Tuesday, May 31, 2016

The next Silicon Valley? ...

A Silicon Valley entrepreneur and angel investor (originally from Germany) on the Beijing startup ecosystem. See also Canyons of Zhongguancun.
recode: ... Beijing will be the only true competitor to Silicon Valley in the next 10 years.

Beijing is not just a nice startup playground which might become truly interesting in a few years. This is the big leagues now. Startups can achieve massive scale quickly, because the domestic market is 1.3 billion people, which is four times the U.S. or European population.

An increasing share of these 1.3 billion people is actually targetable. In the U.S., 190 million people carry a smartphone; in China, it is more than 530 million today, and it will be 700 million or more in three years.

But a large market alone does not mean that a place will become a startup hub. It is the combination of market size and the extreme consumer-adoption speed of new services, combined with the entrepreneurial spirit and hunger for scale of Chinese entrepreneurs.

Beijing is the main hub where it happens. Here, entrepreneurs, engineering talent from the two top Chinese universities — Tsinghua and Peking — and VC money come together. Seeing the scale, speed, aspirations, money supply and talent here, I walked away thinking this will be the only true competitor to Silicon Valley in the next 10 years.

... Big startups are built in three to five years versus five to eight in the U.S. Accordingly, entrepreneurs who try to jump on the bandwagon of a successful idea scramble to outcompete each other as fast as they can.

Work-life balance is nonexistent in Chinese startups.

Meetings are anytime — really. My meeting in Beijing with Hugo Barra, who runs all international expansion for Xiaomi — the cool smartphone maker and highest-valued startup in China, at around $45 billion or so — was scheduled for 11 pm, but got delayed because of other meetings, so it started at midnight. (Hugo had a flight to catch at 6:30 am after that.)

In China, there is a company work culture at startups that's called 9/9/6. It means that regular work hours for most employees are from 9 am to 9 pm, six days a week. If you thought Silicon Valley has intense work hours, think again.

For founders and top executives, it's often 9/11/6.5. That's probably not very efficient and useful (who's good as a leader when they're always tired and don't know their kids?) but totally common.

Teams get locked up in hotels for weeks before a product launch, where they only work, sleep and work out, to drive 100 percent focus without distractions and make the launch date. And while I don't think long hours are any measure of productivity, I was amazed by the enormous hunger and drive. ...

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