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- Yeah, I want to build a new structure for,
as a venture capital.
Currently, the majority of the venture capital,
the investor was found.
But, for hardware,
for hardware, a side company, the money is not everything.
They do need industry resource
to help them to fix the technical problem.
And they want to sense a web,
very connected in Shenzhen for hardware ecosystem.
And I, myself, used to be one of the largest factory owner
in China for electronics.
And, we don't have a resource in hardware.
And they want to build a hardware platform
for software developer, for software entrepreneurs.
- So you have the expertise
that you can provide entrepreneurs,
in addition to giving them capital.
You say money isn't everything,
though hardware is a particularly capital intensive business
to be in, right?
So you are still investing money into these entrepreneurs
that you're working with, right?
- Yes. But the company, the money, the fund,
is not our top priority.
Currently, our priorities are still in industry.
- [Interviewer] Just, providing them resources
and expertise. - Yes, yes, yes. Yes.
And if you look at which capital as a bigger ecosystem,
they are elements, different elements in it,
to support a stock company to grow.
Fund is one critical element.
And a technical resource is another one.
- So would you say,
the entrepreneurial community here is as big
as it's ever been?
- Ah, yes.
And the, since Shenzhen is immigrant city.
The 97% of the population
are immigrants.
And people leave their hometown, leave their comfort zone.
They come here for a reason.
They come here for a dream. - Right.
- Shenzhen has the most entrepreneur, yeah, in China.
- And how much more innovation
is happening here in hardware,
than in other parts of, like say, in Silicon Valley.
Which is often said to be the leader
in tech startups.
- For hardware side of company,
Shenzhen do have a advantage.
Shenzhen has the most.
We have the most available hardware resources here.
And that's making a hardware side company much easier.
And it could be more, much faster.
And there was have an office in Palo Alto.
In Silicon Valley.
And we have been hosting a side company from Silicon Valley.
And the,
comparing with Silicon Valley, the Bay area,
Shenzhen is still much more friendly
for hardware side company.
- So hardware is what Shenzhen is known for,
but I'm sure there are other areas of technology
that people are really excited about here.
So, what are some of the other areas
that VCs are investing in, in Shenzhen,
and that entrepreneurs are building on?
- Shenzhen has a very diversified hardware ecosystem.
For software, they have giants.
Leading by Tencent.
And they have a communication giants.
Leading by Huawei.
And also, the hardware, of course.
And seems to me, the biggest challenge, Yi Wei,
the electronic car maker is in Shenzhen, BYD.
Shenzhen is the hub for industry automation in China.
- So there's innovation happening across
the entire technology stack. - Correct, correct.
- What predictions do you have going into next year?
Do you think there'll be increased investment
from foreign venture funds?
Like, from us investors?
Or, what areas do you expect to get the most attention
from investment, investors?
- Unfortunately, the current tension
between US and China is setting up a barrier
for the flow of a fund.
They are US capitals that has been very active in China.
The IDG, and the... - [Interviewer] Right,
there are some funds that have been really active always.
- Sequoia.
But the current tension, it is creating a barrier.
But we, after the tensions
is getting relaxed-- - Yeah.
- And both country agree, make an agreement.
I would say to you,
there'll be one more flow
on technology and also the fund.
- Right, then we'll see. - Into it.
- We'll see increased investment going both directions.
- Correct, yes.
- Great. Well, thanks so much for joining us.
I think that's all the time we have.
But hopefully we'll see you again next time.
- Yep. Thank you for interviewing.
- Thanks. - Yep, great.
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