It’s Labor Day, I’m still groggy from just waking up .. but this is a good piece worth sharing here if you’re looking for opportunities, and focused on mobile and cloud computing. Google’s China chief Kai-Fu Lee just left Google (some of us recall this as it was a controversial high profile hire because Lee was poached from Microsoft). Here’s what he is up to next, and his words from an interview with peHUB.
“There is a confluence of several things happening in China, and we’re at an inflection point of mobile Internet, cloud computing and ecommerce. It’s really now or never.
There is an abundance of companies here and VCs have lots of money, but there is a lack of angel funding and experienced entrepreneurs. It’s a compete imbalance. Whatever you might think of Y Combinator or Idealab in the U.S., the China market is different. China needs this type of business-building platform to hire and train people and provide angel funding, which is scarce.
There also is a worldwide economic crisis, which means that there is a bunch of strong talent out there that we want to hire, in order to start a lot of exicting businesses.“
On why it’s “now or never”, he says,
“Ecommerce in China has gone from 7% adoption to 25% adoption. Payment capabilities are just happening. Really, it’s a lot like the late 90s in the U.S. Remember how quickly Amazon and eBay and even Google search took off? You have to imagine the current Chinese Internet as news and games and blogging, but a big shift is inevitable. The average Chinese Internet user is just 25, compared to 42 in the U.S. That means they are getting older, getting more money, getting married, having kids… A rising ecommerce will lift all boats.
In terms of mobile, there are 650 million cell phones in China and mobile Internet usage is growing like crazy. It’s not just knowledge workers, but it’s also growing rapidly for groups like migrant workers and people making just a few dollars a day. They view it as the only way to access information, and with usage and volume a lot of things will grow.
There also is 3G, which is the one thing the Chinese government is going after and developing this year. In China, when the government wants to do something it happens.
For cloud computing: China has never really developed a software market, and what’s happening is like what’s happening in the U.S. – moving from packaged software to online or the cloud. In that process new businesses and models are starting to happen. If you look at the success of the Amazon platform or Google apps in the U.S., it will also be true in China because there are millions or people who want easy ways to build websites.
There is incredible opportunity right now.“
Via peHUB.
