Venture to find a better than you, first of all, don’t pack to force

oral | aurora borealis creation, a partner at venture capital funds Deng Feng finishing | and proliferation of China

I am now investors, also was once a beginner. I founded the company Netscreen listed on nasdaq, then successful sale. I will from the perspective of investors and entrepreneurs, discuss how I can see a start-up.

how can investors enterprise

VCS see enterprise

I see companies, see the following three aspects: general, business, innovation and team.

1. And the team

learning ability. The bottleneck of enterprise growth sometimes not because of money, but the speed of the entrepreneurs to learn.

values. Entrepreneurs must have the ideal beyond the financial returns.

the sense of responsibility is very important also. Entrepreneurs should not only be responsible for employees, but also for investors, be responsible for upstream and downstream partners.

leadership. Finally can decide the success or failure of the enterprise is entrepreneurs to build a team and system.



the market. To find a can make money, can do a big scale, the market can continue to make a lot of money.

3. Innovation

innovation must have barriers to competition, speed to be fast enough, to be able to create a system of innovation.

VC business model is to choose the light of the assets, high-growth companies, when valuations are relatively low in, as a financial investor is not controlled, by some value-added services to promote enterprise growth, exits to obtain higher returns.

I see companies, see the following three aspects: general, business, innovation and team.

and team

if an entrepreneur was successful, again venture when the financing is easier. Venture capital is more about this person. Aurora borealis hanting hotels, big reason is that Mr Ji. This is the third time of ji qi business, his ability and resources are obvious to all.

the vc can look at his experience and experience, but this is not the most important, like Google, facebook is for people with no experience.

passion. Entrepreneurs need not special hot today and tomorrow is cold short passion. But have ideal support behind the passion for a long time. I know an entrepreneur’s ability, the experience is very rich. But business is done tepid, and his strength is not matching. He later concluded that, for the enterprise, he is made, in the brain without doing by heart. Is that there is no passion.

technology. The importance of technology in China is more and more big, but also is not so important to silicon valley.

entrepreneurial experience, passion, and technical ability, it is important for entrepreneurs, but is not the most important.

I think the most important thing is the ability to learn. For entrepreneurs to different requirements of China and the United States is that Chinese entrepreneurs want to is a generalist, everything to do, not only to understand the product, understand technology, understand the market, but also know how to take team, how to deal with the government. # # p# subtitle e#

in the Chinese market, mature professional managers are lack of everything to entrepreneurs to do, no one can rely on you. Ability will be stronger than you don’t want to do with you, looking for a man of weak than you ability, your chances of success is small. And find what kind of person, you need to learn.

the bottleneck of enterprise growth sometimes not because of money, but the speed of the entrepreneurs to learn. So the entrepreneur learning ability is very important. How to judge a person’s ability to learn? Such as a person no matter what kind of work can do better in the short term, such a person’s ability is stronger.

values is also important. Is the hope of entrepreneurs have beyond the financial returns. Company, of course, is to make money, but if there is no ideal beyond making money, meet with difficulties, easy to insist on not go down. Do firms want to rely on luck, also want to rely on ability, but the values are the most important.

a good enterprise, at the start of the ideals and beliefs is often rely on to support.

the sense of responsibility is very important also, this refers to the sense of responsibility to people other than themselves. Are responsible for being too selfish. Special can’t investment is a selfish mentality of entrepreneurs. Entrepreneurial responsibility grows with the development of enterprise, not only must be responsible for employees, and for investors, the upstream or downstream partners responsible. Doing business in China, the founder is often “eldest brother”, responsible for the responsible, when you need to ship sink when you are the last one to leave.

leadership is also an important standard of the founders of judgment. Finally decide the success or failure of the enterprise is not entrepreneurs to the judgment of the industry, but entrepreneurs can build a team and system, continuous adjustment in a changing environment, to find the right direction and unswervingly go on. The ability of entrepreneurs is not there from the start, but slowly learning.


investors see not entrepreneurs technology first, also not a product, but the market. To see if the market can earn money, the scale is able to do big, if I can continue to make a lot of money. Can you make money not to say today whether to make money, my own company Netscreen listed in the quarter a share of the profit is zero. Why can the listed, why Wall Street investors give us such a high valuation? After they see is sustainable and profitable ability.

this requires market is large enough, to have the entry barriers of the industry, can be integrated. As the solar-thermal industry is huge market, but the first market share of only 1% ~ 2%, and gross margin is very low, this is because there are no barriers to entry, together is not easy. Vc can’t throw such industry.

to distinguish the potential market and the current market. Don’t assume that the potential market is very promising. My personal point of view, and I really don’t want to invest in new market of the enterprise. In most industries, amount of the funds needed to develop a product is much lower than the overall amount of capital needed to promote a product. If an idea into a product, to the first user, the money you need is 1, doing mature, a product can be sold to a large number of users, may need financing volume is 3, if to the promotion of large area, the overall amount of capital needed is likely to be 10.

so don’t choose a particular new market, because education customers very difficult. If you have in a new market, perspective transformation thought, looking for the other direction; If you want to lead a market, there must be huge amount and plenty of influence.

my suggestion is that of entrepreneurs to choose an existing market, now is not very big, but have high growth, or the current market has been great, but is likely to use the new technology to do.

Innovation of

there is no innovation, there will be no VC. Why silicon valley attracted so many VC, because silicon valley is the center of innovation around the world. This is associated, no valley, no VC, no VC, no silicon valley.

why innovation? Don’t do no barriers to competition, innovation will not be able to achieve sustainable development. New does not mean that innovation, many new ideas being copied the soon. We speak of innovation must be barriers to competition. Speed to be fast enough, to be able to create a system of innovation.

the TMT industry is fast fish eat slow fish, not big fish eat small fish. Speed is faster drive the company’s system, decision-making system, the user feedback, not just the innovation that quickens. That year we Netscreen company the rest of the world’s first hardware firewall, a year after the rest of the world’s first gigabit firewall, again a year later to do the first virtual firewall around the world. Is so fast, we have won the barriers to competition.

in VC, the company is a set of system, need to set up different levels, is by no means one idea can make a company. If an employee turnover, have taken your technology, but it doesn’t cause too big effect to you, that means you are the whole system is complete, don’t rely too much on one person, and can quickly to launch a new product.

enterprise this system has a long board also have short board, VC to do is to determine the short plate can be overcome. If you can, VC with entrepreneurs, to overcome the short board. # # p# subtitle e#

what do you think entrepreneurship

I had ever been entrepreneurs, I founded the company Netscreen listed on nasdaq, was later mergers and acquisitions. Below I from the perspective of the entrepreneur to talk about how to deal with some questions appeared in the process of enterprise development.


location to take the customer as the center. The future of China’s enterprises will be more and more wide market share, but by segregation. In some industries, the market share is important, such as the Internet is basically eyeball economy, traffic, who can get a lot of sticky at low cost traffic, basically proclaims it a triumph. But on this road is also more and more difficult, BAT monopoly is more and more strong, the market must be more and more segmentation, must rely on innovation for segregation rather than compete with the qualitative.


on the product strategy, some people do a single product, but different in the face of high, medium and low-end customers; Some people are faced with a class of customers do different products. Because entrepreneurs funding is limited, don’t be too, I’m more inclined to market the company positioning and product positioning to take the customer as the center, rather than to the technology as the center, the customer base alignment.


on marketing, not to throw money at the beginning of the promotion, but to look at the product is not popular. This is also in to help entrepreneurs to define the product. Defining the product isn’t in the absence of the product, but at the time of the first products sold to customers, is the beginning of defining the product. After repeated several times to find direction, can be defined. ToB products, may be sold by 20 when a customer is defined; The toC product, several version might have to be amended This is defined. Product definition the time taken for longer than many had expected. Product is defined for you, not your own definition.

if the product definition stage to hit a lot of money, can feel very good, but the client with your product, often because of your promotion measures, rather than your product itself well. So in the phase of product definition, marketing to hit the money the less the better. In this way can we really see the product is good, the customer is willing to pay for it.

in the marketing of products after defined, I also do not recommend you start to hit too much money, spend money on product improvement than on advertising. Ads from 100 to 1000, from 1 to 100 still depends on products. My company sales in China for two years, made 25 million dollars. We are a marketing person all have no, only four of sales staff members. We had been the strategy of sales, market, is for the cultivation of the channels and spend more on customer support, don’t have a cent on advertising investment. This way of software, the equipment is suitable for the company, not suitable for the Internet company.

my idea is that startups don’t put the pressure on the marketing success, and should focus on the product. This is not to say that marketing is not important, do big later is important, but in early-stage is less important.


the talent competition is the most important competition in the future. An enterprise can do much, see an enterprise to recruit how many good people. Enterprise is established by the founder of the intelligence quotient, when small big after is established by the founder of emotional intelligence. From the charge to the tube, founder of the final ability is the ability of leaders. Older workers can not improve, are better than you can recruit people to come in, new employees and old employees can work together in harmony, all of these are the founders to face problems.

startup had better consider the factor of people, rather than consider the cost problem. Such as the best in the first-tier cities to put the key, set up the company structure, such as the company do big, go overseas. If the start considering cost issues, to find a good man, also can’t attract investment, the company will not rapid development.

a company to do the last is the person’s question, to solve the problem of only the founder. My business will be successful, there are a lot of luck, but I have to the person’s problem solving is better. Our company has a lot of tsinghua university graduates of the optimal show, and put these people together, is very bad. To recruit, how can you keep them? I am lucky in tsinghua as a counselor, a lot of experience dealing with people. I manage department, four and a half years in a row, the attrition rate of less than 1% a year.

are you a company founder, do you want to recruit people stronger than you, don’t pack, what is their real display. Although not every company’s strategic decision is to tell the staff, but you concern about the company and confidence, your real thoughts to share with employees, let them give you with happiness and sorrow. Don’t be cool, don’t have anything myself. Our listed companies operating more than four years, the process is not plain sailing, but has experienced three three fall. Trough I openly with employees, he said to them, I’m sorry, but we really make mistakes.

Leave a person

can’t simply use salary and stock to stay, but to have emotional factors, to employees to become your partner. If only income, then one day will be a problem. Encounter difficulties, such as company or listed Later everyone on stock, your employees will be lost. I used to worry about the Netscreen listed after, staff will go to deliver the stock. We listed the second employee can deliver stock, but two years later, a haven’t loss of key employees.

my own summary, the reason is that employees are demand for money at the beginning, but gradually, their needs will change. They will want to learn new things, for example, hope to get a challenging job, want to be trust, want to work where there is no office politics, and so on. We try our best to meet these requirements.

the company more than a dozen people, we have dinner together every week can know what each other was thinking. nullnullnullnullnullnullnullnullnullnullnullnullnullnull