Reprinted: Fidelity Asia Partners Benson Tam: winter is overtaking
Reprinted: Fidelity Asia Partners Benson Tam: winter is overtaking (2008-12-02
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Fidelity Asia Partners Benson Tam: winter is overtaking
November 20 -21 th, the China International Investment Promotion Commission,
investment and financing of &quot;organized the first CIFC China Venture
Capital Annual Meeting&quot; held in Suzhou, Fidelity Asia Ventures (FAV)
partner participants and keynote Benson Tam Lecture &quot;Financial crisis in
Benson Tam view:
Ready money every day in winter is that we do.
Enterprise is also the winter when overtaking. Winter is not doing nothing, but ready
Current financing environment is certainly return to rational, industrial re-integration
Venture capital is invested. One can not change human nature.
Today, I still think of myself as a person who joined the line, always keep learning
FAV winter operation: send funds to enterprises through the winter
And information network: the current financial crisis sweeping the globe, but also
spread to the entire venture capital industry. Sequoia Capital will now be made in cash
reserves in preparation for winter. Then the Asian financial crisis have any effect for
Fidelity? Do you also save money over the winter?
Benson Tam: We are different from Fidelity and other companies. First, Fidelity Asia
Ventures (FAV) is the risk of Fidelity International Investment offices in Asia, we are
funded from the parent company, the more flexible. Second, Fidelity as a financial
company, we often face such turmoil. Seeing the stock market is climbing, we will
remain alert. The winter is our money to prepare every day to do. In the past we have
always been conservative and cautious, so today, money has been good the reserves.
Hope to give enterprises in the winter, we are now top priority.
And information network: Although you said that Fidelity has been kept well out of
money, but the majority of VC exit mechanism are encountered obstruction, the
current global IPO market are very sluggish, venture out of this road through the IPO
has been increasingly more difficult to go through, Fidelity is also facing this
Benson Tam: Exit is not a problem. First, because money is our own, we only have
one investor LP. Second, we prefer long-term investment, not short-term IPO exit. We
have the attitude that is willing to use 10 to 15 years to build a domestic and
international leading companies. For example we have invested U.S. carrier MCI, we
spent 30 years inside, making it the second largest U.S. telecom operator. If, after 3
years was voted out, that the next 27 years we will be very depressed every day.
For Chinese enterprises, we have invested in Alibaba to 9 years, the company was
doing very good, we did not need to quit. AsiaInfo another example, we put longer,
from 97 years to the present. These are the normal case, we insist on building the
industry has been run down. So out of the good business has never been a big problem.
For example, Alibaba has developed 9 years, and we believe its future a lot of work to
do, there are many 10-year plan. We hope to establish a model, and then pull the
And News Network: You have been talking about Alibaba, talking about Ma. But
Ma said recently his &quot;Internet companies need to re-prepared for the
winter&quot;, you are well aware of the TMT industry, you agree with his point
of view? How do you see the future trend of TMT industry?
Benson Tam: Ma is right in that, and it is in the winter. That is why we have great
respect for Ma, because he can in the other counterparts in the opposition early Tichu
This is why we will set up a new China fund, fund size is estimated around 200
million U.S. dollars. We will have confidence to invest in our business is to let them
through the winter, the quilt, cotton-padded clothes delivery to them.
We believe that in the winter period, the real leadership of the company appeared in
this moment. Like the same car, the car can not be in the straight road when the
super-car, only when the turning point, not all over this corner, and some cars even fly
the runway, this time to do if you can do their thing, you can overtake . So the winter
is also a time when overtaking. Winter is not doing nothing, meaning winter is to be
prepared, ready to overtake.
And News Network: In fact, this point of view and easy your capital Ran Wang Kai
similar, he believes that integration is to determine the future of China TMT Industry
of the most important factor, and the integration of the domestic industry is the first
one, cross-border M &amp; A is the second. Do you agree?
Benson Tam: I Ran Wang is a good friend, I agree with him. In the winter, the first
should do our part, first of all trades around a good job, can go out to fight. You go out,
go abroad, first of all should train internal strength, and then to do something about
the thing down. &quot;
Corporate investment and financing senses
Reuters: What we talk about China, do you think the financial turmoil on
China&#39;s investment patterns, corporate financing environment will cause
any kind of impact?
Benson Tam: Investment definitely slow down, to the entrepreneurs, the situation is
very grim. Money is really good melted. However, I think it is reasonable time, and is
the overheated the last time. From 95 to 05 years time the situation is relatively
normal, while in 2005 after becoming crazy. Baidu listed from the day, Silicon Valley
VC came, then took the market of other competitors were very hot. Now is certainly
return to rational.
And information network: but there is a view that China is the world of the few able
to weather the financial storm and to benefit from the country. IDG&#39;s Hugo
Shong, says that &quot;at this time is the best time to invest in China,&quot;
how do you think?
Benson Tam: I agree. So we set up a new fund. To help other people, first of all to be
able to help themselves. We do the reserves, so it can be shot out of state businesses
do not cast. It is also beneficial behavior, I think it is a very good chance some of the
best companies to help them. In this round of restructuring, industry consolidation has
And News Network: Since the new integration has begun, then the next step in
Fidelity&#39;s investment in Asia will therefore change? Adjust your investment
Benson Tam: Unfortunately not. We are always very cautious, but a high proportion
of our success, success rate, saying that white is the responsibility of the entrepreneur,
our attitude has always been &quot;Not One Less.&quot; The so-called One
Less is our hope that the cast of the children are all successful, have entered Tsinghua
University Beijing University of Harvard, not as long as there are several good on it.
And we believe that survived in the cold in children, since children are the most
We used a low-profile, but recently put it more because we can now stand up for the
industry to do some big companies and some significant things. We found that a
number of companies have grown up and mature enough to help get the time. We also
see some companies really pull through their successful progress of the whole
Effective control of the government current
And News Network: In your opinion, venture capital, the Government should play
Benson Tam: I think that the government has done very well to our very large room.
Entirely by the market regulator, not in crazy times multiple, but not in the winter to
save you time. I think this is the attitude of the Government of the others. Because of
the so-called venture capital, money earned is to bear the risk, do not have this ability,
this game should not be playing. Government bailouts are supporting the entire
economic system from the ground, I think is the most responsible and most effective.
Reuters: You just said that the Government adopt a laissez-faire is a better means, but
now after the financial crisis, the view that, regardless of the financial sector in which
all should be strictly monitored, how do you think?
Benson Tam: I think everything should have a degree. If the pipe is too dead, then to
Shenzhen to get out. But if the government that everything, that&#39;s not OK.
That the degree of certainty, to be honest, I think that China than in Western countries
have a good grasp. I think China now is not sure of the degree does not loose tight.
Government is not monitoring, but about caring. But not strict monitoring because our
industry is innovation, only through the caring support of a new industry out.
And information network: the last four trillion plan to stimulate the economy if the
risk of investment in China to help?
Benson Tam: I think the real reason for the existence of this crisis is the lack of
confidence in the absence of a person or the entire country stand up and lead the
direction. I think that regardless of how to use this 4 trillion following the
Government&#39;s attitude is very right, it is to the people and other countries
that China is confident there are a responsible attitude to face this issue, and with a
bold action to make a difference. The role of government is the biggest confidence
boost, given the leadership role model and a clear direction.
A CEO, a CFO is sufficient
And telecommunications network: it was suggested that the problem is the current
talent venture capital industry in China a major bottleneck. How do you think?
Benson Tam: Whether the enterprise, or venture capital industry itself, present are
short of personnel, all personnel are missing. First of all, is the lack of management
talent. Because in China this system, we really only 20 years of rapid development,
talent can not catch up the pace of development. In this regard, Fidelity&#39;s
view is enough to find some talent.
Every business person can do a CEO, a CFO who do well enough. For example, we
cast AsiaInfo, Tian, Ding are now well-known CEO, many people heard their
speeches to see their books, to learn from them. Another example is Jack Ma of
Alibaba.com, he will naturally become a model for many people. Can be said that
Alibaba is a school will train a lot of management talent. We hope to start from the
individual talent, then Xinghuoliaoyuan.
And information network: the financial crisis is related to many foreign talents
unemployed, it is not digging them come to us with a good opportunity?
Benson Tam: We found that the investment of time, each country, region, area,
industry, sub-function, if not actual combat experience, difficult to apply outside
experience in the country. There was a time we would even just come back in ten
years abroad returnees replied: &quot;I&#39;m sorry, please first operation
in China, three to five years to say it.&quot; We like localization team, but I also
hope they have a more open vision. We found that the best team is all-inclusive, all
heroes come together, everyone contributed something different, from different
backgrounds, so that people come together, magic (magic) to appear.
And information networks: the company you fancy more than fancy?
Benson Tam: Yes, Chinese and people are Chinese and their attitude. His
professionalism can learn to change. But one can not change human nature. The
nature of good people savvy, you can learn.
&quot;VC is fun&quot;
Reuters: After reading your resume that you have read the Department of Civil
Engineering, as well as computer science, you learn very wide, and finally turned to
venture capital and how it as a lifelong career?
Benson Tam: I think venture capital is very interesting. I have always liked math, so
he liked the project, found that engineering was not enough fun, find the computer
more fun than the computer, then I found something even more amazing is the human
brain, human brain is much smarter than the computer was also complicated more. So
I became this way from the engineers later discovered that the financial accounting
and into the creativity of people is the most significant is the biggest challenge, they
began to venture capital.
Reuters: What do you look back now, this series by learning and experience to help
your career development is high?
Benson Tam: very large. As I said, investment is investment. In the past, an
experience that I can be indirectly set investment philosophy in later years, such as
how to work with others, ways of looking at things. The more reading and found that
the less they know. Investment is a mutual learning process, I want to learn how to
develop his industry, the other to learn international best management practices. I feel
the most benefit is that I know I know very little, so run into any CEO, my first
reaction was: &quot;You know I do not know, you tell me.&quot;
And information network: the final as a senior investor, you have joined the line of
young people have any suggestions?
Benson Tam: Actually, today I still think of myself as a person joined the line. If
colleagues have suggested that learning should always maintain a state of mind.
Fidelity Asia Ventures (FAV) is the Fidelity International (Fidelity International Ltd.)
Venture capital arm in Asia. Fidelity Asia from 1995 to early stake in China venture
capital, in the field, including information technology, health care, end of the
Since 2002, Benson Tam leadership as a partner of Fidelity Asia Ventures (FAV)
information technology team, from 1992 active in the field of Asian private equity
funds, Fidelity Asian investment companies, including Alibaba, AsiaInfo, Thunder,
click on the science and technology companies .
Benson Tam graduated from the Department of Civil Engineering, Imperial College,
London University and holds a master&#39;s degree in computer science at
Oxford University, Britain&#39;s certified public accountant, worked in London,
Hong Kong investment bank.