Posted

Things I’ve Learned about Investing and Business

Jenny Lee joined GGV Capital in 2005 as one of its most important new partners and was instrumental in setting up the GGV presence in China. Her previous operation and finance work experience with Singapore Technologies Aerospace, Morgan Stanley and JAFCO Asia enhanced her role as a preferred board head and investor to many entrepreneurs in China. She graduated from Cornell University with a Masters and B.Sc. in Electrical Engineering and an M.B.A. from Kellogg School of Management, Northwestern University.

1. “Start-ups aren’t an object. They’re successful because of the people behind them.” Great people, fertile markets, significant innovation are the three key elements in any successful business. What a venture capitalist wants to find in a founder is a certain sort of person. These founders are not identical, but do share certain attributes. One of the longed for attributes in a business founder is a missionary attitude toward the business. Missionaries rather than mercenaries are the founders who found he startups that make the biggest impact. Other desired qualities in a founder include persistence, curiosity, energy, the ability to communicate and sell, focus, determination, intelligence and the ability to adapt to change. These attributes should be sought not just in founders but in the teams they assemble to build and run the business. Having a diverse team in every meaning is important. Different people have different skills and sometimes someone’s strength is also their weakness.

2. “It’s a competitive and a rough market and more of a challenge to find the gems. But it’s a great time to start; the quality of entrepreneurs has increased. I love the winter.” Often the best time to start a business is during a downturn in an economy. The competition for the best employees is lower during a financial correction as is competition in markets generally. During any abstract economic downturn there is also less noise that can distract a business which enables more focus on business basics and fundamentals. In a harsh market there is often less thinking about distracting things like pivoting and more focus on getting things done.

 

3. “[Founders should understand the] way their company, their sector, the VC firm and the partner in charge are fit or not.” Every founder and startup has different skills, resources, talents and needs. Every venture capitalist is also unique, as are venture firms.  “Founder-VC fit” is enough of a success factor in building a business that advanced due diligence by founders to find the right investors is wise.

The more you know and the more experience you get in life, the more humble you should be.Tom Stoppard

4. “[Founders] must have the passion to learn about new things and have the tenacity to persist in one’s judgment despite naysayers – and there will be a lot of them – and, finally, that firm belief that a single person or a single company can create products or business models that can change the world.” “You need to believe that you can clear everything in your path.”  Some people may think it is an odd combination, but founders who are confident and yet humble are mostly likely to become successful. The more you know and the more experience you get in life, the more humble you should be. Part of the reason Charlie Munger is so wise is that he believes: “Knowing what you don’t know is more useful than being brilliant. … real knowledge is knowing the extent of one’s ignorance.” Successful founders tend to have strong views, loosely held.

 

5. “I’m a very gut feel type of investor.” There are no universal rules which will always generate success in venture capital.  If there were simple success formulas that could be applied mechanically nearly everyone would be rich.  There are some general principles that can be applied by successful practitioners which can increase the probability of success. One such principle is: venture capital is the search for investment with significant convexity (big financial upside with a correspondingly small downside). When a venture investment is made what the venture capitalist can fail is limited to what they invest. But the financial return can potentially be hundreds or even thousands of times the initial investment. A tape measure home run will not happen often with a venture investment but when it does the venture capitalist may sing the hallelujah chorus even if they are not religious. Finding undiscovered convexity that is being offered at a substantial bargain means the venture capitalist must be continually looking for it in new areas. Once an investment idea is appearing regularly in the newspapers and tech blogs it is often too late to find the greatest opportunities. Finding a new approach requires that the approach be new in some important way. There must be at least one key element of the business that is drasticaslly different from what has been done before. That something which is different is always different that what was different the last time.

6. “For work, if the product is good, there is a paying tendency.” Enterprise customers are more likely to be willing to pay cash for services than consumers who have been conditioned to expect services “for free.” Ben Thompson describes the problem with enterprise sales in a recent issue of his newsletter: “Productivity apps usually have high learning curves.” Most people today are attacking this problem with freemium. During the free period in the freemium model the user gets religion in a very low cost way through self-education and then they are sold the equivalent of guidebooks for that religion and become paying consumers.  Freemium is, at its core, about lowering CAC (customer acquisition cost)! This is the “land and expand” business model use by businesses like Slack and Atlassian which does not require the same level of sales and marketing spending as a Beatles sale and marketing approach (“I want to hold your hand”).  If your competitor is using a land and expand approach they can often undercut your price if you do not adopt it too. The new issue in enterprise investing is that many businesses that once upon a time would have sold tools to enterprise markets have become what is known as “full stack.” Chris Dixon writes: “Suppose you develop a new technology that is valuable to some industry. The old approach was to sell or license your technology to the existing companies in that industry. The new approach is to build an end-to-end product or service that bypasses existing companies.” Oracle sells tools, but Tesla and Uber sell a full stack offering in that they provide everything, including the service to the end user.  This full stack phenomenon and the rise of freemium have many important ramifications that I plan to write more about at some point.

49 Comments

  1. דירה דיסקרטית ברמת גן

    The Medvive’s rechargeable Tens Machinee helps ure again pain, arm pain,
    knee pain, interval ache, neckk pain, arthritis, accidents and is even useful
    to the pregnant women during labor pains. A massage therapist may provide some
    hand-on strategies that may relieve jaw and gumm pains throughout teething, colic pains and stimulate the immune
    system. Use of prescription drugs is very common for every kind
    of illness, but excessive usage of antibiotics can result
    in abnormal maturation of the immune system. Decongestive lymphatic drainage is particular type of therapeutic massage that helps reduce swelling lymphatic system
    attributable to improper draining of fluids from tissues.

    A holistically oriented physician or a massage therapist can provide you numerous maszages and exercises in line with your explicit ailment.

    Massage therapist or holistically oriened physician ccan provide related exercises and therapies that will certainly change the patterns of dysfunction. Omega massage provides thee Montage Elite therapeutic massage chair to the excessive-finish luxurious market.

    Take a look at my webpage דירה דיסקרטית ברמת גן

  2. Ford disclosed plans to promote ths new Escort in China alongside the main target in many supplieer lots.
    Thee result is a automobile that weighs just 1,760 lbs (800 kg), and that’s regardless of having a Ford 6.8-liter
    V8 aand a C6 three-velocity auto with transbrake.

    On the time, Ford retired the outdated Pinto and they needed an acceptable alternative car of the same kind.

    Production then grew increasingly restricted,
    reaching a cap of only 250 vehicles, aand these fashions have been solely available in Ford’s Southgern California market, making it harder
    for drivers to achieve the 1999 Ford Escort. Pial grew up in Warwick and made his rrsolution to join tthe navy after 9/11,
    his family said. «My spouse/other household member needs considered one of those» or «I had no thought they might do all that» are
    thee two most common responses. But escorts
    are no longer allowed on this land since Foundation for aall times bought the land.

    Take a look at my webpage; https://getluckywithliz.com/regions/Discreet-apartments-in-Rehovot.php

  3. https://carmensinternational.com

    We all know that, the bodys pure relaxation responsae is a robust antidote to stress.
    This is natural and will resolve itself in 24 to48
    hours. This pain and soreness often happens inside 12-48
    hours following your workout and may last a day or two.
    There are numerous elements in everyday life that could cause anxiety; cash, household
    and health points simply too name a couple of. All of this pain may also add to your anxiety or depression, so while you get a massage to help your muscles, you’re
    additionally serving tto your mental health.
    It pewrmits yoou to free your thoughts of your unfavourable ideas whereas relieving
    the ache thwt can aadd to anxiety. While it is bdst to all the
    time talk to a physician about medications to help ease your psychological afflictions, you must also focus
    on with him/her abnout incorporating therapeutic massage thuerapy in your treatment.
    You should returnn ffor more than one massage since most depression and anxiety points cannot be cured in just one remedy.
    While therapeutic massage is not going to convey a lovsd one back or find
    you a brand new job, it will mean you can free your thoughts of
    any detrimental ideas.

    Alsso visit my page – https://carmensinternational.com

  4. www.amgab.se

    Therefore, becoming an escort is a query that many females have considered a minimum of as soon as.

    So if the person answering the telephone quotes $250, the charge for
    the decision is a minimum of $125 and sometimes more.

    I recall a enterprise from South Florida that was open for many years
    – at the least a decade – that only passed on a name and phone quantity.
    One specifically that was delivered to my consideration actually just passes the
    telephone number on to the escort and tops that off by taking over 50% for
    a payment. In the case of 1 explicit company that’s been around for a very long time they typically do no more than retrieve the telephone number from voicemail and name
    the escort and instruct her to name and quote the price and client information; typically they may
    then go to sleep and the escort is on her personal. Your driver should also
    by no means seem partial to a specific individual as he or she is there representing the corporate and
    should not accept any ideas for picking up your fees as you direct.
    The driver’s job description can be to collect
    your charges from the unbiased contractors as directed at the time and
    place that you just instruct.

    my web-site :: http://www.amgab.se

  5. zoritoler imol

    I think this is among the most important information for me. And i am glad reading your article. But should remark on some general things, The web site style is perfect, the articles is really excellent : D. Good job, cheers

  6. impugnación acta comunidad de propietarios

    Oh my goodness! a tremendous article dude. Thank you Nevertheless I am experiencing challenge with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting similar rss downside? Anyone who knows kindly respond. Thnkx

  7. limo service near me

    I haven’t checked in here for some time because I thought it was getting boring, but the last few posts are great quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  8. Stahlwandpool

    I’ll immediately clutch your rss feed as I can not to find your email subscription link or e-newsletter service. Do you have any? Kindly let me understand so that I may just subscribe. Thanks.

  9. Stahlwandpools

    Great info and right to the point. I am not sure if this is in fact the best place to ask but do you folks have any thoughts on where to employ some professional writers? Thx 🙂

  10. Stahlwandpools

    Enjoyed examining this, very good stuff, regards.

  11. tlovertonet

    Wow, superb blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your website is magnificent, let alone the content!

  12. furgonetas baratas en valencia

    I like what you guys are up too. Such smart work and reporting! Carry on the excellent works guys I¦ve incorporated you guys to my blogroll. I think it will improve the value of my site 🙂

  13. canon oficial

    You are my inhalation, I have few blogs and infrequently run out from to post .

  14. apartamentos para alquilar

    This web site is really a walk-through for all of the info you wanted about this and didn’t know who to ask. Glimpse here, and you’ll definitely discover it.

  15. palabras con bl

    I love studying and I believe this website got some genuinely utilitarian stuff on it! .

  16. diario digital Canarias

    I like this web site very much, Its a really nice place to read and get information. «Oregano is the spice of life.» by Henry J. Tillman.

  17. Eventos en Barcelona

    I’d must examine with you here. Which isn’t one thing I normally do! I get pleasure from studying a put up that will make people think. Additionally, thanks for allowing me to remark!

  18. Slotbom88

    Very interesting information!Perfect just what I was looking for!

  19. cena zlata

    This design is steller! You most certainly know how to keep a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Great job. I really loved what you had to say, and more than that, how you presented it. Too cool!

  20. cena zlata

    I am curious to find out what blog system you have been working with? I’m experiencing some minor security issues with my latest website and I would like to find something more safe. Do you have any solutions?

  21. Lada 871

    Hello! This post couldn’t be written any better! Reading through this post reminds me of my old room mate! He always kept chatting about this. I will forward this page to him. Pretty sure he will have a good read. Many thanks for sharing!

  22. Lada 722

    Incredible! This blog looks exactly like my old one! It’s on a totally different subject but it has pretty much the same layout and design. Outstanding choice of colors!

  23. azul ultramar color

    I keep listening to the newscast speak about getting boundless online grant applications so I have been looking around for the best site to get one. Could you advise me please, where could i find some?

  24. read more

    Well I definitely liked studying it. This information procured by you is very effective for accurate planning.

  25. casa en venta punta del este

    I like the helpful information you provide in your articles. I will bookmark your weblog and check again here frequently. I’m quite sure I will learn plenty of new stuff right here! Best of luck for the next!

  26. alquiler moto alicante

    Hello! This post could not be written any better! Reading this post reminds me of my old room mate! He always kept chatting about this. I will forward this post to him. Pretty sure he will have a good read. Thank you for sharing!

  27. camión de alquiler de carga económico

    hello!,I like your writing very much! share we communicate more about your article on AOL? I need an expert on this area to solve my problem. May be that’s you! Looking forward to see you.

  28. nombres de chica con n

    Wow! Thank you! I continuously needed to write on my site something like that. Can I implement a fragment of your post to my website?

  29. Bésame

    I really like your writing style, great info, thank you for putting up :D. «The superfluous is very necessary.» by Francois Marie Arouet Voltaire.

  30. learn everything about stake.com platform

    I’ve been surfing online more than three hours today, yet I never discovered any attention-grabbing article like yours. It is beautiful price enough for me. In my opinion, if all site owners and bloggers made just right content material as you did, the web will probably be a lot more useful than ever before.

  31. ctr manipulation

    Hello There. I found your blog the use of msn. That is a very neatly written article. I’ll be sure to bookmark it and come back to learn more of your helpful info. Thanks for the post. I’ll certainly comeback.

  32. expos madrid

    I believe this is one of the most important info for me. And i am satisfied studying your article. But should commentary on few general issues, The website style is wonderful, the articles is truly excellent : D. Good job, cheers

  33. Lola66

    Quite easy to set me on fire, click here, make me feel like a real woman.

  34. Mikkel Morch

    I have learn some just right stuff here. Definitely value bookmarking for revisiting. I surprise how so much attempt you set to create this kind of great informative site.

  35. kursna lista nbs

    Hi there very cool site!! Man .. Beautiful .. Wonderful .. I will bookmark your web site and take the feeds additionally…I’m satisfied to search out numerous useful info here in the submit, we’d like develop more techniques on this regard, thanks for sharing.

  36. hackers for hire

    Thanks for your personal marvelous posting! I certainly enjoyed reading it, you will be a great author.I will make sure to bookmark your blog and will eventually come back sometime soon. I want to encourage you to definitely continue your great work, have a nice morning!

  37. emoticon de gracias

    Have you ever considered about including a little bit more than just your articles? I mean, what you say is valuable and everything. But just imagine if you added some great pictures or video clips to give your posts more, «pop»! Your content is excellent but with images and videos, this website could definitely be one of the most beneficial in its field. Great blog!

  38. restaurantes en Barcelona

    I like what you guys tend to be up too. This sort of clever work and exposure! Keep up the fantastic works guys I’ve added you guys to blogroll.

  39. Official website of DonTorrent

    Wow, marvelous blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your site is fantastic, as well as the content!

  40. taxi yaiza playa blanca

    I¦ve read some good stuff here. Certainly price bookmarking for revisiting. I wonder how a lot attempt you put to make this type of wonderful informative web site.

  41. Billonaire Brain Wave Review

    I am really enjoying the theme/design of your web site. Do you ever run into any internet browser compatibility issues? A few of my blog readers have complained about my site not operating correctly in Explorer but looks great in Chrome. Do you have any tips to help fix this problem?

  42. Kerassentials reviews

    I cling on to listening to the rumor speak about getting free online grant applications so I have been looking around for the top site to get one. Could you tell me please, where could i find some?

  43. Java Burn Review

    It’s appropriate time to make some plans for the future and it’s time to be happy. I have learn this post and if I may just I want to counsel you few fascinating issues or suggestions. Perhaps you could write next articles relating to this article. I wish to read even more issues about it!

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *