CHINICT 2010: The Investors

This is a summary of tweets sent during the interview.

Lara Farrar (CNN.com) and Jeremy Goldkorn @goldkorn (Danwei) will be doing live interviews.

CHINICT 2010: iPinYou

In brief: Grace Huang, iPinYou Founder and CEO, talked about the largest behavioral ad network in China, and was interviewed by David Wolf.

This is a summary of tweets sent during the interview.

• Grace Huang, iPinYou founder and CEO, now interviewed by @wolfgroupasia

• Came out of Peking University. Did McKinsey, Proctor & Gamble, Baby Depot. Online advertising.
• IPINYOU — The largest behavioral ad network in China
• She was educated first as an advertiser (starting out from P&G).
• Literally for a year she was in front of the computer and started doing everything on the Internet. Stunned by power of this medium.
• Looked back at how ads were done in China then. Knew there was an opportunity. Did it 2007.
• Advertising is a message — a very important message — to consumers. When not matched it’s a disturbance.
• Analyze everyone’s interests, then deliver relevant ads.
• Profiling individuals. What does he / she want? Come out with ads.
• Coming in from the US, she started being cautions re: privacy.
• Ad is tech-heavy business. iPinYou is a hi-tech company in the eyes of the government. Very tech-driven.
• Will you be plucked up by a larger ad conglomerate? Grace: It’s always possible.
• Last question: Plans for the future? Biggest challenge you face growing this business?
• What’s the biggest thing that’s keeping your business from exploding out of control?
• This is a typical scale business. Mentions capital. Also market.
• Many tiers of advertising this day in China. Very sophisticated.
• Thank you. Lunch!

CHINICT 2010: Niurenku

In brief: Siok Siok Tan, Niurenku Founder & CEO, talked about a dramatic new market for online branding & advertising, and was interviewed by David Wolf.

This is a summary of tweets sent during the interview.

Thanks Siok!

CHINICT 2010: Qunar

In brief: Denis Peng, Qunar Executive VP, talked Qunar and was interviewed by Elliott Ng.

This is a summary of tweets sent during the interview.

• Elliott Ng is in travels and is now interviewing Denise Peng’s Qunar (Executive VP). @elliottng

• A fair number of people have heard of Qunar.
• You equate Qunar with travel, flights, etc.
• Search, hotel, flight big with Qunar.
• Qunar also offers Qunar Visa service to get Visa info; also user-to-user interaction.
• Qunar Zhidao (去哪儿知道), user-based service. Users helping each other out.
• Hotel comparisons at Qunar. Also launched a new service: “test visitor” of hotels. Test drives.
• Qunar has broken even.
• Flight, hotel search are big winners, ¥¥¥-wise, for Qunar.
• Where’s Qunar’s going, IPO-wise? Considering but not sure yet. Whatever works for the company.
• Competition: Ctrip. USD 10B in market cap (Expedia is only USD 6B).
• Ctrip is “good, great company” in China, number 1 in China. Qunar, Ctrip targets different markets.
• Ctrip provides a good call centre. But Qunar is mainly about online travellers.
• Three big airlines — CA, MU, CZ, Hainan — threat that these 3+1 will take you out? Cut access to data?
• Market is more diversified in online business.
• Online travel market growing faster. Qunar’s not afraid of more players.
• B2B platform in China popular right now. Airliners, etc. do this. Airlines also doing B2C.
• Advice: Management team needs to be very stable. This is how Qunar is Qunar today.

CHINICT 2010: Footballistic

In brief: This interview with Footballistic was done by David Wolf.

This is a summary of tweets sent during the interview.

• David Wolf now interviewing Footballistic.

• World Cup is in 2 weeks’ time!
• Footballistic is the IMDB for football.
• Footballistic: Data wasn’t enough. Also had to do multiple languages.
• Added videos, posts, tweets.
• Released website January 3, 2010. Did 3 languages. Supports Turkish, Chinese.
• Brasiliero coming soon as well. Folks can add pictures, etc.
• Wolf: Quality of work, driving GOES DOWN during World Cup. Chinese SOCCER MAD.
• You need a local language to talk to local people.
• Implement features appealing to Chinese. Like get video from Youku, etc.
• Awful lot of localization, translation.
• Good thing about living in SF (USA): people from all over the world. Translated things over 3 weeks.
• How are sites being monetized?
• Develop comparison tools. Determine odds for two clubs — eg Arsenal vs Chelsea, etc.
• Footballistic — it’s time to regroup and go to the one site. Advice welcome.

CHINICT 2010: Where To Go IPO?

WHERE TO GO IPO?
Interviewed by Wolf Group Asia’s CEO David Wolf
• LONDON STOCK EXCHANGE Head of Asia Pacific, Jane Zhu
• NASDAQ Head of Asia Pacific, Eric Landheer

This is a summary of tweets sent during the interview.

Next interviews to be conducted by @wolfgroupasia.

London Stock Exchange

• Represents LSE for all of Asia.

• In last year and a half: any change for stream of IPOs from China?
• 21 IPOs only; 2009 was quiet year. USD 2B dollars only.
• 1st 4 months 2010, 31 IPOs, combined money raised USD 380B. Growth!
• Air China: 1st IPO started off in London (LSE).
• Why London over NY? Advantages? Govt did “traffic control” re: Air China.
• More and more IPOs now privately-held instead of SOEs.
• London is most international market in the world. 4K companies, over 700 are from over 70 different countries, regions.
• LSE market cap of overseas market bigger than domestic.
• London a matured market layer.
• The UK is not part of the Eurozone (they still use the Pounds Sterling). Most active trading currencies? EUR only one of 19.
• London market is not just “UK” or “Europe”; they’re from all over the world.
• What’s ahead for the LSE?
• Importance of people and management. Thank you.

  NASDAQ

  • Presence in China for over 10 years. 400+ companies over CN; 17 IPOs here; including switchovers from “that other exchange” in US.

  • Change of attitudes lately? They don’t compete with local markets.
  • High listing standards another attraction for CN companies to list to NASDAQ.
  • Challenges a CN co might have? Institutional investors probably don’t know CN/CN cos to know what values they have.
  • Institutional investor in US has massive appetite for growth; CN epicentre for growth.
  • What should companies do in preparation for US listing? First, build a strong management team; team of advisors.
  • Lawyers, accountants, investment bankers part of team. Starting to act as a public company early.
  • Also need strong communications skills.
  • You need to be good in the finances AND in good communications.
  • NASDAQ of today not even the same of NASDAQ 5 years ago. For Eric Landheer, every day is different.
  • Best thing: meeting entrepreneurs driving new economy forward. Job is never boring!
  • Philadelphia Exchange more amongst derivatives side. Also some companies do do dual-listings.
  • NASDAQ Global Select — includes Apple, Microsoft, Google. Massive market cap.
  • Also NASDAQ Global and NASDAQ Capital. Alternative venues as well.
  • Never too early to start behaving like a listed company. NASDAQ home to technology. Highest listing standards US, worldwide.

CHINICT 2010: SJS

In brief: Kerr Xu, SJS founder and CEO, talked about SJS on its way to becoming the Pixar of China and was interviewed by CHINICT President Franck Nazikian.

This is a summary of tweets sent during the interview.

• SJS — on the way to become the Pixar for China.

• Kerr Xu apparently shares names with a famous director — in Hong Kong?
• SJS — major animation studio for China.
• SJS’s first film to be released June 1, 2010, Children’s Day in China.
• First 3D animation film. Audience will wear glasses to fully experience the movie.
• When people refer to SJS: “China’s Pixar”? It’s not really important to Kerr Xu. Important is vision behind it.
• Much like founding CHINICT. Vision important. Starting SJS “no-brainer”.
• Kerr Xu: “Hope one day we’ll all be the Pixar of China.”
• IPO for SJS? They just finished restructuring of the company; changing from Ltd to stockholding company.
• Not disclosing where to do IPO; they’re triple-checking all possible routes. Thanks Kerr.

CHINICT 2010: Blackberry

BLACKBERRY: Turning the world famous phones into China’s leading brand
Gregory Shea, RIM China Corporate Vice President & Managing Director – Interviewed by CHINICT President Franck Nazikian

This is a summary of tweets sent during the interview.

• Now on: Blackberry.

• 1987: first time. For Gregory Shea, RIM China.
• Gregory Shea, RIM China Corporate Vice President & Managing Director – Interviewed by CHINICT President Franck Nazikian
• Gregory seems to be into oceanography as well.
• “Go for it.” Gregory remained in China right after reforms. Intrigued.
• Shenyang in the late 1980s. Hooked. Met future wife from Shenyang.
• Re-emerge of Chinese civilization of innovation with cloud computing.
• Most interesting trend: convergence between computing and mobility.
• Know that the bomb was here in China. Got Gregory more and more engaged in the industry.
• Mobile cloud conferencing in the early days. Blackberry.
• “A country south of Canada.” Does not recognize the US.
• Blackberry is a solution for a very profound problem.
• Too many cars, too many packages on too packed a road. How do you solve this?
• Existing paradigm of mobile on the Internet wasn’t cutting it. Couldn’t go beyond voice, SMS without data traffic jam.
• How do you go from small amount of data packages that can be hijacked to very secure delivery of data packages?
• Think about the cloud.
• Why China? China is a vast ocean of opportunity with very complex currents and streams and levels of movement of water.
• On the surface it looks smooth, but beneath it’s volatile. Oceanography helped Gregory understand this.
• You have to be “oxygen-deprived” not to see a fundamental shift in China.
• Franck: Blackberry: You are a relatively latecomer; but why does Blackberry think it can still make it?
• Gregory: Disagree. Blackberry’s mobile company is not simply a terminal. It is a system which needs conditions to be in place.
• Like to think of Blackberry in China as “JIT” (just in time).
• This will take China from a fast follower position to a leader position in the mobile cloud.
• Franck: Is there any threat you can see in the China tech innovation that is “succeeding”?
• China is at a very pivotal position, especially in last 2-3 years.
• Chinese people have every reason to feel pride in economic activity.
• One caution: innovation. There can be (in movement from follower to leader) to starting to adopt a “swagger”.
• Swagger: a young guy who thinks he knows everything; he doesn’t.
• Don’t be too much a follower: but also don’t say “we’ll do it all on our own.”
• Once you limit an access to an innovation zone (eg China, Zhongguancun), you’re onto a difficult situation.
• Many believe in “open innovation” (开放创新).
• What’s helpful is when you’re building environment for everyone + money that come all together.
• Innovation happens when young meet old, east meets west.
• How do you “make it” in China? As in let Blackberry “make it”?
• Don’t think it as a market in which you sell things. You need also to develop here.
• Harness interests, biz at the grassroots level.
• You have to be flexible, re-think, even re-invent.
• Competition is always a source of inspiration: Gregory.
• Bring capital, people, technology together, on the ground.
• Big breaking news coming out just this morning at 06:30 this morning: Franck.
• BREAKING NEWS: Fund dedicated for China with Blackberry Fund + CN Private Capital.
• This is substantial fund with substantial partners.
• Deployed in mobile Internet, mobile cloud; leadership of China as leading market for innovation.
• Champagne on the launch of this new fund.
• Thank you and congratulations!

CHINICT 2010: Innovation Works

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!

CHINICT 2010 Day 1 Summary

The first day of the 6th edition of the CHINICT kicked off with CHINICT President Franck Nazikian onstage, welcoming everyone. After welcomes from CHINICT President of Honour Senator Michel Guerry (from the French Senate), Jing Rui (Zhongguancun Science Park Project Officer), Jerome Broche (EU Trade Counselor (ICT) to China & Mongolia) and John Chiang (President, US IT Organization – USITO), things got off to a good start for the morning.

Franck (@franckn5) and Jeremy Goldkorn from Danwei (@goldkorn) interviewed people in charge of a who’s who of Chinese IT bigs — starting off with Feng Jun’s Aigo with his story of building Aigo from keyboards to next-generation multimedia players (MP7s, anyone?). Wukong, Exmart, Borqs, Ushi.cn and Tencent were also interviewed. Lunch came early, and was a great chance to interact with fellow conference people, especially those on Twitter, Facebook and Foursquare.

In the afternoon, CNN.com’s Lara Farrar kicked things off first with an interview with Kaixin001, before Franck and Jeremy interviewed 3g.cn, KookyPanda, PPLive, Yeepay and 360.cn, more names in the Chinese IT industry. The highlight of the afternoon were Franck’s interviews with Dave McClure (@davemcclure) and Mark Suster (@msuster), flying in all the way from the US.

Tomorrow the event continues with Kai-Fu Lee kicking things off in the morning. As usual, techblog86 will be covering the whole event. Meanwhile, here’s a selection of the action outside…