Kai-fu Lee: China's internet industry is ushering in a turning point

China's internet industry is ushering in a turning point, suning acquisition of Red children, Baidu to buy snacks, Alibaba acquisition of Friendship Union, there are rumors that Baidu threw 350 million of dollars to acquire PPS has become a fact, Alibaba and the gold map contact. The industry about Ali, Baidu, 360 and who intimate contact with the "gossip", but also affect many practitioners sensitive nerves.

Innovation workshops are also involved in these acquisitions or rumors. In the past 2 years, the innovation Workshop has been in the dim sum, the Alliance, the magic figure three projects exit, the buyers are all industrial capital. Innovation Factory Chairman Kai-Fu Lee accepted Tencent Technology interview, said the internet giants are willing to use the acquisition method to expand business, the entire industry ecological environment is a good thing.

"The support of the mergers and acquisitions market is very important for early investment, the domestic death of a lot of angel funds, these angel funds can not survive, because the money is not able to roll up." "The innovation workshops don't care about the rewards of withdrawing from these projects, but for many of China's early investment funds, many angel funds have died because of a broken capital," said Lee.

Industrial capital to the back of the stock, is the whole exit environment deterioration. Yan, Asia's partner, told Tencent that more and more Chinese entrepreneurs are unwilling to do the real economy, and that more and more entrepreneurs are willing to invest, but there is no exit opportunity and the capital market is frozen. Yan bluntly, 2012 is the worst year in China to invest in 20.

Deng, a partner of the Arctic light venture, also said to Tencent that it was difficult to opt out of the investment industry, whether it was withdrawing abroad or exiting domestically. In the Chinese a-share market line of seven hundred or eight hundred, Nasdaq listed only two Chinese companies, which has an impact on investment exit, bad exit also affected the financing, last year, corporate finance in front of the previous year fell a lot.

In fact, in the capital of winter, investors do not hesitate to bleed out of some projects. Suning acquisition of Red children before, Tencent technology has burst a mysterious agency to 10 million of dollars to get a majority of red children's shares, and the former main investment in the Northern Lights and triumphal cast both out of the board, a silent and brutal "coup" occurred in Suning before the acquisition.

In the case of Alibaba's acquisition of the AU, the union ended up selling a slightly higher price than the 70 million dollars previously reported, but insiders point out that it is "low" for its investors. In July 2011, the league announced a $50 million investment in a round of tens of millions of dollars, and the main investment agency was a Jingwei venture.

Innovation Workshop partner Hua talked about Alibaba, Baidu, 360 of these industrial mentality, said that these enterprises have a strong capital, but are faced with a variety of threats, the investment is stones, do not know what the future subdivision of the field will become a key application, so choose a wide net of the layout of the way. This gives the opportunity for early investment to exit.

An AU investor said the idea that the alliance had been brewing was an independent listing, but the window of dialogue with the Giants had not been closed and investors would opt out in good time. Friends of the league most want to be Baidu acquisition, because the union in the wireless field of data can and Baidu search closely combined. However, Baidu is cautious and has never extended an olive branch to the alliance. Baidu is more willing to invest in the purchase of snacks such defensive products against 360.

"Over the past few years, China's internet giants have rarely used acquisitions, which may have been too hard to start a business before, thinking that tens of millions of of billions of dollars of acquisitions are too much to do themselves." "Now that the Giants are starting to change, this is a good thing for the Angel Fund," said Lee.

Kai-Fu Lee also pointed out that with the mobile internet and life more closely linked to the future can wear the Internet era promising, simple to mobile internet entrepreneurship has no meaning, entrepreneurs need to think more about the industry.

The following is an interview with the Chairman of Innovation Workshop Kai-fu Lee:

Tencent Technology: After Android founder Andy Rubin out of the game, the Chrome director Sundar Pichai in charge of Android, whether it means that Google may use Chrome OS to further encroach on the desktop of the Internet, the Microsoft poses a big threat?

Lee: This is what has happened. Chromebook (Google's Web Notebook) is on the way, and Microsoft faces the low-end squeeze of Apple's high-end and Chromebook. Low-end extrusion is largely a result of no keyboard and touch screen.

Future touch-screen hardware is getting closer to Android, seamlessly running all network operations, all Web pages are supported, and Android apps are taken away. When Android apps and Chrome apps can run in a touchscreen-like notebook, the low-end is big enough and low enough to have a big impact on Microsoft's low-end market.

Apple's high-end market is the same, the Internet itself is compatible, plus Apple's own app. I think Chrome and Ann Excel fast compatibility or merger, the more pressure that brings to Microsoft. But the short term may not be merged.

Microsoft will be the big loser in the operating system market

Tencent Technology: The existing three operating systems, Apple iOS, Google Android, Microsoft WP, from your perspective, the future will have what kind of deduction?

Kai-Fu Lee: Microsoft operating system in the PC field for a long time will be the mainstream. High-end areas of Apple will add some share. Touch-screen and mobile will be more of an Android domain. I think the Chrome OS might go away or merge with Android. Apple, Microsoft, Google three growth in the largest space is Google. In the future competition from pure market share, Microsoft is a big loser, Apple put the ipad, will be a small winner, Google will be a big winner.

Wearable Internet era will be the birth of a big market

Tencent Technology: PC shipments have ended years of continuous growth, began to drop, mobile devices are really a replacement for desktop PCs, in such cases, how do you think the mobile Internet will develop?

Kai-fu Lee: Mobile Internet will go up and down. People prefer to talk about going up, because you can see the battle between Google and Microsoft. In fact, the chances of further down may be greater. The so-called downward is to make Android smaller, into glasses, watches, the future may enter the media, into more subtle things, into the real internet age.

In the future wearable consolidator these products are bigger than PCs and, to a large extent, Android has a lot more room to grow. In every segment of the product, Apple comes in.

Tencent technology: Wearable Internet era I feel has arrived, like Google glasses, Apple iwatch, how do you think of its impact on the entire life of netizens?

Kai-fu Lee: From the user experience, comfort, entertainment is a huge bonus points, but more and more may be the so-called privacy issues. Now mobile internet is a very big category, simply say to mobile internet entrepreneurship, this sentence itself meaningless. Or to do a mobile internet game, the significance of itself is not big enough, the entrepreneur to be able to describe what to do more deeply to make people understand is to do cutting-edge, or super era.

Chinese giants have no "pay" habit

Tencent Science and technology: We also noticed that, including magic Figure Elves, dim sum, Friendship Union, Innovative factory investment in several projects have been sold, UC also many rumors to sell to Baidu, is not that the entrepreneur development to a certain stage are the giant to kill off?

Kai-fu Lee: For individual cases I am not convenient to answer. The Chinese giants are willing to use acquisitions to expand their business, which is not bad for the entire ecological environment. Early investment in China is a big challenge is to cast 100 companies, not a Tencent, at least a 360, out of a 360, at least to get a house search, otherwise I am afraid there is no return. Innovation Workshop confident that there will be more than one search house, most of the Angel fund or incubator who dares to promise me the first five years to come out a search house, it is not easy.

America's initial investment is easier than China's, very easy to quit, in the Chinese giant has not paid the habit, I always feel that I can do it, I can do it slowly or cheaper, maybe the giant considering the past entrepreneurial hard, tens of millions of dollars or a large number, so has been reluctant to sell big acquisitions.

Tencent technology: From your point of view, the Internet industry mergers and acquisitions will be more and more?

Kai-fu Lee: if Angel investment 100, there are 20 sold, even if they sell five times times the price, this 20 will be happy, and then 35 listed, angel investors earn a lot, more power to do angels. Mergers and acquisitions market support for early investment is very important, the domestic death of a lot of angel funds, these angel funds can not survive, is because the money can't roll up.

Frankly, innovation workshops don't care about getting the money out of these projects, and shareholders have a long-term trust in us, but most angel funds don't. So the possibility of more mergers and acquisitions in China makes early investment feasible, or else many angel funds may be doing well themselves, but they will die from a broken capital.