CHINICT 2010: 360.cn

In brief: Lu Jianfeng, 360.cn Vice President, talked about 360.CN (already over 300 million anti-virus users), and was interviewed by Danwei Chief Editor Jeremy Goldkorn.

This is a summary of tweets sent during the interview.

• Next up: Lu Jianfeng, VP, 360.cn. Interviewed by @goldkorn (this guy rocks).

• 360.cn — has already over 300M anti-virus users.
• They also have 360 Secure Browser… secure browsing!
• Wow! All products free. How do you make money?
• Is there a company in the US or Europe that uses this model? asks @goldkorn. Lu mentions Microsoft.
• Without security, the Internet is not able to growth healthily and can’t sustain growth.
• Who’s the competitor? “We’re the first one to do the first one… in this free service.”
• In 2009, new threat of virus samples: 100M. (In 2008 it was 10M; in 2007 it was 1M.) Logarithmic growth? Yikes!
• 360 wants everyone to understand security and to use products to fight these threats.
• Goldkorn asks: are there more hackers, more security problems?
• One last question: 360 in 3 years’ time? Will still provide free stuff for everyone; 80% of CN Net users use 360 products.
• Looking for about 90% user base (up 10%) in next three years.
• Looking also for more innovation on 360.cn in the next three years.
• Thank you.

CHINICT 2010: Yeepay

In brief: Chen Yu, Yeepay co-founder, VP, talked about the ultimate China online payment solution company, and was interviewed by Danwei Chief Editor Jeremy Goldkorn.

This is a summary of tweets sent during the interview.

• How did Chen get into the company? They’ve been around for almost 8 years.

• Payment infrastructure back then didn’t work out. Started company back in 2003.
• Mandatory adoption of e-Tickets in 2006. Did not make sense then to rely on cash-on-delivery, still big here.
• Direct competitors? Alipay. They’re part of the Alibaba system.
• Goldkorn: PayPal? PayPal has failed the China market in becoming default payment system in C2C system?
• Yeepay in 3 years’ time? In past 5 years, growth rate 100%+ annually.
• Even so, lots rely on traditional payment systems.
• Competition is mainly against old payment system — cash. Lots of opportunities, also for growth.
• Initially the Web was just a content platform, but now it’s also a big e-commerce platform.
• Lot of growth potential in this space. Thank you.

CHINICT 2010: PPLive

In brief: PPLive CEO, Vincent Tao, talked about the world’s largest online TV network with 175 million users, and was interviewed by Danwei Chief Editor Jeremy Goldkorn.

This is a summary of tweets sent during the interview.

• Show of hands how many used PPLive. About half or so.

• Livestreaming of video content. 30 data centres. Connection to majority of TV stations, such as CCTV (#CCAV if you must).
• Money comes from partners; venture-backed; 3 rounds of funding; close to USD 40M, keeps company alive in last 5 years.
• “Straightforward: revenue model: ads included. Fee-based model (connected TV, mobile). Also platform for others video content.
• China’s Net video landscape — different: YouTube harmonized; YouTube-ish sites, Tudou, Youku. Also CCTV video website.
• Traditional television: long-form content. Online TV.
• No user-generated content? In terms of content sourcing…
• Copyright violation problems… user-generated content… that could be a risk.
• Acquiring content costs PPLive money. But everything’s under control.
• Average users spend 165 minutes per day on PPLive. Incredible.
• Online video and risk, government policy. Government more concerned with uncontrolled content control.
• Content at PPLive is controlled. Probably sole Shanghai gov-invested video website that’s privately-owned.
• PPLive in next 3 years? Heading into challenging, interesting sectors. More rewarding.
• No-brainer: video next wave of Internet revolution.
• Very exciting things coming up despite the risks. Thanks.

CHINICT 2010: KookyPanda

In brief: Cherry Wu, KookyPanda Co-founder & CEO, talked about China’s ultimate Flash Lite game producer, and was interviewed by Danwei Chief Editor Jeremy Goldkorn.

This is a summary of tweets sent during the interview.

• KookyPanda — Cherry Wu, now interviewed with @goldkorn.

• Ms Cherry Wu is now on stage… she used to be part of ZDNet.
• What does KookyPanda do? A mobile game company. Flash Lite.
• Games all the way. Browser games, SNS games, mobile games.
• You can’t fully use Flash on your mobile. It sucks up a lot of CPU. Hence Flash Lite.
• Cherry Wu: Wants to grow in China; we are a Chinese market; we also want to go global as well.
• Goldkorn: Japanese are famously addicted to mobile phones.
• Wu: Japan has started early.
• These days, PC still center, Wu. Within next 5-10 years (tops), focus will be mobile.
• Mobile has grown, PC has grown as well. But mobile will always be mobile, though PC will still always be there.
  

CHINICT 2010: Mark Suster

In brief: Mark Suster, Blogger & GRP Partners General Partner, talked about serial entrepreneurship to serial investments, and was interviewed by CHINICT President Franck Nazikian.

This is a summary of tweets sent during the interview.

• Mark Suster — first time in China. Coming in from Shanghai. Describes China as “blown away”.

• Blown away by entrepreneurial spirit, infrastructure, national opportunity in China
• Suster staggered how everyone was focused on the Chinese market here. Int’l folks in Shanghai so excited to be here.
• It’s a bit like Europe in the 1990s, but China is that on steroids!
• Planning investment in China soon? No — no near time investment. Why?
• Hard enough to make investments in Calif., and to see what’s success / failure; understand entrepreneurs.
• Suster: It’d be wrong if you think I could understand that in China. For me I’m here to learn.
• “Oh, that’s Asia. Asia’s different.” That’s crazy thinking. Reality is that we’ve a lot to learn from what’s happening here.
• Suster: I want to see what’s happening next and get prepared for that. Want US cos to come to China, understand things.
• Suster humble enough to know he’s not ready.
• Any advice from Suster? China is a first-time entrepreneur, in a good sense. China should seek to learn from those who’ve been thru it before.
• Suster made all the mistakes in his first company. Suster: I like 2nd type entrepreneurs. Been thru hype cycle.
• Suster hoping to convince more Americans, Europeans, to come & learn from China. Symbiotic relationship.
• When you’re in that cocoon of “comfort” it’s hard to leave. As in work for big companies, prestigious names, etc.
• Leaving and doing your own company is much more rewarding.
• First company Suster started at age 31.
• Humility is a big keyword with Suster. Also: learn. Earn.
• Thank you Mark Suster!
  

CHINICT 2010: Dave McClure

In brief: Dave McClure, Blogger & Founders Fund Partner, talked about “How passion for entrepreneurship turn ideas into great companies”, and was interviewed by CHINICT President Franck Nazikian.

This is a summary of tweets sent during the interview.

• On stage now: Dave McClure! To be interviewed by Franck.

• Franck: “The MC doesn’t have a crush on you.”
• McClure met Secy of State Hillary Clinton in Shanghai. Wow.
• US: historically open but that has changed in the last 10 years.
• McClure: This is 3rd trip to China. Why are you so interested — this time yourself and with geeks on the plane?
• McClure: Always fascinated with Asia and travel. A lot about innovation and excitement in Asia, especially in China.
• McClure: Japanese wife, kids learning Mandarin Chinese. Wow.
• McClure: A lot of interesting patterns you can learn here and apply to the market. Feels comfy investing here.
• McClure: Ton of innovation is happening in China, especially in Beijing. BJ faster pace than Silicon Valley.
• Diversity in Silicon Valley, a bit different from that what’s happening around here.
• Franck: Fact you can’t speak Chinese here is an advantage: body language! Harder to be lied to in bodyspeak.
• Silicon Valley apparently the last place for crazy people to migrate to. China?
• Aside from all financial upheaval, at least Internet investments dramatically changing, especially as of late.
• Net: cheap and fast to build many services. 3 people / 6 months -> get product off ground. USD 10-15K or less.
• 4, 5 platforms… customer acquisition much faster, much cheaper… may still be costly but still at least predictable.
• Franck admits he would love to keep on talking and talking to @davemcclure…

CHINICT 2010: 3g.cn

In brief: Robin Cao, 3g.cn Vice President, talked about China’s largest portal for mobile devices, and was interviewed by Danwei Chief Editor Jeremy Goldkorn.

This is a summary of tweets sent during the interview.

• Jeremy Goldkorn is now interviewing Robin Cao, 3g.cn vice-president. The interview is in Chinese.

• Most income now are in the form of ads.
• BenQ started first 3G ads already as early as 2006.
• In past 5 years in all collaborations, 3G on phones is like Sina, Sohu etc on mobile phones.
• Beginning with 2009, when the 3G licences were issued, the whole thing looked very different.
• 3G Web as of around 2009: let’s not just copy the Web on PCs, but let’s do our own.
• Cao: iPhone was a revolution. iPhone was big on the user experience.
• iPhone, Android to see bigger markets, Cao.
• 3g.cn is already doing Android, iPhones.
• 160M+ users on 3G portals. Pageviews daily for 3g.cn is 100M+. Mobile users in China are about 300M+ tops.
• Most mobile Net surfers are mostly young. Mainly big cities. Aged 16-30 mostly.
• 3G users: we will see more and more of these in China in the future.
• Tencent, Sina are big competitors in the 3G world.
• Sina is mainly about content. 3g.cn isn’t made all that scared due to this.
• Tencent started out with IM. 3g.cn tried at the start but it’s not doing that anymore.
• Post-2006: competitors were the big players.
• How’s 3g.cn competitive? They are taking 3G as everything that they’re doing. Not a branch business.
• Government crackdown on porn online is a good thing, Cao.
• How’s 3g.cn in 3 years? Cao: “More exciting apps to come.” More users to benefit. 3g.cn to go public in 3 years.

CHINICT 2010: Kaixin001

In brief: Hans Tung, Kaxin001 Board Director & Qiming Ventures Partner, talked about China’s largest & fastest growing SNS, and was interviewed by by CNN.com Reporter Lara Farrar. (NOTE: Turns out it wasn’t Hans. It was someone else… Aaron Zhang it was.)

This is a summary of tweets sent during the interview.

• For Kaixin001, we’re focused on the white-collar people in Tier I, Tier II cities in China.

• Kaixin001 was famous for launching social games on a social networking platform.
• Saw astronomical growth very quickly online. Social gaming made it win big.
• First testbed of users on Kaixin001 were Sina users (company was just new back in the day).
• As to reports of “plateau-ing” as of late re: growth, Lara asks: how about 3rd party platforms? etc…, to keep Kaixin001 in game.
• Series B financing. Also now: 8M registered users.
• Huge hit game last year (2009): daily active users of 15M+: Happy Farm.
• Down from peak of 15M+ hit last year, but still 10M this year. Kaixin001 does not want to be known solely as a gaming platform.
• Kaixin001 is now getting itself into the travel sites biz as well. Also open to third-party gaming (it seems). Beta testing them.
• Kaixin001 focuses on their own product… tries to build things that users would welcome; users would enjoy.
• Key thing and core of any SNS site is the social relations on the site: friends, family are all on this site; share headlines, opinions.
• 5 years down the line… how do you see social networking sites in China?
• Will take some time for 3G adoption as well as smartphone adoption. Mentions iPad. Lots of those in the market.
• But also mentions iPad-esque devices not running the Apple OS. Watch this space.
• Do Kaixin001 have plans to IPO first? We’ve got to serve our user base well first.

A little update: Thomas Chu, Chief Strategy Officer and Acting CFO at Kaixin001.com, wrote us in with this update: “I don’t see our traffic plateau-ing. We grew from 70 to 80M users in Q1. (Total registered). Daily uniques did go down from a peak in Q4 of 15M to now over 10M. Key here we suspect was the drop in popularity of our farm game. Our demographic is different from others in the market place. Our users tend to be the white collar office worker types in Tier 1 and Tier 2 cities.”

CHINICT 2010: Tencent

In brief: Liu Yugou is Deputy Director at Tencent, China’s largest Internet service portal with over 850 million users, and was interviewed by CHINICT President Franck Nazikian.

This is a summary of tweets sent during the interview.

• Tencent is actually the 3rd largest market cap on the Web, after Google and Amazon. Nothing to do with the two!

• If it’s not innovation — what is? Liu lived in the US before.
• Yuguo Liu, rather, not Tuguo Liu — apologies. Started at Microsoft in Seattle.
• Bing, Google, mentioned.
• Tencent is #1 in China, #3 worldwide, re: Internet companies. Over 60% of Tencent staff working in R&D.
• Beijing, Shanghai, Shenzhen: Tencent’s there in China.
• 1 billion registered user accounts, 500-600+ million user accounts. 100 million online at the same time. Wow.
• QQ.com: largest portal site in China; into online media, news.
• How do you distinguish QQ (#1 in IM, CN) from MSN? Tencent grew over 12 years. 10 years: many small players.
• ICQ. Lots of small IM players about 10 years ago. Can’t monetize solely from IM.
• QQ is pretty much also about young generation dressing up virtual rooms. This really exists in China.
• Which innovation from Tencent could be replicable outside CN, like in the US?
• Look at SNSs in CN: Kaixin001, etc. Facebook in US. There are some differences folks can see.
• Kaixin001 — “Facebook-like” — fastest growing SNS in CN.
• Tencent Research Institute. Liu’s favourite part. 1st research institute in CN (BJ, SH, SZ) for net research.
• Research: cloud computing, multimedia, product development centre within lab, etc.
• Upcoming Tencent products? A big pipeline in terms of products research lab is churning out.
• http://labs.qq.com — this is where new stuff’s coming out from Tencent.
• Where’s QQ 5 years down the line? Look back 5 years ago first.
• In the next 5 years, we’re continuing investment in Spaces, IM; 2 factors, though: provide value for users; continue innovation.
• Tencent filed 2,000+ patents over the past years. Wow that’s a lot.
• International strategy?
• Tencent open look for int’l market; but we need to understand market, user; just trying to get into the market.
• 5 years is still quite a long time as of today; lots of opportunities. Want to serve CN users well.
• Tencent one of the biggest entrepreneur-minded companies (like Google “has” been).
• Tencent at heart, core of entrepreneur system. Liu been with MS.
• For folks watching on @TechCrunch TV or InformationWeek TV: Should I remain in Silicon Valley or go on to China?
• Again, answer is: core is to look for customers. Where’s the value for customers?
• Again, you need guanxi.
• Thank you Liu Yuguo.

CHINICT 2010: ushi.cn

In brief: Dominic Penaloza is Co-Founder & CEO at Ushi.cn, the ultimate China professional networking site, and was interviewed by Jeremy Goldkorn of Danwei.

This is a summary of tweets sent during the interview.

• Interviewed by @goldkorn, as always. Interesting Canadian accent from Dominic.

• Arrived in China in 1993 already.
• First internet boom happened in late 1990s. Dominic quit job then. All experiences led him to ushi.cn (you-shir).
• www.ushi.cn = China’s LinkedIn. Pro connection platform. Connections are everything. Very true in China.
• Guanxi is used directly instead of attempting to be translated into something. Connections make a difference.
• No Chinese version of LinkedIn; big problem. Also: be local (for China), gotta be here.
• The team must be from here. Dominic is only member of team whom did not grow up in Mainland China.
• In China we have some Facebook equivalents (Kaixin001, renren.com), YouTube as well; no LinkedIn equivalent.
• Starting off a very high quality user base. 100 biz leaders started off in February 2010. Invitation-only. #CHINICT. Now: 15K members.
• Lots of people in ushi.cn. Mentions @wolfgroupasia.
• Very high quality user base. Attempts to make something very different.
• LinkedIn ties may or may not get you mileage in China. Like when your site’s harmonized, @goldkorn suggests.
• Dominic: Pressing I Accept button is just the beginning. ushi.cn will not replace traditional guanxi. Just accelerates.
• About having dinner with the right connection sooner.
• Revenue: none right now (just started); priority is to build user base. Confidence if there’s growth monetization will follow easily.
• Breakdown betw foreigners, CN citizens: geographically it’s 80-90% in CN; a lot in SH, BJ. 70% Chinese; rest expats.
• Trend: when CN get invite in English, they use English; they’re bilingual. Might also be LinkedIn users.
• Now targeting 70M people; mainly white collar people in China.
• 5-year plan? 3-year plan, yes. To grow; gain momentum; continue to roll that out. Do it thru quality approach.
• Advice for CN: live here, be here, be local. Challenging part is the team.
• These guys are very self-confident. Hard to find a team of all good guys. Focus on building the team.