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A conversation between investors.

Editor’s note: This article from the public micro-channel number ” capital Morningside Morningside “(ID: Morningsidevc) , author: Morningside capital.

Year ago, at our internal events, Chen Fei, a partner of Chenxing Capital, acted as the host, and Lin Xinhe, co-founder and director of DCM China, and Liu Qin, founding partner of Chenxing Capital, did Dialogue between investors.

Today, we will share some of the wonderful views of the dialogue, I hope you can gain something.

… from the left: Zhang Fei, Lin Xinhe, Liu Qin

You will see the following issues discussed:

• About the epiphany moment in life;
   

• What are the judgment principles that Lin Xinhe firmly believes in the two dimensions of people and things in venture capital?
   

• An important secret to inspire and grow together with excellent entrepreneurs: tell the truth and stick to your integrity;
   

• What is the gap between the founders of Billion Dollar and Ten Billion Dollar?
   

• Imagine what investment direction you would like ten years from now? What kind of person do you want to be?
  

  Q1 Zhang Fei: The first question is about the moment of epiphany in life. At what moment, you two are going to be Lin Xinhe and Liu Qin today?

  Lin Xinhe: I am a Taiwanese from China. When I was a child, I went to live in the United States with my family. Although I said that I went to a better school, Stanford, I found that there is a ceiling in the United States. When it comes to a big setback in life, I also wanted to understand at that time. If your destiny does not want to be controlled by others, you have to put your own destiny in your own hands.
  

  So I came out of school and started Sina. My parents actually agreed with this decision, but my Stanford friends thought I was crazy.
  

  At that time, I didn’t say who I was going to be in the future, just hold my breath, people look down on me, then I must make something to see Look. Life is so short, you must be different from others. This also affected my later investment style and must not follow suit.
  

  Liu Qin : Hurst (Lin Xinhe) is a returnee school, I am a grassroots school. I was born in 1973, went to university earlier, graduated at the age of 20, and returned to my hometown to join Wuhan Iron and Steel. In that era of Wuhan, this company was like BAT today. Again, I have been an engineer there for 4 years.
  

  One year there was a fire in our factory, which burned the cables in the machine room, and we were sent to repair it. The cables of the equipment in the machine room are all laid underground. Like the sewer, the cable trenches are all burnt plastic, filled with toxic gases after incineration. I was there for a month.

  At that moment, I was like being awakened. My life cannot always be in a cable trench. Although this is a job that makes most people feel good, it is not my passion. So I decided to quit my job and later left Wuhan to come to Shanghai.

  Q2 Zhang Fei: The two have many similar characteristics in investment. The number of invested companies is not large but the success rate is high, and it covers all types of entrepreneurs. I guess there are some very effective investment principles behind these successes, such as some of Richard (Liu Qin) mentioned in the previous speech. In judging the two dimensions of people and things in venture capital, Hurst (林欣禾 ) What are the principles of judgment that you firmly believe in?

  Lin Xinhe: I started my own business and encountered many dark moments, but I think Sina could do it at that time because I was really Want to succeed in this matter. Because of this kind of experience, I later understood when I made an investment. The company I want to invest in, its founder must have a mentality, that is, he does not start a business to make money, he starts a business to achieve one of his life Goal, success is more important than making money.
  

  But when you look at an entrepreneur today, the time you meet with him is very short. The time you can make a decision is only a few days, at most two weeks. You are not from his family, nor are you from his classmates, so you ca n’t really make any judgment about that person ’s personality. Under such circumstances, the only thing that can be judged is this market and this industry, and is this strategy right?

  I usually ask entrepreneurs a question. Has anyone else thought about this? In fact, this is also an indirect question of who is his competitor? If many people have thought about this matter, frankly, the chance of being voted will be relatively small, which is also the point I did not follow.

  Q3 Zhang Fei: How to grow together with entrepreneurs? Especially from early to mid-to-late period, companies are becoming more and more successful, and founders and investors will also face more and more unknowns. How can the company be taken to a higher level? How to inspire more with each other at this stage? I would like to hear the experience shared by the two.

  Lin Xinhe:When I started a business, I felt that the people who helped me the most were those who told me the truth, no matter how sad I was at that time, or how annoying I felt that person.
  

  At that time, Sina almost hung up several times, but some people came to talk to me some time before hanging up. Of course, I could n’t hear it at that time, because either the words were difficult to listen to, or I thought this person I don’t understand at all. But when I really encountered a problem, I realized that they were right. Although it is very painful to face the truth, it is necessary to make strategic adjustments, cut people, replace people, and even give up some things.

  Because I have experienced this myself, when I change my status into an investor, I and the entrepreneur, no matter how good his company is, I am the one who wants to tell him the truth, no matter he is in trouble, no matter He did not respond well.

  I vote 58 in the same city, I had a fight with Yao Jinbo, and then I did not speak to him for a year.
  

  Zhang Fei: Are you worried that he will never talk to you?

  Lin Xinhe: Yes, I do n’t care. You have to stick to your integrity. Richard said earlier that many investors are cheerleaders. I ’m not an applauding person. I think you have to invest in Integrity. If you want to please that person, you have lost your Integrity. This thing, not to do it in order to do good things, because as long as things are done, money will naturally come, but I do not want to be so absolute, sometimes you do not necessarily make money well, But I think that as long as you do well, you will feel very comfortable and have a sense of accomplishment. I think this is the most important.

  Liu Qin: Yes, in fact the same way, in Chenxing, what is our relationship with entrepreneurs? Is a friend, is telling the truth to be a true friend, YY we voted, and Xueling is a typical example.

  After YY went public, Li Xueling and I had two key collisions.

  For the first time, Xueling wanted to fully delegate rights and responsibilities to the following executive team. He believes that a CEO has no control over matters, indicating that this companySecretary is not grown up, he hopes to give space to the people below, and realize the potential of the people below. To a certain extent, I agree with his point of view, but I have different views with him about the scale and balance of decentralization. I expressed my different opinions frankly, and until today we still maintain the face of different opinions , A trust relationship that can be fully expressed.

  For the second time, he began to think about the opportunities in overseas markets shortly after he went public. It should have been in 2014/15, when he began to propose the overseas layout. Frankly speaking, I was worried that the timing was too early, which caused The company is not focused. However, although he was not completely convinced of his strategically bold ideas and thoughts, I still felt that I could not be killed with a stick. This was also when the company finally decided to spin off Bigo to focus on overseas markets. We still chose to believe in Xueling’s courage and judgment as an entrepreneur and decided to invest US $ 10 million. Bigo’s early development also experienced a lot of discomfort, but today looking back at Xueling’s judgment and timing of overseas market trends reflects his vision and determination.

  Q4 Zhang Fei: Tell the truth, this is actually a very important principle. The next question is related to the previous question. For companies with billions of dollars, tens of billions of dollars, and hundreds of billions of dollars, the challenges they face are very different. Where are the mistakes that founders are prone to make on these key nodes?

  Lin Xinhe: When I started my business, I didn’t think I was smarter than others. You just had an idea and started your business naturally. We also have dozens of DCM Companies valued at US $ 100 million, from 0 to 1