Gobi Ventures joined hands with nine companies to invest: the opportunities and challenges of technological innovation.
“In the past 20 years, China has fully utilized the rapid development of demographic dividends and cost dividends, but this advantage is retreating. The private equity market is undergoing shuffling and transformation, becoming more rational, more emphasis on business models, and more emphasis on technology and threshold”. On the “Gobi DAY of Gobi Venture Capital Investment”, Gobi Ventures and 9 representatives of invested companies in the field of science and technology discussed the opportunities and challenges of China’s technology investment in 2019.
As a representative of China’s early investment institutions, Gobi Ventures has invested in nearly 300 innovative companies worldwide since its establishment in 2002. As early as 7 years ago, Gobi Ventures began to invest in the B industry, and achieved good results in the fields of artificial intelligence, intelligent manufacturing, and enterprise services.
In the forum, Zhu Wei, the managing partner of Gobi Venture Capital, first reviewed the investment layout of Gobi Venture Capital in the field of science and technology, and shared the new opportunities seen by Gobi Ventures from the perspective of investors. In addition, Zhu Qi and Gobi Venture Partners Tang Qibo and Hu Tangjun respectively represented 9 Gobi Venture Capital outstanding investment companies in the three roundtable forums on the theme of “artificial intelligence”, “smart manufacturing” and “enterprise service”. From the perspective of investors and entrepreneurs, they explored topics such as technological breakthroughs, commercial landings, and industry futures.
Gobi Venture Capital Zhu Xi: The Industrial Internet is Nearing Outbreak
Thank you for coming to the forum. Today we hope to show some of the investment in Gobi Venture Capital in the technology industry. I will share some points from the macro level. Later, there will be nine excellent Gobi creations. Investment-invested companies share their thoughts, lessons and experiences from a practical perspective.
The first question is why we care about the technology industry.
In the second half of last year, the domestic smartphones experienced the first negative growth in the past decade, and the car also experienced the first negative growth in 28 years. The total number of private equity in the primary market and the number of successful financing projects all fell. The unicorns are listed on the secondary market in a short period of time, but most of them break.
This fully shows that in the past 20 years, China has used the demographic dividend and cost dividends to develop rapidly, but this advantage is retreating. The private equity market is undergoing shuffling and transformation, and it is more rational and more value-oriented. More attention to technology and thresholds.
If the consumer Internet has reached the end, what is going on? We have clearly observed that the industrial Internet is growing very fast and is nearing the outbreak.
First of all, looking at the client’s needs, the labor cost advantage no longer exists, forcing the enterprise to do information transformation. Talent is a very core competency. Silicon Valley’s good data engineers earn $1 million a year, and the country is close to this state. In many links, Chinese talents have no cost advantage at all.. Of course, benefiting from the fact that many giants are in the education market, the awareness of on-demand purchases by enterprises is constantly improving.
The supply side is also accelerating and maturing. The open source technology is popularized in China. The big platforms such as nails and enterprise WeChat are also constantly opening up their own ecology, bringing traffic dividends and customer resources to the company, and injecting a lot of vitality into the market.
Take the high-speed development of the public cloud industry as an example. The public cloud market has grown very fast. Alibaba Cloud and AWS have a 20-fold income gap four or five years ago, but the former was 23 billion yuan last year and the latter was 24 billion dollars. It is only one exchange rate. This is a very interesting phenomenon. . The annual growth rate of China’s IaaS market is 60%, which is close to catching up with the United States, which brings a good development soil to the companies in the service direction.
In addition, we are also looking at manufacturing. The Chinese government has repeatedly stressed that China wants to become a manufacturing power. In 2017, China’s manufacturing volume has surpassed that of the United States, but its per capita production capacity and production efficiency are very low. In the past 10 years, China’s labor costs have increased by three times, and will continue to grow, which will greatly squeeze the low value-added industries. The most obvious example is that everyone is buying clothes now, and China will make fewer and fewer.
The increase in labor costs will definitely force traditional manufacturing to think. Is it enough to invest in informationization and automation? Is it still able to remain competitive? From the current situation, the degree of digitization of manufacturing is very low. In 2016, the density of China’s industrial robots was lower than the world average, and it did not match the identity of the manufacturing powers. This contained great opportunities.
And 5G will bring great improvement to the development of industrial Internet. 58% of the world will be covered by 5G, 5G peak transmission is ten times higher than 4G, and the number of connected objects is one thousand times higher than 4G. Make the application of many new technologies possible.
Next, let me talk about what opportunities we have in the field after seeing so many possibilities.
The first is enterprise services. In 2025, the number of enterprises on the cloud may reach 85%, enterprise data utilization will exceed 86%, China’s total data will account for 28% of global data, enterprise data will be very close to consumer data, and even In 2030, it exceeded the consumer side. This will be a very big wind vane, business pairThe demand for products and services will become more intense, and the diversity of corporate services will change qualitatively.
Secondly on AI and IoT technologies. In 2025, 97% of enterprises will use AI to do business, and the Internet of Everything has finally happened, but it is more interesting to connect people and things. It will be completed through AI and through Internet of Things technology. In addition, artificial intelligence is to be built in the industry. Now enterprise applications mainly stay on the efficiency side, such as improving human efficiency and reducing costs. However, as AI reliability increases, it will continue to penetrate into the business and operation terminals. Will enter more scenes.
The third is the accelerated maturity of the industry Internet. The Internet penetration rate of different industries in China is quite different. For example, the field of financial technology is very developed. WeChat and Alipay gradually replace cash, and the financial field is highly informative and intelligent. However, many large industries, such as manufacturing, are not even digital, and need to be automated and intelligent to form their own industrial Internet, allowing the digital world and the physical world to merge more quickly.
The fourth is the robot, but it doesn’t have to have a physical form, it can be purely virtual. For example, RPA, which is also a robot, reimbursement, purchase of tickets, etc. can be done by the RPA program, no need for labor. In the future, more scenes of life and work, we may have some robots to do simple work.
Finally, as VC, we have seen that China’s high-tech investment in the past 20 years has been dominated by consumer Internet, with traffic and users winning, and often winners have eaten, so many giants that are difficult to break through have been born. However, the industrial Internet has technical barriers and industry barriers. Many giants will be the norm, and many winners will be born in the industry.
Artificial Intelligence Roundtable Forum: Breakthrough, Landing and Future of AI
With the development of technologies such as NLP, artificial intelligence has moved from scientific research to application. Three Gobi Venture Capital CEOs in the field of artificial intelligence have shared this industry and explored technological breakthroughs, commercial landings, and futures. Industry pattern. The participating guests include auto-driving company Auto X CEO Xiao Jianxiong, intelligent investment engine Hongliang Investment CEO Lei Chunran, decentralized artificial intelligence computing platform DeepBrain Chain CEO He Yong, Gobi Venture Partners Tang Qibo as the round table host.
Tang Qibo: First of all, please introduce yourself. <