Under the giant Chinese entrepreneurship, from desert to thriving


cloud network hunting note: once the entrepreneurial killer, now friends of the startup – with tencent, alibaba, baidu, and other Chinese Internet companies rushed to investment company, China’s entrepreneurial environment suddenly from the cold winter ushered in the warm spring. Globalization trend, mutualism, whatever the reason, the key lies in: the entrepreneurs of the future, this is good time for you!

“in the United States, the students will think, ‘if I invented the creative things, that’s great, Google will surely buy my results. ‘in China, is this:’ if I created innovative things that may not be able to, tencent will come from me!!!!!!! ‘” the other people in stitches comments from Stephen bell, as partners at Trinity Ventures in Shanghai, said his views can not tunnel, but it’s only 2011.

before spoke at bell, a journal of Chinese science and technology is more simple and crude. Tencent “hell!” Computerworld magazine in its July 26, 2010 issue of the journal cover directly at tencent. On the cover with three sharp sword in represents the penguin, tencent’s blood flow.

magazine cover story to stand in tencent’s rivals, a small startup Angle, lambasting tencent plagiarism and cloning the company of several web service charges, such as tencent QQ instant messaging software from ICQ – and it also aimed at tencent so-called practical approach hinders innovation, destroyed the fair competition environment and so on.

“tencent never do the first person to eat crab, to try to enter it only after see the market mature. However, tencent has bad means also caused controversy: imitation, sometimes even without the bottom line of plagiarism, “magazine of the author continues,” and even more recently, hu, director of the China Internet data center (DCCI) is still in question tencent’s ability to innovate, says it is not only not remarkable innovators, instead, the Internet, small and medium enterprises “innovation” natural enemies.

never to computerworld magazine article interviewed tencent about chief, shortly after, the magazine is “on the cover of the improper words and false report” issued an apology. But what’s done is done; Article conveys ideas aroused technology industry in China’s pent-up anger, they gang up on tencent.

ma huateng, tencent’s chief executive and chairman, told Bloomberg (Bloomberg), said in an interview to attack his company no innovation is really inappropriate. In an interview in August in 2011, ma huateng is tencent has been do “innovation” – to modify localized service details so as to make it more adapt to the market demand in China.

however, in China a business killer said the technology giant tencent a craft. At about the same time, when everyone is talking about Twitter, a new wave of the development of the social media revolution gaining momentum. In China, a group of prescient entrepreneurs trying to build a micro blog publishing platform, and pay more attention to the picture and video sharing features. At the same time, sina copying China’s early Twitter website (,), launched sina weibo. As the first to introduce in China Twitter (i.e., in June 2009 Twitter was prior to China’s national firewall block) of start-up companies is growing for the user to worry about, for the real-time information sharing mechanism of distress of review, sina weibo in the ear of the potential gains of more than 100 million registered users, before 2010, sina weibo launched only a year. And aspired to be a “Chinese Twitter” originally the start-up, instant disappeared.

alas, China’s science and technology giants give startups a little bit of breathing space.

five years later, it all changing.

seek to work together with new generation entrepreneurs

in the past few years, with science and technology three giant baidu, alibaba and tencent (referred to as “BAT”), led by large domestic Internet companies began investing heavily in China’s start-up, the move shows that once the startup killer seems to be being trend.

“in the past few years, business environment, great changes have taken place,” VCS gobi partners in Shanghai, managing partner at Thomas g. Mr. Tsao says, “China’s science and technology company in a way similar to the vc investment showed a more promising approach to investing.”

“I think this is more like a kind of mutually beneficial symbiotic relationship,” scrooge, 500 Startups in the greater China partners, said, “as far as I know, every year there are at least two large Internet company became close to or reached 3 digits, while most of the money is still used in the late startup investment, but also have to admit that the early investment activity account for many proportion.”

once the financing stage it is difficult to see the figure of baidu, alibaba and tencent, but in these two years 2014 and 2015, they frequently with China’s most active vc firms such as sequoia capital or tiger global appeared in the financing activities. According to our on Techlist platform, according to data in the year 2014, tencent public investment in more than 20 domestic startups, including applications in drops a taxi C, D a total of $800 million of investment in the round.

drops a taxi investment also demonstrated the technology giants in the past, is now actively looking for a partner.

in drops a taxi C $100 million round of funding, tencent company invested 30 million. Four days later, tencent has 500 million active users in their monthly news application in micro letter into drops a taxi service, which also include the use of micro letter built-in electronic payment system to pay the fare. Other such as jingdong online mall, public comments on the service and transplanted into WeChat. WeChat users can now under WeChat wallet function module is very easy to find the jingdong mall, drops a taxi and public comments and other services.

“in terms of social applications, we provide our users with a a vibrant ecosystem, through letters and QQ, they can find all kinds of needs of content and services, to complete this goal, which is without the support of partners and strategic investment.” Ma said in the announcement in a conference call last month, shortly after tencent has just released a blockbuster earnings in the fourth quarter of 2014. The next half an hour, tencent executives continue to investors, journalists, tencent partnership and cooperation relations. “Cooperation is one of the important core we connect strategy.” Tencent President liu chiping added.

on this issue, tencent’s spokesman declined to make further evaluation, but let’s continue to focus on a recent earnings call.

start-ups’ saviour ‘

Beijing marley says, “friendly agreement” are a main reason is that in the development of the rapid development of mobile devices and platforms. “In the field of computer network, every big companies have their own Internet area. [but] in the mobile terminal, everything is relatively open. Competition is more intense, however, there is no chance to give you spend months or years to build their own mobile platform. […]. To buy other companies, especially in those who did not produce the emerging field of leading products, acquisition can bring many benefits, is a have both offensive and defensive strategy.”

but gobi partners, Mr. Tsao, with 20 years of experience in vc, he thinks the recent change has been simmering in the market. “In China, more and more big company of science and technology to the investment in this phenomenon has always been a part of the operation of the market for more than twenty years. In the past, Chinese startups get investment from multinational technology companies – directly or limited partners – and now, China’s science and technology company started investment in Asia within the scope of the various technology start-ups.” He added:

“attitude and method of mutual transformation, frequent investment company that is largely because the company a lot of cash assets. Last fall, we looked at 20 overseas listed Chinese Internet financial reports of the company. Early in 2014 at the end of the third quarter, we estimate the company add up the total amount of funds for more than 54 billion dollars. 54 billion dollars, is not a small number. Money is much, natural investment also went up in size and number.”

as a result, whether in small entrepreneurial firms or well-run rivals, have become three giants of the BAT investment partner, not a purchase of investment cooperation.

the situation is that the developing mode of China’s scientific and technological innovation in the industry gradually to silicon valley. In silicon valley, with Google, Facebook, Yahoo and Twitter this four companies constantly promote entrepreneurship ecosystem.

since this year, alibaba, along with other investors, participate in more than six rounds of financing activities, investment worth about $2 billion. “Alibaba group’s investment strategy focuses on three aspects of the company. Increase user registration and participation, improve the user experience, and to expand our products and services, alibaba spokesman explained, “but when asked about an electricity company why suddenly recently frequent investment company, the spokesman did not make any answer.

Global trend

cash constantly poured on to the global market, this is all startup is facing the trend of, not only for entrepreneurial firms face in China. Last month, alibaba to Snapchat investment of $220 million, wants to borrow Snapchat influence to its first U.S. consumer oriented online mall – 11 Main – open the local market. After 2014 is the year of alibaba is the most crazy, the first to become the world’s biggest IPO, then put the money into a variety of different types or in the field of services and applications, such as taxi class Lyft, chat application Tango, Singapore postal SingPost and youku.

baidu, also around the world looking for a startup company as a partner. In December last year, investment in the United States baidu application with taxi Uber, specific investment amount of undisclosed. Last year, however, the domestic leading search engine company also began the move to consolidate the status of its web portal to find partners – especially in the field of real estate and cars, thus we can speculate that although baidu in startup investment slightly behind the alibaba or tencent, but baidu has showed its interest in the startup investment, may invest in the future.

BATX: baidu, alibaba, tencent and millet

China’s fastest-growing start-up, millet technology, recently the ranks of China’s biggest Internet company, even with the BAT’s big three side by side as venture investment foursome. Let’s call the gang of four “BATX”. By last December of a new round of $1.1 billion in financing, millet is currently valued at $45 billion or so, you know baidu’s market value is $75 billion, jilt lenovo group ($16 billion) don’t know how many street.

compared with most companies, the establishment of the millet is not long. Millet, founded in 2010, it is a very delicate time, to avoid the darkest period of Chinese business – copying, suppressed. Now, millet set a goal to be completed in 2015 sales of 100 million smartphones and diversify their product line. With such a goal, millet and part of China’s leading hardware manufacturers to bring the opportunity, millet brand partners, to join the ecosystem millet and rapid development of smart products.

millet already in action, try to give the company’s new product to the emerging outsourcing team, it is proved effective. For example, millet hand bad (MiBand) by Huami manufacturing; Millet small ant movement of the camera (YiCamera, as shown in the figure below) manufactured by Ants. And millet intelligent lamp is designed by Yeelight manufacturing. After get investment from millet, their products are now in millet Mi.com online store sells, at the same time, these products also include millet ecosystem or integrated into the millet development of smart home application.

in addition, these startups can also make full use of millet mass production advantage.

“at first, our customer is very less, also can use poor to describe, sales of our products from procurement to production and manufacturing, struggling all the way,” the founder of Yeelight Jiang Zhaoning says to us, “when to sell our products in millet website, order quantity increased obviously, and we also have the chance to improve our production levels. Millet also give us their ecological system are introduced in many factories, so we can buy at very low price to electronic components.”

in both the hardware and software, the cooperation of millet customs let us understand why the similar relationship is so popular in China, because such relationship reduces the BATX company research and development costs, ensures that they can concentrate on their main product, while still under flexible team of professionals to assist with the development of the market.

“my guess is that in the early days, lei jun is likely to hope to form a few teams within the millet for market research and development new products, such as lighting and air conditioning, but facts have proved that the idea seems to be not enough reality.” Jiang Zhaoning said.

there is no free lunch?

and crush the humiliation suffered big Internet company in a few years ago, startup now China has been rediscovered, recumbent BATX these successful company to build a platform for the large-scale diversification, they were able to face to more consumers and users. But, the problem will follow.

“on the whole, I think it is a good thing for China’s start-up companies, have more money, good distribution channels, and after a period of time from the friendly cooperative relations to the guidance of strategic acquisitions,” scrooge explains:

strategic acquisition of valuation, and buyers to join and provide excellent business model checking. The shortcomings of its existence is the so-called “ depth integrated ‘, making it difficult to distinguish and authorization from both sides of the important professional knowledge and resources. nullnullnullnullnullnullnullnullnull