Presentation on theme: "How to Start Your Business in China Jiangtao Yu, Ph.D."— Presentation transcript:
How to Start Your Business in China Jiangtao Yu, Ph.D.
Why do we want to go back? Family, friends… and food? Natural & social bonding; Glass-ceiling in US; Government policies; Technology development; Business opportunities.
The reality Taking care of family? – Parents: Pollution and poor health-care system; – Husband and wife: Separation; – Kids: Completely different child education system; Delicious food? – Yeah, but not safe… Business opportunities? – Great opportunities, no glass ceiling, but very complicated.
Who can go back with higher success rate? Internet and… pretty ladies???
The only sustainable reason for returnees is: We still have dream…
Getting to know China – Technology development trend – Government policies – Market opportunities – Find a local person you can trust and team up Be well prepared – Mentally, physically – Financially – Technologically How to start your business in China?
The three essences of success Timing Location Connections
Getting started: Timing your project You need a 5-year plan; Start preparation NOW, make a few steps move, don’t wait until window is closed; Go back to China when you feel relatively confident, don’t jump into the “pond” without thinking.
Seed money From US – SBR; – Family & Friends; – Angel, Venture Capital; From China – Angel, VCs; – Government support; – Industry investors.
Find a location Where economy is relatively developed – Yangtze Delta Region is probably your top choice; Where you feel comfortable and trustworthy – Can be or around your hometown; or shop around, keep communicating until you finalize your decision; Where you have platform support to lower cost – Especially important for Biomedical start-ups.
Build up connections Connections are not simply teamwork; it’s a NET-work… – Focus on your strength (mostly technology) but know how to deal with people; – Team up with some marketing /sales gurus or build up firewall; – Know politics and… watch CCTV news!
Other resources Pay attention to policy trend – 1000-plan (state, province, local city, high- tech park); – Government support; – Government grants; – Innovation funds for small business;
Reverse culture shock Under-developed healthcare/education system Dealing with complicated government system Sitting in meetings with no sense Training “job-hoppers” Spending a lot of time on dinner table with hard liquor Karaoke and got drunk… Do you think you still have time for R&D?
浙江清华长三角研究院 Yangtze Delta Region Institute of Tsinghua University, Zhejiang – Located in Jiaxing City, Zhejiang (right in the middle of Shanghai and Hangzhou) – Four research directions: Biomedical, Environmental, IT, and Advanced manufacturing – Four innovation centers: Silicon Valley, Ningbo, Hangzhou, Taizhou
What do we do? To recruit overseas talents and facilitate them to overcome the reverse culture shock – “Talent-Inn”; To incubate early projects, help them find right location and local partners and negotiate better funding terms from government/VCs /industry investors – “International Incubator”; To provide seed money for early projects from overseas – “Zhejiang Haihe Venture Investment Management Co., Ltd.”; To outsource high-tech projects from China to US.
Case study 1 An internet storage start-up company – Incubated 1.5 years; – Got 10M RMB government funding (with terms) and 10M RMB VC investment by the end of last year; – Early investment valued up more than 10 times.
Case study 2 An internet service provider start-up company – Recruited CEO/CTO for the company; – Helped the company to negotiate terms with local government to build up the largest data center in the Yangtze Delta Region; – Net Income 7.7M RMB last year, ~30M RMB this year – Investment valued up 12 times by year end.
Case Study 3 A medical device start-up company – Incubated 0.5 year; – Signed term sheet with 20M RMB investment; – Investment valued up ~100 times if deal is executed… – But…project is on-hold now.
Case Study 4 A mobile image search start-up company – Incubated 1 year; – Got 2M RMB government funding 1 year ago; – In talk with VCs and signed term sheet with 2M $ investment; – Investment valued up ~5 times.
For whom interested in “International Incubator” Please contact – Jiangtao Yu, (US Cell), (China Cell),