Sands Jiang Dingjian: The gorgeous turn from industrialist to investor

The rapid development of China's economy, for enterprises to provide more and more industry opportunities and market development space. Many entrepreneurs who have grown up and have become more stable are thinking: how to change from being invested to investing in others?　　They are trying to find industry opportunities and to transform from industrialists to investors. Ding is undoubtedly the representative of the winners. He 1993 and Tian together to create the United States Asia Letter Company, in early 1995 to return to set up the Asia Letter Technology (China) company, the first time to bring the internet back to China. 2000, Ding led the successful landing of the Nasdaq. In 2003, Ding resigned from the nerdy successful entrepreneurial ding is not a torrent of retreat-when he was his identity has become the Jinsha venture partner. Now, it has been more than 7 years since he joined the venture bank. From an entrepreneur to a full-time VC, how did Ding successfully achieve both of these role conversions?　　7 years of experience in the venture, so that he has a new understanding of capital? Why do I change roles? Interest dictates "Peking University Business Review": You founded the Asiainfo, and led the successful listing on Nasdaq.　　As an industrialist, why do you turn to venture capital? Ding: 1998, my first child was born, I went to the United States to take care of them, at that time, two things have a greater impact on me. The first thing is that I have some concerns about business and finance, and I begin to understand what PE is and what the stock price is related to.　　The second thing was that I was at the University of California, Berkeley, and I read a senior management program, although just a few months of study, but the impact on me is very large, make up for my management ideas and knowledge of the lack of the previous perceptual all systematized, I began to be able to standardize the induction of things. After that, I made a strategic report on the future development of the letter, analyzing why the Asian letter should leave the domain of system integration and become a software business. At that time, Asiainfo had not been listed. One of our independent directors, after reading the report, told me that you could almost make an IPO report. Of course it was an encouragement to me, but now it's a very high rating to think about it, which means that my mindset was more like an investor than a CEO. I think more strategically about which new business to enter. How do I get in? What do you do when you go in? And so on, rather than simply looking at the problem at the time.　　In fact, doing a good job is harder than making a new investment because it involves a lot of "baggage" issues. Then I really turned to investment, I think investment is actually what I like to do, but also the things I am better at. In fact, I am not good at day-to-day management, also do not like, I prefer to think of things independently, such as corporate strategy, market direction and so on. Therefore, I often joked that 90% of the signature can actually be signed by my secretary, only to do the first 90% of the things to do that 10% worthwhile.　　Of course, I also need to spend a lot of time looking at the applicant's PPT, but I think it's better than being a CEO. From the SetThe transformation of sex to Quantitative "Beida Business Review": What do you think is the biggest difficulty in turning from an industrialist to an investor?　　How does Asiainfo's experience help you invest? Ding: Turning investment from an industrialist is very difficult because it is equivalent to two different professions. Investing is a fine job, especially early investment. Because at this time the enterprise neither like the angel so nothing, with the brain to think about the problem can be, and not like later investment, can be based on a lot of numbers to do evaluation.　　Therefore, it is not easy to change from qualitative to quantitative if you have a wealth of industry experience and rely on these experiences to quantify the risks and rewards of the project. From my experience, if you do not have the experience of being a CEO in a listed company, it may be more difficult to get there. Because in general, there are two types of CEO, one is to do strategy or market, the other is to do the CFO. The former may not have much quantitative concept, but he can qualitatively know which direction the strategy goes and how to go, and the latter often make decisions by numbers.　　The best CEOs have to be particularly strong in both ways--as much as a CFO can speak with numbers--and a long experience that allows him to have a qualitative strategic intuition, and to quantify that intuition. Early investment must be quantified. On the one hand, to be able to from the market, technology and product understanding, to determine whether the project can be successful. At the same time, you can also quantify the project, such as how big the market size? What will the potential competition bring you? How big is the gross margin? What about the cost structure?　　Wait a minute. When we talk to some entrepreneurs, we will find that most people will say how good my product is, this thing will certainly be wanted, but there is no quantitative concept. Then I will ask him, the cost of this product, the price is how much? Is there any market demand under this kind of price? This often happens, it is easiest for a skilled entrepreneur to make such a mistake: some markets may only exist in a small scope, after the scope of expansion, most people may not have this demand, or the more the smaller the market, the end of the market may disappear, the enterprise will not survive. The way [page] does things changed. Beijing University Business Review: from CEO to investor, what do you think are the differences between them? What are the changes in the way of thinking?　　What kind of role brings you the greatest sense of accomplishment?　　Ding: The difference between being CEO and investing is very big. Investing every day with new things, new ideas and new concepts is both a challenge and an opportunity. Good investors need to be able to find something in common in these completely different things, and we call this ability inductive. At the same time, it is necessary to systematically analyze the characteristics of a particular case itself. If you look at all the business models, you can't invest. But if all things are completely different and cannot find their common denominator, they cannot generalize the common patterns, nor can they quicklyDistinguish them.　　Therefore, good investors to the business model of inductive ability and the combination of judgment, and do industry often do not have too many of these requirements, which is to do the investment and do business one of the biggest differences. To be a CEO, you spend almost 1/3 of your time thinking about the market, the company strategy, and so on. And it has to be a very good CEO to have so much time to think about these issues.　　CEOs may actually spend only 15% of their time on long-term strategy and innovation, while most of the rest are busy with day-to-day, repetitive and urgent events such as customers, internal management, and coping with various contingencies. Investing is just the reverse. I now only spend 10~15% time to deal with the problem, for example, a company suddenly appeared a problem will come to me to help solve. The 50~60% time is spent on understanding the industry, making strategy and market analysis, assessing the risks and rewards of the project.　　There are 20~30% time to consider the problems in business management, to help my investment object management team. In team management, CEOs and investors are not the same. For example, in the Jinsha River, we have a total of 4 partners, we are cooperative relationship, everyone do their own things, do not need my control.　　It is more complex for managers to manage hundreds of or thousands of people. Both the CEO and the investor gave me a great sense of achievement, but it didn't feel exactly the same. The biggest sense of achievement of doing business comes from being able to create profits and rewards in a realistic way, bringing a business from more than 10 to thousands of people, or even tens of thousands of people. And doing investment, especially the achievement of early investment, from when you see in their support, many enterprises from scratch, and finally become a big, very successful enterprise. People often call the entrepreneur King, call the investor kingmaker, whatever it is called, I feel very honorable.　　[Page] Different understanding of capital "Beijing University Business Review": whether the capital for the industrial or investment significance is self-evident, you do in the industrial stage and investment stage, the understanding of the capital is different? Ding: It should be said to see more light, said not good, is not the money as money. The value of money is limited. Money is not everything, but no money is absolutely impossible.　　But some people tend to like to push, from no money is absolutely not, the money to think is omnipotent, think that there is money on everything, but in fact it is not so. As an investor, the key to seeing an enterprise is to look at all its capital structure, which is something that money can't buy. Because if the business is just short of money, that is the simplest for investors, because investors are the least money, what money can buy in the eyes of investors is worthless.　　But from the point of view of enterprises, enterprises may feel that they have everything, is lack of money, so in the enterprise view, money is the most important. I think the value of the investors, is to pass the money to operate the carrier to the enterprise, money is a carrier, investors to the enterprise must be more than money. If investors bring the companyIs money, then there is no essential difference with ordinary shareholders.　　The fatal weakness of the investment target "Beijing University Business Review": You said, "CEO can not have a fatal weakness," then, in your opinion, which is the investment target can not have a fatal weakness? Ding: When I judge investment or not, it is important that the value of the investment object can not have fatal problems. It is important that one be honest, upright or extremely selfish.　　This can be grasped by understanding him. Another person who cannot vote is stubborn and unwilling to learn, or to be a snob. We don't care if a team has such weaknesses, as long as the team or founder is smart enough to know what they are missing and willing to learn, these weaknesses can be remedied. Even if the founders are incapable of their own abilities, there is a big enough magnanimous to find good people to do it.　　If you do not learn, and do not have enough bosom, that is absolutely not.　　Also, as an entrepreneur, it is important to have charisma, to be able to unite people, not only can you do things well, but also to make everyone around to follow you, I believe you can take them to do things well.　　Investment can not take the place of Enterprises "Beijing University Business Review": Now there are many industrialists transformation or "part-time" investment, as a successful transition, you have what experience to share with them? Ding: To do a good investment, first of all to learn to judge, industry judgments, team judgments. The second is not as stubborn as enterprises, because entrepreneurs tend to have the mentality of entrepreneurs, even if there is 1% of hope, but also to do 100% of the effort. But investors are different, try 1% of the effort, is to want 100% return.　　Therefore, for investors, especially Angel investment, to learn to save their own resources. In addition, some entrepreneurs transition to investment, first hopeful, and then start to worry, really do not jump on their own dry, this is more taboo. Start with a full estimate of the risk, when the risk arises, not to be as anxious as the entrepreneur, but to help him to solve the problem. Enterprise growth in fact, like a child learning to walk, investors can not take the place of the enterprise, even if the fall, you scold it is useless, or to go ahead. Even tell it, don't cry, Fall is normal. It's a mindset to be an investor.