KAIFULEE’S INNOVATION WORKS & his bet on the China tech innovation revolution
Kaifu Lee, Innovation Works Co-founder & CEO – Interviewed by Kaiser Kuo

This is a summary of tweets sent during the interview.

• It’s @kaiserkuo on stage with @kaifulee. MC gaving a quick intro.

• Kai-Fu Lee was with Apple, Microsoft, Google.
• Innovation Works (IW) fills gap in the entrepreneurial gap — especially in mentoring.
• Just about all the cameras are taking a GOOD look at Kai-Fu. Kaiser making intro.
• What’s basic investment strategy, sectors? One sector — really, really great people.
• One great person better than ten, hundred “good” people, Kai-Fu. Mobile Internet, e-commerce are big points interested.
• Not just about one guy, but a team. Some startups fail because there’s not a team, just a big core guy: Kaiser.
• Kai-Fu: CN entrepreneurs need coaching; look for people with great potential (but not perfection).
• We want to give young people a chance, mentor them; most CEOs are in mid-20s, under 30s. Big believer in young generation.
• Even open on taking a chance on a young person, calling them Founding Executive. Stretch person as much as possible.
• If a brilliant idea but no “it” person, they’d still start up but they might choose future executives (different people).
• Qualifications… Kai-Fu inundated with CVs. What are the red flags (not qualified)?: Kaiser.
• RED FLAGS: Dishonesty (people try to impress but sometimes go over); lack of self-awareness is another one (too carried away).
• Prefer those who are less knowledgeable but is willing to learn rather than one who exaggerates.
• Mentions WiCombinators.
• Exposure from IW? No exposure. You have to be very careful. Copycats! No exposure until you’re ready.
• Kai-Fu’s refrain: “China is a little different.”
• IW: If you’re an entrepreneur and if you come to us, we give you about 5 great engineers that work with you soon.
• IW makes bigger initial investment than WiCombinator.
• Equity deal at IW: For typical entrepreneur who comes to IW, probably av. funding is USD 150K-200K; might take 15%-20%.
• IW is pickier; WiCombinators has less scrutiny; IW has larger team, funding at higher level, going through much more scrutiny.
• Trouble locating investable deals?: Kaiser.
• Kai-Fu: Not trouble. But they’ve to work harder to find a good deal. 9 C-levels so far.
• Great opportunities are out there but they don’t always come to you, Kai-Fu says.
• Typo: WiCombinator -> Y Combinator. Apologies.
• Kaiser: C-to-C (Copy to China) model in China “lamentable”.
• Kai-Fu: C-to-C model will soon come to an end. Difficult to have a fundamental tech paradigm breakthrough company in China.
• Kai-Fu: Edu system, everything is not ready in China. But copycats won’t work. As VCs, why would you back a copycat?
• Kai-Fu: Looking at folks deeply at what’s exciting in the US, Europe, Japan; INSPIRED as to how things work; combine ideas, localize.
• Kai-Fu: No longer just copy, but more about inspired by multiple ideas, and then localize here for China.
• IW has global experience in team; but IW does not see themselves as “go to US”, “go to JP” go-to-guy; but can reach out in network.
• Trends that excite us (IW): Mobile internet is one (purely youth-driven phenomenon; 75% users are under 27).
• Mobile internet: CN is behind US in smartphone adoption but that will change; prices coming down; CN, TW manufacturers with new devices.
• Calls for completely different system than what’s taking off in the US. “Close” to 2.5G, etc.
• Individuals? Types of people — former chief architect from top CN cos; been-there-done-that;
• 2nd one is a very young (2 years out of school) person, but started company since in college; entrepreneur for 6 years; next co. for him.
• 3rd one is another 27-yr old; 5 yrs out of school; built one, sold it; in 2nd company. New fund raised didn’t give him fair share; taken advantage of. Left.
• Challenges in China for women entrepreneurs? @kaiserkuo crowdsourced tweet.
• Kai-Fu Lee: It’s unfair. Women make great leaders.
• Do you think microblogging will get big in China?: Kaiser. Kai-Fu: Phenomenon is catching on; @kaifulee tweets on Sina Microblog.
• Regulations here unknown. Optimistic about Sina doing a good job. But hesitate to fund a new startup unless they understand regulations.
• Kai-Fu: going to be skeptic about this.
• Kai-Fu: On Facebook it’s not OK to put ads. But on Twitter it’s OK. Do ads for own company. Drop me if you don’t like it.
• Not sure if the best biz model: Kai-Fu.
• Word of advice form Kai-Fu? You need to know what you know and what you don’t know. Find a mentor who can guide you.
• Drop misconceptions. In entrepreneurial startup world, team & execution, also discipline, bigger to get things out.
• Continue to remain humble: Kai-Fu. Thank you!