Silicon Valley spends money on talent Asia spends money on the market (net pick)

Silicon Valley spends money on talent Asia spends money on the market

September 23, 2015 09:35 cloud-hunting net

What is the difference between a Silicon Valley entrepreneur and an Asian entrepreneur in spending money? What is the best way for startups to use their money?

If you already know a lot about Asian startups, you've heard many of these stereotypes: solving problems, targeting markets, developing regional strategies, and building good teams. But the fact is that Asian entrepreneurs don't follow the advice you hear, just look at where the company's money is spent and know that you've heard about it.

During a chat with a Silicon Valley employee, he sharply that Silicon Valley companies are willing to spend a lot of money on "old guys". Google hired Eric Schmidtley as CEO is a good example, as well as Apple, Jobs had to persuade John Sculley to help him manage the company, as well as the recent malicious Yahoo buy employees, Uber hired Andrew Chen et al. and Facebook dug Google Corner and so on. It is no wonder that the Silicon Valley giants lost $400 million for digging in other employees.

They know how important it is to make the best people work for themselves, and they are willing to pay a big price for it. All the funding is for these two points: salaries and priority stakes. It's not that you're old enough to have a company that wants you, but that you have top-notch skills and you're willing to pay your top salary.

To spend money on the market

In Asia, I feel that only Silicon Valley giants such as Uber and rocket Internet companies will do so. In particular, companies that rocket the internet will hire veteran managers with management consulting experience to train them to become general managers or co-founders (and, of course, they also have a lot of budget to do marketing). Recently, they even hired former Amazon managers to lead the job. In contrast, Asian startups are more obsessed with hiring new recruits who need training, and then putting their budgets on the market.

If you can attend a top Asian tech conference, see how many people have worked in this industry for more than 10 years. Look at the new generation of startups that have just started a round of financing, and their founders are probably the oldest and most experienced in the team.

But it makes sense, after all, that Asia is an emerging market, and that the budget is used to train your product team. At the same time, the entrepreneurial environment in Asia as a whole is imperfect, and few people can afford to pay six-digit salaries, and spending money on the market may be more insured.

Asian features?

But is it really good in the long run? Silicon Valley's rising stars spend a lot of money to hire old guys, because they can bring the company a perfect process, a complete system and a wealth of experience, to create a world-class company, they know how to do it, so they value so much money. If you spend all your money on the market, you'll end up with a general-like company and a group of users you don't even know about. Your achievement is to build a team that is full of young people who can only rely on a round of investment in piling up wood.

The crux of the problem, however, is that the Asian market is too young to have seen the ups and downs of the market. At present, Asia is still in a prosperous period, and it will take about 10 years to have enough high-level talents.

In addition to spending a lot of money to get the top Silicon Valley talent to help you build a company, I think there is no other way. You have to have a respectful awareness of your hard-earned money.

In practice, however, this may not be in the nature of Asian people. They want to work with other Asians, and the hierarchical system in Asian culture makes it hard for them to accept "more than I know" people. Asia must find a way to break through this stubborn obstacle.

Silicon Valley spends money on talent Asia spends money on the market (net pick)