Showing posts with label Marc van der Chijs. Show all posts
Showing posts with label Marc van der Chijs. Show all posts

Tuesday, April 07, 2015

Company valuations go through the roof - Marc van der Chijs

Marc van der Chijs
+Marc van der Chijs 
China-investor Marc van der Chijs visited Shanghai for a board meeting of Dianrong, a financial internet firm, and summarized a few observations on his weblog. Company valuations are going through the roof and how they start to buy R&D outside China.

Marc van der Chijs:
Company valuations are going through the roof, especially private company valuations. When Tudou raised its first round in late 2005 valuations were probably 10% of what they are now. At one time Tudou raised the largest round ever for a Chinese company, which was $57 million at that time. Now that number is just peanuts and many companies have raised hundreds of millions in later stage rounds. 
Although in Silicon Valley valuations are also extremely high (e.g. Uber @ $40 billion and Snapchat @ $19 billion), I have the feeling that Chinese tech companies tend to get ever higher valuations based on the same numbers. I have no data on this, but that’s just what I hear when talking to local VCs. One reason may be that the Chinese market is potentially much bigger than the US market, although most Chinese have a lot less earning power. And for Chinese companies it may be easier to go abroad (with the right management teams) than it is for US companies to enter China. 
A relatively new trend is that Chinese companies are now actively buying R&D from outside China. With growth rates going down to about 7% this year they need to find other ways to grow faster, and foreign intellectual property is a good investment for that. We see it a lot at CrossPacific Capital and several of our portfolio companies are in discussions with Chinese buyers. Chinese companies are especially looking for companies that can deliver revenue right away, so products that can immediately be integrated or sold in China. 
The valuation of these companies mainly depends on the current product portfolio and less on the value of the IP for future products. Chinese business men want to see results now, nobody knows what will happen in 4-5 years so that’s less important. Generally valuations for these companies are a lot higher in China than in North America, meaning that if you can identify the right products or technology you can make a good return on your investment. However, valuations are not as high as Chinese Internet and tech companies.
More impressions at Marc van der Chijs´ weblog.

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´ request form.

Are you looking for more internet experts at the China Speakers Bureau? Do check out this list.  

Wednesday, December 03, 2014

China business: build on your local partner - Marc van der Chijs

Marc van der Chijs
+Marc van der Chijs 
When China entrepreneur Marc van der Chijs moved to Vancouver two years ago, he had already a history of Chinese start-ups under hit belt, including China´s largest video hosting firm Tudou. As VC he remains active in China from Canada, he tells LearnChineseBusiness.com, but misses the daily business vibe of the country.

LearnChineseBusiness.com:
LCB: What advice would you give to someone who wanted to start a business in China, or who wanted to do business with China from outside of the country? Is there anything that they should particularly be aware of? 
MVDC: There are so many things that you need to be aware of, but I think the most important thing is to have a local partner, someone you can trust. Without that it’s virtually impossible to do business successfully in China as a non-Chinese person. I could, for example, never talk to high-level government employees, even if my Chinese would have been better. You need a local Chinese person for that, and not a consultant or someone who works for you, but a partner who shares in the ups and downs of the company. Next to that, in China you need time to do business. You need to build up trust relationships with people, and that doesn’t work if you just fly to China once or twice a year. Either you need a local partner on the ground that builds up the business with you, or you need to be in China much more often. Because China is so big, companies expect quick results, but in reality it may take at least two to three years for most foreign companies before their local Chinese business starts growing. 
LCB: What’s next for you? Will there be any more China- or Asia-based businesses founded by Marc van der Chijs in the future? 
MVDC: I will be directly or indirectly involved with the Chinese operations of several companies I personally put money into or that our fund, CrossPacific Capital, invested in. For example, right now I am on the board of the fast-growing p2p lending site, Dianrong.com. I always look for new business opportunities for our portfolio companies. This year I helped to co-found a p2p insurance company, Uvamo.com. The company will first launch in the United States, but I could imagine that we would eventually also set up Chinese operations because there is a huge market for this in China. I don’t see myself living in China in the foreseeable future, but once my kids are a bit older (they are five and six now) I may consider it again. I miss the business vibe in China, but I also know that once I live in China, I’ll miss the quality of life and the natural surroundings that I have in Vancouver. There is always a trade-off, and I am quite happy in my current role where I work with China but am based in Canada.
More in LearnChinaBusiness.com 

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you interested in more expects on risk management in the China Speakers Bureau? Check out our recent list.  

Monday, June 23, 2014

Risk management experts at the China Speakers Bureau

Foreign companies fear an increasing risk in China, now the government is tightening legal supervision, fighting corruption and banning business practices that were considered to be common up to a year ago.  GSK might be one of the high-profile cases in the anti-corruption drive, but no foreign company or industry is not worried about those changes. The China Speakers Bureau can offer a range of experts on risk management in China.

Are you interested to retain one of these speakers at the China Speakers Bureau for your event? Drop us a line.  

+Benjamin Cavender 
Ben Cavender is a senior analyst with The China Market Research Group (CMR) focusing on strategic planning and brand positioning.

Recent Project Experience:
Fortune 100 Chemical Company-5-Year Growth Strategy: Over a 6 month engagement focused on understanding emerging market trends, evaluating competitors’ positions in the market, analyzing value chain inefficiencies, and uncovering potential growth markets in order to develop a 5 year growth strategy for the China market

Billion Dollar Private Equity Fund-Investment Strategy: Conducted due diligence into $100 million USD investment including assessment of management capabilities, potential of brand and products for long term growth, strength of retail network, and evaluation of competitor threats to develop an investment recommendation and strategy.

You can read about Ben Cavender´s recent activities here.

Marc van der Chijs
+Marc van der Chijs 

Marc van der Chijs, Founder Tudou, Partner at the venture capital firm CrossPacific Capital.

Marc van der Chijs is one of the high-profile foreign entrepreneurs who discovered how to be successful in China. After a short stint at Daimler-Benz in China, he decided to continue by himself and teamed up with people who now belong to the internet jetset of China.

He worked in a wide variation of industries: games, e-commerce, online fashion sales, but established his reputation as co-founder of Tudou, at the time the second-largest  video hosting company in China, larger than YouTube. Running media-related ventures in China is extremely risk prone, and Marc has become an expert in managing risk in difficult industries.

He is currently involved with a range of China projects, board member of the disruptive financial startup Sinolending, and the development of Bitcoin.

You can read about Marc van der Chijs´recent activities here.
 
Paul French
+Paul French 
 Paul French, author and Chief China Market Strategist at Mintel.

A prolific author of books on China and North Korea, including subjects like obesity, foreign correspondents and even a best-selling historical novel about a murder in Beijing. With a typical British touch, Paul knows how to challenge any audience.

He earned his business stripes as a retail analyst in China, and a much wanted speaker on China´s fast changing business climate. With villain British humor he analyzes the capital mistakes by both foreign and Chinese companies in trying to do business.

As a China specialist he has been quoted in a wide variety of publications including the FT, Newsweek, the Wall Street Journal Asia, the South China Morning Post and the LA Times.

You can read about Paul French´s recent activities here.
Paul Gillis
+Paul Gillis 

Paul Gillis is professor of practice and co-director of the IMBA program at the Guanghua School of Management at Peking University, CPA.

Paul Gillis is a renowned and outspoken analysts of accounting practices of foreign firms in China.

As a retired partner at PWC (1976-2004) he teaches accounting, auditing and finance at the Guanghua School of Management at Peking university since 2007.

He has lectured at the Communist Party School and regularly speaks to investor and corporate groups. He published in 2014 his book The Big Four and the Development of the Accounting Profession in China (Studies in the Development of Accounting Thought, based on his PhD.

You can read about Paul Gillis´ recent comments here.
Shaun Rein
+Shaun Rein 

Shaun Rein, managing director of the China Market Research Group (CMR)

Shaun Rein is one of the world’s recognized thought leaders on strategy consulting in China. His book ´The End of Cheap China. Economic and Cultural Trends that Will Disrupt the World´, published in 2012, solidified his reputation of challenging established classic ways to frame China.

He is a regular commentator on Bloomberg TV, The Wall Street Journal and other mainstream media.

At the end of  2014 he will publish his new book´The End of Copycat China.  The Rise of Creativity, Innovation, and Individualism in Asia´. In that book he will explain how China from a copy-and-past culture is now developing into one of the world´s leading innovators.

You can read about Shaun Rein´s recent activities here.
Mark Schaub
+Mark Schaub 

Mark Schaub, Partner at King&Wood and Mallesons, the largest law firm in China and Australia combined.

Mark Schaub is a prolific speaker who wastes no time in avoiding the real challenges in doing business in China.

As a lawyer he had extensive experience in negotiating deals, firing people and otherwise dealing with the ignorance of companies entering the Chinese business minefield. Mark Schaub has 15 years of legal experience in China and was the first foreign lawyer to enter a Chinese law firm.

You can read about Mark Schaub´s recent activities here.

Are you interested in other subjects concerning China? At our bureau announcement page you can find more lists of our speakers on different subjects. Or you can ask us for a tailor-made proposal for your event.

You can also order this upcoming publication on managing your China risk by Jeremy Gordon:

Friday, June 13, 2014

Raising US$500k in two minutes, the Dianrong story - Marc van der Chijs

Marc van der Chijs
+Marc van der Chijs 
China is not short of amazing success stories, especially when it comes to the internet. VC Marc van der Chijs is  board member if Dianrong.com and tells how the company raised US$500k in two minutes for a new financial product. From his weblog.

Marc van der Chijs:
In a cooperation with Sina, Dianrong will now offer lenders a 10% guaranteed annualized return on their investments in a new product that they offer. Anybody can join, the minimum amount that you need to lend out is RMB 500 for a period of 6 months. However, the offer is only available until Monday or until 3 million RMB has been lended (whatever comes first)...
I think this will be a very popular product, because the principal and interest are guaranteed and because it’s offered in cooperation with leading portal Sina. The product will introduce more people to the concept of p2p lending in China, where the savings rate is traditionally quite high and banks like anywhere give low interest rates on deposits.
Dianrong is growing extremely fast and I am proud of the strong team that comes up with these new products and implements them quickly. Expect some more innovative products over the next couple of weeks.
Update: Unbelievable, the product below was so popular that it sold out in just 2 minutes! Only in China, finding lenders for 3 million RMB (about US$ 500K) in 2 minutes. I love it!
More at Marc van de Chijs´s weblog.

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you interested in other internet expects at the China Speakers Bureau? Do check out this recent list.  

Friday, April 11, 2014

Bitcoin: still going strong - Marc van der Chijs

Marc_vander_Chijs_Pressphoto1
+Marc van der Chijs 
In China the financial authorities have come close to a ban of the Bitcoin, and the news in general has been negative. But China entrepreneur and Bitcoin enthusiast Marc van de Chijs explains on his weblog why the crypto-currency is likely to keep on shaking the financial markets. 

Marc van der Chijs:
Now that initial regulations are in place I think a new era of Bitcoin has started. The past 4 months have seen a gradual decline in Bitcoin prices, mainly due to the potential ban of Bitcoin in China, but also due to the non-stop flow of negative news about Bitcoin. A lot of the early entrepreneurs turned out to be frauds, crooks or criminals, and even some of the newer ones seem to be doing the same thing (unfortunately the CEO of the Cyprus Bitcoin bank NEO BEE seems to be the next example). 
Most of the decline in price is due to the fact that speculators left the market and that the Chinese BTC holders are selling their coins. People see the news, don’t fully understand it, get scared and decide to sell their holdings. Typical behavior in a market crash. 
Bitcoin has shown that it is quite resilient. After the Mt. Gox disaster many people predicted the price would go back to mid-2013 levels ($100), but that did not happen. Each time the price dropped others started buying. That happened for a while at the $400 support level, but that was broken today. Nobody knows what will happen over the next days (especially China news can give BTC another dip), but because there is a lot of smart money waiting to buy in I think it might be back above $400 sooner rather than later.
More at Marc van der Chijs´weblog.

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you a media representative and do you want to talk to one of our speakers? Do drop us a line.
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Monday, March 17, 2014

China´s largest Bitcoin exchange raises US$10m in funding – Marc van der Chijs

Marc van der Chijs
Marc van der Chijs
OKCoin, claiming to be China´s largest Bitcoin exchange, got a first round of VC funding of US$10 million, writes VC Marc van der Chijs in Coindesk.com. Target: growth outside China.

Marc van der Chijs:
The investment round was led by Ceyuan, one of China’s earliest venture capital firms, followed by Mandra CapitalVenturesLab and numerous high-profile angel investors. 
Despite the nation’s recent crackdown on cryptocurrencies, it seems Chinese venture capitalists are still bullish on bitcoin exchanges and the currency itself. 
Back in November 2013, the focus of the bitcoin community was on China – the world’s hub for bitcoin trading. At that time, BTC China was the biggest exchange in the world, having managed to raise a $5m Series A funding round from Lightspeed Venture Partners (Snapchat, Nest). There were even rumours that a bigger round was in the works for the young company. 
However, things change quickly. After the Chinese government began regulating bitcoin in December, trade volume plummeted and the world’s top exchange was no longer Chinese. 
Local exchanges came up with creative solutions for customers to continue to buy and sell bitcoin, and players like Huobi and OKCoin claimed to pass BTC China in their daily trade volume, although these figures have been the subject of much dispute
OKCoin has grown rapidly over the past few weeks and is now the biggest Chinese exchange, according to its CEO Star Xu. He claims the exchange’s current daily trade volume is approximately 50,000 bitcoins per day. 
Interestingly, on top of that, the exchange allegedly trades 5 million litecoins per day. The company claims that at its peak it reached over 300,000 bitcoin and 13 million litecoin trades.
More in Coindesk.com

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form. 

Are you a media representative and would like to talk to one of our speakers? Do drop us a line.
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Friday, February 28, 2014

Tudou: ten years to profitability - Marc van der Chijs

Marc_vander_Chijs_Pressphoto1
Marc van der Chijs
Tudou founder Marc van der Chijs is having a small party. Ten years after he started China´s video sharing firm Tudou (now merged with former competitor Youku), the company turned profitable. A bit longer than we expected, he writes on his weblog

Marc van der Chijs:
Today Youku Tudou released its Q4 2013 results and the online video site is now officially profitable! It’s almost 10 years ago since I entered this sector, at that time I had not expected that it would take so long to reach this milestone. Although I have not been involved in the company for quite some time it’s still a nice feeling to see that the company is doing so well. 
I dialed in on the earnings call a few hours ago and was impressed with how the company is doing and with their expectations and plans for 2014. The share price immediately reacted, during regular hours it went up by 3% and after the results were published by another 8.5%. Let’s see what will happen when Wall Street opens on Friday!
More at Marc van der Chijs´weblog.

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you a media representative and do you want to talk to one of our speakers? Do drop us a line.
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