The following content is the text version of the 36-inch audio program “Value Catcher”. Listen to more exciting interpretations. Please subscribe to the “Value Catcher” interview at 36氪app | 柏忠颖Editor | 黄臻曜稿整理 | Wang Yubin Current Guest: Lenovo StarGeneral Manager and Managing Partner Wang Mingyao.Founded in 2008, Lenovo Star currently manages five angel investment funds totaling over RMB 2 billion and has invested in nearly 300 projects.Lenovo Star mainly invests in three areas of artificial intelligence, TMT and medical health.Mr. Wang Mingyao joined Lenovo Star in 2010 as a general manager and managing partner, responsible for the overall business and focusing on the creation of the TMT team.Lenovo Star TMT investment cases include fun games, Vision Technology, Spirit, Job Box, Pony.ai, Yunding Technology, etc. The medical investment cases include Tianjin Micron Core, Paige Bio, Pioneer Pharmaceuticals,Burning Stone Medicine, Cayudi, Connaught and other companies.Highlights of this issue: 1. Why did Lenovo Star decisively invest in scorn technology 8 years ago: 1′10′′2, pre-judging the bet with the final mind: 3′00′′ 3, what is the real AI project:7′20′′4, technology + early there will be more opportunities: 11′50′′ 5, adhere to the intelligent + informational positioning: 17′40′′6, investment strategy: according to the ground play: 19′20′′7, LenovoStar CEO training class admission standard: 21′40′′8, investment is the realization of cognition and resources: 28′00′′ First of all, we must judge whether it is “true AI project” 36氪: We see that it is just in today’s LenovoStar Investment’s Vision Technology has released a prospectus.Why did you look at this project at the time?(Note: The interview time is August 26, 2019.) Wang Mingyao: When we voted for it, it was very early, and I despised only three people at that time.That was around the end of 2011. Their three founders, Yin Qi, Tang Wenbin and Yang Mu, were graduate students of Tsinghua.At the beginning, they hoped to use this face recognition technology to make a game. We found us for this. Of course, we are not only interested in games, but also a few outstanding young people. They are all Tsinghua Yaoban.The top of the game has won the gold medal in the information science Olympics, like Tang Wenbin is the head coach of many years.Excellent young people do a very interesting technique, we value it, so I voted for it, and then helped them set up the company together, and accompanied them to go through the eight-year period.I feel that this process is not easy. I have gone through the groping all the way to the present.Of course, from the current results, the tide of the entire artificial intelligence has gradually increased, and the application has begun to fall. Now, it has indeed achieved very large growth.From the perspective of our return on investment, the company’s current valuation has risen more than 2,000 times, which is indeed a good return.36氪: Lenovo Star actually paid much attention to medical and AI in this period from 2014 to 2016. In fact, many organizations did not have such a prejudgment at that time. How did you do it?Wang Mingyao: We will consider a few points. One is that we will analyze the final situation of certain industries.Let me give two examples. Let’s say that we are on the track of autopilot. We originally judged artificial intelligence, especially autopilot. It is an inevitable future.After a few years, the car is mainly driven by itself, and no one needs to control it. This is an inevitable event.But its time node is not so fast, there is still a lot of uncertainty in the middle, this is our final judgment on this matter.From our point of view, we must invest. This is an inevitable future, but we can’t vote too fast. When we fall victim, how can we grasp that point?We will make certain arrangements in the investment strategy. For example, we believe that the investment in the direction of fully automatic driving is actually very risky. Because the uncertainty is very large, it may be completed in three years and five years.Maybe ten or twenty years or even longer.So we have to vote for the most headed project. For example, we are investing in a project called Pony.ai. This is basically the industry’s most headed project. At present, the technology of autonomous driving is really fast. Many autopilot projects actually faceThe challenge, but it should be one of the best developments in this field.The other part is the basic technology we need to achieve automatic driving, such as laser radar, millimeter wave radar, etc. It is the technology that must be used, we will vote for this part.The same is true for education, which we predicted in 2013.Everyone in China’s education knows that there are any problems?There are few good teachers, few good schools, and good teachers in good schools.One is that he has a very rich experience, and the second is that he can do personalized teaching.After all, each student is different, but because of China’s demographic structure, you can never solve it by relying on people, so we have a prediction that this kind of learning about knowledge and skills will eventually be learned by intelligent learning and online learning.Instead, this is a future that will inevitably occur, so around this line, we have laid out a series of educational projects.Looking back now, I think that just taking the offline content online, there is not much technology such a so-called one-on-one project, it will actually face a relatively big challenge.The scale can go up, it is more difficult to make a profit, but the project that we cast a technology-like job like the job box looks good at the moment, we will definitely do it.Looking back, why do we say that we will see the direction of medical care so early, including seeing the direction of AI? This is our judgment on the final situation – the value of technological development and artificial intelligence development is indeed very large.In the direction of medical medicine, we can understand more clearly. There is a big problem in China’s medical care. Many people with this hard bone are afraid to marry.But the value of medical care is very clear. The first medical project we invested in was called Micro-Nano. What does it do?It actually does biochemical testing equipment. People often go to the hospital to queue up and test results. This demand is very big, so we have made a portable, small device to the hospital.These are the big problems that we think China must solve. It will inevitably happen in the future. Therefore, we will look at it more firmly than others, and we will dare to embrace such risks. Now we will have its value when we accumulate.36氪: In the AI track, quite a few investors who just entered the market will find it difficult to make a correct valuation for the AI project. What do you think?Wang Mingyao: Many people just came in and frankly said that you are investing in this project. In fact, there is a problem in how AI is divided into colors.We originally defined what is called an AI project. First of all, we must see whether AI technology plays a very important role in the success or failure of this project.Second, we also require that the AI development talents in this project should occupy a very important proportion, and at least one leading talent can be.If it is said to be AI, but in fact it does not have very equivalent people, using completely open source things, it is not a special standard AI class project, and is likely to be an application class project.So in general, we should have a sober understanding of whether this is an AI project. On this basis, we will talk about how to value it.Going back to the valuation, I think there are big differences between application and technical projects.Application-oriented projects still have to return to the level of revenue that they may generate in the market in the future.Partial technology is based on the team’s equivalent and how much the value of the technology it breaks through can be judged.Whether it is an improved technology or a breakthrough technology, I think the valuation may be different.The general premise is to first figure out whether the real AI project is the most important.Grasping the opportunity of “technology + early” and insisting on playing according to the law. 36: This year, Lenovo Star opened the Shanghai office. Why was it chosen at this time of the year?Wang Mingyao: When the Shanghai office opened, the first sentence I said was: I don’t know why I opened the Shanghai office. Anyway, one week after I announced the opening of the Shanghai office, Shanghai launched the science and technology board.So I said that many things don’t know the order.There are several factors in starting a Shanghai office.One is an internal factor, because Lenovo Star has developed to this stage, we have a more complete team and have stronger investment capabilities, so we hope to cover more areas.So looking back, Shanghai is indeed a very good choice for the moment, and it has changed a lot in the past few years.We are looking at the direction of many consumer upgrades, including the direction of technology. In the past few years, some people may think that there are fewer Internet projects in Shanghai, but there are directions including artificial intelligence and medical related directions. It is also the star of Lenovo.Focus.In Shanghai, it can cover Hangzhou, Suzhou and East China. This is a very important strategic location for us.Plus our team is quite mature, so I chose Shanghai and just happened to run into the board. I want to add another reason to us.36氪: Actually, the overall market situation is not very good this year, but Lenovo Star seems to be investing more projects and doing more active expansion. Why is there such a strategy?Wang Mingyao: Let’s first say that the market is not very good. I think there should be a lot of data in the market to explain the problem. The data of fund raising will decline, and the data of VC investment projects in the first half of the year may also have a huge decline.What is the strategy and status quo we have taken?One is that our investment has not only slowed down and reduced, but it has been the most investment and the largest amount in half a year.In addition, this first half of the year is almost the best half-year growth of the projects we have.The strategy we are adopting now is not to say that we want to take it. The investment direction, project and our investment ability that we are concerned with are relatively matched with the current market situation.This shows that in the overall decline of the market, in fact, some market layouts still have good growth.What is this market?In fact, this is the sector of technology that we are focusing on, which is based on high technology and early stage.In the past six months, and in the next year and two, we believe that it still has a dividend, which is in line with the market pulse.Other areas may face greater challenges, but the positioning of technology in the early days has a greater chance.Lenovo Star has accumulated a lot of investment bases in the past few years. For example, the field of artificial intelligence is our base, and more subdivided that we are in the field of automatic driving, intelligent education, and financial technology, plus we areMedical biotechnology, new drug development and genetic testing, etc., all form their own bases. These directions will not slow down in the next year and will accelerate. So we can naturally cast outGood project.The quantity and quality of our investment projects depend on the supply of very good projects in the market, and the team of Lenovo Star can seize this opportunity, so we can make a good investment.36氪: So what is the current fundraising situation of Lenovo Star?Wang Mingyao: Fundraising is underway. This year we started in the second quarter, so we are in the first closing stage.The overall situation of fundraising is not good this year. A lot of data is very obvious, mainly because the funds need to be supplied, but many LPs, many original positive LPs, they also have no supply of funds, plus various regulations on bank assets.Wait, the whole market is indeed a year of poor funding this year.For Lenovo Star, we will still look for the right, excellent LP to be our LP, because our own positioning in the industry, including our performance, I think they are still welcomed by them.Of course, there have been some new phenomena since this year. For example, there are some new changes in the technology guidance funds in various places. Therefore, I think that in the composition of LP, it may be slightly different from the previous years, and the structure will definitely change.But we are doing a good job of raising funds, and there are more ammunition to make the next investment. I think this should be no problem.36氪: Is the fundraising ratio of this round of fundraising LP and Legend Holdings still almost 1:1?Wang Mingyao: We will do more marketization. The proportion of investment by Legend Holdings will drop to about 25%, and the external funds will account for 75%. This is our basic arrangement.When we raised funds in 2017, it was the first time to open to external LPs, so at that time, Lenovo held 50% and other LPs 50%. This is the first step.The second step is our new fundraising this year. The external LP will account for 75%. This is already a very market-oriented fund.36氪: We know that Lenovo Star just opened a resumption meeting last week. What can you share with us about the resumption?Wang Mingyao: Let me introduce the reorganization of Lenovo Star. We have formed some good conference systems.Our investment teams at the annual reorganization meeting have their own resumption meetings. For example, the re-opening that we just opened last week will be directed to the TMT and artificial intelligence investment groups.In this year’s TMT and artificial intelligence direction, we have a lot of interesting points.One of the points is that before the start of the meeting, we reviewed a medium-term strategy formulated at the end of 2015 and early 2016. We originally set three investment directions: continue to invest in TMT, increase investment in health care, and system.Ground layout artificial intelligence.Looking back at that point is actually very interesting. Why?Because in 2014, Lenovo Star invested in a fun game, when TMT, especially mobile Internet should be the hottest era.At that time, we did not say all in O2O, TMT, but took the initiative to strengthen the direction of medical health, and then began to invest in artificial intelligence.Looking back now, these strategic plans that were originally made actually affect our current position.Now that I have implemented it, I think the effect is still very obvious. For example, in 2015, the proportion of medical health in our project was very low. It is estimated that 10% can’t be reached, but now our medical health may account for 40%.This strategy has not been limited by which industry did not fire, but saw some opportunities in the future.The second point is the summary of the technology group.In fact, artificial intelligence is not an industry itself, it is a concept.Lenovo Star will broaden this direction. In general, we will invest in the two big keywords of informationization and intelligence, instead of simply investing in artificial intelligence or intelligent hardware.I believe that we will welcome some new and big opportunities, such as the opportunity to usher in a new 5G.2010 is the first year of 4G and the first year of mobile Internet.But now in 2019, it will happen to be the first year of 5G in 2020, so at a new time, we will seize the opportunity of 5G.There is also the current trade situation between China and the United States. For us to make early investments, it is actually a very good time. We can seize this opportunity and invest money in domestic excellent technical talents.In the past, import substitution, domestic demand side, many manufacturers are actually not motivated to use domestic alternative products, but because of the current background, they will use domestic products and technology more actively, we will invest in these projects will be fasterThe possibility of growth.In addition, we have found through retrospection that in fact, some directions have formed a thing that we have repeatedly said that we can play according to the ground: for example, we are investing well in the direction of artificial intelligence, in fact, there are one or two very accidental projects, and then plusOur active layout puts it into a base.For example, our artificial intelligence first invested in Face++, Spirent, and Zhongke Hongba. We gradually took this as a core direction, and then laid out a layout around it to create a base.For example, we are focusing on intelligent education in education, and we have developed well in the homework boxes of the previous investment.Now we have invested in a number of very fast-growing projects.We have reorganized our own bases and will continue to strengthen around our competitive direction.In the early stage, we have the direction of autonomous driving, the direction of optoelectronic technology, and the future may follow these directions related to the chip.In addition, we will be prepared for the future, so we are considering some emerging markets, such as the direction of the sea.Lenovo Star Team Source: Lenovo Star 36氪: What you just talked about is the strategy, context and future play of our investment. At this meeting, did you summarize some of the investment performance in the first half of the year??Wang Mingyao: Lenovo Star has invested in nearly 30 projects in the past six months.There are about 35 projects that have received the next round of financing, and the financing amount is also 3.5 billion yuan. The amount of multiple projects is actually over 100 million yuan, such as pioneering pharmaceutical industry, deep core medical care, homework box, questionnaire network and so on.The other is the added value of the invested projects. The value added in the first half of this year has almost exceeded that of last year, so it is an explosive growth.In addition, we have five projects that have exited in the first half of the year.Overall, this is a period of rapid growth. The categories we invest in have entered a rapid growth period at the current time node, just like the Face++ we talked about at the beginning.36氪: The Lenovo Star CEO training class has always been very famous in the industry, and each registration is relatively hot.What are the criteria for selecting these students?Wang Mingyao: Lenovo Star was established in 2008. In fact, it was originally to support innovation and entrepreneurship. At the beginning, we set up a Lenovo Star Entrepreneurship CEO training class, which was a public welfare training. It has been 11 years since now.There are 988 graduates, and the 988 students, the combined market value may be between 670 and 1 trillion, like last year they raised 460 billion.Everyone knows that this year is particularly bad. There are still 15.5 billion in the first half of the year, so it is China’s largest entrepreneurial ecosystem.From our point of view, in fact, I hope to pick out a bunch of real entrepreneurs, not just to make a small business to make a profit, we hope that they can all make a big business in an industry.There is great value in it, so we need the values of the students to be very pure.The second is that our students are all in the new economic industry. In the Internet-based, technical, and medical industries, all of these industries have the potential to grow at a high speed. They are also very energetic. This is our second.Standards.Third, a very important part of our investigation at that time was their motivation to participate in this class. Some people participated in similar projects to engage in resources. I can now clearly say that we definitely don’t want this kind of person, so the lastThe atmosphere of this class formed is very good.This is related to our initial heart. We are doing public welfare. Legend Holdings subsidizes 10 million yuan a year. We will do special training classes, and our initial heart is very positive.Investment is the realization of cognition and resources 36氪: How are you a style investor?Wang Mingyao: I think it is still a relatively calm person. This calmness is because I have been in this industry for a long time. I entered the industry in 2000 and 2001, so I have observed changes in the entire industry and various institutions.The change is this observation of people.The second is the observation of things. In the middle, we have experienced various so-called waves and bubbles, from the earliest Internet, to various videos, to group purchases, and so on.So when I look back, it makes me relatively calm. It is such a person who looks at the essence. There are almost no chances of being tricked into various so-called bubbles. We have all spent more effectively.All kinds of pits, I hope to see a little further, and engage in value investment.36氪: In your years of experience, what are the three projects that you feel most satisfied with, or the three most successful projects?Wang Mingyao: From a satisfactory point of view, the earliest important thing for Lenovo Star is the fun game, because after we finished the investment in 2010, it was listed on the NASDAQ in more than three years, and its value increased.It is also a hundred times, which has brought us a lot of influence.At the same time, in this process, we are growing together with entrepreneurs. I feel that I have seen tremendous changes in entrepreneurs.The second one is definitely Face++, whose founder has indeed changed from a student to a very good entrepreneur today.In the process we have a lot of interactions, it not only brings us rewards, we also participated in its various important strategic transformations, from the earliest game to the game direction, I have with their foundersVery in-depth communication has played a role in promoting. Up to now, some of the important ways and measures we have taken have been deeply involved. This has a great impetus to our entire intelligent direction.If the third one is said, I hope that in the future, it will be better. I believe that in the new wave, there should be more opportunities.The direction of the technology we are carrying out is very explosive now, and we hope that the next one will be even better.36氪: Many of our 36-inch users are young entrepreneurs or new investors. Do you have any experience and suggestions to share with them?Wang Mingyao: The perspective of entrepreneurs and investors is very different. Of course, there are similar aspects. For those new to the industry, I think it is the same as us to explore a new investment direction.It’s okay to start with enthusiasm, but the most important thing for you is to figure out the boundaries of the industry. You have to build a framework for understanding the world.For newcomers, it is feared that he has not established the framework, and has made a wrong judgment on the magnitude of many things.For example, if you are investing, you must look at some cases. Don’t come up with it. When I meet someone, I am very happy. I feel that I should vote. How can you talk about dozens of one hundred to consider starting to vote?I feel that to invest, we still have a very stable attitude.We can really do a good job of investing in this matter. We think that this is actually a realization of your cognition and your resources. On the one hand, it is enough to think about this matter, cognition is useful, but it is cognitive.It doesn’t work. For example, we all know that artificial intelligence is very important. Auto-driving is very important, but your resources are not enough. You can’t succeed in top-level entrepreneurs.I think this requires a process of accumulation, constantly honing your own awareness, and constantly accumulating your own resources, and then you can vote for it at a certain coincidence.The project that I just mentioned is a good luck game, but the main reason is that in the past ten years, I have been paying attention to all the games on the mobile phone. I probably know the friends in this circle.So when the entire mobile Internet came out, I was able to catch it when the smartphone came out.So there is a saying called luck that always cares for those who are prepared.That is to say, it is also necessary to accumulate all aspects. There will be an outbreak at some point in the future, so I feel that this mentality is also very important.Extraordinary stems from insight, and actual combat creates value.The Value Catcher is an in-depth interview program for investors, dedicated to sharing real-world investment experience and new business track observations with 36-inch users.Welcome investors to share with us (contact: Wang Tingting contact [email protected])..
Value catcher | Lenovo Star 2019: Outbreak in the dark night