your and other people's differences and advantages; you may also describe your product or technology, you have to first introduce the well-known brand enterprise has become your customers. In short, limited by the slide of your presentation the details of your stress. .


Cover pages: company name, location, business, the speaker name and title. If you have more than one member was present, their names onto the next page. Key objective: House everyone should know the basic situation of the company, including the target market. Do not write it to the slide, the next speaker should, prior to the oral statement at the company's basic case, let everyone have a basic understanding, know what to do today.


Description page: team. . 3-4 key company members. . For some reason, some people Team for last, but investors often want to know in the beginning, and introduced at the beginning is normal for everyone. But not take too long. I had to choose, highlight the focus of everyone. But not everyone's life, or resume details. For example, 10-15 seconds, you should use 3-4 words to say to your CTO, and these are precisely the investors want to know. Key objectives: investors believe that a core of trusted team to lead the company to complete the objectives of each stage.Entrepreneurial team should express their understanding of the importance of attracting talent, and is there any way to attract talent.


First page: Overview. . Give your company the best way is the total number of expressed concisely your core value proposition: what kind of benefits to which you provide customers, which meet their needs. Then you can add 3-4 points to clarify your target market, your solution, your current situation (including setting up time, current customers, the benefit rate, channel, etc.). Key objectives: to enrich you start to establish the basis for understanding the participants. At this time, no one will mention "Your company is doing what?" This kind of problem, their problem is how do you care about.You reached this page by another goal is to make sure your company's customers, partners or investors are not aware of the presence of the person. If so, you can always take out the examples, the corporate name can help increase your credibility, but nevertheless these names is loud, the less said.


Second page: the problem / opportunity. . You need to determine the present or near future, there is a large, very important for you to solve the problem, or is a great opportunity waiting for you to open up, you have to understand why there is this opportunity Why should enter the market now and so on, to show you really understand what you want to enter the market, and according to your proposed solution to the problem and your detailed market analysis. .


The second page (if needed): problem/opportunity size. Even if your target market opportunities is not obvious, you can also take part in this stressed market capacity. Sometimes you need to divide up the size of the market, the market opportunities of various factors, especially when you are in a complex market. This way you can show your location in the target market audience, it is often said that marketing is broken down.


The third page. . Solution. . What can you offer something special? To provide it to whom? Software, hardware, services or an integrated? The most simple language to express what you have, or what to do to solve something. Do not use any strange words to show you are an industry expert or a revolutionary, usually you do not like people. .


The third page. Statement of the programme. You may need an extra page to post your solutions on your target market value chain. You are doing a supplement or an alternative? change commercial process, or let it become better faster?, cheaper? is damaged, or the integration? customer who?.


Fourth page. . Benefit / value. . A clear statement of the program that you provide the key benefits of 3-4 points, who has a clear understanding that these, or earlier than other people to realize? These directly affect your market entry strategy and product line. .


The fifth page. Intellectual property rights. If you are in market, intellectual property rights is important, you might need a separate page that investors make clear that your program is not easily copied. Don't put the interpretation of the content in a lot of boring technical principles of terminology, and so on, to highlight your skills in your growth process. If 4.5 page Excel, investor money.


Sixth page. . Competitive advantage. . Most of the entrepreneurs have misunderstood an important goal of this page, it is not a list of your competitors shortcomings. Do you have good technology, intellectual property rights does not mean you win. Other factors, such as the company's external resources, channels and so also the role of different actor. Your goal is to make sure there are many investors who for various reasons will buy your product or service, not to choose your competitors. The best way is to tell your customers why they buy your own product (3-4 points, reasons). .


Sixth page pagination. Competitive advantage matrix. If the competition analysis in your market is very important, or you can use matrix, put your competitor's various advantages, disadvantages listed in the table for comparison.


P. vii. . Market strategy. . Any project the most concern are how to get customers and strategic partners that have been reflected in the previous. You should focus on clearly stating your strategy is not obvious, and potentially lethal content, or you need a description beyond the barriers are and how you leap. If you do not have channels, what your strategy is not innovative, to give up this page, focused sales model expressed clearly on the next page. .


Eighth page: business model. How do you usually use some money? price selling things to some customers. It produces a lot of questions, your price system, your cost, why would you profits. Ensure that you have a very clear your guess plan and sticking to it. You can't keep your price? you cannot reduce your costs? you completed the sale of time is 2 times your plan? the investor will various questions to test your own business model. In short, preparing for your own business model changes that may occur must do careful preparation.


Ninth page. . Financial goals. . You should combine the above two key 2-3 summarized the contents of the formula, it can launch your income, expenses and growth (such as customers, sales, expenses), including income, expenses, earnings, cash flow and staff size . This page is most important is that you have to really understand a growing, entrepreneurial companies in the economics and development, your ideas and reality is in close connection with the your financial statements should be used in your figures clear instructions. Investors do not care if you guess the number, they care about is your business plan for consistency and completeness. .


The first ten pages. Financial requirements. From your financial objectives should clearly demonstrate your funding requirements. In this page, you should indicate that you plan to use the funds, how much of each round, in the middle of the interval is the number that corresponds to your current goals, medium-term objectives, should also include your completed a number of key projects. These milestones should be and your financial goals in the formula. They can provide a picture of your product when listing, how do you expand the market, clear graphics. Basically, this is what you get financial support after the business plan. Do not waste time explaining how to use the funds, investors want to see the finished result, the process is not complete. They want to know is to plan your company reach a milestone in how much it right. .


Outline. This page is often wasted.. most entrepreneurs are spelled out its 3-4 point: how good their project, we will be the final winner, and so on. This page is your goal should be to strengthen your company's core values, strengthening investment the impression. If investors want to their partners make a brief description of use to you. Write a summary of the best method is to imagine you only this page, you should write what?.


These are some basic outlines. Remember, you are selling your items, do not apply with a variety of templates. You should clearly understand what investors want, and this is where your focus. Make sure you as soon as possible to state that you think the most important issue, if not in accordance with the above order is also no problem. .


Transfers from venture capital interest of ten.


U.S. investment community call him "Mr.. Duan", he calls himself an "independent investor." In addition to home office, he specialized in the United States has no office, he has grown used to not wear a suit without a tie life. .


This is the Chinese business might have "tenders" duanyongping?.


Four years ago, Duan Yongping moved to the United States, from the business on track to get out out of the backgammon, so that a smooth transition of business, and then again in the field of investment and charity by IBM, this series of attempts left him to most of China " peer "left behind, is also reshaping bit of new Chinese immigrants in the United States the image of mainstream society. .


At a retreat into duanyongping updated between his own life design.


Text / staff reporter Min Lee in California reported. .


Derailment..


This is unusual in California in January the weather: the dry side is covered with fallen leaves on the one hand those who are still braving the plant year-round evergreen garden trees rich green, golden sun without stint to spreading ballast down, the air clear, slightly Hanlie . .


This is the Silicon Valley area, an extraordinary company: like ordinary Chinese high-tech Park, bungalow or small floor 0005 welter in flashes of dwarf bushes behind the buildings outside the marked each company's Logo, OPPO — the four round the gardens of letters — is one of them.


He is also very unusual here, she is not high, a little fat and he is an extraordinary visible everywhere in California, the Chinese people. Duan Yongping, wearing a rather imposing big sunglasses, drove rushed OPPO companies rush comes into the room, probably a company in the OPPO only about ten square meters, slightly shabby and cluttered office, accepted the " Chinese entrepreneurs, "interview (on the site, the first paragraph of the proposal is the United States -" Find Starbucks "). .


Ten years and even longer before that with create duanyongping SUBOR and step by step two well-known brands, take a CCTV "tenders" experience early famous Chinese business. And now, he is nevertheless seems to have coincided with the age of 45, a beginning of a golden age of the entrepreneur.


But "Wild World" has been far. The main section of the current social status in the United States to do an "independent investor." He said the room was his small office to interview temporary "borrowed", and also for wearing such a deliberately photographer. So saying, he is not comfortable to tie knot with twisted twisted twisted neck. As an "independent investor", with the exception at home, he out there is no specific office, he early accustomed to not wearing a suit no tie of life. .


Maybe in Dongguan, Guangdong, step by step electronic co., Ltd. also as he holds the Office of the Chairman of the Board, but even so, it's more like a has been put behind duanyongping, on the other side of the ocean, a symbol and symbol: after all, here and there, after a ten hour flight; after all, he period are now only two or three times a year back, letting the Board of Directors, has occasionally call completely out of his single-handedly bubugao's day-to-day operations.


Similarly, he does not interfere OPPO business. Explained in the Duan Yongping, OPPO is a two points and backgammon completely independent registered companies, the two brands, but can not say that they are not related, the two companies in shareholder relations and marketing in China market , is a high degree of overlap. .


In the United States, duanyongping is one of the few new Chinese immigrants of their legitimate Prime is the 1990s after the market economy is emerging and successful companies. They are completely out of the distant history of those from behind poverty to China to the United States, not English immigrant image and IIE from scratch after leaving, potential students. And they both entered the United States, and they had created and owned by a large fortune. They received a good education is more important is restless entrepreneurial spirit, and previous business experience (although perhaps on the peak of this capitalist country of view is limited, the Chinese localization), it is possible to make their existing wealth in the United States to continue to add value. And further than in the United States to make money, they also joined in the ranks of the U.S. charity, the money on the road, gradually ease. To know, to do more large-scale charity, what kind of charity, perhaps as a rich man is the ultimate mainstreaming in the United States, can be an important indicator generally respected. .


American media has expressed that the Indian immigrants in the United States as a group to achieve success, possession of, mainstreaming as a model for Asian immigrants in the United States, China has a long history, although the number of people, for a long time but nothing new. So, in the last 23 years great changes took place in China, exports to the world's "immigrant population" - their image and influence in local, will also gradually change? Yahoo in the U.S. as immigrant childhood-founder, YouTube co-founder Steve Chen is to make the world proud and friendly Chinese symbols, Chinese immigrants also may be like the image Duan Yongping this, already has a wealth of confidence and sunny temperament emerging businessmen and other professionals drip remodeling. .


Of course, the United States Duanyongping (migrants) social changes also in the subsurface, even to the generational can manifest, but in mid-2006, on behalf of his family duanyongping Charitable Fund on eBay for $ 62. .01 took and Warren Buffett lunch opportunity message back to China after a direct collision with a Chinese community, business, charity certain concepts.


This meal is held each year in recent years, Buffett, one of Yi Pai, successful bidders for this meal dig the "meal ticket" will be donated to a charity in San Francisco. "Some people say that how you do not donate money to this meal in China, and donated to foreign countries - who said this to me, is foreign? I've lived here, I live from my car as long as the donor's body after twenty minutes This how can they say in foreign countries? say it bluntly, I donate where this thing none of your business ah?! "paragraph. He will bring his wife in May this year, and several friends went to lunch with Buffett in New York.— In fact, this is not the first time face to face hearing Buffett "mention" · as Berkshire Hathaway shareholders, two years before he went to Hoja Ma participated in Hathaway's general meeting of shareholders.


"There are a lot of people say you plan to spend so much money is not worth ... ... I heard this, he knew and this person could not go on. I'm not to eat with Buffett as a business matter. I just want to his old holding a field, tell the world what he really valuable. He was not missing this money, I do not have to eat this meal, not as some people imagine me to go to his place to discuss a secret, good ideas, someday dig out look, can fortunes. This is nonsense. I just think it was funny. Just for fun.. ". .


62 million, and the second in the world of the rich dinner, Just for fun?! It rested on the sunny California for fun in the Sun, who spoke of the United States is very timely, such as conversion context, one on the Internet, is undoubtedly to the domestic Internet critics who became angry and curses of the heart. But a pair of booing duanyongping Frenchman never going to meet, or what to appease socio-emotional, and he will give you many years ago I "(money) with Tiger Woods golf," examples of his own pocket to Buffett meals but it was his usual pies.


If the role of virtually every human society there is a default track is indeed the case, Duan Yongping often is that suddenly the track, another shop on their own a person. 1995, suddenly resigned from his left bully and creating a backgammon, to fade out in 2002 he went to the United States to do better in good backgammon only because a simple reason: to follow his wife and child reunion, Duan Yongping Chen from each a decision is out of his duty and original mind, and do not care that most people are not also do, will do so. The same applies to his later investment.Section on "Chinese entrepreneurs" said: "many people doing investment, worry about what other people think (the company), satisfied not satisfied, the real investors don't care about, absolutely arrogant, his eyes fixed on the enterprise, don't look around no one bought. ”。.


It should be said, Duan Yongping found "self-feeling", "Happy" is one of the most important thing in life is not the United States to his Kai Mongolian, although the U.S. environment may reinforce the idea of his. Before moving to the United States, in many occasions, have said something similar paragraph: "There are some things outside of your evaluation of outsiders, but you feel he is not happy? I think this is particularly important. Happy life is the greatest wealth. I have seen too many examples, many people have money because after becoming unhappy, and I personally think that if a rich but not happy because the money is very stupid."The difference is that he had not yet been suddenly from the Chinese word" hopped in Just for fun "and other English speaking habits.


But the real fun is to give up the struggle in the domestic business in China also gave up the glory and influence to "the pursuit of personal happiness life" Duan Yongping, a few years, doing, for investment or charity end up as domestic media sector and the business community willing to pursue and explore the subject: he shifted from the investment management industry, how can we do now looks pretty good? He judged that the company decided to invest in the standards or where? How charity associated with his investment? His tools and methods to do charity what is? . .


In those days, the phrase "duanyongping world after" business philosophy has served in the Chinese business community, until today, duanyongping in some respects, relatively conservative and pessimistic — such as his personal venture out to Chinese enterprises, the internationalization of the acquisition of this test with avant-garde nature of fear; but in other respects, he's from business step by step get out on the track, make a smooth transition of enterprises in the field of investment and charity, this first series of attempts to make the most of China's "peer" left behind.


Independent investors, Mr. . Duan. .


Last couple of years in the United States, certain investment forums, especially the Chinese investors focus of the Forum, has a name, or is said to be an ID will be Forum occasionally mention: Mr.. Duan, or Fastisslow. It parses Mr.. Duan investment cases; others asked: Hey, are you Fastisslow recently NetEase's performance?.


As you know, Mr. . Duan and Duan Yongping Fastisslow is (especially the latter, Fastisslow of ID with Duan Yongping photographed with it to lunch with Buffett has become the Earth people know). Relying on Netease (NTES) is well known for successful investment, and the reputation enjoyed by the Chinese businessmen, investors richer than the average business experience, Mr. . Duan part of individual investors in the United States was well known, and sometimes even air of mystery. .


However, section as early as two years ago may still be in Yahoo Finance message board or a forum on Lulu, now he is not to go back online, participate in discussions. Segment their explained that the former is mainly to English, hindsight original statements, many of which are written in wrong, do not know what to say. In fact, he should be grateful to the Internet. Through the network, BBS, first arrived in the United States made several duanyongping is similar to the idea of a friend, and later also in reality met recognizes that "they are a great help to me. ”。.


He really is the world's mighty force to follow Buffett's investment philosophy of the recruits. Duan Yongping contact with Buffett value investing philosophy has only six years of history, and he describes his business practices and investment choices are quite simple. .


From 1989 to 2000, always focusing on industrial duanyongping, successively create the Overlord and step by step two brands, on the stock market has never been touched. "To study, no interest, and feel the atmosphere of speculation. comparison "In 2001, the US green card duanyongping suddenly been down about it on his life and career is a strong hint that turning point. A "green card is 2000, my wife helped me in the US, I used to think that the things you need many many years and a half years, the Group down. In fact, I'm not very good. But how should we do? Approval must come down again and again, because he and his wife before the marriage I promised you marry me, I went to the U.S., otherwise people will not marry me. Not to let their wives in the U.S., I was in China, but also the family that do? "Duan Yongping's wife is his late 80s of last century in the People's University alumni met while a graduate student in 1993, the United States photography career in 2000 when the United States have stabilized, and an accomplished. So psychological lack of preparedness cases, in mid-2001, Duan Yongping holding a green card to the United States first "landing.".


"At that time I thought, I'm gonna be here, I'm here to do? I cannot stay at home all day. "He thought of the investment. But first he was very confused on investment "manipulative cover for rain" things touch, do not know what the financiers expect busy. He read some books about investment, say k-line graph analysis, probability, how to change logging city, can't understand. Then he saw a Buffett talk about investing, which says, "buy a company's stock is equivalent to buying the company, to buy part or all of it", "investment you can read, and by the market undervalued the company "got it. He thinks it is talking about why he did would invest their own money backgammon truth, simply because he believes this will be a good company - backgammon started with his personal account in which more than 70% of the shares. "I invest in any company should be with my vote that year is the same as backgammon, backgammon difference is used to make investment while also doing my own business.". .


He said: "in fact, looking at Buffett, these ideas have always been in my mind, just take a look at the Buffett also so want to do this, but on this turned into a second in the world of the rich, I have confidence. Otherwise does not necessarily have a hand. You can understand? people do often need to be sure. ”。.


At that time, Duan Yongping in wondering whether the Internet bubble burst in the "ruins" in gold.Because he believes that the Internet itself is not a bubble, "the things we use every day, how to be a bubble?" he deliberately with Sina, Sohu, NetEase, lianzhong these Internet company contact information (interesting detail is that one time, then CEO of Sina Wang Zhidong with Mao Dowling, Wang yan, Weiguo Cao: — turned out to be the new wave in the history of the four permanent CEO — eating with him), but also touching nature and bought it several portals of stock, but duanyongping the model and the future still skeptical, look not very transparent.


Then one day his secretary received a telephone Netease Ding, Ding Lei Duan Yongping said looking just to talk. On this matter, Ding has a speech he also mentioned, launched in 2002 NetEase online games "Westward Journey 2," Marketing is a block short board, so he wanted to do better marketing of Chinese who, he went to ask him always be right. So he opened contacts, find Duan Yongping card. However, paragraph two of this small matter of the time memories were not the same, in Duan Yongping memory, this is 2001, before he bought our share something."Ding Lei, not for me to buy a stock, he doesn't know who I am, I do not know him who said I could understand some of the enterprise, so come and see me. At that time, he felt that he had some problems, I than he was ten years old, more time than he is, to teach younger people, eat dinner drink tea, for me is simple. "Moreover, just want to learn more about duanyongping Internet, so the two of them met soon. This period of NetEase from operating conditions (2001 annual losses of 2. 300 million yuan), the stock price (down to one U.S. dollar or less) to the corporate image (the U.S. investor of its proceedings, facing delisting risk) at the bottom round. After some long talks, listening to focus Ding said that troops engaged in research and development Netease, do online games, Duan Yongping said, "Your idea of a good ah? If the company, as you said, now the price is obviously not it! . " .


Do videogame descent duanyongping know games market. Although he did not predict NetEase online will certainly be able to earn, but "no point better than I do in 1995 when the Overlord. When we do almost hundreds of millions of dollars in turnover ". He went to the questioning of NetEase NetEase reports, see the price per share is only $ 8 hair there are 2 blocks a lot of cash. His heart. As for the NetEase face legal risks, "is very simple, pay some money, few lawyers under the legal provisions and the case in the past has to calculate the case if NetEase to compensate, to delisting, the probability is much, much to lose. "Get a lawyer evaluation, Duan Yongping a spectrum of heart..


This is a move with two million, $ 1 per share following the beginning of the investment of NetEase. NetEase stock then the sky is as we all know. In March 2006 after a removal of the stock split, the month of February 2007, NetEase's stock price around US $ 20. According to the November 2006 disclosure, SEC file duanyongping NetEase's stock still 534 million shares, representing 4. .21% 1. .81%, 234 million shares in duanyongping family charitable fund Enlight Foundation name..


Another example of the more successful investment is Amerco (UHAL). UHAL is an American Lord trailer rental company, store all over around the country and Canada, very large scale. Around the year 2000, as the company's insurance business into a high-risk venture in the field, to bring the company more than 100 million U.S. dollars every year a loss; addition, it is because of the expansion over the sharp rise in debt. June 2003, UHAL into bankruptcy protection. At this time, Duan Yongping 3 per share. .5 U.S. dollars eating UHAL stock price. .


Duanyongping admits that in addition to NetEase, including other UHAL several branches of the money stock was recommended to him by friends. But this does not mean that they didn't go to duanyongping doing their homework. "I like to sell products, do investment should also visit the market. "In addition, accountants and lawyers to analyze the company's report, he also made a phone call and ran to the UHAL shop to find and enjoy the company's business and services. Paragraph of the conclusions is that the company value by the market seriously underestimated. Despite financial difficulties in, but UHAL core business is still clear and stable in the market competitiveness and sustainable cash flow sufficient to survive as long as it Brokeback, quit the field of high-risk venture capital, while some commercial real estate for sale, it The financial figures can be improved immediately. .


Developments to foot the duanyongping face. The beginning of 2004, the UHAL discharge from bankruptcy protection, through 2006 annual hedge rose over hundred gates, now (February 2007) is stable at over $ 80 more.


It is said that he buy the stock now held by two-thirds of UHAL. "Light that a company had not carefully considered, may make it seven or eight million.". .


But this does not mean he personally earn money. In fact, according to him, he personally in this stock investment. He refers to as "we" and earn money.


Which "we"? Duan Yongping acknowledged that the United States in his "independent" investment back, in fact, support a team. Backgammon following a few dozen "investment sector", but the investment of funds not used backgammon (backgammon, he said only bought a stock, that is, Wanke), but refused to say in paragraph funds specific source, just that his hands of investment funds available, in addition to his own, partly from BBK investment arm, part of the accounts of his close friends. .


He broke to index a few, "now I have an account on behalf of the friends in charge, there is a number, shisansi. Nothing more than this number. Their money is far better than my own money. Others were surprised, how can I be the master of such account, remember so many passwords. In fact, I am a very random, I'm not going to help them look for a specific stock, tired. I am a cheap watch this stock, who suddenly have an account there, and then find out how much money in it, just put the money to buy the stock, we will throw in there. A lot of account I will not go in for half a year. ”。.


"I do not handle the account losses before," he said, some of which account, "when there are seven or eight at most, to me is a loss, but now all back in slowly make.". .


Have an account, if the deficit to a surplus, earn, in accordance with the relevant laws of the turn of the income tax, paragraph back to others; recently, some funds for smaller account, he does not love Canal, he felt a small account let him nervous, small account may mean they all money are placed here, he is afraid of losing money on others once the effect is too large.


"I only think to do this stuff fun, fun but also can help anyone else. Everyone together to have fun anyway idle is idle. Me for fun people for money." Of course, you would understand that this Duan Yongping is also an important channel for raising funds and means. .


"So I sometimes say ' we, ' ' we, ' ' we ' really means, I do not know who is this bang. California, Texas, Seattle, and even domestic friends. ”。.


Such a view, Mr. . Duan was some concern within the scope of discussion, the investment trends as a benchmark, not groundless. But the segment did not see the so-called "circle" exists, but sometimes with a few friends to share some information, or the feeling of a stock: There may be confirmed by others, there may be persuaded to discourage others. .


Once that period with his friends said he bought a stock, "but you don't talk, my most important goal is to do directors know a publicly listed companies in the works. "The purpose of the paragraph, but he reached the sum of the investment is completely lost. A tracing Mr.. Duan investors online concludes, "only dead people don't make mistakes." The same is the Valley of the company, the company faced bankruptcy impasse, UHAL, NetEase, vote on the duanyongping; Fresh, the wrong Choice.


Fresh Choice is listed on NASDAQ in the United States had a catering company, in the peak of its development, it is in California, Washington state and Texas has a total of 58 chain restaurants, especially in California have some market influence. October 2003, the company's announcement that, Duan Yongping become one of seven directors of the company. In the previous half year to the United States to settle in the near Duan Yongping just bought this company after another 104 million shares, making it the largest shareholder of listed companies, accounting for about 27%. .


Duanyongping shares, the company's business and the stock price has been declining, and bears at the higher debt. But duanyongping notes per share of $ 1. .5, stock the following 6, 7 cents in cash flow. "I want to be back in two years, this has been so cheap things, why not do it. "So eating, be the first to become shareholders and directors. But duanyongping to first shareholder status in, found the language barrier that he did not have any methods and other directors, management and smooth, comfortable communication. "Some of them move, such as continue to expand, to product prices, products I did so many years, knowing that is wrong, it is very stupid fast commit suicide on the spot that will be killed, but I can not speak, can not affect the Board of Directors decision-making, not to mention some decisions before I go in they will be good. "under the command of the management errors, Fresh Choice's sales have fallen sharply, only a few months, cash flow from positive to negative. Companies were bankrupt, for shareholders, delisting. .


Duanyongping recognized this is after a typical failed investment. Of course, more than 100 million dollars of loss to him bearable, "I donated all the money donated more than this number." He said he hopes this investment would have not make money, but just want to have access to a vital "Sparrow" look at what u.s. company operates. "A turn of the tuition fees. Because the size of my investments are relatively large, if you did that publicly is more of a blind and dangerous. "He's been the case from the company's good or bad experience with the business layer and not only has a close relationship with the directors, so when the investment decision-making was concerned about the background of the directors and their decision-making style of governance. In addition," I earned point is that the operation of the U.S. bankruptcy process, that I quite admire them. Chinese companies face bankruptcy if the must 'defeat', but they are very orderly bankruptcy from start to finish, it did not affect normal operation. . ".


Enter the company director is duanyongping reference Buffett practices in an attempt to observe even intervene in the management of company decisions. But internal identity for flexible is a stock trading, "Director for individual investors is not a very comfortable thing", so as to go duanyongping company directors scruples. "So far, I am a Director of a company are not done, but it is difficult to say in the future. Now there is a publicly listed in the invite me… is possible. ”。.


"I am doing the investment." .


Bubugao investment unit has an important task, it is soaked in online games, play NetEase game and a competitor's game. "Chinese Internet users now popular games, the game will launch what game, game, every company how to deal with these problems, partnerships or more long-term approach, we all know that every company very, very many questions. "Duanyongping said.


Duan Yongping himself to play. He spent the game on every day for at least two hours. His seven-year-old son, admired his father very much will play games, saw his father in the play, said, "I have to play" to hear the answer is often "Daddy at work." Duan said with a laugh, my son is now no clear "why the father play the game is working, I play the game is not." .


"But I did invest. ”。.


Speculation, I is not never been, but that was fun, just for fun, just for fun. People with me to discuss the stock, I have to tell people clearly is to discuss the speculation, or investment? Is for fun or for money? If for fun there is nothing to discuss, like you like to buy, and anyway you do not sell the house carrying the money will go to Las Vegas. I have the cruise on the money to play with 200 for three nights, made a thousand dollars.If you as an investment in terms of story, and three days over ten times what is this?!, but you dare take millions so bet?. So the investment is also unfounded.


I am really beginning to end investment companies had up to 56, sold some, and I'm holding company generally is about three. Buffett's Berkshire Hathaway more than 100 billion U.S. dollars market, and has voted 10 to home. I am not afraid to concentrate, I do not generally focus on, I was absolutely focused. .


Find undervalued the company itself is a very difficult thing. I did invest in the most basic concept is from Mark's "price fluctuations around value." The enterprise value of The Whole Life to earn discount till today, the market price is now evident that is too high or too low. How to evaluate a company whether or not to be underestimated, the team and I think it is important, of course, also this company has very good culture, one of the core competitiveness of enterprises to truly is the corporate culture. Warren Buffett has recommended to the shareholders of several books, one book, "Jack Welch's autobiography," you see that book, you will find Welch on the issue of corporate culture is very concerned about So you can imagine this is also very much, Mr. Buffett. He was not, as some people say just look at earnings. Just look at earnings will see a company's history. I never read financial statements, at least do not read so fine. But I'm looking for professionals to see, after reading other people to give me a conclusion for me to OK. But I care about profits, which in the end the cost of these data is composed of those things, you know what it is a true reflection of what is。 And you want to put the data continuously several quarters or years, do you keep track of a company for a long time, you know he is lying or telling the truth. Many companies look to earn lots of money, cash flow has been reduced. It would be dangerous. In fact the Buffett early said, people know, but the investment is foolish. Many people invest in their own possession, I called said that they are just for fun, they are not satisfied with the care for people (the company), the real investors is "defiant", his mind at the enterprise, he didn't look around no one to buy it, he'd better hope that people will not buy. Similarly, a listed company if I do, I do not handling (Wall Street) who, why why should I, level of stock prices not related to me. So I bought the company, I have a great identification factor is that the company's behavior with his influence on Wall Street on how much the correlation? If the correlation the greater the chance I bought him lower. Nothing wrong with Wall Street, Wall Street is always right, it's permanent representative to the idea of different people. But you know what they're doing to themselves, if you own no more assertive, you have to listen to Wall Street, you just did not. .


My logic was Buffett's logic, there is no difference in principle. The difference is that he is familiar with the industry does not mean that I'm familiar with the industry, so he vote shares does not mean that I will vote for. Last year he was a company, I don't understand, and sure enough, he voted for the stock could rise by 50%, 60%. Someone asked me if I said not to worry. Why?: because it's not that I can earn money. Conversely, for example, I vote for the NetEase such companies, nor is he able to get the earned money. Again such as Google, Buffett didn't buy. Because he did not understand this business, not making money do not understand is normal, nothing to regret. If you do not know dared to vote, first you can not keep that long, 80 to buy, possibly 100, 120 also sold, in fact you can not make money; followed around if you do, you may already light of the loss. That is not unfamiliar in their industries and enterprises who make money, explain your mistakes less.I have a lot of successful investment like industry not dajie, but for me, because I am able to understand it, to know whether the crap in the management, enterprises have a good mechanism for competitor than many of his strong, three he will win your opponent's place where ... is nothing more than these things. Had you invested. For example I did earn the money that Panasonic stock 7 bucks to buy, to sell more than 20 pieces, put there is approximately two to three years. Because I do this right, I do a lot of business ideas from Panasonic, I visited his company, also know their weaknesses and strengths, that the company can no longer than seven, while 20 to I think You can buy, to sell from time to sell. So you make the investment is with your past experiences have a great relationship, you can get to know what a great relationship. Determine your relationship with the mainstream is nothing between the two may have a significant time lag. I judge that it's future, and the market is to wait until business conditions are better reflected in the price. .


Growth rate for me has no meaning. Definition of investment in me is a company owned in part or in whole, the simplest concept is "owned." Suppose a company makes a piece per share last year, this year earn two dollars, has grown at a rate of 100%, it was described, may also rise again. After years? don't know after years. If you are your own money to buy the company, what would you buy? you said that as long as someone to buy my shares, you will buy it. This is called speculation. The difference between investment and speculation, I have a simple measure of a solution, I did not notice it so Buffett also talked about, is to present such a price, the company is not a listed company if you take it or leave? If you decide to also buy, this is called investment; if you do not buy non-listed companies, this is called speculation. NetEase like I was why I bought that price can buy (if bowel all), because the NASDAQ has a rule, a dollar below the maximum amount of time the stock will be under the city, many people fear that under the city, took the stock to sell them . In the following, we sold one dollar. Because they are afraid of the next city.Do you know why I am not afraid of the truth of my investment. I bought it and it is not listed, it's price is lower than the value I would buy. Step by step, no city, but I am so sold on the company, no sense in Ah, ridiculous, you say I founded the company just because it is not listed as sold out, then I started doing?.


These are indeed things of my soul. .


But very interesting, I now only have listed public companies, because I go to the "find" and others, I'm going to non-listed companies are also investing a lot of people came up to me and I am trouble. I am not a professional investor, I do not wish to be bothered me.


New Money. .


"Investment is my favorite charity is my work", duanyongping returned in mid-2006 has been a few times over the media. "Hobby", it is easy to be understood as a sort of easy, talk to the task. But in fact his investment and charity are inseparable.


In 2005, Duan Yongping Liu Xin and his wife set up a family charitable fund Enlight Foundation. If an official from the end of 2002 moved to the U.S., then it is Duan Yongping to the United States in 2005 to the third year. .


"In 2005, I feel that I want to clear. "Segment he owns some stock donation to the Fund, the Fund is in the direction of the main charity in the field of education. But he refused to disclose the total value of the Fund. Ninetowns digital only congwangyi and (NINE) both duanyongping shareholding company documents Enlight Foundation, there are certain shares in the company's value added up to more than 53 million now.


In California, personal income tax in California, with federal tax and state tax (even if the annual income of more than 1 million plus a percentage of the rich tax), add up to 45%; if long-term capital gains income, investment income is more than one year Federal taxes can be reduced to 15%, but with the state tax would still have 25%. If the stocks go directly to charitable fund or organization, up only 2% of pay. .


In addition to tax stimulus duanyongping said he watched more and more plot the money in your hands, how do you like how it is a scourge and a trouble. "My wife and I are more or less the same point of view, the money cannot be left to the child. As parents, to the largest child support is to let him have an ample educational conditions, if conditional alternate, hope he carelessly, he don't down-and-out. But in fact the money needs to be very small. "Fast eight of the son, daughter, aged less than five years old. He sometimes thought, he certainly is the kind of "who wanted to give me a pile of money, and I became unhappy" people, that "money itself is fun," but his son will grow up in future would not want to "Dad is not good for me, why not give me money?" So he is now about in some truth to his son. "My life from business growth, investment in the process of enjoying a lot of fun for the children he left behind a pile of money will only be deprived of the pleasure of the future, the most important thing is to make them their own.". .


"The ' old ' always think in the struggle for life to his son, the old at this point some relative xiangdekai. "Duanyongping said:" in fact, we encounter the ' money ' is not a long time, English is the new money, not the old money, so on the understanding of the ' money ' is not necessarily very deep, but the basic understanding that has developed. ”。.


NetEase and Ninetowns from the situation, Duan Yongping Enlight Foundation donated his own name the shares are 40% -50% of shares, meaning that the first paragraph to his stake in the companies contributed roughly one-third out. .


"I think there is no big deal to do charity, we want to solve their own problems, to say what a great contribution, an example is crap, I never dreamed of being a good example to who. ”。.


As long as our minds figured out, donate is easy, but the difficulty of the hardest in how charitable funds efficiently for long-term survival. According to the law, after the establishment of charitable funds, each year a certain percentage of the value of the Fund to donate money to. "Now I told my wife's job is to donate at least a year to millions of dollars, or we need to play from the fund in tax to the State. I am now keeping the money for the Government, for the Government to make money for the Government to spend money . So, why do I say that charity is my job, and is more painful."Section, you can admire Buffett once donated to the gates in my Fund so the gates to the efficiency of the operation of the money, this world there are more than the world's richest man who let Warren Buffett trust?" but my time is short, I could not find one person who gave him all his money to get him to do, if you can find such a person like me step by step to the brothers, I am quite handsome. ”。.


Buffett lunch opportunities captured 62 million, is the Enlight Foundation foots the bill; Duan Yongping the school district of residence, hospital, Enlight Foundation's donation; Duan Yongping and Ding Joint Donation to Stanford University a total value of 4,000,000 U.S. dollars the fund to help those who come from mainland China, need financial assistance for first-year students, there is a Enlight Foundation; section of the small two-person once again join forces to Zhejiang University, donated 40 million U.S. dollars, respectively, of the 10 million individuals Ding Lei, Enlight Foundation and Duan Yongping funds raised a total of 30 million。 Next, Enlight Foundation will also provide parents of former work duanyongping units do a library endowment.


And Duan Yongping compared Ding Lei of China's new new money. His wealth of clean, light, personal fortunes on the eye-catching when they move to a low-key. After he was familiar with the Duan Yongping, that section has some ideas in the charity, they said to him, to have any good ideas and projects, he is willing to work together. Duan Yongping said, "Ding also did not use that money for themselves, he is not a Xianbai and luxury. He did not have enough time to go to charity projects, so I usually get, I vote he cast.". .


Duanyongping charitable not to start only after the United States, but to the United States, have established their own Charitable Fund, he realized two national charitable environmental disparities between.


He told a detail. Buffett lunch eBay, captured the opportunity, he unexpectedly received through eBay account several letters strange messages of Americans, the letter is a general meaning, they know the money will be donated to charitable organizations in San Francisco Ge Laide and they hereby express appreciation to the Fasstisslow. These people do not know of a Duan Yongping, looks, and seems to have nothing to do with Ge Laide. Duan Yongping feel a bit touched, and more surprised.He thought of in the domestic money several times, "sometimes be monster, someone is either a very skeptical, from beginning to end without a word of thanks, either after the final out of the money spent and no one will tell you that either he would you eat abalone and sea cucumber live presidential suite is more than you donate money also generous ..." in short, "gossip, donated a money after all old discussion you should donate this, why not donate that?".


Duan Yongping this great injustice, "as the people who donate money, I can not know which place is better, more reasonable, I can only put money into their own can see, feel is needed. Why do people Evaluation of the people love to charity should not, donate more tax less, but very few think that they are therefore not likely to have more poor people than they do? "Duan Yongping said," charity this thing, really culture have for many years (nourishment), can do up naturally. ". .


Secondly, operationally, Chinese society has not established to promote philanthropy, and philanthropy to supporting policies. Enlight Foundation this equity family Charitable Fund, is flatly difficult to transfer to China. For example, through the u.s. capital markets, on the application of certain financial instruments (e.g. options), Enlight Foundation does not sell equity can obtain cash, which you can donate money, which in China is fundamental. This can be referred to another section of source of funds for charity, is the above mentioned, his obligations for the friends that a dozen investment accounts. Yes, it is the obligation, to take over before the Duan Yongping in the statement: "Do not worry about me trading, do not worry, do not ask me, are you winning or losing," but there is a requirement, "you can not make money after the money have swallowed their own, to set aside time to make donations too. "proportion of donations is not rigid requirements, but probably earn 15% -20% of money. Duan Yongping said with a smile, "While money is very distressed, but they generally are out, and some people made money happy will win some more.In fact, you should not donate what to do, I would not, because the money in your account. "" So why sometimes I raise ' donations ' it is. ”。.


Duan Yongping course not Buffett. So-called "section Fitow" call, not only underestimated the listed company Berkshire Hathaway investment model of this complexity and skill, but also conceal and obscure Duan Yongping personality and preferences. Some people commented the domestic investment community, "Duan Yongping on Buffett but just learning"; also said, "Now it seems, Duan Yongping done a good job. But he also needs time to prove yourself. You know, Pakistan Buffett's success is to net assets per share in 40 years has maintained an annual growth rate of over 22%. and Duan Yongping current success would have a chance, it cyclical?. " .


Duanyongping himself said: "I affirm this five years than Buffett's growth rate is much higher, almost every stock compound annual growth rate, there are two several times or even dozens of times. But this does not mean I level. "Look, he knew either investment or charity, he has a long way to go. Otherwise, how could he think will take the opportunity to lunch with Buffett asked him this question: "Are you over 40 years old, when you have a lot of money without investment objectives, goals or when you find the hands of no money time, what kind of mood you are? "section deliberately, he did not ask how Buffett will do (no one knows it can not do!), he is 40 years old to ask Buffett's" mood. " This will make this 77-year-old led to the kind of memories? Duan Yongping What is this resonance and to confirm it? As he saw six years ago because of Buffett's success stories, dare to believe the same view of their investments? . .


Finally, are you still want to know is not big plus duanyongping disclosure of investment news? can tell that the one is above mentioned ninetowns digital (NINE), one was his inverse Buffett buying advice line was a corps of "aviation unit." At present, the former trend of uncertainty, while the latter price in his bid for two years and a growth of nearly 10 times. But regardless, they cannot vote because it is so becoming duanyongping you sell. Paragraph expressed a similar meaning, either investment or charity, he is just expressing his desire to "go do what you want to do. ”。.


In addition, in a lecture on, I was asked what advice he was here, he said: "To say that 'enjoy life', that is the purpose of people coming into this world.". .


On the afternoon of January 25, century jiayuan CEO Gonghaiyan and ring network CEO Caojian and visit the "FaStart invasive bar", and the editor in Chief of Forbes Chinese version of the implementation of jointly soldiers Hao of Internet business models, as well as entrepreneurship and investment, etc. The following is a true dialogue.


"Find home" angel investment. .


Caojian gonghaiyan and have been in business at the beginning of the angels investors of all ages, and their investors are those new Oriental, Vice President, New Oriental online CEO Qianyongqiang, and founder of the China Zhang yin. Qianyongqiang and Zhang Yin are currently entered a "serial entrepreneur" stage, with 2 years qianyongqiang into mobile value-added business company construction and great 1. .1 million sold, Zhang Jie, left China after created ziye 114 and ziye VP Alliance.


Hao Bing: The early two have been in the business had the help of angel investors, that is when? . .


Gonghaiyan: I was in March 05.


Cao Jian: I am a bar in November 2005. .


Hao soldiers: many people taking the money later, develops to a certain degree, looking back on it, will find angel investment for the development of our company, is certainly helpful, but may also have some drawbacks. For example, angel investment came in after effects, and the founder's decision on the direction of the company.


Please summarize your own angel What are the benefits of investment? Would not have felt bound to place, to remind us later entrepreneurs need to pay attention to? . .


Gonghaiyan: I would like to talk about it, in 05 if I have not got the money, century probably jiayuan very difficult today. Because one of the things you want to do it well, the Internet is basically also does not charge for such a premise, the more you do, the more money you don't have enough money, you will die of this site. Of course, you can also put the page hangs in there, but can't do much.


So I am grateful to my investors Yongqiang Qian, his support for my help or with the large, money is no man, you do not have money, server hosting, bandwidth leasing, hire employees, ah, all would be restrictions. .


Cooperation with the old money, I think it is very pleasant, to tell the truth, I'm up to now, also wrote the so-called real business plan, that is, March 05, can't remember which one day, I received a letter qianyongqiang wrote me a letter.


Hao Bing: Yes, he find you? Not you ask him? . .


Gonghaiyan: Yes, I was luckier, apart from old money, there are some other places I want to give my vote. But I was more interested in old money, because I was a student of new Oriental, his identity is Vice President of new Oriental, very famous, I feel that there is a sense of trust, he should not deceive me, because I always find myself is a very simple man.


Hao Bing: angel investors prior to any contact with people? . .


Gonghaiyan: not true prior to contact with angel investors know what angel investment.


Hao Bing: Have you ever thought Yongqiang Qian, if not he find you, but you find him, when you are short of money, you look for investors, Mr. Qian will not find better than the angel people? . .


Gonghaiyan: there is no prerequisite for this assumption, it is not possible to predict the hypothetical conclusions, in fact I and old money very pleasant cooperation.


Hao Bing: Oh, more accidental. .


Gonghaiyan: comparison by accident. At that time it was in a letter describes his own, he gave me this Web site is in the affirmative, then I get a letter with my phone number, and then he soon to give me a call, the phone much more speculative, and might have three or four days, he went to Shanghai, Beijing, specifically to see me in the Jin Mao Tower, we talked for over an hour. He returned to Beijing after he called me over to a sum of money, then even the agreement did not check anything.


Hao Bing: So soon? . .


Gonghaiyan: well, he believed me, but I also read in Fudan University.


Hao Bing: Protocol did not sign, the money to play later? . .


Gonghaiyan: Yes, he did not watch out for me, he knew that I could not have cheated of his money. At that time on the phone, talked about the site now, and then he was much, much, I'm still a bargain with him. But he readily agreed, beyond expectation. I think he is a dare to dare to seeing won't hesitate to people.


After a half a year later how, just wrote a protocol, just a formality. .


Hao soldiers: possible for a start-up enterprise, this angel investors more suitable, he's not going to have to spend a lot of time talking about the conditions that can make decisions quickly.


Hai-Yan Gong: I think his best angel investors have plenty of money. Some of his money could save was especially hard, he voted for an enterprise, he will very concerned about, and if he total to 3 million, to vote for you 2 million, he may be very care about, that if he had a a million, he cast two million, he may not be too concerned about. .


Hao soldiers: ring mesh side with century did not like jiayuan?.


Cao Jian: Actually we are telling them is quite similar, investors investment style is very similar, JAMES (Zhang Jiexian) is also not very tube we at the beginning is like this. .


The beginning is very casual, JAMES and my MSN, I also wonder how did he get in my MSN, and then talk, he says that he is the founder of China, and later left, did some angel investment. I searched out his resume, and then through a phone call, so it is quite pleasant, probably about a couple of times. Later, he made ziye 114 companies want to vote for an advertisement in our ring net voted out, the effect is pretty good. And then later cooperation interest compared to the strong.


Hao Bing: feeling useful to you? . .


Caojian: Yes, after all, this is our first advertising costs, then he'd like to see our team is looking for a place to eat a meal, in a spicy incense pot.


Hao Bing: still quite fast. .


Caojian: Yes, it is quite fast, and then talk about cooperation, I tend to be more discreet, written agreement, taken half a day, but rather quickly, JAME himself was the founder of China, also benefit from Xu new angel investment, his investment style is relatively fast, treatment protocols, and so on are very fast.


And investors "character must come together." .


Textbooks give entrepreneurs a word of advice is, "where financing, the way financing is more important. "Gonghaiyan and caojian on Heaven. Because she/they hit it off "of investors, venture capitalists" personality to highly reliable, gonghaiyan and after obtaining financing caojian was able to get the investors need help at the same time, maintain their own enterprises have relatively independent thinking and control.


Hao Bing: Mr. Qian edge of his involvement in the extent of the century is how best kind? . .


Gonghaiyan: I think it is very low. I started doing in there, and later came to Beijing, qianyongqiang companies just they also finds another place, we were there. At that time he was 13/f, 12/f, I, almost a year's time, he didn't reach my company looked at a glance, he also has a few individuals, no matter what people here at work.


Sometimes I would go to him talk, we discuss together what is basically the idea of doing this, ah, ah where to improve the company's internal management and basically he does not care. Including the company's financial this one, I trust him. .


Hao soldiers: based on mutual trust.


Hai-Yan Gong: Yes, he is believe me. .


Hao soldiers: JAMES voted circle network, he is much more on the management of intervention?.


Cao Jian: After the cast is not too much of our intervention, such as management. When some of our confusion, he will tell us some direction, or some of his experiences, because he has experienced much, give us some guidance. However, in the company's business, management, would not intervene. .


Gonghaiyan: website now to get better, he is concerned about the possible. Old money is a particularly sensitive to the number of people that will see the amount of registration, ranking, traffic, and then discover what what numbers wrong, he would be concerned about. In a sense, his interests and my interests, he is good for the company. He told me it wasn't a direct relationship between superiors and their subordinates, he could not work in this company.


If the investors together with entrepreneurs character does not come, no matter how good your project, there may not be for you vote, do not vote you can vote for my other projects. .


Hao soldiers: the key is to hit it off.


Hai-Yan Gong: I think we should get along personality, you do not make investors feel uncomfortable, yes, investors do not make you feel uncomfortable. Specific things that entrepreneurs are doing, but they are more successful investor, he does offer some guidance to the proposal, is very valuable, it is worthwhile to go with an open mind to accept. .


Hao soldiers: two corporate investment in addition to the first, followed by an append?.


Cao Jian: JAMES voted in millions in, we were also relatively small, did not spend much money, cost control than good. Then no further additional investment. Recently, we mainly do to adjust, just revision and may come in the next step will be to find some investment. .


Gonghaiyan: old money front cast a later feel good, he has appended a time. We are also in contact with some wind, soon there will be new money coming in and old money would also like to add a little.


Hao Bing: you in the next step in the process of looking for venture capital, angel investors will play a key role, because they have had success and experience, their financing more experienced? . .


Gonghaiyan: financing this or very old money. Find our bodies still tingduo, part of the direct phone contact to me, part of our own initiative, there is the old money friends. But I am, after all, in the absence of such financing experience, no old money me alone to deal with these people will find it more difficult for some, that I may have more to worry about, more cautious. But he told me if I don't use together so worried if I think he can be seen more clearly.


Cao Jian: JAMES because he himself did the company start Well, on this piece is quite understandable. We do a new company, this is not too clear on the financing, so he gave us a lot of guidance. .


Hao soldiers: the allocation of the shares, investors give you leave much space?.


Hai-Yan Gong: I am the greatest. .


Caojian: I is also the largest shareholder, to remain a leading entrepreneur, this is very important.


Beginners start not afraid. .


Gonghaiyan from their simplest tool to make Web pages, several thousand dollars to spend money to find someone to make the website, the outsourcing of her century jiayuan already has 60 employees in the country and marriage dating site in the leading position. Technical descent caojian in the beginning of the venture is also written on my own. It seems that the business does not need to fear the "zero point", the key is to take the first step, entrepreneurship and overcome barriers to entrepreneurial way flashes..


Hao Bing: Hai-Yan Gong Yuan Jia century began to do as hobbies, are eager to help a friend pull strings. .


Gonghaiyan: step. I comparison of impulse, adventurous, not like many people, something will be considered too much before, what are the advantages, disadvantages? what is thought that this thing is too large, the difficulty, thereupon. I'm a rather impulsive, dare to dare to do, when I do, trouble, and I think it should be how to solve.


Hao Bing: Actually you to start this road, some accidental. .


Gonghaiyan: comparison by accident.


Hao Bing: But the business is of no return it? You are studying journalism, and if the development of normal, then after graduation you may be the media people. After pioneering the way to go down, you feel that you are not really suitable for a company to do? You touch something that is investment, management, strategy, thinking about how profitable, do you think of these things for your own career development first it? . .


It Fudan Gonghaiyan: go, my dream is to be a journalist in the future, but I am going to look for work already done in the century jiayuan quite successful, many media have been concerned about us. 05 Mar 2000 Shanghai has a news system for recruiting, I have a lot of resumes, you the century jiayuan has done very well, if you don't turn off your work to our newspaper could not be committed to work, there will be conflict over time. Somebody advised me to say you might as well go to put the things themselves, now give pity!.


Later went to the business such a way. I do not think it of no return. If the business fails, I will do a news editor, a down live, I believe I can withstand the test of success or failure, after all, still young and Well. .


Hao soldiers: caojian just starting?.


Cao Jian: Yes, I have been to start a business. Just graduated, do technology, Sohu. I like the feeling of business. Start feeling was quite comfortable. Means that no matter what you do, do not do fragmentation may be your own, if you can not make work to your ability not to say no, there are many factors Well, but if you start to own everything mobilized energy , have mobilized to fight ah. .


Hao soldiers: the company or business is your pleasure.


Hai-Yan Gong: not that there is such a small entrepreneurial dream, and from all aspects of preparation. In fact, I later found in management, finance, every aspect of their make up classes are needed, because I was not prepared in advance, and is very casual. Then went to this place a. .


I started to recruit people came in criticism of my staff, I am particularly sorry that people have low self-esteem, which is able to say such things to stimulate others. After all these years, I still have a lot of progress and adjust, but most started really need an adaptation process, many ways to start learning.


Hao Bing: the beginning is how your team set up? . .


Caojian: I the most at the beginning of the program is to write, because I do technical work years. And then the media a few friends to help me promote it. Last year the company settled after we got a few techniques, and slowly I started not to write your own programs. Responsible for product management, management team, etc..


Hai-Yan Gong: the beginning of many business people are a few good friends or like-minded people, then you control the financial, management of your control, you control what the market, but I was basically a person, I am more tired. In fact, in March last year when I have only one programmer, the company more than 10 individuals in August last year, when several companies are about 20 people, is now 60 people, half of which is the site customer service. .


Hao soldiers: you are starting from scratch, there is only one programmer.


Hai-Yan Gong: I started not even a programmer, spent 3,000 yuan to please someone write a program, then a boy Fudan Networking Academy helped me to do the website, spent 1200. Earlier again, to do my own web page using FrontPage. .


Hao soldiers: the key is to be done, the threshold of entrepreneurship is not so high.


Hai-Yan Gong: But soon there will be a one threshold, and increasing the threshold, you have to be resolved soon. Perhaps the original only 100M to 300M of space, then need a server, and then will face even greater problems later. .


Hao soldiers: If you have a suitable time for you to sell your own company?.


Hai-Yan Gong: do not sell. Have a sense of accomplishment, and sold like how can? I am interested in fun in here, I paid too much, already have a feeling, which is a lifetime career. .


Caojian: will have the right to sell, because after all, why is business.


Hao Bing: That was a big price if you buy shares then? . .


Caojian: consider, critical look at the price, timely inappropriate.


Hai-Yan Gong: It was thought to buy, but I will not sell, I grew up in rural areas, money is not that important to me, I still live in a rented house, not buy a house. Car house is not a temptation for me. .


At present domestic SNS (Social Networking System) type of Web site generally lack a clear profit model background, century jiayuan and ring network even in their respective market segments in the leading position, but the road to profit is still quite long. In this regard, there are gonghaiyan caojian and enough patience, I believe in and strive to make products and services, as the people's consumption habits and changes in market conditions, profitability must be easily realized.


Hao Bing: good margin of the century in the same industry should be said to stand out, 3 years is not too long, if you conclude, is what prompted the reasons? . .


Gonghaiyan: coming and you have.


At that time China has had a lot of dating sites, but when I do have a clear position to make a serious love and marriage dating site. At that time, the concept of friends, there is no concept of marriage, the century so good margin set off a wave of the Internet, we have entered is earlier, if then not do it, now give me money, give me a good margin of the century, I think we should difficult lot. This time, he temporarily. .


Location, was in Shanghai, this place is very good, compared to the Internet, for love and marriage dating show relatively warm. There is me, Fudan University, I was a natural confidence, they do not think that I am a student, what would be misleading, and you ran monk not temple..


There are people, my character is more easy-going, is that the kind of softer-hearted, good popularity. At that time some of our students in Shanghai, some of the media practice, willing to give me the special report to after I came to Beijing also. I worked for two months, and then on our school newspaper's website that I do have reported, has attracted a lot of Fudan graduate on to this site Facebook. .


Caojian: we start also benefit from some media friends, help, help us to do some publicity and promotion.


Hao Bing: on a website, the hardest is the first of the user base, the core of the first group of users is critical. .


Caojian: website needs a temperament, the vehemence is from the first batch of users, similar to the site's core or seed.


Hao Bing: in fact give you the website user positioning. .


Caojian: Yes, we're positioned compared to the Pan, is a digital personal white friends of one platform, mainly concentrated in the white-collar workers in Beijing, Shanghai and Guangdong, where they may come to Beijing from field work well, living well, they need a group or play together, or in order to accumulate some personal business, or whatever. He needs a community to support him, he authorized his attention. Most of the people is not a star, he expressed the hope that many people care about his ideas.


Space Network is an online way of life stress, partial recreation of some of our ball games, circle is the largest one about the ball, if so, badminton, basketball, tennis, especially to places like Beijing, Shanghai and Guangzhou have gathered a movement , the development of the sports have a lot of space. .


Gonghaiyan: them than we have an advantage, our first batch of users basically all the other half, I did a survey, our website was originally registered 800 individuals, so that customer service in the background, one by one, 800 individuals only 20 people, find marriage object. But the circle net they here, probably the first batch of users will always be, the longer you play, the more reluctant to leave him, our side is the side into the side out.


And the ring network is easier to spread, we would be willing to tell their friends, but to find the object is a special privacy issues, he was afraid of people know, he found he was embarrassed to tell people find online. And so did our parents generation, you may only find kids online dating no big deal. .


Caojian: 80 after now online to find friends already very common. In ring mesh side did innocuous at first a bunch of people may be playing golf, and awareness. Character also slowly changing, you can develop slowly. The other day I saw a news that is on an old people's homes for the elderly to play world of Warcraft which, Warcraft in Guangzhou has a promotion team, go to the old people's homes to their popular Warcraft, quite interesting.


Hao Bing: As I understand it, the two companies still in the profit model is not very clear or not the main source. A company's growth in two directions, one is thinking about how to finance the money, one is thinking about how to make money, is not now stage the company to focus on more on the how to get kind of risk investment, relative to the pressure of how to make money said a little less? . .


Gonghaiyan: I do this site when my roommate just told me that she says Haiyan, Ah, your site has 1 million personal, you can charge a person 100 block 100 million. But until now has over 3 million registered users, why hasn't begun charging.


Hao Bing: fee is just a model, may also have other models, right? . .


Gonghaiyan: Yes, you may have some other mode, no profit pressures, the third round of financing will come in very quickly.


Hao Bing: ring network has 200 million users here, then how are you going to profit? . .


Caojian: we were able to do a breakdown of the crowd, according to his geographic and interest, with some ads, for example, one person often play somewhere, we let him know around some of the merchants selling a racket. Some customers require some additional services, we offer VIP services.


Hao Bing: There are ads? . .


Caojian: not much, because now is not to sell on a large scale, that is, we think the user isn't big enough size also. Last year this type of website are trying period, there are a lot of room for improvement, thus some time ago, this year, the adjustment should be one of the WEB2. .0 new impetus. You put the user scale do marketing more efficient. Now if you put energy dispersing too much, you may return and will not be very good, and it is not the appropriate time.


Hai-Yan Gong: making money, the first thing is to do, if I use the best efforts, this thing done very well, but also make money, then there is no way, then I would resign the . You always think to make money, sometimes too quick success, it will run counter. If the margin of the century can be made good in the world's best dating sites, I think the profit comes naturally, that is a by-product. .


Hao soldiers: the first thing to do.


Hai-Yan Gong: business model, like a lot, but do not like to consider in the end how good this site, so that members experience the better, I think that is useless, no matter how good your model may not make money from the model . Suppose you have a good model for users you do not, you can not make money. .


Hao soldiers: love and marriage Web site, is now in the alexa rankings of the world, second only to MATCH the century jiayuan. .COM? in business models, will also reference model MATCH?.


Hai-Yan Gong: I think the Chinese and foreign, or with the large difference between people,. .


Caojian: Chinese people need to slowly get used to adjust the thinking.


Hai-Yan Gong: read a foreigner's book, that you drink coffee at home, you are vulnerable to strangers, to find their loved one's probability of large, or whether you go to Starbucks to drink coffee, the probability of large? But we Chinese people, your home and you go to bars, coffee shops are actually the same, because you meet a stranger you may not take the initiative struck up a conversation with him, you are walking in the streets, you had a human said Miss you very attractively, and people immediately think you have any problems. .


As we are wired to the next activity, five, six hundred individuals meet, so some people just beside watching others, alongside special reserved for no one asked him if he would not have to go to someone else. So I think the business model reproduced abroad, might also have a very big problem.


Cao Jian: Yes, there are many such people in China, the organizers need to mobilize them all. .


Gonghaiyan: Yes, I think it's important to think about it, really like to adapt our Chinese character. Some people are trying to find objects, married to spend a lot of money, but how to reach these people are reluctant to spend the money. In China, people have become accustomed to things on the Internet is free of charge.


Cao Jian: This is the internal micro-payment is not convenient now due. .


Hao soldiers: this may be a need to change. Foreign people prefer to share something, share some feelings, but felt that the Chinese people more strongly in some of utilitarianism.


Cao Jian: This is not my 倒是 special recognition, in fact, on our website, utilitarian in nature, but not particularly large number of users, some people do, he built a circle of very hard, he is not to make money, not to say that this group want more interests, they are voluntary labor, they would put a happy one for their own things, as a kind of fun to do with it. .


Hao soldiers: you yourself activity?.


Cao Jian: We own a number of activities engaged in, but later engaged in the activities of our own initiative rather than the more popular. .


Gonghaiyan: activities cannot be used as a sustainable business model.


Cao Jian: To find out what is for us, we may be more suitable platform to understand some of the things to do. Profit model may be slightly more single, the next step we will try to pay some of the more convenient way to small. .


Hao soldiers: last year, SNS website concept is fire, this year the focus of your work?.


Hai-Yan Gong: mainly the development of the user, to improve the user experience, marketing will become a priority. .


Caojian: main energy or do products, enhance the user experience, for example through the crowd, background, occupation, etc. to the various areas of deeper mining their hobbies, business opportunities, etc., on both the business and profits will also be doing some exploring.


One side is the hundreds of millions of dollars in venture capital can not find a good project, one side is one of many hundreds of thousands of SMEs, several million funding gap with a worried frown. By Shanghai Small Enterprises (Trade Development) service centers and other units jointly organized by Shanghai Investment and Financing of SMEs in the Lujiazui Forum was held yesterday afternoon, more than 100 small and medium enterprises with more than 30 venture capital firms, angel investors, more than 20 senior and 10 investment management company to conduct a number of exchanges. During the show exposed some small and medium enterprises, and heavy business model is not clear, lack of adaptability and so on. .


In order to reach more potential projects and entrepreneurs, defengjielong pulse, Gobi, Fortune VC, venture capital today, American telewide, etc more than 30 venture capital institutions of the partner and the fund managers early yesterday. Among them, there are more than 6000 defengjielong pulse million of venture capital investment, but there is no fortune VC, venture capital, American telewide Gobi, capital today, there are 15 million to $ 100 million in venture capital to find the next House. Fortune VC investment managers wangdapeng said: "sitting in the Office could not find a good project, you must be friends with entrepreneurs. ”。.


However, the fund managers for many entrepreneurs into the business and financial errors and regret. In fact, in the forum, part of the show exposed the ability of SMEs do not have strong business model was not clear, lack of adaptability and so on. Some entrepreneurs to face the public display of lack of experience, not the core competitiveness of enterprises accurately describe; some entrepreneurs choose more specialized areas, can not use simple language to seize the hearts of investors; also venture Investment managers are facing an acute problem appeared to be inadequate, the profit model can not be justified on such key issues. .


American telewide Vice President as white as light said that entrepreneurs should not be in order to finance and entrepreneurship, and should carefully consider how to truly create interest and convenience, the common sense issues, fewer mistakes, to obtain accredited investors. Shanghai small businesses (trade development) service to read Lee believes that the political financing small enterprises has many causes, from the SMEs themselves, they should develop and improve the level of financing and credit, and through direct financing, patents, technology transfer, access to venture capital.


Similar Investment Forum has opened sessions, each very popular. .


Wind.


Gobi Ventures: We will focus on investment in digital media. .


Gobi venture funding from IBM and other foreign strategic investors in large enterprise. It is understood that in 2007, investments in the Gobi venture will focus on digital media realm, each project and the amount of investment is generally 50 million to $ 3 million. Gobi partners Xu Chen said, because of policy reasons, China's media industry in the past has been limited to a certain extent, but today, the digital wave for traditional media and new media development provides the opportunity for this historic aspects will have a wide range of investment opportunities.


Xu Chen said that in the field of digital media at least three major trends should be concerned about the entrepreneurs and investors: first, personalized content tailored supply and services; second, for the audience to provide information services anytime, anywhere; third, with good interaction of new media, interactive media easy for readers to pay. The profit model on specific, Xu Chen that, entrepreneurs who have innovative Neng Li Yi Ding Yao, if only Jiandanfuzhi Taren's model, very easy on Ye Hui Qu Dai people, "a formula to Ziji of Mimi, Cainengshezhi Jingzhengmenjian". .


In the project selection, Gobi venture is also very important project has a sufficiently large market capacity. Xu Chen found that many pioneering projects are very breakdown of these projects while it is possible to do it successfully, but is not suitable for VC investments. He also reminded that entrepreneurs do not blindly, the venture capitalist's eyes, cold and hot industries are not important, the founder of be your own familiar operation.


(Xu Chen email: kan @ gobivc.. Com). .


American telewide: focus on education and health areas.


American Joint News Venture Capital Fund invests primarily in consumer new product development, application and innovative service models. According to Vice President Miss Bai Ruguang its introduction, her current focus on education and health class project, welcomed the entrepreneurs associated with her contact. .


In the select an item in the process, as white as the light is of the view that the risk fund first look "at people, mainly at the entrepreneurs have integrity, we will never invest no man." She explained that the risk fund investment is a project, and the entrepreneurs achieve a cooperative relationship "in the most difficult time entrepreneurs we help him, if the person lacks credibility, the future development of the enterprise to a stage, he would have to find another partner".


The field of education and health projects, the Bai Ruguang remind entrepreneurs should focus on the spirit, "especially the education industry entirely on student word of mouth, an educational brand building takes a long time to accumulate". SMEs in these areas should also make efforts on personalized service, can really create interest for the client and the project was to facilitate access to long-term stability of the profits. .


(As white as light email: rgbai @ harbingervc. .com).


Today capital: key support Shanghai entrepreneurs. .


"Over the past 20 years, Shanghai's many large enterprises into small businesses, many big brand has become a small brand, or even disappear, unfortunately," capital today, Yu-founding partner, said that the capital today will support the growth of Shanghai entrepreneurs, he believed that Shanghai will be born more powerful business and brand, creating more business leaders.


Today, the capital of the funds from many of the most well-known international institutional investors, the current fund size of 2. .8 Billion. Through venture capital operation, today the capital has been successfully cultivated the four selected Rich List of the richest. Yu Zhonghua that entrepreneurs or business owners grow into an outstanding entrepreneur, need to address two key issues: first, the entrepreneur must be focused, many people lost their blind expansion of the industry status; Second, entrepreneurs have the ability to solve the team structures and cooperation, to the formation of a combat team, which is particularly difficult in China. .


In the project selection, there are no special capital today, apart from the financial industry, trade, real estate and other speculative business, whether it is a new industry or profession, the scope of their choice. According to reports, each item's investment amount in $ 500 000 to 5 000 requesting enterprises generally between has developed a 3 to 5 years proven business models and revenue.


(Yu Zhonghua email: alexyu @ capitaltoday.. Com). .


Bank.


Standard Chartered Bank: providing 100,000 to 500,000 yuan unsecured loans. .


For SMEs, in addition to venture investment lending to banks that actually is a way out. Standard Chartered Bank-account manager about how little green said, Standard Chartered Bank for small and medium-sized enterprises do not need to be tailored to a mortgage, does not require third-party guarantee of small loans, line of credit from 10 million to $ 50.


According to its introduction, the loan application procedure is very simple, the application is received from the bank to the lender of last resort only 2 weeks. And the biggest advantage of this loan is monthly installments, which greatly reduces the pressure on the repayment of SMEs. Term of the loan is generally 1 to 2 years, both can be used for additional capital equipment, can also be used to supplement working capital, operating more than 3 years of limited liability companies, partnerships and even sole proprietors can apply. Application materials submitted by enterprises include enterprises in business license, tax registration certificate, organization code certificate, tax, bills and so on. .


(Email: he Ho xiaoqing. .shao-qing @ cn. .standardchartered. .com).


Mainland China is a hospitable city people, foreigners at the dinner table will be drunk. This is a Lightspeed Venture Partners Eric O'Brien for the first time to the greatest feelings in Jinan. In music making (Lucky Pai) investment contract dinner, foreigners O'Brien was placed in the attendance. Within 1 hour, making the team a first down music at the dinner table, followed by O'Brien also honor fell to the 61 degrees on Baotu Spring liquor. "Every time I burp the taste is like paint thinner," O'Brien recalls the night. .


This is just O ' Brien first "China lesson." Next, he reviewed some 60 company BP, and half of the company team met with three would-be Chinese YouTube, 1 House thinks China Jigsaw. In conversation with the team, O ' Brien gradually discovered that indeed "founder and English ability to some degree. "This is not the first time, and even some VC claims would not be investing in entrepreneurial teams speak English.


O'Brien, accompanied by the China Investment Bank is the head of Ron Cao, Lightspeed China. Ron Cao, last June to join Lightspeed, as has already invested more than five Chinese companies, but compared to Sequoia, DCM, GGV, etc., Lightspeed feels he has "late." So as soon as O'Brien has been trying to enrich the Shanghai branch of power, helplessness, music making investment related issues until last November was the implementation, this time from Ron Cao has joined the past 5 months.O ' Brien remain relatively optimistic, "I'll get used to all of China. ”。.


(Adapted compiled from Red Herring). .


A Valley VC’s Adventures in China。.


Heavy drinking, spicy food, and lots of opportunity: the trials and tribulations of a Silicon Valley venture capitalist in China. .


January 29, 2007 Print Issue。.


By Kaiser Kuo. .


They’re into their favorite game: get the foreigner drunk。. You can usually avoid it in Beijing or Shanghai, but not in Chinese cities where East and West do business with less frequency。. Not in cities like Jinan, capital of east China's Shandong province. . It's just one of the hundred-plus Chinese cities with a population of over 1 million that you've probably never heard of. .Yet with 2。.2 million residents, Jinan would rank fourth were it an American city, between Chicago and Houston。.


Eric O'Brien, China point man for Menlo Park, California-based venture fund Lightspeed Venture Partners, is being an awfully good sport about all the drinking. .He fully expected it, and really, it’s why he’s come to Jinan in the first place: for a signing ceremony with the local officials and joint venture partners who’ve made Lightspeed’s latest China investment possible . .


Two other VCs, DT Capital out of Shanghai and Intel Capital’s China fund, are also committing $5 million a piece into a $15-million first round for a new live-auction home shopping television channel called Lucky Pai . . But since both DT Managing Partner Joe Tian and Intel Capital Associate Director John Hsin are ethnic Chinese, no one questions that it should be Mr. .O’Brien—only half Chinese, and therefore foreign enough—who gives the speech at the ceremony, who takes the seat of honor at the banquet, and who bears the brunt of the endless, increasingly voluble toasts . .


Just an hour into the banquet, one of the other guests of honor—an unlucky member of Lucky Pai’s founding team—is beet red, and moaning with his head down on the table。. But Mr。. O'Brien knocks back shot after shot of the local firewater, a sorghum spirit called Baotuquan that the label says is 61 percent alcohol. .


Between toasts he eats what he can, but there’s not a lot he’s eager to fill up on: braised sea cucumber, fish heads stewed in red pepper sauce, chilled duck tongues。. After a half-dozen glasses, the evening's hosts-the provincial and municipal heads of the State Administration of Radio, Film, and Television (SARFT), plus the director of Shandong Cable Television Center-move on to red wine。. But they keep the foreigner’s shot glass filled with the hard stuff。. Mr。. O’Brien keeps a running tally。. He announces shot 24 and grimaces。. “Every time I burp it tastes like paint thinner。.”。.


It's Eric O'Brien's first time in Jinan. . It shouldn't have been. .He was supposed to come on a Lightspeed due diligence trip in September, shortly after arriving in China with his wife and two young children。. Instead, his Shanghai-based partner Ron Cao, a U。.S。. -Educated returnee who joined the firm in April, joined some of the founders and another VC from DT Capital on the trip in September. .Walking out of the Jinan airport into the September morning air, hazy with the smoke of burning corn stalks, he shakes his head: “No Eric。. He didn't realize that you need a passport for domestic flights, "he explains..


Chinese Lessons。.


That's one of the simpler lessons Mr. . O'Brien has learned since he landed in China. . In that time he's screened over 60 companies, and has taken meetings with about half of those. .He’s been pitched by lottery equipment providers, e-commerce sites selling used cars, 3D mapping companies, and software outsourcing outfits。. He's looked at three companies that call themselves the Chinese YouTube, and at one that bills itself as the Chinese Jigsaw. .He’s met companies with strange names like WigiWin and—no joke—PP Stream (the latter, by the way, is a P2P streaming site)。.


In some cases, founders speak perfectly good English, and Mr. . O'Brien's Mandarin has improved. .“I was able to tell the masseuse how to get to my place,” he proudly announces one day about a month into his stay。. But he still stumbles communicating in most meetings。. "The best questions that we ask in the Valley are very nuanced questions," he says. . "If you're fundamentally constrained by language, you have an inability to filter those shades of gray..". .


Luckily, Lightspeed has Mr。. Cao—as bilingual as they come—to help out。. English-speaking founders are out of vogue these days, and it's become fashionable for VCs in China to be "more local than thou" in the investments they make. .


More than one VC has proclaimed that he won’t even look at companies where the founder speaks English。. “That’s a bit of bravado,” says Mr。. O’Brien, but he grants that there’s something to the boast . . "I do believe there's some inverse correlation between your English skills and your ability to operate on the ground," he says. .


With many a Sand Hill VC showing up in China in recent years (including Sequoia Capital, DCM-Doll Capital Management, and Granite Global Ventures), it’s not surprising that Mr。. O'Brien and his partners "felt like we were late to the party..” He and fellow Managing Partner Chris Schaepe were dispatched here on two exploratory missions in early 2006, and the firm soon made two investments, amounts undisclosed, in online payment company 99Bill and in semiconductor equipment maker AMEC . . At least these moves set them apart from the looky lous, Mr. . O'Brien says. .


There is a lot of venture money pouring into China: Ernst & Young and Dow Jones VentureOne report $361 million in foreign and domestic venture investment in the third quarter of 2006 alone。.


Foreign investment still outweighs domestic by about two to one, according to Beijing-based VC research firm Zero2IPO, though lines between what's foreign and what's domestic are blurred. .In any case, Chinese entrepreneurs are increasingly discerning about the term sheets they’ll sign because money is chasing relatively few good founding teams。. "A VC with no partner on the ground in China," says Mr. . O'Brien, is "not considered nearly as worthy an investor..". .


To make itself China-worthy, Lightspeed has earmarked up to 25 percent of its $475-million fund for China。. Partner Cao is on the ground for the long haul, while General Partner O'Brien was scheduled to complete his tour at year's end and shuttle between the United States and China in the new year. .Besides working on Lucky Pai, Lightspeed’s most recent China investment, Mr。. O’Brien helped the fund invest undisclosed sums in a Beijing-based mobile 2D barcode company called Gmedia。.


Smoke and Mirrors. .


Mr。. Cao, meanwhile, led an investment in Shenzhen-based fabless LCD driver chip design firm Teralane。. That brings Lightspeed’s China investments to five, including the Lucky Pai deal。.


"Things are not what they seem," sighs Mr. . O'Brien, taking a short break between back-to-back deal meetings at Centro, a bar-by-night, café-by-day in the Kerry Centre Hotel in Beijing. .“Everything here looks good at first glance, especially when you come here from the U。.S。., where most deals don’t。.” Here in China, Mr。. O'Brien is blown away with how fast the Chinese web plays seem to ramp up-tens of millions of users, sometimes in a matter of months, and overnight headcount growth from mere tens to several hundred.. “It all looks good, and they’re everywhere,” he says。.


But watching all the frenzied activity by VCs, both domestic ones and the dozens of Valley funds now plunking down money in China, he's not without misgivings. .He says he’s developed a gut instinct that enables him to weed out companies quickly: to tell him when a founder—language barrier or not—just doesn’t have the right stuff, when a startup can’t scale, or when he’s being flat-out snowed . . But he still hasn't learned to fully trust his gut. . "I have my personal intuition, but I also have a nagging sense that my personal intuition is just plain wrong," says Mr. . O'Brien. .


On balance, that intuition tells him China’s a great bet。. One afternoon he visits an indoor mall on Qipu Road in western Shanghai, where the purveyors of name-brand knock-offs from the once-infamous Xianyang Road Market have fled since that market was shut down。. In the mall’s basement, there are shoes as far as the eye can see。. “The sheer, frenetic buying activity was like nothing I’ve ever seen in my life,” he says。. "It's just one little data point that confirms what I think is happening here..". .


Shoe sales, though, are something he can see with his own eyes。. Not so the user numbers and page views many of the web startups claim。. In between Beijing pitch meetings, Messrs。. O'Brien and Cao have lunch with James Liu, an old classmate of Mr. . O'Brien from Stanford Business School and now COO of Oak Pacific Interactive. .


Oak Pacific operates one of China’s most popular entertainment portals, Mop。.com, as well as a Facebook-like site (5Q。.com), a news site (DoNews。.com), and YouTube clone UUMe, which Mr。. Liu founded and subsequently sold to Oak Pacific in 2005. . Chinese companies have all sorts of ways to fluff their traffic stats, and Mr. .Liu offers some pointers on how to cut through the smoke and mirrors。. “The tip he gave me is to look at bandwidth utilization and the actual amount of hardware they’ve bought,” Mr。. O'Brien later relates. . "They're not going to spend the money if they don't need to..". .


But not even that tactic is failure-proof。. Oak Pacific was sued by China's Anti Malware Alliance in November because its toolbars allegedly generate forced pop-ups-a common ploy among Chinese web sites trying to inflate traffic numbers. .


Government Bizarro。.


Traffic isn't the only thing companies will try to inflate. .Chinese entrepreneurs know full well that the average foreign investor comes to China believing in the all-importance of guanxi, or relationships (implying, usually, government relations), and they do what they can to look connected . . There's no easy way to know who really has it: "Those who say they have good guanxi, don't," intones Mr. . Cao. .


Lightspeed should know。. Mr。. O'Brien was about to close an investment in GMedia, the mobile 2D barcode company, and was casually surfing the web to look for media mentions of the firm when he came across something alarming: a rival Chinese company called Inspiry, with a different type of 2D barcode, was talking up its close relationship with China Mobile, the dominant, government-owned operator, and its plans to launch a service nationwide in September。. “What did we miss here?” Mr。. O’Brien recalls asking himself。. “Who the hell are they?” 。.


Eventually, 11th-hour due diligence concluded that Inspiry was "just puffing itself up, and has no such relationship with China Mobile," he says. .But there’s a lesson in that: “There’s so much that you just don’t know, ready to bite you in the ass around any corner。.”。.


But sometimes startups really do have guanxi. .One company Lightspeed is talking to, a mobile comics publisher, seems, for instance, to be unusually cozy with the Shanghai Ministry of Culture: not only is it the only player approved by the Ministry to publish comics for distribution on cell phones, but it also claims to have a “semi-exclusive content deal” with the Ministry . .


“Chalk this one up to government bizarro,” says Mr。. O’Brien。. "I had heard all these stories about how media is the last bastion of control from a Party perspective, but that a government agency would pre-negotiate content rights almost as if it were a publishing entity is just bizarre!"。.


Lightspeed and China Speed. .


For a country running double-digit GDP growth, things can still move painfully slowly in China。. With Mr。. Cao off in Hong Kong for a month—his wife has just given birth to Ryan, their first child—Mr。 . O'Brien has to deal with a host of minor problems: getting the network set up in Lightspeed's new Shanghai office, fixing the printer, picking out office furniture. .


But it’s the delays in finalizing the Lucky Pai deal that vexed him in early November。. “It’s always ‘next week,’” he says。. It’s something he’s had to get across to his U。.S。. -Based partners in the late-night conference calls that have robbed him of a decent night's sleep for two straight months. .“I have to build in the inevitable unforeseen delays, and never commit to dates—just talk in large generalities and vague deadlines。.” 。.


And while he's lost no confidence in the Lucky Pai team-a trio of Yale Business School chums, all ethnic Chinese-he's had to deal with all manner of crises. .The crisis of the day? Lucky Pai’s Chinese joint venture partner’s sudden demand to be in on the action when the company lists offshore—something that wasn’t in the original agreement。. A week earlier, things got sidetracked when the founders wanted changes to the terms of their equity vesting. .


Frustrating as it sometimes is, Mr。. O’Brien is starting to have fun。. “I take personal enjoyment in being in this entirely new environment where everything is a challenge。. "He says he looks forward to everyday roadblocks he'd never face in the Valley: fixing the Internet connection and using his own cash to buy a computer for the office manager, for example..


Never Gonna Give You Up。.


Back in Jinan, the day of the Lucky Pai signing ceremony, one official after another mounts the stage to sing the praises of Shandong province: "We believe our cooperation will be very successful because we Shandong people are very earnest and sincere," says one。.


The cameras flash, Lucky Pai CEO Raymond Chang shakes hands with the station director, and the ceremony winds to a close. .The crowd moves on to the banquet in the press room of a nearby hotel, where the drinking gets started。. Unbelievably, after a lot of boozing at the party, the Lightspeed guys, including Tony Wang, an eager young associate who's joined them on their Jinan jaunt, are all ready for more. .


“There’s no way that stuff was really 61 percent alcohol,” Mr。. O’Brien insists, and he’s probably right。. They join DT Capital's Joe Tian and Intel's John Hsin in a nearby karaoke bar, where they order a bottle of Scotch and Mr. .O’Brien does convincing renditions of The Eagle’s “Lying Eyes” and Rick Astley’s “Never Gonna Give you Up。.”。.


The next morning, Eric O'Brien and Ron Cao arrive at Jinan International for their flight back to Shanghai. .It’s a surprisingly modern airport—a giant Quonset hut on a frame of white steel tubing, opened just two years ago。. A thick fog has grounded all flights for the morning。. Fortunately, the airport has a foot massage parlor on the second floor-an amenity common in a country plagued by delayed flights. . Mr. .O’Brien reclines as a young woman goes to work on his feet, and as she finishes 45 minutes later, he turns, smiles, and says, “You know, I could get used to this place。.”。.