Chen: Tell you three kinds of weapons and ways of hunting success

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Renren CEO Chen in the second "entrepreneurial State 100" annual awards ceremony said, for entrepreneurship, fashionable things to do more difficult, because the big environment is more money, fashionable things a lot of people do, to be single-minded. When competition, in addition to using brains, with fast execution, not enough, but also with the traditional industry, plus the other together, the big companies think that with you too much trouble, not with you, even so, I also predict large companies will be on the video, and I was a few years ago the same judgment.

The following is a transcript of his speech:

Chen: Thanks to the South, I thank the entrepreneurial State, I have been on the way to prepare for today's speech, because there are so many entrepreneurs, a lot of attention to entrepreneurial and entrepreneurial people in the media, including many investors, I have a little prepared, I would like to say three points: the first is a brief talk about the current TMT industry's largest environment, the biggest trend, in such a trend under the entrepreneurial opportunities, I think for a long time, to come in a state of Renren, I would like to talk about what TMT is not entrepreneurial opportunities, to tell us about the opportunity to hide where the venture.

I personally think that the TMT industry after the first big environmental aspect is the Chinese Internet from the past 10 years of high-speed growth, now gradually into a steady growth stage, if we carefully study the history of foreign and domestic industry development, it's growth curve curvature from positive to negative, A lot of new things and the curvature of the moment is not the same, I have not delved into this matter, but as investors, entrepreneurs can spend some time to study the problem.

The second is a lot of money in the industry, actually take a closer look, the total number of active funds in China's TMT industry, with foreign investment in particular the United States, there is not much gap, huge sums of money to invest in good projects, which will lead to what may not be a good opportunity, will mention the problem of more money.

Third, I found that China has a unique phenomenon in the field of entrepreneurship, unlike the world, what phenomenon? Entrepreneurial old comrades do not retire, continue to do, this is not the same as abroad, a lifetime of two founders, the company listed immediately to the managers, their own charity, two of People's charitable funds in the United States to do the best, I have studied the way their charitable funds are invested. Including Bill Gates, is also a person in the prime of the rest of his career to charity, this is unthinkable at home, when a domestic entrepreneur is less than 60 years old, full time to go out to bring their wealth back to the community, to the African victims of the vaccine needle, I do not see this situation. I think the characteristics of China is that we have after all the past 30 years of reform to live a real good day, most of the entrepreneurial sense of security is not very strong, the original thought that earning 10 million enough, and later that is not safe, to earn 100 million, and then feel insecure.

Foreign is not the same, abroad is relatively stable, especially in the United States, the United States in the past 300 years has not suffered from foreign attacks, a big deal to fight a civil war, the end of 20, so its country is in a relatively stable process, entrepreneurship after making money to enjoy life, do good deeds. And China is not the same, after making money to continue to dry, leading to what results? Entrepreneurship is a young man, Like Facebook. So at home is not the same as the domestic new entrepreneurs to be compared with China's first generation of excellent internet companies, Wang is the best of the next generation of entrepreneurs, but he met the enemy is big and strong, so China innovation is very difficult. So this is China's big environment, cannot be changed. Including technology, the third venture, or continue to work in the company, a lifetime, or constantly innovate. Therefore, entrepreneurs will be with the first generation of the strongest, experienced, rich and have horses, and internet assets of the huge enterprise competition. So why do the internet in China to do three mountains forever but, their founders are very smart, and until now the work is still very strong, there is no retirement meaning, no way, so this is our three large environment.

In these three big environments, how do we find out that there are possible entrepreneurial opportunities in our industry? First of all to see which industries are not entrepreneurial opportunities, we have to kill some of the chances of failure, entrepreneurial like hunting, just south always said you tell me, we hit what bird can hit? I said I don't know, I just know what Bird can't beat, I tell you what is not good to do, what is not the opportunity, the first is that the fashionable thing is more difficult, because just said that the big environment one problem is the money is many, causes as long as is fashionable the matter to have a big pile of people to do, for example a few years ago video website, hundreds of are doing, we also did at that time, later saw 300 companies to do We will withdraw, not we do but they, not our money is less, we are not as good as others, but we do not adhere to other people, we melt into the money each thing put a little is not enough, they are only to do one thing. So fashionable is a very good thing, for example, I say which kind of bird good fight, tomorrow everyone will hit that bird, the bird is not good to fight, all scared away.

What is the second thing that is not easy to succeed? What investors say is not easy to succeed. In fact, when I talk to investors abroad, they are very humble, I said you have any ideas? He said we know a fart, you know what will happen, we do not know, we are the chosen project, you think out, we voted in the money, this investor is one of the best investors in the United States, Voted Facebook and is now on Twitter. So as the entrepreneurial community in the start-up state, do not easily listen to investors say anything good, when he said this thing is bad. So we have to make our own thinking, from the place we know best. Where is the third place that is less likely to succeed? Wireless Internet opportunities are not easy to have a big success, wireless internet is now a lot of small team two or three people quickly spell an app, a small application to put on Apple or Facebook to sell, a year to earn 1 million or 2 million yuan is not a problem, and then introduce venture capital in a high-profile way, It's not easy to do. Because I thought, the opportunity on the wireless internet is not the same as the chance on the PC Internet, one is on the wireless internet the operator spends much more money than the PC. On the PC Internet has a lot of brands, a lot of research and development, soon the army killed immediately. So, the three types of hunting that I've just talked about, you can't hunt if you do that, or you can't hit multiple boards.

Finally, I want to talk about the way to hunt. I'm not going to tell you what the bird is, but I'll tell you what kind of gun you can hit, and what you're fighting for. First, dry up bitter haha things, others do not want to do things, Ma Yun feel bitter things, there may be success, to enough suffering, enough, others listen too bitter, do not. For example, Jingdong Mall is so, to give others all over smoking smelly Han, very bitter, playing flat, but bitter things may be successful. Second, you do things far enough, do not do immediately can make money, I interviewed four or five years ago, people asked me why do the community? I said this thing first bitter, the second to earn money, now looks a little more optimistic, so far we have not fully profitable.

Because of this, not too many big companies do, now unfortunately, even if it is so far away from the money, there are people to do. Third, what could possibly be successful? Asset-heavy companies are likely to succeed, and light assets are several engineers, with very good ideas, writing code for three months, and making one thing work. The heavy things I say are not necessarily offline assets, the heavy things I say are the kinds of assets that need time to accumulate. For example, recently there are two companies listed in the Video field, why are they both listed? Look at all the video sites where both of their assets are the heaviest, Youku spent tens of millions of to build their own IGC, in order to save costs, a lot of money is invested in the server, so actually they are light assets to add assets, They are heavy asset companies in light asset companies. When you're competing, in addition to the brain, with fast execution, not enough, but also with the traditional industry, plus the other together, the big companies think that with you too much trouble, not with you, even so, I also predict large companies will be on the video, and I was a few years ago the same judgment.

Last but not least, what kind of TMT industry do I see? I look at just the Internet as a tool for the enterprise, not a pure Internet company, pure Internet companies are light assets altogether, the Internet's first pioneering huge opportunities without, a lot of small opportunities, For example, on the Apple platform, anyone can do a yearly income of millions of companies, it is easy, but it is not easy to be big. So small companies can consider the Internet and it technology as a tool to make your traditional business of pure profit from 5% to 10%. For example, in the IT and internet revolution of the past decade or 20, do you know which is the most beneficial industry? The answer is the financial sector.

Before it and the internet came out, the global scale of this industry is very small, because the financial industry is the flow of money, but the flow of money before the movement of information, with a computer after the analysis of the data is greatly simplified, the previous 10 analysts with hands for a year of things now a minute even came out, So in my country, including China's financial institutions, the market capitalisation is huge, the world's largest industry is finance, it is typical through the Internet and it technology to make their own pure profit rose many times the industry. So if you think very clearly people, the internet up, IT companies, you do not want to sell jeans, you hit the bank, I think such a similar opportunity than the pure Internet companies to strengthen.

So I'm not telling you to play quail, I'm telling you that there's no place to hunt, a plain with no fur to hunt, because animals don't go there. I'm telling you, in some kind of place, some kind of weapon might hit the hunt. I have just said a few points about where it might fail and where it might be easy to succeed.