Source: CCTV.com

02-13-2008 16:25

Entrepreneurs, have their dreams. But not all of them, have the means to achieve them.

That’s where Venture Capitalists come in. VCs often fund early to growth stage start-ups, based on their belief in the company and its potential. Many of their investments fail. But once in a while, they strike gold.

For our special BizChina 360, we’ve so far covered an overview of China’s VC Industry, reviewed investment trends and taken an in-depth look at the VC players. In our fourth out of five installments, we turn the tables and look at the industry from an entrepreneur's perspective. And the trials and tribulations one entrepreneur faces as he tries to turn his dream into a reality.

The pitch. A moment that every entrepreneur dreads but can’t escape.

And even if the silence is deafening, he or she still has to plough through it because those men in suits hold the key to their dreams. The Venture Capitalists.

Wang Lifeng is a Chinese entrepreneur. A little over three years ago, angel investors helped him realize his dream of setting up his own digital animation studio in China. And although they were his personal friends, the deal was strictly business.

Wang had a compelling case. He was pitching China, a country with a potential audience of 1.3 billion people. And he was pitching himself, a Masters degree graduate from British Columbia at the tender age of 20. And a person, who was full of drive.

Wang Lifeng, CEO of Eastar Digital Animation said "You know, my background is engineering and computer science. But I guess the passion for always being an entrepreneur has always been there. And I have been learning. Even I was working for others in other company, and I was working on a project. Even while I was studying I have always been thinking okay-where is the business angle of things and how do we take it-how can we commercialize my thesis. So I think there was a bit of a born with entrepreneur spirit in me where you know, I took it to realize to start the company."

Wang co-founded Eastar Digital Animation, also known as Xing Xing, together with U.S. veteran animator and award-winning director Becky Bristow. With 1.15 million US dollars in angel fund, together they nurtured their dream. From five artists and no revenue, the Beijing-based company now boasts around 200 artists with a sizeable revenue stream and a small profit.

Getting that call is like getting a new lease of life for most start-ups. But for Wang, VC funding will help propel him, to the next level.

Wang Lifeng said "Right now it’s 21st century so everything happens in lightning speed. So you want to grow faster and you want to be the leader. We are already the leader in the industry and we want to maintain that, and to expand that lead. Then you need money to help you achieve that dream."

The fact that Wang already has a proven track record puts him in an enviable position. He actually has more than enough interested VC investors. But he’s taking his time.

Wang Lifeng said "Of course money is the most important thing. When you talk to investors that’s what you want from them. But in addition to money you want them to be supportive. You want them to understand your industry...so they can be very constructive while helping you. And when they understand you of course you can work better with each other, right? They will be on the board, they will be our director. So it's very important to me, to pick-the find the right investor.All my friends who have done this-been there –always tell me oh, it’s so important. I can’t emphasize more. Listen to me, Got to find the right investor., otherwise just keep going as you are as you are cash flow positive. You don’t have to rush to get your money. So instead of getting the wrong investor, it’s better off that you wait and find the right one."

But having the money or the right investor does not guarantee success, if you haven't got the chops. So what are the qualities that investors believe make for a good entrepreneur? An industry veteran, offers this advice.

Zhang Fan said "I have spoken many times to entrepreneurs about the best quality. It has rarely been the college degree or employment, or your age or personal connections. Those all matter. But the key quality in my opinion is patience, perseverance and tenacity."

And what qualities does Wang think he needs?

Wang Lifeng said "Passion for what you do and persistence. That's I think the two most important factors. I remember reading an article back in 1999. It said it’s not about money it’s about passion. It’s not about business plan it’s about team. So think those are true. I think passion is a very big factor and the ability to learn. The ability to adapt. Persistence as I said. And honest. You have to be honest to yourself, to your team, to our investors."

And armed with the right investor and passion, Wang has big dreams.

Wang Lifeng said "We think China-we are at the right place, at the right time to build a major digital media company that can produce world class content. Not just for kids-not just for Chinese kids. But for global audience, so that it's our goal."

He admits there will be challenges along the way. Funding. Human resource. Market conditions and even government regulations. But in the true spirit of an entrepreneur he sums it up best in one phrase.

Wang Lifeng said "There’s nothing I don’t think, you can overcome."

 

Editor:Xiong Qu