Name: Outlier Investor
Author: Leo Wang

Pain is for Evolution!


In today's fast-paced world of technology and innovation, the role of startups is more critical than ever. These burgeoning enterprises are the crucibles where new ideas are tested, refined, and sometimes, revolutionized. However, the path to innovation is not without its challenges, particularly in the early stages of a startup's journey. This is where the mission of democratizing angel investing, as championed by PreAngel Fund, becomes pivotal.

### The Necessity of Failure in Innovation

Innovation is a process that inherently involves a significant degree of trial and error. The reality is that for every successful startup, there are countless others that don't make it. Yet, it's these failures that pave the way for new breakthroughs. Each failed attempt is a learning opportunity, contributing to the vast pool of knowledge and experience that eventually leads to successful innovation.

### The Gap in Early-Stage Funding

While Venture Capitalists (VCs) and Private Equity (PE) firms play a crucial role in scaling businesses, they typically step in only after a startup has shown some proof of concept. This approach leaves a significant funding gap in the earliest stages of a startup. Angel investors are often the only ones willing to take the risk of funding startups at their inception. They are the unsung heroes who fuel the dreams of entrepreneurs when their ideas are just taking shape.

### Addressing the Imbalance

Currently, there is a stark imbalance between the number of startups seeking funds and the available angel investors. To truly foster a thriving startup ecosystem, we need to increase the number of angel investors by a hundredfold. This increase is essential to provide sufficient opportunities for a diverse range of startups to take root and grow.

### Engaging Amateur Angel Investors

Given the impracticality of dramatically increasing the number of professional angel investors, the solution lies in engaging amateur investors in the innovation process. These individuals, often outside the traditional investment sphere, can bring fresh perspectives and new capital to the startup world.

### Overcoming Thresholds for Amateur Investors with PreAngel

PreAngel Fund has shown that it's possible to start an angel investment firm with raised funds, acting as a beacon for amateur investors. One of the key insights from PreAngel is that startups don't always need large sums of money initially. In fact, limited funds can sometimes spur more creative and innovative solutions. This approach lowers the entry barrier for amateurs who might not have substantial funds but possess valuable industry experience and skills.

### Manifesto for a New Era of Angel Investing

In an ideal world, any founder should be able to secure angel funds from their own community - family, friends, colleagues, and local investors. Anyone with more than $15,000 could be a legitimate angel investor, and those with industry experience or specific know-how could become invaluable mentors to founders. This approach would create a more inclusive and dynamic startup ecosystem, where a broader range of ideas could be nurtured and brought to fruition.

### Conclusion

Democratizing angel investing is not just about increasing the number of investors; it's about cultivating a culture where innovation is supported at its roots. By lowering the barriers to entry for angel investors and embracing the contributions of amateurs, we can create a more diverse, resilient, and innovative startup landscape. The mission of PreAngel Fund is a testament to this belief, demonstrating that with the right approach, anyone can contribute to the exciting world of startups and help shape the future of innovation.

---

*About the Author:*  
Leo Wang  
Entrepreneurship, Investment, Cultivation  
Founder of PreAngel Fund

Democratizing Angel Investing


The original Chinese version was published on July 8, 2015 at [HERE](https://mp.weixin.qq.com/s/jzg8SvRIdQhHuxhJf_xQtg)

Sitting on a flight from San Francisco to Shanghai once again, I reflect on my immense gains from Silicon Valley: in projects, information, and mindset.

During my two-week investment trip in the US, I pondered over several questions amidst the backdrop of a domestic stock market plunge and financial crisis rumors. As an angel investor, this situation made me reconsider my views on the capital game, human nature, women in business, technological innovation, robotics, entrepreneurship, investment philosophy, and the meaning of life.

Despite not being formally educated in finance or economics, my understanding of the capital market comes from a perspective of a business owner. I see the capital market as a financing arena for businesses and a platform for early investors to liquidate their shares. However, the nature of the market is more complex. I'm aware that the primary market often involves tough negotiations with professional investment institutions, leading to a low valuation of companies.

In contrast, the secondary market seems riskier with its inflated valuations and stock bubbles. The astronomical price-to-earnings ratios of some stocks in the A-share market highlight this risk. Here, the game is more about speculation, with many investors lacking a deep understanding of the businesses they invest in.

Despite these challenges, the primary market, especially for angel investors like me, seems to be in a better position. The risk here is comparatively lower than in the secondary market. Over the years, my investments in numerous startups, some of which failed and others thrived, have taught me that angel investing is about perseverance and belief in innovation.

During my US trip, I focused on investments in American tech startups and observed rising female entrepreneurial power. Women understand the consumer market better, especially female consumers. Their growing socio-economic status and natural managerial skills make them formidable entrepreneurs. Moreover, with technological advancements, the future seems bright for both women and tech startups.

I strongly believe that the essence of economic prosperity boils down to 'confidence'. If everyone is confident about the future, their actions will be guided towards prosperity. As for my role, I continue to invest in early-stage startups, believing that technology and innovation are the real drivers of progress. This faith guides my investment philosophy, which is rooted in the conviction that despite the risks and uncertainties, betting on innovative ideas and committed teams is worth the effort. Confidence is indeed the cornerstone of all economic activities.

Building on this conviction, I explore various aspects of the startup ecosystem, recognizing the interplay between angel investing, innovation, and broader economic trends.

The rise of robotics and technology in startups has been a key focus. Investing in companies developing hotel service robots, retail assistance robots, and other specialized robotic applications highlights the potential of these technologies to revolutionize industries. These startups, although high-risk, embody the transformative power of tech innovation.

Investing in startups, particularly in tech and robotics, aligns with my philosophy of fostering progress. This strategy not only mitigates the higher risks associated with the secondary market but also contributes to meaningful advancements. My experiences reinforce the belief that the primary market, especially for early-stage tech ventures, is more promising and less risky than the speculative nature of the secondary market.

Furthermore, the empowerment of female entrepreneurs has become increasingly apparent. Their unique insights into consumer behavior, coupled with their growing economic independence and managerial skills, make them potent forces in the business world. My investments in startups led by women reflect this trend and belief in their potential.

In summary, my journey as an angel investor revolves around a deep belief in technology and innovation as key drivers of progress, coupled with an appreciation for the evolving role of women in business. Confidence in these areas guides my investment decisions, shaping a philosophy that values potential and transformation over short-term gains. This approach, I believe, is not only financially sound but also contributes to societal progress, aligning with the fundamental belief that confidence is indeed the foundation of all economic activities.

---

*About the Author:*  
Leo Wang  
Entrepreneurship, Investment, Cultivation  
Founder of PreAngel Fund

Confidence is the Foundation of All Economic Activities

Back from Silicon Valley: 3


The original Chinese version was published on July 2, 2014 at [HERE](https://d.tech.sina.com.cn/contribute/post/detail/i/2014-07-02/pid_8456091.htm)

It's been over a year since I last wrote "[Back from Silicon Valley](https://www.leowang.net/post/back-from-silicon-valley-1-1)" on UA889, and this recent visit to Silicon Valley has been quite different, bringing a host of new insights and reflections.

Before I dive into the main content, a heads up to the readers: it would be beneficial to read last year's "[Back from Silicon Valley 1](https://www.leowang.net/post/back-from-silicon-valley-1-1)" first. Although the two articles are not logically connected, doing so would help in gaining a more systematic and profound understanding of the continued musings.

## 1: Globalization in Action

Before coming to Silicon Valley this time, everyone was stunned by the news that Uber, only four years old, had raised $1.2 billion with a valuation of $18.7 billion. So, the first thing we did after landing was to head to Uber for a free lunch and to witness and feel the "charm" of the company up close. We pondered, what made these "smartest" investors willing to trade $1.2 billion for less than 10% of its shares?

After the visit, I was struck by a profound realization: Peer-to-peer (P2P) is a groundbreaking revolution on the internet. It connects drivers and riders worldwide through Uber, facilitating instant interaction and safe transactions. More drivers attract more riders, and vice versa, creating a positive feedback loop. Once the numbers of both reach a threshold, the internet's transformative power of "quantitative change leading to qualitative change" takes effect. The traditional model of drivers simply transporting passengers could evolve into drivers delivering anything from the physical world — like ice cream, flowers, pets, suits, coffee, fruit, and more.

However, the challenge isn't the idea itself; Silicon Valley never lacks for ideas. The real test is gathering a group of geniuses to work towards a common dream. The Bay Area has the world's top engineers (product managers), but countless companies are vying for these talents. Walking through Uber's headquarters, seeing "ears" of all skin colors — true geeks — you realize that Uber must have done something right to win the talent war. The latest massive funding round adds even more ammunition to their arsenal. These geeks are leading a global revolution in transportation and logistics — emphasis on global. Uber already operates in 125 cities across 37 countries, with more to come. Their large screen showing a map with countless moving cars represents their significant "assets" around the world — a feat unimaginable in the past industrial era.

Therefore, in Silicon Valley, your small idea doesn't just change the Bay Area, San Francisco, or even just the U.S. Here, you're initiating a "global movement," truly changing the world!

## 2: Let the Winds of Freedom Blow

This emotionally moving motto from Stanford University might have inspired me to aim for it in my college entrance exams if I had seen it 20 years ago. But back then, I lacked confidence and was full of ambition without action.

Donald Kennedy, Stanford's eighth president, said: "The university must allow those with exceptional creativity to lead exceptionally creative lives." This too brought me to tears. Over 5,000 companies in Silicon Valley trace their roots to Stanford, benefiting from its culture of nurturing creative thinking and the pragmatic spirit of "integrating knowledge with action."

In 1884, after the untimely death of his only child, U.S. Senator and railroad magnate Leland Stanford promised his wife to found a university for all children of California. Ten years of tireless work and expenditure of his wealth led to the establishment of the university on their 35-square-kilometer farm. In 1935, Stanford's electronic engineering graduates Bill Hewlett and David Packard, advised by their mentor and "Father of Silicon Valley" Professor Terman, founded HP in a Palo Alto garage, initiating the garage startup culture.

Over the next half-century, numerous IT and internet giants like Intel, AMD, Apple, Cisco, Oracle, SUN, Yahoo, Google, eBay, Facebook, and Uber emerged from this environment.

Stanford alone offers over 20 entrepreneurship-related courses, and over 95% of students take at least one. The most popular is LaunchPad by IDEO founder David Kelly at the Stanford Design School, where students turn an idea into a marketable product in just 10 weeks. Successful ventures like Pulse News, which raised over $10 million, originated from this course.

We also visited Stanford's non-profit incubator StartX, where over 1,000 companies and 2,400 Stanford students have received funding, averaging $1.5 million each. One peer had just secured investment from Google Ventures, and Boosted Board, the electric skateboard company we later visited, also graduated from StartX. Their product made me want to learn skateboarding, with plans to get an electric one once proficient.

Running each morning at Stanford University, absorbing the tranquility and intellectual atmosphere of Silicon Valley's birthplace, surrounded by a diverse group of people on skateboards, bikes, running or using the latest "elliptical machine" bikes, was a pure delight. The century-old motto, "Let the Winds of Freedom Blow," echoed in my ears, highlighting the profound connection between societal progress, technological development, and educational philosophy and systems.

Stanford's exceptional system and philosophy attract the world's brightest minds who generously give back after succeeding. Despite only admitting 10,000 new students annually, Stanford provides over $70 million in financial aid, offering free tuition to students from families earning less than $100,000 and granting scholarships to 77% of its students.

A heavenly institution I missed this lifetime, but in the next, I must apply!

## 3: Winning with Systems

Whether it's a school, company, city, or society, healthy development fundamentally relies on excellent systems. Systems must evolve; outdated ones can halt progress, while overly advanced ones may cause instability or chaos. A fitting, excellent system is vital for education, enterprise, and societal development.

Some argue that talent is key, but delve deeper and you'll find that talent cultivation requires educational institutions to offer excellent education systems, and talent attraction requires businesses to provide outstanding corporate systems, including rewards, development, growth, and wellness. Without excellent systems, there can be no outstanding talent.

Beyond Stanford's educational philosophy and system displayed to the world, every Silicon Valley company we visited demonstrated an advanced and evolving corporate system.

We all know the routine: visit friends at Google, Facebook, Uber, etc., for a free lunch. A local entrepreneur shared that for the first three months of their startup, they ate for free at Google because one co-founder hadn't officially quit, allowing them to sneak into the company for meals — a minor thing for Google. The open culture of free meals and visits starkly contrasts with traditional IT companies like Cisco, Oracle, HP, etc. At Huawei, where I worked, bringing guests for a visit wasn't so simple, with many procedural and management restrictions in place, and meals definitely weren't free.

Entering these companies, one finds the working environment exceptionally comfortable and healthy. Engineers, like me, prefer standing desks with mats; some like lounging on sofas, hence the abundance of comfy couches at Google and Facebook. Everyone has multiple large screens, all embracing their inner geek. Work seems casual, with flat management, result-oriented evaluations, and at Google, employees officially allowed to spend 20% of their time on personal projects.

Competitive salaries and stock options, being part of changing the world, flexible result-oriented assessment, choosing work based on interests, a fun and comfortable office space, free food and entertainment, a healthy and sustainable work environment, and even pet-friendly policies — who would say no to such companies?

An aside, during our Facebook visit, we saw Mark Zuckerberg and a colleague walking and talking post-lunch, seemingly in deep discussion, a common work habit for Zuckerberg, reminiscent of Steve Jobs' preferred way of problem-solving. For Facebook employees, there's no hierarchical system or unapproachable bosses, fostering an environment where genius and creativity naturally thrive.

## 4: Moving Fast

During our visit to Facebook, we connected to a free Wi-Fi named "Facebook Guest" with the password "m0vefast". Our host explained that "Move fast" is part of Facebook's work culture, just like the ubiquitous "Hacker" signs around the campus, it's indicative of the Facebook hackers' work ethic.

Silicon Valley, in fact, has an intense work pace. People here know how to enjoy life and work efficiently. They spend weekends with family, surrounded by beautiful landscapes, and it's common to see cyclists and runners everywhere. Even on the highways, it's not unusual to see bikes strapped to cars, and these bikes aren't cheap — often costing over $1000, reflecting a culture that values cycling as a sport. When it comes to work, Silicon Valley denizens embrace a "fast-paced" attitude where time is life — and money. At an F50 pitch event, an investor emphasized time management, stating that she wouldn't meet with entrepreneurs without prior preparation and a convincing business plan, packing her schedule tightly.

Setting up meetings with local investors and entrepreneurs requires advance planning. Due to unfamiliarity with local traffic, I've scheduled meetings inefficiently across different parts of the valley, which proved unadjustable later due to everyone's packed schedules, creating a domino effect of conflicts.

On Bay Area highways, everyone drives fast. On my first visit to the U.S., I got a speeding ticket for driving 90 mph due to my ignorance of local traffic laws. Since then, I never dared to speed again. However, you can't drive too slowly either. On roads with a 70 mph speed limit, most drive at 80 mph. Drive at the limit, and you'll be passed one after another. It's interesting — you can't be too fast or too slow; maintaining a speed of 75 to 80 mph is necessary to keep up with the pace here.

"Move fast" also has a deeper, implied meaning here. Internet companies in the Valley pursue a "lean" culture, like the Lean Startup methodology. They're very careful and deliberate about every new hire, expecting each individual to be capable and self-sufficient. Silicon Valley companies believe in the multiplier effect of excellent talent and go to great lengths to attract the best, with Google being famously known for posting a complex math problem on a billboard along the highway to pique the interest of curious minds who could find the answer and were encouraged to submit their resumes. These genius engineers live to solve problems, and moving fast is part of their DNA — they think quickly, speak quickly, code quickly, and naturally, release products quickly.

Therefore, "Move fast" is not just Facebook's motto; it embodies the spirit of Silicon Valley as a whole.

## 5: Greatness by the Ordinary

"Even the greatest of undertakings can be done by the ordinary person."

Near the main entrance of Stanford, in a garden, there is a group of statues without any protective measures, which are the authentic works of Auguste Rodin. Stanford is the place with the largest collection of Rodin sculptures outside of France. The description of these statues reads:

This statement is the best motivation for ordinary people like us. I believe that the great men and women who have created miracles today, when traced back to their origins, were once inconsequential, ordinary people. We are born equal, and it is the efforts and perseverance we apply later in life that lead to different life experiences and the realization of our values.

Many entrepreneurs in Silicon Valley did not start their companies for material enjoyment or the pursuit of money; they were driven more by a simple dream. Some dreams may not initially reflect profound social value, but with the support and encouragement of a mature venture capital industry, these humble dreams slowly transform into commercial missions that change the world. Like black holes, they attract excellent talents to work hard together, and every individual's small dream adds up to a great ideal. In Silicon Valley, there seems to be a magic that gathers these elites in garages or incubators, where they compose the symphony of life on their keyboards. They are all ordinary programmers at the moment, but with persistent pursuit and perseverance, in the not-too-distant future, these ordinary individuals may create new miracles in numerous scientific fields and leave their extraordinary names in the annals of business transformation.


Back from Silicon Valley: 2


The original Chinese version was published on May 29, 2013 at [HERE](https://tech.sina.com.cn/zl/post/detail/2013-05-29/pid_8390742.htm)

Since starting at PreAngel, I've made it a point to visit the U.S., particularly Silicon Valley, once or twice a year. I meet with local VCs, entrepreneurs, leaders of student entrepreneurial groups from Stanford and Berkeley, and heads of various wireless technology organizations. I'm keen to uncover what makes this hub of high-tech public companies unique — what lessons we can take back home to stand out in our "countryside." At the same time, I wonder if we "country folks" could find our niche in this breeding ground of the world's brightest minds and perhaps invest in the next Google or Facebook.

The more I visit, the deeper my impressions become. While I've only scratched the surface, the insights Silicon Valley has provided are profound. I'd like to share these with you all.

## 1: You Only Live Once (YOLO)

My PreAngel investment partner in the U.S. is Boyd, a San Francisco native who speaks fluent Chinese. He shared with me that YOLO, meaning "You Only Live Once," has become a popular mantra in the Bay Area. It's a simple phrase but carries deep significance. If we had all embraced this idea since the day we could think independently, perhaps our lives would look very different today. Many in China's economic backbone are living for others to some extent — for parents, children, or friends. Sometimes, it may seem like you've chosen your life, but in reality, you're living within an image shaped by others. If you're dissatisfied with your life, it's likely because you're not living for yourself. Living well by your standards is the greatest contribution to society. Everyone is unique with different abilities and preferences. If society as a whole lived according to its inner voice, every role would still be filled — possibly even better.

Although YOLO has recently become trendy, it encapsulates a common ideology in Silicon Valley. Many kids from prestigious U.S. institutions have been living by this principle — arguably earlier than our children in China. The society here supports this mindset, which is often misunderstood by parents in China, like dropping out to start a business, quitting a high-paying job to travel with a backpack, marrying someone from a very different background, living as a struggling artist in a rundown apartment, or choosing to be a single mother. When one chooses to live for themselves, they tend to have greater perseverance, which is essentially the dedication needed by entrepreneurs.

YOLO partly explains why Silicon Valley is home to the highest concentration of exceptional entrepreneurs in the world.

## 2: Rules & Disruptive Innovation

Anyone who has driven in the U.S. knows that traffic rules are taken seriously, resulting in high driving efficiency. For example, Jun Li, a well-known Chinese angel investor in Silicon Valley, mentioned how a visitor from China would always tap the brakes at green lights, fearing sudden traffic from the sides. This precaution may seem normal to those unfamiliar with U.S. driving, but it's unnecessary here. If there's no stop sign or red light, you proceed with confidence, knowing that cross traffic is controlled by their own signals.

This demonstrates how well-designed rules increase efficiency for everyone. Similarly, in entrepreneurship, innovating within a solid framework of rules means you can progress without the fear of underhanded competition.

Healthy disruptive innovation involves upending complacent industries through advancements in technology, design, operations, or business models, all while adhering to a shared set of basic rules. This type of innovation disrupts outdated systems and stagnant businesses, facilitating a natural selection process — a positive regeneration.

Contrast this with some "unhealthy" business practices seen domestically, which could be seen as "rule-breaking" entrepreneurship. These disruptors negatively impact the industry's health and can harm consumer interests. These rule-breakers are like drivers who dash from side roads, risking collision and reducing overall traffic efficiency.

One fundamental difference between our regions could be the motivation behind entrepreneurship. On one side, there's speculation driven by profit, regardless of the damage to the environment, industry, consumers, or society. On the other, entrepreneurship is more ideologically driven. In the Bay Area, the cost of breaking the commonly accepted rules is high, shaping a mindset among entrepreneurs to respect the established framework.

During a talk I gave at Stanford's Business School, invited by Ding Ruoyu, I shared five key beliefs I have about entrepreneurship, and Boyd mentioned that these points show I belong in Silicon Valley. These are as follows:

## 3: Believe the power of belief

The essence of successful entrepreneurship often lies in the deep conviction one has in their vision and purpose. When an entrepreneur truly lives for their ideals and is driven by a genuine belief in what they are building, this conviction becomes a powerful force. It empowers them to overcome countless challenges, from assembling a team and raising funds, to developing a product, marketing a brand, and selling a service. Even when the entrepreneurial journey is fraught with difficulties, this unwavering belief enables them to carve paths through mountains and persist against all odds.

Many entrepreneurs fail to realize that their faith in their ideals is a wellspring of strength. You might think that it's the enticing vision of your company that draws your team, the prospects of an IPO that attracts investors, your eloquence that wins over customers, or your smooth sailing that garners media attention. However, without the power of belief, these attractions would dissipate amidst the inevitable storms of the market.

In the perilous journey of entrepreneurship, where failure lurks at every corner, the one inexhaustible source of energy is your faith. Therefore, you cannot afford to lose sight of this. If you don't believe in what you're doing, how can you expect anyone else to believe in it? Looking back at many failed companies, a common denominator is that the founders lost their initial faith, which led to everything else crumbling away.

This narrative emphasizes that the foundational belief in one's purpose is not just a part of the entrepreneurial journey — it is the very core of it. Without it, all strategies, skills, and plans have little ground to stand on. In summary, the faith an entrepreneur has in their vision can be more compelling and attractive than any business model or market opportunity because it fuels the perseverance needed to succeed against all odds.

## 4: You were chosen

This perspective sheds light on the concept of individuality and the belief that even as an atheist who doesn't subscribe to traditional religious figures, one can still hold a belief in entities or intelligence beyond our understanding, such as aliens or a higher form of life. It aligns with the view that our existence is not shaped by deities but by a series of choices that define our life's path.

Each person's uniqueness is seen as a result of being "chosen," which in this context, implies a sense of destiny or pre-determined traits and talents that guide us through life. This could be interpreted as a deterministic viewpoint, where every choice we make is essentially "chosen for us," suggesting that our lives are a sequence of predestined events.

The question then arises: if our paths are indeed preordained, why not embrace and excel in what we inherently love and are good at? Why does one excel in music, another in socializing, and yet another in management? If these talents and inclinations are somehow "arranged," the most authentic way to live is to follow what we are naturally drawn to and skilled at.

This belief posits that by pursuing our true passions and strengths, we not only achieve personal happiness but also contribute to the efficiency and betterment of the world. In this worldview, accepting and embracing our true selves is seen as fulfilling our destiny.

The text concludes with an empowering message: we should not blame a higher power for perceived injustices in our lives; rather, we are the architects of our own fate. Our will is equated with the will of the "God" within us. Emphasizing the ethos of "You only live once," the passage encourages us to be authentic, to take control of our destinies, and to be our own guiding force or "God" in life. This is a call to embrace individualism and to make choices that resonate with our true selves, for in doing so, we align with our life's purpose.

## 5: Valuation vs Price

The narrative here emphasizes that whether one's aspiration is to live a carefree life by the sea or to embark on a grand venture that could potentially change the world, the most crucial factor is to listen to one's inner calling and to act upon it with all one's might. Success is depicted as a natural outcome of such earnest endeavors.

Addressing the concept of value versus price in the context of entrepreneurship and fundraising, the discussion acknowledges the inherent "pricelessness" of a mission-driven venture. However, it also confronts the practicality of assigning a monetary value to a startup when seeking investment. The suggested approach is to not fixate on the 'price' or initial valuation too much but to focus on securing 'Smart Money.'

"Smart Money" refers to investors who not only provide capital but also share the entrepreneur's vision and can offer valuable resources beyond money. It is implied that entrepreneurs and investors overly concerned with valuation may not be well-aligned. If there's a significant discrepancy in valuation expectations early on, it's advised that both parties should simply move on.

The discussion contrasts the valuation dynamics between Silicon Valley and Beijing, noting that while initial valuations for startups might be lower in Silicon Valley, they tend to escalate rapidly by Series A funding, especially once the product is developed and some metrics are established. This can sometimes be puzzling for Beijing investors who might not appreciate the sudden surge in valuation.

The advice concludes with a strategic perspective for entrepreneurs: not to dwell on early-stage valuations but rather to concentrate on creating a solid product with the help of angel investment. It is the creation of value that should be the entrepreneur's main concern, with the expectation that the market will eventually recognize and reward this value with a fitting "valuation."

This reflects a broader entrepreneurial philosophy: start with passion and purpose, secure the right partners and resources early on, build your product, and the value — and consequently the valuation — will follow as you prove your concept and begin to scale.

## 6: "Sufficient" is Far from Enough

This embodies the spirit of the geek I admire. To me, a geek is someone who pursues excellence to an obsessive degree in a niche area, and this is not limited to the field of technology.

In American culture, particularly in the Bay Area, there's a culture of encouragement. Children, even with small achievements, receive praises like "Amazing" from various quarters, spurring them to do even better. Therefore, in fields like technology, art, product development, and marketing, you'll find many geeks. Particularly in the internet and mobile internet startup realms we're discussing, these geeks have created numerous globally popular innovative products - too many to count!

Now, in an era of advanced business development and intense market competition, where most people's needs are already met, new entrepreneurs either look to disrupt old industries with powerful core technologies or explore emerging markets for new product-induced demands (like the demand for iPhone accessories). However, no matter what, to build a great company, we need a geeky Leader in charge of the product, someone who, like Steve Jobs, pursues perfection to an obsessive degree.

Geeks always see further than the average person because they've experienced and tried far more related products than others, which is a prerequisite for being a geek. Secondly, a geek's expectations for their product are ten times higher than those of existing market products, so they don't release products lightly. But when they do, they bring a "stunning" or "shocking" experience to users, maximizing customer loyalty. Finally, the products brought by geeks are often extensively covered by various media, saving marketing costs and proving the saying, "Fine wine needs no bush."

Even companies like Evernote and Tesla in Silicon Valley nearly perished, precisely because their pursuit of excellence led them to the brink of bankruptcy. But it was also their strong belief that helped them through critical moments, eventually making them outstanding companies that the world admires.

If a company's leader is a geek in a certain field, I'd be very willing to invest in them, doing my utmost to help them with things they're not good at, allowing them to focus on launching a product that wows the world. If a company's leader always thinks "good enough is fine," or being 50% better than the market is great, they might be a decent businessman and build a profitable company. However, they won't create the next Facebook, Tesla, or Google...

## 7: Imagination & Execution

The allure of Hollywood blockbusters such as "Avatar," "Mission Impossible," "Oblivion," "Star Trek," and "Iron Man" extends beyond their storylines to the immersive experience provided by IMAX and 3D technologies. These films showcase the significant impact of technology on our lives, highlighting Hollywood's creative and executional abilities.

This raises a pertinent question: Why do such epic films mainly come from Hollywood? Is it due to education, environment, or financial resources? Despite having talented individuals, the Chinese film industry hasn't yet achieved the same scale of production or recognition as Hollywood, which benefits from a fifty-year head start in the industry and substantial budgets.

Similarly, in the internet entrepreneurship sector, Silicon Valley leads in creativity and innovation, home to companies like IFTTT, Airbnb, ZipCar, Twitter, Pinterest, Google Glass, and Siri.

Conversations with students from Stanford, UCLA, Berkeley, and others in Silicon Valley provide a key insight: the abundance of startups in Silicon Valley means that while many fail unnoticed, some excel. The entrepreneurial atmosphere attracts a wide array of ventures, creating a gold rush for internet enthusiasts.

This insight is revealing. The Bay Area, with its ideal entrepreneurial environment, attracts the most entrepreneurs. In this competitive market, successful startups gain global recognition and reach impressive valuations.

The lesson here is multi-layered. First, a dense cluster of startups fosters evolutionary pressure that benefits the most adaptable and innovative. It also highlights the importance of a nurturing ecosystem for these companies' growth. Additionally, it emphasizes the cultural aspect, where risk-taking is encouraged, and failure is seen as a learning opportunity. For China or any region aiming to create a similar environment, embracing a risk-tolerant culture, providing a supportive ecosystem, and offering resources for innovation are key factors.

P.S. I'm writing this from the UA857 flight from San Francisco to Shanghai, having paid just $22 for in-flight WiFi via satellite communication. What a thrill!


Leo Wang

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