my friends, everyone!

Moderator: all users, everyone, and welcome you to the "VC Life" site, I show in Beijing TV Center for Financial Geun Yu Pan, to the studio guests today in the venture capital industry known as the leader, the United States Harper Group, Managing Director Mr. Zhang Ying.

Zhang Ying: Hello, everyone.

Moderator: In addition to the computer to participate in that.

We know that 14-year-old when you went to the United States, why do you have to move his family to the United States will, that life experience of your life been affected?

Zhang: We are in fact the whole family immigrated to the United States told me that relations have not, at that time I was still relatively small, they were the main reasons for my future education in a number of derivatives there are other considerations factor. At that time he decided to go to the United States, in 1987, has just started to go pretty hard time, my father is a physician, my mother is the top students in Tsinghua University, reading chemistry at that time are very easy work, but also be regarded as intellectuals, in order to go out to a period of time when the bitter, I think the main reason is to me.

look back now, I think of my life, come to today there is still a great help, because although the beginning of a bit does not accept, but to go after the hard time to understand they are good hard, because to me a very good environment to study, the biggest benefit, I think the U.S. is a big furnace, people in the world待人处世have a lot of advantages, from a young age when many people can reach back to China there are four and a half years, and I am very happy to participate in this rapid development of China as well as a work of their own like that is pretty lucky.

Moderator: So, you in the United States, the University of California at San Francisco and Northwestern University were given a master's degree, then why would it suddenly went to the Citibank?

Zhang Ying: Yes this way, and I are more stupid, not really like reading, but when parents望子成龙, after all, my parents read to the best school in China, they feel that their son should be better than blue can also outperformed us, but did not expect that I do not like reading, I was a kid leather also, of course, to the United States is also a factor in the integrated bar, go to the United States feel more natural environment, it is possible I play better than some, probably are correct.

they told me from a young age have high expectations of doctors want me to do, when we read, after reading a lot of genes are also involved in research at Stanford University School of Medicine in a well-known to do about more than two years, then it is natural to want to study section, take the next step, when only几条路choice, then read Graduate School of Medicine,考博in the United States is quite arbitrary, even when we did not read the business day, if you want to test the MBA is also possible, as long as the class-based issues can be read to apply to MBA or business-related, I consider a comprehensive look, feel that their own personality and some understanding of the business side and felt more suitable for this piece in the business, so I secretly applied for a Northwestern University, when my parents are not too understanding, and ultimately I am a few choices, few schools have received me, the ultimate consideration is to the northwest, to a comprehensive, scientific and business and the master's degree, then joined the investment bank since the beginning unhappy parents, do not understand that you can go to medical school, you can read a very good PhD, why to go this route, but now look, I think this choice is correct, they are very happy.

and I think the most important thing is that I want to give you advice, do what they want, it is possible that relatively long route, more twists and turns, you have just started to read the master's degree may be relatively blind fans , can not find suitable jobs in their own, but I think the idea of themselves, and strive to do what they want is always a matter of time, one day of work will be done, and that is the real start will be occurred in the real merits of their own, not to give up.

For example, after I graduated, but also had with me in between the undergraduate and master's degree work experience, I think it is only after six years had really got exposed to the risk of their investment in really started to like it, understand the industry, so that we give ourselves some time.

we are now in China there is a big problem, because economic development so fast, there are so many temptations, I think many people are still floating, urgent heart, I feel calm down and slowly bring the issue to would like to clear that efforts to pursue their favorite things, this will be a certain degree of success.

Moderator: Later, when a member of APEC? And then decided to return to China to do this investment?

Zhang Ying: a lot of media interviews, all of a person, for example, whether VC or entrepreneur, the experience of their very legendary or dramatic, in fact, I consider myself to such a Road came also quite natural that many are随缘, such as I joined in the Economic Cooperation nothing magnificent, I was master's degree after graduation to participate in the Citigroup's investment bank, after two years, mainly to do high - science and technology investment bank, for example, like Goldman Sachs, Morgan Stanley.

after two years I think I learned what I wanted to learn is to join the Dutch Ministry of foreign direct investment banks, ABN AMRO is the internal wind bodies to vote, you may think . There about a year and a half to be about a particularly high salary, what do not do anything, the Netherlands bank or a more conservative, then vote on the high-tech wind or wait-and-see state, then the Internet bubble, the Dutch bank layoffs At that time the choice to me is I can go to Europe, the Dutch bank in Europe, the Department of venture capital, or take a property rights fees.

imagined at that time, I think the Chinese people to the European development is not for me, for I have it in the circle of opportunity to find some new, very casual contact at that time Harper, I listen to over the company's name, but do not know anyone, made a curriculum vitae, it is skillfully into the opportunity to participate in APEC.

this point I have my own point of view, I think they looked for a job, do not need a very formal in accordance with the idea of doing one thing, you just have to find a job, so long as to efforts to fight for as long as I think that is possible.

me give you an example, our company is probably more than half a year ago, we would like to recruit two analysts at that time, there is a young man sent us notes that he has no economic VC, compared his curriculum vitae in particular, feel that a good man with him, then eventually took part in our team, and now recall, I think I really had the honor, he is now doing very well, Nankai University, the beam heat, this is an opportunity, fine of .

to the Economic Cooperation up to now five and a half years, I very occasionally in China, the Chinese team was not strong, and they are ready to send a person from the United States over the bridge to strengthen the role of internal, let I have over six months, six months half a year stay in China does not go.

Moderator: But you are returnees themselves, but why invest in the concept of Economic Cooperation was biased in favor of the home team does?

Zhang: Yes, I have two weeks before the General Assembly in the clearance section there is about this point of view, many people then send text messages, e-mail to call me, saying why you have this point of view, why then directly, why so red?

I think it is so that they firmly believe that it would express things that we really do for us this is our investment philosophy, I think the success of a company if, in the have their own style to some extent, there are things they want to dare to do, we feel that in ten years, twelve years of experience, we feel that at this port, from which deep-Economic Cooperation, or a step further From my personal point of view, the local team is much more than just the advantages of the returnees to come back stronger.

I repeat, not that we do not vote returnees, we can only come back for more than three years to four years, suffered losses in this way, the real things done for some of the returnees.

Moderator: But there is one point, the returnees have just come back, may be the Chinese market, China's national conditions are not so understanding, he may be the cost is relatively high, but their vision will be more broad, and they better than the English, their financing and the international exchange of persons, the cost will be relatively low, and the loss of information will be relatively small, why did not see them?

Zhang Ying: I do not agree that they communicate understanding but not necessarily easy to do his own because he has the market in China has not really eaten deficit, China's development is too fast, even leave a year for two years, equivalent to half a foreigner into a lot of things are not the same, I would like to repeat, we are talking about is only for the local team, I hope that the entrepreneur, the new company's dominant service provider, has just begun when the local team, we invest in them, together with the development in China, where appropriate, when the size of the company, and the growth of the company's very favorable. In this case we have to round into a very large, in this case, we do not rule out a number of returnees to do to please CFO, marketing director to do, they would be able to continue the leadership of entrepreneurs with overseas dealing with investors.

Moderator: I agree with your point of view, I can understand, but you have not thought about, when a local development team, you please do a CFO or returnees do CO, the returnees are usually two cases, the first-to-business do not understand the culture and history, they start with the local team and there will be problems in communication, the second point, you invite the professional managers, entrepreneurs can be the same as enterprises of this loyalty and sense of responsibility, it is worthwhile to consider.

Zhang: Yes, so did the risk of investment is an art, not science, there is no formula to solve the problem, you said it is the real concern, but we feel that, when a local team of the company to achieve business the size of certain circumstances, when you go up to some very good returnees, more appropriate in certain positions is very important and we can work together to develop, in fact, it is more appropriate to do, and our investment philosophy, the first local team , the second we hope that entrepreneurs will always be accounted for large shares, we have more than two or more entrepreneurs, we generally will not consider investing. It is because we hope that shareholders can be very simple, when you after the CFO or director of a number of them, I hope that they have shares, but he will play a role in promoting and supporting, the shares in the company's structure is too fragmented to After the development of the company I think it is very bad.

You can see all of the more successful on the Nasdaq or the company, Baidu, Focus Media a series of companies, they are because there is a soul behind the promotion. I think that we have a very high value. But I just said, I would like to repeat, or else many people will be offended.

returnees we will consider the team, but must be in China for more than three years to four years work experience, we know that we recently voted Michael Pa, the two entrepreneurs are the returnees are in the After reading the book in China to study abroad, study section, working for some time, but we invest in it, because they are the local market has also been very understanding, also back in 2034, the idea is very practical, very good company, I suggest that you can go to look at.

Moderator: There are many investors in the industry to bring Zhang Ying, the feel of your investment style raid on the arts, you will do to invest the time to do the survey surprise attack, such as your investment Quanjing the network when not long panorama of Economic Cooperation network gave millions of dollars, what do you think of this investment will become effective value?

Zhang: This is media speculation, we have never raided any company, Panorama is a very good company, Lee told me the whole a very good relationship, I think a lot of entrepreneurs to deal with a the course of the game, from our point of view we will never protect us the interests of the Fund, for the greatest benefits for our team and partner, the entrepreneur is to maximize the price, this is a running-in process.

For example, in general, as you come together, if you would like to here from our first round of investment in Canada, we will say that you do not expect to get from us a very high price, but if there is Our participation in general in the second round, third round, we will big bang, not stand a front帮你拿to the highest price, if we look at a series of Economic Cooperation in investment, from Maxthon to view , to the most recent love, Culture and Sport, to the home station, the near future are such a case, we participate in most of the first round is the only investor in the second round of the third round, we work together to find a more suitable overseas or the United States investors in a joint venture, we would like to vote step-by-step, even if your price again, I think this point is very important.

you in the third round of the second round even if I will get more than ten times the price we will vote with, if we do not vote with other venture capital firms will not have a lot of confidence, you have The first round of the wind does not cast a vote, how do we have confidence in it.

company that does well as long as we are with each round of voting.

Moderator: Economic Cooperation in the time to business investment, usually financial investment or strategic investment?

Zhang Ying: Do you want to put us into a temporary relief, and we hope that the company most in need of funds, are most in need of help to participate in the development of the company, we also know that our style of investment very carefully, we Recently, also a relatively large financial funds, 100 million more than 5 million in funding is still very loose, as you know we are a bridge fund, 70% to 80% of the money is invested in China, but in this kinds of circumstances, we invested in three.

In these circumstances, we feel that they have the ability to help companies more, but I would like to say yes, help to interfere with the there is a difference between doing a good VC, you must not interfere too number of the company's internal operation, in fact, you may think, if you are a good entrepreneur, you all day long to make a VC, an investment of people to convince you to do something new, then there is no possibility, if Jiangnan Chun Li is these people, all day long for investors to change the direction they can not be successful.

so we do not understand the scope of, for example, capital operation, to deal with overseas companies, after some guidance from the them, not leading to some of their development, you will want to come out of the VC, if the can not think of an entrepreneur, then you will not be successful in this company, and I firmly believe that.

Moderator: But now there is a phenomenon, in fact, a lot of VC who are not doing business, but he's the role of a capital to enter the enterprise, the enterprise often have internal affairs because he wanted to ensure that their own interests, he fears that corporate managers think the time operating with its own direction, he will carry out such interference.

Zhang Ying: I think this is wrong, I do not have their own operational experience, we know that not enough experience in this regard, but I think the role we can to help him in the capital market, the negotiations , to withdraw from some considerations, the level of the board of directors that he listen to a collection of strategies, from the perspective of an outsider to some of the recommendations, it is very important.

another piece of very simple, it is going together with the entrepreneur, even tough the road again, a bit too complacent in their meaning, we take a stick and knock him in his operations that is not a good , we in the audience next to a friends to help him overcome his difficulties, this is a good VC.

you ask right, my personal view is that China is now a lot of VC, there are many new VC, are very strong to do something, I think today's vote in the wind industry in China is still relatively young, give us three, five or ten years time you will see what VC would precipitate it into a good VC.

which VC institutions or individuals will gradually make way, I feel like such IDG, the success of today, I think in the short term can not be replaced, there is no risk of an early investment in Today, IDG's position can be replaced, and why? Because they dare to vote in the absence of people, the efforts that have been very dedicated to doing the investment, 99, 2000, 2001, that time in addition to IDG, there are several which do a large-scale investment? Harper was also in China, but for various reasons we did not do too much investment, we lost a lot of opportunities.

Moderator: In fact, at the enterprise and between the VC there is a phenomenon that many enterprises, especially the number of shares of enterprises scattered, when the VC to enter because they want to be able to win over shareholders VC, VC balance so that the internal relations between them, how do you encounter this situation handled?

Zhang Ying: We do not vote in this company, just said a few of us together by the investment, I think of our investment philosophy, but also precisely to the block in front of those companies, only the local team two entrepreneurs.

Moderator: When these two entrepreneurs, when this happens it.

Zhang Ying: it is coordinated, that is, communication between the人跟人. Mentioned this point, I do talk about the concept of VC, I think anyone can do VC, no matter what career before, even doctors, workers, any job, you想得出来as long as they can, I think can, as long as you meet the two conditions, first have a relatively good degree of commercial acumen, and the second will deal with people, and the third is do you have the opportunity, in this case, I think you are you a VC will not be dealing with people, you will not be successful in this respect a lot of coordination to a genuine understanding of this matter should be clear, they try to communicate.

Moderator: It was said that Harper's style of an investment when you think that Harper is a do not like to follow the trend of the VC, we have seen, or Focus Media, 3G is also well, Harper is not the first round of investment, how can you look at this problem?

Zhang: This is a very good question, we extend the concept of investment to consider, and we hope that each year about 4-8 vote in the case, we hope that 60 percent is out of our own to explore, we are participants only, as long as the funds they need that time is below 5 million, 40% of what we hope will be with a not very long, we know that the VC is very good cooperation, I think your lack of cooperation in China it is not possible, and this VC, we have relationships with a lot of VC's are ordinary, and sometimes cooperate and sometimes compete, but in a few years of the accumulation and precipitation, we found that some VC with us more in line with the concept, more on obtained, in which case everyone is a very good thing.

and I have just said, never invest in a very scientific things, is a very artistic things, there are a lot of things for them to try to figure out, so do not have a formal model or formula, for example, portals such as 3G, as these segments have a good case, we have the opportunity to participate in, when we found this a very good team a very good case why not do the second round, and sometimes instead of doing the second round of Province, a lot of experience, first to the second round of reincarnation, are back to our travel, panorama, take four to ten times what the growth in leaps and bounds, because you have a lot of the development of the middle and help them to do something, We hope that 60% of the investment scope, for us in China is better then the number of VC.

Moderator: So you also talked about the front, you need to make in the interests of Economic Cooperation to maximize the capital, as a VC, many entrepreneurs, when they talk about you both love and hate, when the when they need money when you go in you as lovely as an angel, but when they do, when to some extent, you in order to preserve their own interests will have been withdrawn from, how do you view this issue?

Zhang Ying: You said in Economic Cooperation, or all of the VC?

Moderator: all of the VC.

Zhang Ying: As an entrepreneur you want to understand the process of venture capital, or how it is functioning, any venture capital funds more than 98% of the money are institutional investors or pension fund is a strategic investment partner vote for us, we just hosted their money, as the role of professional managers to help them vote, in the interests of certain dividends, when a company has been very successful market, it is our duty to return back to the immediate investment We invest in new Siemens, Nortel, etc. These are our strategic investors, in a separate joint venture we have a lot of agencies, and the company as long as there is to withdraw, we will be very active in hands on the money earned back to investors , which have not raised the matter with a certain degree of conflict entrepreneurs, I think there is a possibility, but also a good start to understand this process, and our interests are tied to the listing of, for example, is now listed on our Focus We slowly out of the shares, we now have, but out of a lot, you said you would mind Gangnam spring? Would not mind, because he understood the process, I think that as a good entrepreneur need to understand this, we have done in the OECD comparison humanity in general.

Moderator: Do you think that Chen is a good entrepreneur you?

Zhang: Yes.

Moderator: Why do SAIF from the big time, Chen Tianqiao why it will be called Softbank?

Zhang Ying: I think Softbank done from the viewpoint of today yes right, from the perspective of Chen Tianqiao I also understand that, you sold all in one breath for me a certain degree of pressure, I think this kind of thing interests in business or for the, each person has their own perspective and point of view, both sides can understand, but I do not know the details, I find it difficult to comment on.

Moderator: We know that in the past you like motorcycles and sailing such a campaign, perhaps you would have this character inside love challenges and adventure of the components inside. This character, then your investment is doing, you invest in a project and when the team will select a challenging and risky?

Zhang Ying: I think this certainly is there, I put myself in the characters, with the southern spring I think we are similar, under normal circumstances is extremely conservative, but a better understanding of their own industry, or feel that they can play a role in the industry which, dare we compare the risk, I think it is a personality, if their own is an extremely conservative and did not dare to challenge a number of adventure or something, I think the VC is not for you , there may be a participant in the VC but it is impossible for the lead, I think that a certain degree of risk or need.

do I think that VC is a matter of fact the highest level of gambling, I have to say that the success of a VC, I think 50% is an experience of an intuition, to judge people's intuition, 40% is luck, 10% of their own efforts, including intelligence or how to.

Moderator: So you personally do a soft spot for the charity is, Why?

Zhang: Yes, I think, is very simple, too much gap between rich and poor in China, such as we experienced doctors, from education, from employment, from the current position, I think are pretty Fortunately, today in this position can do these things, I think I will make this do a good job. In the future I do not know how many years or five years, ten years, come to an end, I would like to spend a little time to do some charity in China.

Moderator: Your main concern after five decades of charity?

Zhang: Yes, I do not do anything to charity, I was just concerned about doing things I think should be specific, and stage, if want to have anything done, I tried to Harper to do a good job, at a later date, five decades, I do not know how many years, the situation reached a certain success, there may be急流勇退, reinforcing the same message that the relationship did not vote, hoping to do some charity in China work .

Moderator: I some time ago in a magazine to see such a case, on the charity that a person if you do not have enough ability to accumulate wealth, you would want to do charity , you should pay attention to the current, then the accumulation of wealth that is to say, when you to a certain extent, you should be concerned about two decades after five years of philanthropy, we can understand your accumulation of wealth to a certain extent, you have have a certain amount of wealth?

Zhang Ying: I do not have enough wealth, I think this process is five decades, I do not need too much money, such as Jiang Zemin, Chen, Li, they never reach the wealth I do not to, but I think there is a goal in mind to achieve this objective, should be whole-heartedly to do some charitable things, time how long it's hard to say.

Moderator: front-end time we know that investment in the APEC another case, also listed the United States, specifically to do video compression, and can talk about it?

Zhang Ying: the project is that we voted in 2000, a video compression company, DIVX, I feel that as long as the online audience have heard of video compression with the company, up to now download more than a comprehensive 300 million, now 1.1 billion U.S. dollars, we still today's largest investors, we probably had more than 300 million U.S. dollars, to today from our part of the out of stock to 140 million, more than 40 times the return, my participation in this there is extremely small, the case is my boss Liu led a ring case, I own about 10% of the participation of all. But I witnessed the process of all, and I think also to share with you, when we vote, the first round, I do not think the price is too cheap, the technology and develop it after there is no market in the United States, one year after the He went out into the second, that time is the Internet bubble, the market has not been growing fast but slow, in which case no one to give them money, very painful, the company closed down almost faced, he has invested time to find The two investors, he said that you give us loans, said Liu did not ring, but you must go with me to Asia, we have three weeks to go, I bring you see a number of manufacturers and potential partners, to come back after the very clear on the business model, and from that day became a very significant turning point, we are in that round, that is, a very low price to re-cast it, and cast more than the first round, so to ensure that a great stake in our step by step out of their own management team, it is successfully listed.

Moderator: We have today's time is drawing near, there is a problem may be more concerned about everyone will be more concerned about, there is a saying that those who do in fact, VC is the most irresponsible people, because they do not vote their own money, but there is a saying for the most responsible people, because they are responsible for their own case. How do you understand this sentence? Your own life and attitude towards life, what kind?

Zhang Ying: I have concluded that in the VC industry there are many irresponsible people, there are a lot of very responsible people, some of the money as other people's money, so I voted, many intermediate their own interests, earn the profit, some people say that this is my reputation, this is my brand, every cent of money I did not, but I like my money, and is responsible for everything, so go a lifetime This person has.

In fact, I advise you not to as a VC with the mysterious and very deep, very clever kind of capital large jaw, and as we would like very normal people, there are so many risks in China investment, you may want to put it into good society, there are high and thin, good and bad, and all kinds of people have, you would like to put it into a small community, we hope that in five years, ten years This accumulation of this development, we will be China's VC gets better, of course, I personally feel that many people would be phased out slowly, out of my own will, of course I said I do not know is you depends on performance entirely when you go to see your luck.

Moderator: In fact, you believe that your own or invest in a more responsible person is not it? Your own attitude to life, and you feel in life you are a good and responsible man?

Zhang Ying: it is hard to tell such things first, we talk about the work, I feel more responsible, or investors, the personal front, I think this, because this kind of thing is an extension, of course, everyone is different evaluation criteria, if we voted in some cases because of certain circumstances, his company does not do well, that time did not succeed, it is possible that some of our conflict with the manager, there are many emotional factors individuals inside, I would like to take accountability for it.

Moderator: Because of reports in the media there, we can see that there is such a case, said Zhang Ying is still not married, there are no such intention, as busy work, we would like to know is stability of marriage is not the kind of life you are engaged on challenging venture, which will cause some conflict.

Zhang Ying: I think this is the most challenging problems, the success of each person behind him, there will be a more successful than those who help him, I have the concept of Vanves very sure I see a lot of friends, their success, with his back to help his wife, a great relationship, so I very much hope that their son can be like this.

Moderator: You will choose what kind of girl do?

Zhang: This is a personal issue, no comment.

Moderator: Some users are more concerned about a topic, you are on the development trend of overseas venture capital is, how the?

Zhang: Actually I have not returned to the United States a long time, but each time returned to the United States back to two or three times a year, but also a very short period of time, I feel that I put forward their own point of view, there may have been a not very new , but I think the wind is now overseas for increasing competition, brands, and increasing differentiation, in which case, a good venture capital to get a lot of good cases, so this is a previously said 80 people , 20,80% of the company to earn 20% of the money, in this respect, I think a lot of companies in China would also like to pay a certain fee.

Moderator: Well, today we have the time to chat, very grateful for the participation of users, but also very grateful to the United States Harper Group, Managing Director Mr. Zhang Ying, thank you.

Zhang Ying: Thank you.

(the end of this chat)