Chinahr CEO after two times

Today's capital investment strategy, the first is to look at the industry, the second person, the third to see if there is growth. I have invested all these years, the deep feeling is that Chinese entrepreneurs have a very big characteristic, when the enterprise income to 200 million or 300 million yuan, profit in 10 million-20 million yuan will appear a development bottleneck, on the one hand is the problem of money, more people.

So how to invest in the future to help entrepreneurs grow? Venture capitalists invest their money in startups, joys with companies and founders, but entrepreneurs are big shareholders and venture capitalists help them with skills.

　　Comparison of three kinds of entrepreneurs

We basically deal with three kinds of entrepreneurs. One is to venture out from multinational companies, their advantage is more understand the establishment of systems and culture, know how to finance; The disadvantage is that wages are very expensive, basically the annual salary of two hundred thousand or three hundred thousand U.S. dollars, even if they have a lot of shares, low wages do not do.

They still have one of the most important flaws in their business instincts. Because they used to work, is to go lattice, did not draw the grid, the product is not what you want to come out, pricing is not what you think out, all the strategies are not you think out, you just do the implementation.

I think these entrepreneurs, if the first venture failed to want to do the second time, we have to seriously, serious to see, such a person I refused two or three, the results have failed.

The second is returnees. They are very smart, and very good at learning, especially good at the United States to learn a business model to domestic internship, called C to C (Copy to China). They will also speak Chinese and English, and the financing is also serious. What are they missing? The experience of the returnees is less, in general, they are twenty or thirty years old, have no control over what people, their management or to exercise.

They also have a very central feature is that, compared with the turtle, more like to see a high price of the company sold.

The third is that we see the most is the turtle pie, this quantity is very large, the choice of a lot of room.

I think the biggest advantage of the turtle is that the public confidence is very strong, his judgment on the market is very good, first of all it is not easy to survive, the second they are generally low-cost operations.

The biggest limitation of the turtle pie is that he is the boss and the board of directors doesn't know how to deal with it. In addition, I think the biggest taboo of private entrepreneurs is to like diversity.

　　The balance mechanism of the entrepreneurial team

What kind of person are we looking for the founder and his team? I hope they are more discerning, the business mind is better, the pattern is relatively big, will manage the person, the person is reliable, credible. Certainly nobody is perfect, we can tolerate some shortcomings of the entrepreneur.

Our experience is that a sales person should be more suitable to be a CEO. China is not the same as the United States, the United States when the CEO of the people are engaged in technology, China is not the same, in fact, China is mainly applied, there is no special innovation, so or to do the market when chief executive better, pure technology people when the probability of chief executive do not high.

Is the entrepreneur a good or a good three? We think we're looking at the industry. The founder should believe that, two or three people are more capable, each tube a booth, the people below get up quickly. There is usually a management of sales of the CEO, the technology, the operation of the Deputy, three people with the match.

With this collocation, the next question is who is taking up more shares? If the entrepreneur has the same number of shares, the company is mostly split. A mountain does not allow two tigers, this is very important Chinese proverb.

I think the most stable match should be a leader, the power to set down, the power is very clear, the other small shareholders have some small shares, others involved. Recently, two people together to create a company, that day called me to ask for financing. I said, you two alone are very good, but the two of you together do not know who is the head. They said that the cause is also very agreeable, mutual appreciation went to a piece, I said no, the future must have a final say, if encounter contradictions how to do? He said that we discuss, I said not negotiable, have different opinions how to do, must have a person to say, in advance, the best also in the shares of the embodiment, later a person said I decide. I said, you should define it on the equity.

I think the difference in equity is very important, but the boss also don't too greedy, take too much, the people below feel no hope. I think that the number of shares between the leader and the second hand should be about three times times, which is a better balance mechanism.

　　The issue of CEO's treatment

Finding the right founders and teams, how are we going to help them grow?

For example, a founder said, I do not want to be CEO, help me find a, I am a happy CTO. We found it, but this professional CEO and founder are not together. This is not a complete blame for the CEO, because the founder is still, he has to play a role is not easy.

We invested in the Chinahr two times the CEO was successful. The first one is Yiu Weimin, the resume is very beautiful. After coming I asked him, come here as CEO, founder Zhang Weixian how to do? He said well, keep him, we'll do it together. At first they had nothing to do, and everyone had a very good mentality. Then after a while their relationship began to have some problems, that is, who is the boss of the problem. The final performance is not good, it must be said that the CEO did not be good, Yao please go. But is it entirely Yao's problem? I think on the one hand he has a process of adaptation, on the other hand he has no real power.

The second time we looked again, we found Jianguo, and I asked him the same question-do you want the founder to keep it or leave it? Jianguo said, don't. I think he is very clever.

I think that if the founder can now be CEO, the future can not be CEO, it is best not to vote for the company, because it is difficult to replace the founder, the risk is very high. We have tried in the Chinahr, NetEase also tried, the first unsuccessful, the second attempt to succeed, in fact, the risk is very large, we hope that this person best to do the end from scratch.

As for the treatment of senior management, I do not agree with the equity only, I generally support the way of treating Chinahr CEO Jianguo. At that time I told him that this is a very good stage, but you have to put your assets in, he asked how many, I said your net worth is probably this number, put 1/3 in, he really sold the house.

We say, you want to come, first put money in, the second to return their company, the third salary can not take too high. But I'll give you a lot of shares, when we took out 15% of the shares, Chinahr in the industry has done very well, if 100 divided into full marks, then Chinahr has gone to sixty or seventy points, I gave him 15% of the shares must convince shareholders, because I am a relatively large shareholder, they believe my judgment, gave 15 %。