Ran: Internet entrepreneurship is different from the American model a decade ago.

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Ran: If you look at the http://www.aliyun.com/zixun/aggregation/10074.html "> U.S. listed Chinese Internet company, from the mode of the original color, I can think of, the audience is one." The pattern of the audience is not in the United States. In Europe, I don't seem to see it either. Of course, because of China's institutional reasons, there have been a number of companies in foreign countries, such as the PSP. But those things proved to be a failure in the end because of institutional reasons. Because it is not based on basic market demand.

Ran: It's hard to put a screen on a building elevator in a foreign country.

Back to today's basic proposition, is about innovation. I think today's entrepreneurs compared to 10 years ago, there are lucky places, there are unfortunate places. What is the unfortunate place? Think about it. Over the past decade, especially in the first few years, our founders, at least in the field of Internet, have two of sticks in their hands. One is a pattern of crutches. In 1999, look around and see what mode of fire the United States transplanted into China. I agree with Yao always mentioned his own innovation, walking to form their own unique competitive advantage, but a lot of mode of starting point is to simply take over the model over there, and then like the help of the VC such as Xiao Pigeon, it transplanted to the Chinese market. This is the basic starting point. Some people walk faster, some walk slowly, some walk a little better, some walk a little. All in all, by 2000, even by 2005, it would still be a very effective entrepreneurial model. Looking back, the first thing you can find is what is most market-focused; second, you can see what is most of the investor's concern. Based on this, you can think about what you want to do.

The second crutch is the capital market. From the earliest Sohu, when, until now listed these companies, as long as the model brought over, after several rounds of venture capital. Of course, the middle market also has twists and turns, when the market is good, when the market is not good, the valuation is a little higher, but often finally through the United States Nasdaq, and even some also went to the NYSE, you can not really put this model completely through the time, did not get the scale of profits to complete the listing. This is the opportunity presented to Chinese entrepreneurs in the past decade.

The next is unfortunate. Unfortunately, these two sticks seem to be out of the expectation for the time being. Today we look at the most popular and most investor-focused model in the United States, which cannot be said to be 100% or 90% and cannot be transplanted to China. Because when the internet is just emerging, both the United States and China are addressing the most basic needs. Yahoo solves the need for information, ebuy to address individual needs, Amazon solves retail demand. As the Internet develops today, many new entrepreneurial models are based on local culture, humanities, and even social systems. These things are transplanted to China, and the underlying soil is non-existent. So it means that starting today, our founders are looking at the action again and discovering that the efficiency has dropped dramatically, and that it's not necessarily possible to see it.

Look at the second stick, if Beijing East and the national day fight, but also to rob in Ali before the completion of the listing. Not to mention the fiscal cliff of the United States and next year's economic trends. Even as the US economy stabilizes, China stocks are back in the US market, and I think it will be a relatively long time. Do not rule out that there will be individual companies, especially large enough, the market value of more than 1 billion U.S. dollars in the company, to allow themselves to stand in the doorway, as long as the door opened a seam, their own drill out, stretched out a position to seize, the so-called can be forcibly listed. Regardless of the market value, how low the valuation is. Generally speaking, this door to Chinese enterprises is basically half off state, even can say is the state of ajar, just not shut dead.

So what does that mean? From the point of view of withdrawal, you have to consider other exit methods, whether through mergers and acquisitions, or through the Hong Kong market or a-share market. These two markets have rigid requirements for the company's profits. This means that the two sticks to the entrepreneur, at least for the moment is not there. What about this time? You only rely on your own feet, you walk out of the road. The good news is that the road is solidly supported by China's consumer market, consumer upgrades, Internet population, smartphone users, and so on. These provide us with a solid soil underneath the road. This is a big wind change. I'll talk so much first.

This paper is the author's speech at the annual meeting of Sohu entrepreneur November 4, 2012

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