- Inaugural presentation given by Mr. John Yu
Written by Dennis Bridgeforth, Peilei Mu, Michael Tang
February 22, 2016 – This year’s Chinese Lantern Festival, marking the end of the Chinese New Year, was the same day Elab kicked off its 2016 bootcamp.
The inaugural presentation was given by Mr. John Yu, General Partner at Mytech. Mr. Yu spoke on the power of capital. He presented everything from an investor’s perspective, which all attendees were very interested in. To get a holistic view John Yu spoke on the investment tendency in China, China’s 2015 economy, and China’s capital market reform. We explored the previous hot topics since 2010: starting with e-commerce in 2010, big data in 2011, O2O in 2013 etc.
Mr. Yu also compared 2016’s investment prospects in China to other countries. He pointed out that opportunities in China for seeking investment and investing are great.
As an investor, John Yu spoke on what he deems important when determining what companies, he should invest in. He created a list ‘six P’s to really illustrate what we should consider before approaching investors:
- Passion – there must be a unique drive in this person. Passion will drive the owner/founder
- Persistence – People must show that in times of adversities he/she did not/ will not give up
- Personality – this maybe one of the most important Ps as in the beginning stages of a new venture there are no financial statements to go off of. So the person’s word and ability to interact with others are very important. John Yu gave an example of when he was at an investor’s meeting and the person seeking investment had a difficult time to communicate with him. He said his personality sealed his fate and costed him the loan.
- Partner – Its important that the investors know who you plan on partnering with, because partners are is just as important.
- Profitability – can this product/ service make money
- Past experience – What were you doing before and how successful or unsuccessful were you. Why were you successful or unsuccessful and how will you do things different?
Lastly, Mr. Yu’s explanation of the difference between Venture Capital and Private Equity and how much stake in the business you should expect from both. It was very interesting to see the breakdown, what to expect, and the various rounds of investments.
Overall the elab boot camp was a success and we look forward to future sessions.