in the second angel investment in China National People’s Congress conference today, lei jun to share the hardships you started millet. When determining to do millet, he carefully studied the ma and Mr. Ma’s entrepreneurial history, and get three precious experience from Mr. Ma.
these three points are: 1, to a huge market; 2, looking for a super on people; 3 is relative to peers, want to have a always has money to burn.
in the selected direction, the soft hard couple, he stepped onto the difficult early without a tour. Lei jun claimed to have played ninety a few phone calls, for someone to talk about out one by one, and hardware to invite talents to join and chat on nearly 50 hours a week.
in 2010, lei jun took $5 million from investors, actually personally does not lack the money to him. But he thought, “if this money is all I, I may not be so big pressure.”
the following to lei jun to share the full text:
lei jun: good morning! I’m very glad to have such a chance to communicate with you. I am starting my own business an earlier time, time is long. First company listed after I do a few years of angel investment is a full-time, arrived at the age of 40 always feel some didn’t finish the dream, so I started the millet.
ali three of the key factors for success
the designated title is called “dream” millet, millet when I founded with one way or the other dream heart, I have a very vulgar, I said “I did more than 20 years of business, can I companies established a billions dollars?” Because in the entrepreneurial market four years ago, can do $ten billion should be a great goal. I mention this goal, everyone seems to think this dream too vulgar, material, but to tell you the truth, I was thinking. I think it is the “billions dollars” after this goal is quite big for us to help.
with this target later how to do? I very serious study, research, thinking about the entrepreneurship of history, such as ma, such as ma/weibo. When I was thinking about their entrepreneurial journey, really very big harvest, especially ma history. Chat with ma in January I went to hangzhou for three hours, is the main expression of thanks. I said I seriously alibaba ten years of entrepreneurial history, I learned from three points, this is my three in millet was summarized. I think ali entrepreneurial success have important three points: first of all, to be a huge market . The success of any a large company, its business background must be a huge market, without a huge market demand, to the company to make it is not possible. in the second place, looking for a super on people. Third, relative to peers, want to have a always has money to burn. this is my summary of ali the three important factors of success. May everyone will say, “why have money to burn forever?” , money to what you see and do you have the courage to have the very big help, you have the courage to try something.
then we in the entrepreneurial process how to do this at 3 o ‘clock? How to be a successful company? Google android 08 and 09 released the first android phone and see the first android phone when I saw the opportunity came, PC rise day 30 years ago. I think in the smartphone industry will beat the MAC PC back 30 years ago this history. I think it’s a huge opportunity, when I saw this huge opportunity, it is very challenging to me. The challenge of it in what place? I myself in the past twenty or thirty didn’t do anything related to this, today I want to be a smart phone? Think about all. When faced with such a large market ponder the question what should I do? What should I do? I was wondering, if there is such a big opportunity, what should I find what I need.
I think the future mobile phone must be the combination of hardware and software, the Internet, is that we speak of “triathlon”, so I have a preliminary goals, I said if you can incorporate Microsoft, Google and MOTOROLA, the company should be quite a cattle. If I can find these three company’s top people to run a new company, I think there will be a great opportunity. When I have such a direction, to tell you the truth, I use a form with a long list, one by one to find a call. Many entrepreneurs always complain that no one, I joked with them “three-legged frog, two legs people a lot, did you find the key is to look at.” I recommend the place where they find is the guangzhou railway station, where the highest population density. The entrepreneurs complain can not find people because in is not enough to find someone to spend time, actually is the hardest thing under the sun.
you think about it, if I find a hardware engineer, and they definitely feel insecure, lei jun even they don’t know, lei jun is stem what of, I only got the man’s phone. The man I need to pick up my phone, and is willing to talk to me about ten minutes, I want to introduce myself first, chat after I want to persuade him to come out with me for a cup of coffee, actually this is very not easy. That’s how I played ninety a few phone calls, talk about out one by one. I had ten hours of talking to a hardware engineer haven’t persuaded, with a rogue action finally persuaded, is because he does not believe this model the millet line not line, he know how I can earn money of life.
I tell him about the dozens of ways, but still can’t convince the, to do the hardware to people, he knew the model of millet is difficult. I then said, “you have money or I have the money?” , “he said,” surely you’ve got a lot of money, “I said,” that this means I can earn money, right? If you think I’m better than you will earn money, or give me money thing, you will make a perfect product. If I teach you all, what else can I mix bowl?” About 12 o ‘clock at night, I told him, he said this one to persuade him. Is I’m sure than you understand, otherwise I can’t earn money. I persuade hardware talents in energy far beyond imagination.
there is a man of hardware, so I talked with him for five times a week, ten hours at a time, is also a week for 50 hours chatting with somebody else. In the end, I think without the entrepreneurial spirit, the one I gave up. So also pretty depressed, think about the last moment he doesn’t have entrepreneurial spirit. So how to find on people is a very difficult thing, but if not of entrepreneurship in them, it is not easy to succeed. This point there was an angel of investment projects, also complain that no one, I said what you are looking for the company? Just to the company downstairs in the coffee shop, you catch a chat bai, believe that you will be able to find people. So someone is a big deal.
besides, how to find always has money to burn. Actually, it is difficult for general entrepreneurs change process myself in a few times in the process of entrepreneurship, to be honest is also very depressed, why I do full-time angel investors? I want to change the things to understand. Including after I threw many programs to help them to finance, I just want to find out how to combine the money. Anyway, when I was in the establishment of excellent financing about eight or nine times, is very difficult to find the money. I was favorite player is Chen, he is my classmate, he speaks good English, we speak English well, so financing is particularly difficult. Financing for me was a very high threshold, angel investment when I was thinking about how can I do like ma money. Actually there is no too much skill, I think the most important thing is you want to make it a great thing, how to convince investors that you can make it. The key question is what you actually make investors believe that can do this thing.
so I summarize, I think millet dream trip is three points: first, a huge market, second, to find a group of people, the third article, relative to peers always has money to burn. I’ll explain how I do.
when smartphone I do a lot of people feel insecure, actually I didn’t even have financing courage with others, because I want to own is a very crazy things. If I “cheat” to so much money, the company fault, I am no face extremely. So more than a year early time millet is anonymity, in this case how to finance? I got the best of friends, I told him this tells a all night, how much melting? To tell you the truth, $5 million, in 2010, $5 million. I finally touched his is he say? Because I said to him, I have a fear of entrepreneurship, so he is willing to vote for me $5 million. Actually I didn’t sent the $5 million, because I myself also investors. But I’m thinking, if this money is all I, I may not be so big pressure. I have to get the money from others hand, I told him that “if you vote for $5 million, I also throw $5 million”, in fact, in 2010 this price is not high, because I see a lot of for more than $4000, we are for more than $2000, raised more than $1000, it was the first money I get.
I saw many commented that “lei jun is rich second generation, there are a lot of money”, actually everybody is right, because I early entrepreneurial success, I do have a little money. But if I want to have millet founded successfully, if I not real entrepreneurs, it is a little may not have. When I decided to start a business after, I find all the partners are not paid, 12 to 15 hours a day, six days a week, and we rented a small office, and extremely savings, like a true entrepreneurial firms. I think millet successful experience is very simple, undertaking the money a lot of people have actually, but why did they encountered many setbacks? Because they did not think of themselves as the real entrepreneurs.
in addition, more than 70 employees in the A and B round millet investment invested A total of more than 1000, is in fact everyone voted for hundreds of thousands of yuan. I believe that hundreds of thousands of yuan for many entrepreneurs today all take out, we hope to use this kind of action to show investors what information? We all the colleagues are willing to put all his money on pressure bet on it. Actually these money for engineers together we venture is all their savings, we have a colleague is a geological, President of university graduate student council, work for two years after graduation, is we are looking for an executive, she also threw hundreds of thousands of yuan, she said, “I said to my parents, give me my dowry just now, I want to invest in millet, from now on I will marry millet”, of course, very fortunately we don’t have her dowry lost millet, this is the first wave of our employees.
there are a lot of things behind so millet is we make to the dribs and drabs, are all staff 70 several of us money. I don’t want to let you pay, there is a engineer from Microsoft, said “I in Microsoft for 6 years, saved up daily, can’t afford to buy a house, also don’t want to buy a car, fry stock trouble, every day I in millet, I have confidence in millet, I can invest in millet ah?” I listened very touched, I said you speak makes sense. But, do you know my money how much pressure with employees? Equal to myself to find 75 boss, every man to your office ask “ray, what we’re doing.” Said I was a partner with me, or you literally throw, lost is my own. My partner told me that you really can’t say that, you want to say so you don’t have pressure, you had to really throw millet, not because you lei jun is rich, is that you say you don’t sincere, that you absolutely can’t promise you out.
to be honest, because I didn’t promise out huge pressure, it has a colleague told me that “my husband’s Hong Kong shares sold all, all for m shares”, asked how was my business, I really stressful. Pay their money business, however, is the highest success rate of entrepreneurship, because at that moment you value, you spend every penny is hard-earned money and other people’s hard-earned money, will not be easy to other investors’ money wisely. So I feel that if entrepreneurs have economic conditions, I hope no matter what their personal to pay a little money, because only in this way, the feeling of people spend their money is not the same.
of course, in this case I am not demanding, such as Fu Cheng [microblogging] resign from 360. Two weeks later, a friend and he came to me and said he was going to start a business. At that time, told a far-fetched idea, is to do pictures. I said this, he said this is a big market, Mr. CAI true later put it into a large market. , I said, if not to invest, how much money you can get business? It was in 2008. Our salary is not much, he says, oneself still have mortgages, to 200000 yuan. People in Beijing in 2008, more than 30 years old, said can only spare you 200000 RMB business. I said, 200000 yuan can do? I work for a year, he said. I said, 200000 yuan a year how to do? In Beijing, an experienced team. And he said, I do it to you.
so he in tongzhou rent a multicellular house, please aunt cooking, tube eat under control, for eight or nine university graduate engineers a year, their wages, two people don’t take others one thousand yuan a month, just a year. On the first floor office, live on the second floor. After I see Fu Cheng to do so, I think he must be able to make it. Dry before and after his company IPO last month, about five and a half years of time, so also is very successful. He really is too fierce, in September 2008, 200000 yuan, he said he can do a year, this is really amazing. So when I see many startups are CBD office rental when they think too exaggerated.
we melt the second venture, the third round, the third round of financing is quite exaggerated, our phone is fire, but not listed, the into, if have no money but we cannot make a phone again. Is a pain to find suppliers, I’m looking for are large companies, when place an order to full order, three months in advance payment, actually funds under a lot of pressure. I will communicate with my investors and I said, I probably need to $one hundred million, can you support me, for billions of dollars. I’m very glad to get the support, because the dry process there is a chance you think millet.
I really surprise? Mobile phone after 6 months, I do have a investor and he said to me, lei jun, your company is doing well, we want to throw some money. I said, our company is not short of money now. When he said, what do you plan to finance? I said, the plan by the end of 2012. At that time, he says, plan to evaluate how many money? nullnullnullnullnull