2018.04.28 CoStone Capital Views:
Tao Tao was invited to the 5th China Culture and Finance Innovation Summit held by the Beijing Cultural and Creative Industry Promotion Center on October 26, 2016, and delivered a keynote speech on Bolster the Cultural and Creative Industry with Capital.
CoStone Capital Tao Tao: Population, Consumption, Technology and Policy Bolster the Cultural and Creative Industry
(Tao Tao, Managing Partner of CoStone Capital)
VC or PE, a fund which invests in the cultural and creative industry, should first be able to help enterprises to get access to capital markets. Now, as the government supports the cultural and creative industry, in order to bolster the industry, an excellent VC or PE should be equipped with the following three capabilities:
First, the ability to identify emerging technologies, content and business models. The insightful and far-sighted official investors would know the potential of VR and data mining as they sprung up.
Second, the ability to help enterprises grow in value in different stages. The cultural and creative industry is still in its infancy. Most entrepreneurs in this circle may be artists or tech-savvy experts, who are incompetent to turn IP into value. Investors and entrepreneurs should reinforce each other to industrialize technologies and create a quality and sustainable team for exploring more IPs.
Third, the ability to make acquisitions and integrate industries. An IP need to be well connected with different forms of cultures and arts, and consumers. In order to prop up the cultural and creative industry, a systematic industrial layout is needed to pour various resources into the vigorous and motivated cultural and creative enterprises. The investors thus can gain remarkable returns and the cultural and creative industry will boom.
Tao Tao was invited to the 5th China Culture and Finance Innovation Summit held by the Beijing Cultural and Creative Industry Promotion Center on October 26, 2016, and delivered a keynote speech on Bolster the Cultural and Creative Industry with Capital.
Above: Excerpt from the speech of Tao Tao in the summit. Please refer to this link to view the speech in full: http://stonevc.com/news_view.aspx?TypeId=5&Id=590&Fid=t2:5:2
Rewritten by: Luo Xinying, Edited by: Du Zhixin, Wei Yiyi
The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.
Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.
Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.
Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.
These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.
For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.
So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.
At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across
