Arctic Light Ventures Deng: Entrepreneurship does not begin with technology

"Mr. Deng, why did you choose to sell netscreen instead of doing it like Steve Jobs did?" I think that wisdom is the fourth kind of energy, do you agree with this sentence? " Technical personnel to start a business, how to open up the market? November a weekend night, Tsinghua University, Shun Tak building room 401. The time is close to 21, but the students waiting behind the microphone still queue up. Deng, the founder and managing director of the Arctic Light venture, responded to 13 questions and had to smile and waved his hand and said, "There's really no more questions." "In the evening, Deng was invited to attend Tsinghua Entrepreneurs ' lecture hall organized by Tsinghua University, and gave a 90-minute speech, and Tsinghua students shared a series of career and spiritual experiences of their own study, Silicon Valley entrepreneurship and home ventures. "The key point is that if I can do it, I think you can do it," he said. In the course of the speech, Deng has been stressing. Entrepreneurship: Do not start from the technology Deng in Silicon Valley is a wave of a few fold: the beginning is short of money, wait until the information security company NetScreen to do the wind, a succession of two times have been large companies to buy a good opportunity, but also by mistake because of various accidents and not fruit. Landing on the Nasdaq is not a smooth sailing. Initially, there are deficiencies in financial management, audit failed to pass. After a year of adjustment, good financial management, but also coincided with the terrorist attacks ... In and Tsinghua students joke these past events, Deng attitude from ridicule to serious. He told his students that it was right to look back on his entrepreneurial journey by not thinking about technology at first, but from the market. At the start of the venture, Deng and the team spent a full 3 months doing market research until the problem was well thought out. "It's important to be an enterprise and technological innovation, but I think the sensitivity of business is more important." And, more than later, you find it important to understand the market and the customer. "Deng said. Deng told the students that if someone now finds him with a business plan and says I have a technology that faces three markets, he will not hesitate to call the proposal back. What he would like to see is that entrepreneurs focus on one area, may use 3 of products to hit the market, and then there may be 9 technology to support. He thinks that's the right logic. In the choice of starting point, Deng also have their own experience. He will be a good starting point of the characteristics of the three-point market already exists, the scale is small, at the same time, and high-speed growth. "The advantage of the market already exists is that there is no need to educate clients." A small size means that big companies are not aware of the market or are aware that they don't need to. So we can use revolutionary technology to quickly occupy the market, and with the rapid growth of the market development. Deng explained. Investment: Only those who can do due diligence. In 2005, Deng returned from Silicon Valley to create the northern Aurora venture. As of now, the Northern Lights venture has raised three RMB funds and three dollar funds to complete investment in more than 60 companies in the country, portfolioIn the well-known enterprises, including communications, hanting hotels, happy Net, the city, such as the Victoria. Questions, students are interested in the status of Deng investors, and about his investment in how to choose entrepreneurs, but also the focus of the problem. "I think there are two ways to answer, that is, what to look at and how to look." "Deng said. First, Deng the students to share three criteria for selecting entrepreneurs. The most important thing, he says, is the values of entrepreneurs. The second is the ability of the entrepreneur to learn, especially the ability to learn quickly, and finally the experience and experience of the entrepreneur. Next, Deng introduced some of his own skills to explore the entrepreneur. "For example, I would see how big his office was and how big his colleagues ' offices were." When he communicates with his colleagues, he often interrupts his colleagues. Sometimes I also deliberately ask him some irritating questions in front of his colleagues to see how he reacts under pressure. "Deng said. Deng stressed that for investors, due diligence on entrepreneurs is a necessary lesson for investment. such as visiting the entrepreneur's friends, past colleagues, and even the employees who were fired from the company they had previously created. "Of course there won't be a man who says he's bad, I think he's bad." I often call more than 10 of people on the phone to synthesize their opinions, which makes it clearer. "Deng said. It is due to the attention of due diligence, Deng frankly, his investment is not only the industry more focused, geographical focus. "For example, if I were to invest in an agricultural project in Jiangxi, my first reaction was not to vote." Deng said, "because I have no familiar people there." So I only vote for people who can do due diligence. "Entrepreneurship: To have a higher than the financial return of the ideal in exchange with students on the topic of venture capital, Deng also stressed that he did not encourage students to start a new business after graduation, he is more interested in cultivating entrepreneurship." The most important thing about entrepreneurship is the idea of a higher-than-financial return. In fact, Deng's own experience is a good interpretation of this spirit. He told the audience that while the remuneration package at Intel was good, with 1 million-dollar stock options, he was obsessed to start his own business. In 2005, Deng had been in the United States for 15 years. Deng admits that when he returned to his business, he faced three challenges from entrepreneurs to the role of investors, from the U.S. market to the Chinese market changes, and not to do foreign venture capital of Chinese companies, but to do their own VC funds. Although the suffering is heavy, but Deng always insists oneself chooses the project the value, namely does farmer (farmer) instead does Hunter (Hunter). "Hunter a shot to change a place, and farmer is to find good seeds, fertilization, carefully nurtured." We want to invest more than just making money, but hoping to achieve some dreams, such as developing world-class companies and entrepreneurs. "Deng said. Facing the next stage of the entrepreneur, Deng frankly, there is a financial return requirements are normal, but must have a higher ideal, such as this thing I like, have a greater ambitionAnd so on. Deng in the Northern lights of the corporate culture also pointed out that the first is to "enjoy", that is, to make a happy investment. When talking about their investment in the animation film "Rock Tibetan Mastiff", Deng smiled to the students under the stage, we do not applaud, this matter does not necessarily become. But the film is Chinese investment, Chinese creations and Hollywood Productions, global distribution, at least a try I've never had, and I think it's interesting.