BiMBA Co-hosts Huangpu Forum on Entrepreneurship
Oct 27-2014
In October, 2014, students and professors of The National School of Development’s BiMBA at Peking University (“BiMBA”) gathered with hundreds of entrepreneurs and angel investors in Shanghai to discuss “Changing Investments in the Age of Innovation” at the Huangpu Forum.
The forum was chiefly organized by the China Young Angel Investor Association’s (“CYAIA”) East China branch. During the forum, BiMBA officially announced its strategic cooperation with the CYAIA, with both sides strengthening the integration of their entrepreneurship resources.
Key points raised during the forum are below.
Wang Xin: Business Schools Have Always Been Entrepreneurial Hubs
BiMBA Deputy Dean Daisy Wang Xin said that business schools are at the forefront of a golden age of entrepreneurship. A study conducted a few years ago showed that the top three issues for EMBA and MBA students are entrepreneurship, education for their children and health. At the same time, MBA applicants with experience as entrepreneurs are on the increase. In particular, over 20% of new MBA candidates born after 1985 (‘post 85s’) have such experience – an unprecedented number.
Wang Xin stated that the role of business schools during this high tide of entrepreneurship is as an entrepreneurial hub. China Auto Rental Holdings Inc., which recently floated on the Hong Kong Stock Exchange, is a classic example. The earliest investor of the company was Junlian Capital, whose Managing Director, Liu Erhai, recommended BiMBA’s EMBA program to CEO Lu Zhengyao after investing in the company. Leveraging the resources he gained at BiMBA, Mr. Lu created his management team, drafting MBA students onto the team and merging BiMBA’s culture with that of his company. In addition, BiMBA professors have provided their intellectual support to the company.
Wang Xin highlighted the point that in this ecosystem, top business schools not only to get involved, but lead, and of particular importance is leading teaching the right values. This is because the fundamental goal of education is not to increase one’s wealth, but to create a positive cycle, eventually improving society.
Zhang Min: Angel Investment Does Not Focus on the Oak but the Seed
As a seasoned angel investor, Zhang Min stated that in the eyes of a true angel investor, one ‘dream’ is enough to hedge against ‘100 nightmares’, and dreams and nightmares stem from the changes in reality and reveries. 10 years ago, no one would have thought that titans such as Motorola, Nokia and Sony would die. Likewise, 10 years ago no one gave a second thought to BAT (Baidu, Ali Baba and Tencent). Angel investors look beyond today’s stars to see the stars of the future. Today’s mighty companies could crash and die in 10 years because the seeds of even greater companies are being sown. Angel investors must be able to see the wood for the trees and not be blinded by the mighty oaks in front of them today. They must focus their energies in finding the seeds that will grow into mighty oaks.
Yang Ning: True Investors Are Not Afraid to Gamble on the Unknown
As President of the CYAI, Yang Ning stated that the business environment in China is great and will set off an entrepreneurial tide. However, he also believes that there is a misunderstanding in China’s angel investment industry. China’s angel investment organizations calculate how many projects they’ve invested in, the investment return etc. but this is not the whole picture and a short-sighted representation. Alibaba and Tencent’s largest shareholders are Masayoshi Son and a South African investor – who holds more shares than Tencent founder Pony Ma – respectively. Baidu’s largest beneficiary is an American investor. Even the largest beneficiary of Mr. Yang’s own company Kongzhong is an American private equity firm. Examples such as these are countless – why are the largest beneficiaries of China’s most successful companies, after IPO, foreign investors? This is because foreign investors do not use ‘reliability’ or ‘practicality’ as an investment factor and are willing pay for the dreams of entrepreneurs. Even if our entrepreneurs’ business models are not ‘reliable’, if these foreign investors buy into the dream, they will support them until the end.
Yuan Yue: There is a Misunderstanding in Today’s Angel Investment Industry
Veteran venture capitalist Yuan Yue stated that today, angel investment is very ‘hot’, and, similar to a bull market in stock, whilst there are many entering the market, experts in the field have not increased. Many enter angel investment because they do not want to carry on in their industry and feel the barriers to entry are low with easy profits, not because they are knowledgeable on angel investment. Non-professionals are misinformed on angel investment and believe that entry and exit can be as fast as in the stock market. They don’t understand that angel investment is the earliest stage of venture capital, sometimes requiring many years on each project. Another side that people are unprofessional is that they are not aware of the major trends, but follow whatever is ‘hot’ at that moment, without making any personal judgments. Mr. Yuan believes that future opportunities will not be in products but services.
Wang Lijie: Entrepreneurship Requires Positivity
CYAI East China Deputy President Wang Lijie shared one sentence: Stay hungry, stay foolish. Only by staying hungry can you yearn for the delicious. Only by staying foolish can you desire new knowledge. These two points are linked to the entrepreneurial spirit and the key element in entrepreneurship is the entrepreneurial spirit.
