Former Google China CEO Launches Start-up
China Business News, 9/07/09
Former Google China global VP and president for the Greater China region Kai-fu Lee has established Innovation Works, a new business creation platform for which he hopes to attract USD 115 mln (RMB 800 mln) to finance the first five years of operation; the first investment, USD 15 mln, has already arrived. Lee says the platform will be complete by the end of this year.
Innovation Works will concentrate on internet (particularly e-commerce), mobile internet, and cloud computing. According to plan, the new startup incubator will produce 5 independent companies spun off from Innovation Works each year, and support 100 entrepreneurs with experience in IT and management. Lee will help these companies seek funding from such investors as Sequoia and IDG; Innovation Works itself will also seek to invest in its startups, with a 20% or 30% stake in the companies.
Mr. Lee expressed the hope that Innovation Works would have a scale of about 110 employees. For the moment, Mr. Lee said, the company will not make any investments or accept any business plans.
Kai-fu Lee had previously approached 12 investors, including president Liu Chuanzhi of Legend Holdings, chairman Terry Tai-Ming Gou of Foxconn (2038.HK; 2354.TW), New Oriental (NYSE: EDU) chairman Michael Yu, and YouTube founder Steven Shih Chen. The first three are participating through their companies or organizations; Mr. Chen is acting as an individual investor. A total of nine investment organizations are investing in the new company.
Editor's Note: A beta version of the Innovation Works website is already online at http://www.innovation-works.com.
Keywords: Innovation Works VC Terry Gou Steven Shih Chen Kai-fu Lee Liu Chuanzhi Michael Yu e-commerce Internet funding investment New Oriental Foxconn Google cloud computing Legend Holdings mobile Internet 2038.HK 2354.TW EDU
Sending
