Zhou: VC to China a bit sour not rich can do angel

Why do I preach angel investment everywhere? Objectively speaking, I am not really investing in a lot of companies, investment is not big, and there is no successful example, are in the early stages. In fact, I am not a pure angel investor, the reason why I put this wing around, is to pass some ideas out: on the one hand want to let more people understand the venture capital, and let more entrepreneurs also really understand the venture capital. VC to China a bit sour the U.S. VC why more powerful, mention KPP, mention Sequoia, they invest in a lot of companies are really high growth companies, like Apple, Yahoo, Google, really grow a multiple, and are in very early time cast. But the VC is a bit stale in China. We all say that there is a lot of hot money in China today, but a lot of young entrepreneurs ask, why can't we find someone to invest? The reason is not that the money is gone, but that the money came to China after two problems: First, the U.S. today's high growth in a few industries, such as medical, biological, pharmaceutical or High-tech, And frankly, China is not High-tech, the best Internet companies are not relying on technology to defeat others, are dependent on the operation of China. VC in China suddenly found another opportunity, today's China is very much like the 70 's the United States, China in the traditional consumer industry opportunities. So, now many VC in with PE (private equity funds) Rob Business, this is the second VC into China after the problem. In fact, in the United States, VC and PE are more clearly, you rarely heard, KPP, CP (capital private) to cast a very traditional, often tens of millions of dollars of traditional industries, their money is to cast some future can double the industry. But today, a lot of head hanging VC name to invest in enterprise, actually or because the enterprise has scale, business model is very clear, cash flow is very good, also has the profit, I think this kind of project operation and true narrow VC is not the same. For some early projects, really dare to invest in VC not too much. Today's VC a typical feature is that when the market is very hot, we swarm. In the first half of this year, we swarm a bunch of web2.0, this is an extreme, the result is now web2.0 in China does not have a real big enterprise, a few get the money did not get due growth. In this case, all the VC is a swarm of waiting to start watching. Even if there is VC in the early company, it is not because he may not really have a special vision. For example, today there are VC investment early, it must be a case of 500,000 dollars. Their idea is, "I cast 10 cases to vote 5 million dollars, have lost only 5 million dollars, as long as there is a good, make 5 million dollars is easy." If you don't have money, you can be an angel. The history of venture capital in China is still too short, and it is now 10, which is very short compared with the history of 40 years in the United States. There is a big shortfall in the early stages of investment. Why do Angels in the United States invest a lot? Not that America is rich., I do not think who has the money who is called Angel Investment, now the rich people in China is indeed much, but money does not mean that enterprises can do success.