note: hunting cloud GGV managing partner Jenny lee joined the company since 2005, overall responsibility for GGV investment plans in China. During this period, has repeatedly investment millet, YY, mobile phone game developers to swim tao yi, touch technology co., LTD. Among the 2015 Forbes global best investment, she is ranked tenth, has become the first on the list of top 10 women venture, how does she do it? How to see the change of domestic vc environment?
the following excerpt from “entrepreneur” magazine, the author: wang rui
IOT hardware, the key is the ecological
entrepreneurs: from millet, the movement wearable Zepp; From Misfit to aerial drones, GGV betting IOT IOT domain. But how to the good and evil people mixed up in IOT projects, the essence of the real project?
Jenny lee: we are looking for is to be able to overturn the whole industry, life style, subversion of the entire industrial chain, supply chain products, hardware can’t just starting from the hardware at this moment. You see now this is not just a mobile phone, it also has the data mining, and social entertainment and so on a series of follow-up service scenario. And in this process, the hardware and sensors is just the first step to get the data. Zepp, for example, it through intelligent gloves for you to play golf, then on the phone App, through the 3 d form. But it is far from over, and then you can buy teaching video, and buy the coach time, looking for dating, or even buy golf clubs, etc. It will be a heavy vertical complete sports ecology. This series of things is hard to complete common fake hardware company. So, field of IOT easier said, we believe that last only a few can really win.
entrepreneurs: when hardware market after the big company like millet, whether also can kill the industry’s ideas?
Jenny lee: this kind of thing really could happen. But first of all, like millet company, they will be through internal incubation, product innovation, will do best user experience. The other startups can be innovative in many ways, not necessarily positive war and giant. Select a differentiated positioning, and then look at the market pattern you choose is red or blue ocean. Like American pedometer Fitbit, the ancestors of the earliest company is this area, now development is very good. Creativity is not kill.
all in all, we believe that the whole world of IOT is a global plate. Future world, because of the impact of the mobile Internet, the threshold of the cross-border and international will become very low, especially the IOT domain, there are may be the world. Entrepreneurs should be enlarged view point, should not only look at China.
not there are C round die key is how to live your company
entrepreneurs: the idea proposed recently by venture capital investors have angel round and A round of investment overheating, this year may appear the phenomenon of “C round of death”, what do you think?
Jenny lee: from GGV15 years of investment experience, entrepreneurial success never too big change, has been very low. Group purchase is also home to a total of about 3000, when get the money of 30, the last five, one wins (the ball).
so, die die C round and not too much of entrepreneurs, the key is how you win in the little probability event. Rather than just winning averages.
do VC, too, can’t mediocrity, must do A Plus (A +) score, otherwise is death. For us, we are only concerned with the hand of the 30 companies this year is more than 70% can win, or whether I can help every one can win.
all in all, we compare the health care company, about whether to make it. Rely on money to hit out company not far away.
the growth ability of investors is often underestimated
entrepreneurs: you will choose in what a company involved in?
Jenny lee: different emphasis of the different types of companies. Such as the movement of the early social products, mainly to win in the creative, win on the idea (idea). Company itself 10 people, also do not need a lot of money. What we see is more of you to solve problems, to the early intervention. He can become, can development follow-up, if not possible, there is no B wheel.
but like IOT areas need the amount is larger, it will need to transform the model through, whether there will be a subsequent accumulation, can provide what kind of value, the team can go further. Such areas, we need to be accumulated to A, B, there is enough.
on execution O2O areas, for example, that depends on the team’s ability to execute, CEO of led and financing ability. O2O spread very quickly, need to do to push, it is need the ABCD wheel. If the industry had to D, you cast an A, that it is very difficult to want to win. Of course there are exceptions, such as the fifth, the shake handshandle of beat the first.
all in all, we can’t take social, IOT, O2O project positioning for package A, B or C round, only to specific analysis.
and people change: in the beginning there will be “good” some “bad”
entrepreneurs: a enterprise, the founder of the factors of how effective?
Jenny lee: it is very important to people, 70% success depends on the CEO. But people can change. A lot of CEO growth ability is generally is underestimated by the investors.
some CEO when you saw him and felt a prick silk, no aura, feel also recruit less than people. But he can be changed when needed. So look, not only at a point in time to see, this is very unfair for entrepreneurs.
the first time I see the li3 xue2 ling2, he is not to say in English, is he taught me to speak Chinese. But when the roadshow in foreign countries, and later to the IPO, he is speaking in English. He is willing to grow up to change for the company.
there are CEO go bad, so said “very good” is not equal to “very good”. Many ceos to financing to the amount as a measure of success, and then melt money desperately. But this, more money is easily distracted, like this try, try. 24 hours a day do ten things at the same time it is easy to wrong. CEO of temptation, slowly will overtake rivals, the company would have failed.
as an investor, we ensure to communicate with entrepreneurs to keep, such as on WeChat communication at any time. See company deviation from the normal direction, just to remind.
if you don’t listen to, VC consider out of the race. We are in charge of other people’s pension funds, must be responsible. So, our VC industry might not do the average of the industry, the industry can live only be A plus.
work and life without balance, only at the expense of
entrepreneurs: as a woman, how do you maintain a balance between work and life?
Jenny lee: there is no balance, only sacrifice (Jenny lee very firm). Entrepreneurs can sacrifice, why can’t we investors sacrifice? All those who said can balance, are deceptive, if it weren’t for is to do A Plus, only do Plus B or C.
entrepreneurs are problem facing every day, like the war on the battlefield. If investors misjudgment on the market, given the wrong information and advice, will mislead the founder. In order to always can make accurate judgment to war, I have been working, even if not in front of the computer, also want to. Often have a CEO, said Jenny urgent Jenny lee (laughs) than I am.
I don’t care much about what to eat, what to wear, or shopping, but like to rush in a line, 200% concentration.
of course, I feel that my investment principles can be through the data to quantify, but even read data, you still want to chat face to face and entrepreneurs. Ask him to do it exactly is short-term tactics, and strategies. Also some founder, he said, I need to use money to play up the industry, then you can play with him? Do you have enough chips to play with him?
entrepreneurs: what do you think women’s identity, at the time of investment is an advantage or disadvantage?
Jenny lee: I feel is an advantage. In fact, is not, as some people say investment circle is a men’s club, there is a big bottleneck for women investors. Because I am a female, have more affinity, many entrepreneurs do not necessarily and other investors say, could be said to me.
in addition, as a woman investors, many times my point of view is different, view is not the same. Moreover, the mobile Internet era, the biggest consumer is female. It is also very valuable.
of course, I am good at or TMT field. You may not see the last so big at the beginning, but lei jun at that time, and I said, “Jenny, I feel (mobile phone) this market should be $10 billion.” But, when he grow up so fast, it is unthinkable at the time the investment was made, may founder couldn’t think of myself, but the premise is the business, at least the first step to do the market cannot too small, it will let you have the antenna, then slowly to excavate the second, third. When I investment will never YY education. Good company beyond the expectation of VC 100%.
, field is cooling six months to a year is expected to “change”
entrepreneurs: () in February 2015, the last time meet you said that the market is changing, do you still think so?
Jenny lee: yes, GGV in 15 years in the industry, we found that basically 3 ~ 5 years or so there will be a change. 2009 ~ 2010 is low, then slowly recover, now began to go down.
last year, the market is very hot, a lot of crazy influx of funds, in addition to the VC, PE and some overseas companies are trying to cast some early project.
but the boom may not last long, after the first is an investment boom, these cast his energy to start for the company. Second, a lot of money in the field of O2O last year, about 1000, 1000 can’t both win, but it only 3 ~ 5 in front of the house can win, so part of the project after die, VC will begins to be conservative. He LP will also give VC pressure upstream so that will be passed to the downstream, VC will begin to see results, do do, money is not so good.
I feel now is the market showed signs of slowing down, still should have six months or a year or so, the market will change. But I do not encourage entrepreneurs to take the time to take money and this will only make the fall faster. For entrepreneurs, shouldn’t take money, do not have to take, to concentrate on the things well, this is the most important thing.
entrepreneurs: for Chinese entrepreneurs what other advice?
1. Want to know what are you going to solve the problem is. Are you only want to reflect the value of your business model can be implemented.
2. Chinese entrepreneurs is very easily distracted. Want to tell yourself every day do subtraction. Their focus (focus) in one area. Identify your to win the end?
3. Focus on your team.
4. Financing isn’t everything. This is the next five years to ten years the entire generation entrepreneurs need to consider. Don’t always think about the money is flowing, probably tomorrow market has changed.