Netease Focus Studio
Author | He Shulong
Lead: leave the Thunder more than a year later, the transformation of investors Cheng Hao learned what things? What type of project does he prefer? What is his view of the fiery shared economy now? Netease focus with these questions interviewed Cheng Hao.
Cheng Hao, founder of Thunder, Song Wo Yuanwang Fund founder. Graduated from the Department of Mathematics in Nankai University in 1999. In 1999, he received his master's degree in computer science from Duke University in 1999 and joined the technical work in Silicon Valley. He joined Baidu in 2001 and co-founded the Thunder with his alumni Zou Shenglong. In 2014, Listed; 2016 Cheng Hao resigned from the Thunder, into the field of venture capital.
More than a year after the release of the Thunder, the transformation of investors Cheng Hao has led Song Wo Yuanwang Fund invested 23 companies, covering Internet finance, business services and artificial intelligence in three areas, on behalf of the project has a golden ax, rich group, Borrowed by the Swiss network. As a new investment, Cheng Hao feel that their current performance is also good, they are raising a second fund, you want to cast in the three core areas of the next one "unicorn" and "unicorn".
From the entrepreneur transition investors Cheng Hao this year to learn what things? What type of project does he prefer? What is his view of the fiery shared economy now? Netease focus with these questions interviewed Cheng Hao.
The following is Cheng Hao oral, edited by Netease Editor:
Investment is more than the need to find outlet
Do investment for more than a year, every day to learn new things. There are many ways to learn, for me, the most efficient way is to chat with the entrepreneur.
I was a entrepreneur who had not worked before. But I think that doing investment and doing business is similar. Entrepreneurship to find someone, find money, looking for direction, investment is to find someone, looking for money, looking for direction. Of course, from the details point of view there are different places. For example, investment is more than the need to find a good track business, the track is wrong, you are not smart, the track to find the right, you can play properly.
This is actually the relationship between strategy and tactics. For example, in 2011 and 2012, you only need to move mobile Internet, it will be able to become. For example, the 90s of last century, choose to go abroad, that is, the election on the track; but if you do not return home, then the track was no election. Because you put the Chinese economy take off the bonus completely missed. Thunder can do it, is to seize the Chinese broadband Internet in the rapid spread of this dividend. Broadband Internet if you do not popular, you want to download what?
People say Lei Jun's argument is opportunism, I do not think so, the election track, looking for dividends is definitely a multiplier thing. Entrepreneurs need to find outlet, investment needs to find the outlet. Of course, have to find your own outlet, if the outlet with you does not matter, it is useless.
I think that the dollar fund is the industry's benchmark, the dollar fund to determine more than the RMB fund to be accurate. For example, VR in this area in the past speculation is very hot, but the mainstream dollar fund is not a real vote, are cast one or two to see the mentality. Besides the previous Internet of Things Ye Hao, smart wear equipment Ye Hao, the mainstream dollar funds are basically not cast, cast almost all the RMB funds.
China's early investment in RMB funds, are the last few years to get up, the time is not long, with the old dollar fund or there are some gaps.
Prefer a continuous entrepreneur
Compared with the investment, the pressure of entrepreneurship is even greater. Entrepreneurship is to put all the eggs into a basket, the investment is a lot of baskets, even if some projects die is also normal.
I think the project is more like the entrepreneur, the best before doing two or three times, or did not do it, or make a little money, heart unwilling; Second, the team is very important, the best core executives before working in a company Too, or a classmate, otherwise the running costs are high.
There is a saying called "happy marriage is similar, unfortunate marriage have their own unfortunate" ralph lauren pas cher, business is the same. I am not optimistic about the entrepreneur, either on the industry do not understand, or the project valuation is too high, either pure to VC, or the team is not, or too far away from the money. In short, each has its own reasons.
I will persuade the entrepreneur to accept my investment: First of all, I am the old pioneer of entrepreneurship, thirteen years entrepreneurial background, from 0 to 1, from 1 to 10, from 10 to 100, all gone. I have a lot of Internet resources, BAT Ye Hao, 360, millet Ye Hao, who is looking for a phone to get; third, I told the dollar Fund relationship is very good, Thunder is the dollar fund to vote over.
Only to the head of the enterprise to do post
We have a single amount of investment and shareholding ratio is relatively small, the future we tend to vote a little more, accounting for a higher proportion of shares: 15%, the best more than 20%.
why? Because I and my partners are entrepreneurs, we will spend a lot of energy on the post-service. If only 5% share, it really no power. The future we hope to be invested in the enterprise shares accounted for 15%, 20%, like latitude and longitude cast street, Chen Xing cast millet.
We vote are early projects, and sometimes entrepreneurs will find you to find someone to find money, find resources to do things. Everyone says that the devotion should be placed on the head of the enterprise, and should not be on the enterprise to die. But the more successful the business is often the less need your help, it's a contradiction. Zhu Xiaohu did not say that he never cast after? It makes sense.
I will not spend the effort to save it, but will not blow it into a flower, let my friends catch disk; head business, you help it to increase it 20 % Of the value, than those who are almost dead the value of the whole life to save lives.
Investment also hold the thighs
The two years to share the economy is very powerful speculation, people feel like the dollar funds are hit the money in these projects, the real proportion may not be high, but these projects are more concerned about it.
Some people think that investment institutions quick success, like the project valuation fried high and then find the next dish, rather than pay attention to long-term investment value. This argument is not scientific, because looking for Chuan Xia and can not let your fund to go out, the value of the book floating surplus is not large. Whether the company listed or mergers and acquisitions, you can withdraw from the real money.
Share the treasure, share the basketball, share the umbrella, these projects are difficult to vote. Must be thrown with thighs, or called with strategic resources to vote together. What is strategic resource? One is your next home, if you vote angel round, you have to hold a round of investors, and this round of rounds of friends have a round B, the B round of friends have to have C round friends The why? Like this shared economy, pre-need to subsidize, and is a long-term, continuous financing process, can be invested in the C round after the fund so much, these funds once the whole team, and did not stand you here, you On the basic game.
The second category is to pull strategic resources to vote together, like BAT are all strategic resources, if you want to do a shared treasure, the United States Mission, hungry what can be considered strategic resources, must be tied to them together. Not in accordance with this play, that is a dead end.
Sounds like financing games, financing has become the core competitiveness. However, the economic sharing of this thing is very low efficiency, behind the people who are making shouting, simply do not make money.
Do not let the entrepreneur run away
Why do I have to write an article? Because the brand is the core of VC competitiveness. Thunder in the past do not attach importance to the brand for a long time, I think it is completely wrong. In the crucial moment to grab the project, the brand is decisive, one has never heard of, with Sequoia give you the same money, which you want?
I am very optimistic and very helpful. We come to chat with me, see the project, I even do not vote for you, will give you a lot of suggestions. And I am more straightforward, hello I tell you good, you are not good I tell you where the problem is My idea is that people come all the way, even the field over, chatting with you for a long time, you finally did not feedback any? You give some positive feedback that helps to boost your confidence; negative feedback can help iterate the pattern. Anyway, give some advice, do not let white run, this is my mentality.
I admire Ren Zhengfei, China sold abroad things, most of the more low-end, really high-end things sold abroad, but also on the Huawei one.
I want to do another Sequoia, Sequoia is not just good performance.