China'S Internet Lacks Innovation. Venture Capital Is A Must.

China

Today, seeing Techcrunch Sarah Lacy talking about the innovation of China's Internet, she pointed out one of the main reasons for the lack of innovation in China's Internet: venture capitalists blindly seek stability, blindly pursue profits, and lack support for innovative products and teams.

In short, China's venture capital only recognizes investment and does not recognize wind.

Lacy talked about her experience in the Beijing Disrupt business competition. She believes that China's Internet entrepreneurs are struggling to get rid of the clones of Western Internet products. It is precisely those venture capitalists who are unwilling to take risks in new ideas.

With two days of personal experience, she learned the way China's venture capitalists worked.

When facing a company that does not invest in any company, China's venture capitalists often choose those companies that are clear in the market, rather than those with new technologies and beautiful interfaces.

Sarah said to the judges on Disrupt Beijing, "don't forget! These companies are the first to start their own business. They don't need to find all the answers yet!"

Several of them were shot dead by Chinese venture capital in the competition, but Lacy thought that such companies would get different treatment if they were to win the Disrupt contest in the US.

For example, 8 Securities (a tool in the financial sector.

A simple, personalized, pparent and socialized new online trading platform.

If you get the United States, you will surely be popular with the public.

Similarly, there are UnitedStyles and Moglue.

These start-ups seem to have been accredited by judges from Silicon Valley, but are ignored by China's venture capital, for the reason is that the technology is good, but the rest is acceptable.

The complaints of Chinese venture capitalists are the same: products do not have enough clear markets.

In fact, one of the reasons why the winner of the contest OrderWithMe can laugh last is that the founder knows their target market and knows how to express it clearly.

Preference for market size is not meaningless.

After all, China's Internet Co has been pursuing market scale in history.

To what extent is the dominance of Tencent due to the fact that management and products are largely due to 600 million users? Obviously, they are indispensable.

After all, many big companies have failed in China.

And neither India nor China had Baidu, Tencent and Alibaba.

Compared with the Western start-up companies, the huge market that Western companies can hardly easily create provides many opportunities for Chinese start-ups.

Many Westerners think that Chinese entrepreneurs lack innovation, but Lacy thinks that it may have been so, and at least half of it is because of investors.

When she said that Chinese venture capitalists were too dependent on copycat products rather than new ideas, they did not positively reject it.

China's Internet has always been known for its speed and enclosure, just like that of the US in the 1999.

From a cultural perspective, Chinese entrepreneurs are known for their efficiency, and the products that have been verified in the West are undoubtedly the safest, fastest and easiest way.

Innovation is reflected in product delivery and commercialization. Many Chinese copycat products are totally different from the original ones in the United States.

Their purpose is to fill in the blanks, as well as the publicity slogans on the market.

In any case, only in this way can they make money.

Many investors have become addicted to the established model of Shanzhai, although some investors say they are also increasing investment in mobile Internet and other fields.

Then Sarah took the runner up security treasure as an example, a product of Shanzhai CloudFlare (the interesting thing is that CloudFlare is also runner up).

Security is the only clone product to enter the finals, and some judges are more optimistic about it.

Even the founder of CloudFlare, who served as a judge in the competition, also believes that security treasure is the most likely product of a big company in the final product.

As an investor, how can you turn a blind eye to such fat meat?

But if Chinese entrepreneurs want to enter the next stage of Internet innovation, investors must stop laziness.

Venture capital has to take risks.

Many entrepreneurs want venture capitalists to take risks.

There are many innovations in China, and even Tencent's Ma Huateng is sometimes unable to sleep because they are worried that they may not be able to keep up with the innovation of China's Internet.

The sharp eyed Sarah also pointed out that a new angel class is emerging in China, and they may be able to promote China's innovation.

They are concerned not only about seeking exit.

Finally, Sarah said: China's market is big enough, and now there are enough talents. If these investors do not grasp China's innovation now, others will take the place of it.

Entrepreneurs can choose whether to push the market forward, not just for investors.

China's venture capitalists, wake up and bear the risk you should bear.

For China's Internet business ecosystem, and for yourself.

It is never too late to mend.