Introduction to SMILE

In April 1999, the "Second Tsinghua University Student Entrepreneurship Competition" gave birth to the first batch of Tsinghua student entrepreneurial teams: Shimeile and Yide Ark. The second anniversary of their establishment is also the 90th anniversary of the founding of Tsinghua University.

Tsinghua University’s anniversary is in April every year. In April, the Tsinghua University campus is filled with white magnolia and red peach blossoms, but the campus beauty is the unpretentious bauhinia. What we admire is a down-to-earth and pragmatic style of study and work. In April 1999, the second Tsinghua University Student Entrepreneurship Competition gave birth to the first batch of Tsinghua student entrepreneurial teams:

Technical strength: The multimedia super-large-screen projection TV with the core technology of SUMEL should be regarded as a leading product in China. Combining computer, electronics, optics, materials science and other fields, these are the strengths of Tsinghua University as a first-class science and technology university in China. Shimeile's entrepreneurial team basically comes from the above-mentioned disciplines, and it is the right time to apply what they have learned. It is worth reminding that in 1999, when the world and China were full of rhetoric, and all kinds of new and new human beings were addicted to the attention economy, busy competing for attention, and unable or disdainful to discuss technology and profitability, the team of SMILE maintained He has kept a moderate low profile, has been focusing on technology research and development, and has an open and cooperative attitude towards capital. They did not talk about the new economy frequently, and they clearly knew that their future would be difficult, which was in sharp contrast to the arrogant .com family at that time. Shimeile clearly understands that only by integrating technology and innovation with business and capital, completing R&D and commercialization, and generating profits can we achieve success, and only then can we reap the rewards of economic benefits. They also know that they lack management capabilities, let alone capital operation capabilities, so they are actively looking for capital partners. They met the newly established Tsinghua Industrial Investment Management Company based on the School of Economics and Management of Tsinghua University. Tsinghua Industrial urgently needs to establish its image and performance as a pioneer in domestic venture capital. Shanghai Department Store, a domestic listed company, is in urgent need of funds to carry out daily operations, R&D and production of the company. The three companies hit it off immediately. The three families gained both fame and fortune.

In less than a year, Shimelo spent almost all of Shanghai 100’s 2.5 million funds. Unlike .com, their money is mainly used for R&D and product trials. But good luck struck again. Their personal nanny, Tsinghua Xingye, hired Qingdao Aucma Group. Aucma is a well-known home appliance company in China. Shimeile's multimedia large-screen projection TV is the direction and technology they are interested in. At that time, Aucma was intensively preparing to be listed in the country, and they were more interested in high-tech products and the concept of student entrepreneurship. is interested. It was also the anniversary day of Tsinghua University, April 25, 2000, Beijing Shimeile Technology Development Co., Ltd. and Qingdao Aucma Group were at Tsinghua Science and Technology Park Information Technology Co., Ltd. Shanghai Baiyi retired after success and handed over its equity to Aucma Group. Aucma Group invested 30 million yuan in the second phase of SMILE. At this time, Shanghai 100, Aucma Group, SMILE and the investment consultant behind them, Tsinghua Industrial Investment Company, all have their own interests. In addition, they have brought honor to the 89th anniversary of Tsinghua University. Everyone is happy with the five-win situation.

Another story of profits and returns in the consumer market and securities market. It’s just that after having a background in Tsinghua University, I have been given countless halos intentionally or unintentionally, adding a layer of valuable insurance on the road to success. Such a favorable time, place, and people can only be encountered but cannot be sought, let alone simply copied. (The right time, right place and right people - Tsinghua University creates a golden partner for entrepreneurship / Mo Yang)

Qiu Hongyun, Wang Ke and Xuzhong, three students, took advantage of the right time and location to start a company in Tsinghua University in May 1999.

In May 1998, Tsinghua University, China's leading science and engineering institution, took the lead in holding the first college student entrepreneurship plan competition, stimulating enthusiasm for entrepreneurship on campus. Wang Ke and Xu Zhong, the main sponsors of "Simeile", are the organizers and participants of this competition respectively. In 1999, the Entrepreneurship Plan Competition developed into a nationwide event for college students with great response. This year is also the year of enlightenment for venture capital in China.

In April 1999, the large-screen projection TV invented by Qiu Hongyun, a fourth-year student in the Department of Materials, won the first prize in the "Challenge Cup" student extracurricular scientific and technological works competition on campus. If there had not been a wave of entrepreneurship in Tsinghua University this year and there had been no enlightenment from venture capital, this simple student work made with a thousand dollars would have basically ended with an award on campus. However, in 1999, this was the prelude to a story of student entrepreneurship and venture capital that was destined to leave a mark in the history of China's economic development.

The entrepreneurial story begins with Wang Ke, a fifth-year student majoring in automation at Tsinghua University. Wang Ke, who was born as a top science student in Ningbo, has a natural business acumen inherited from his mother. His strongest desire is to start a business because he dares to think and act. Qiu Hongyun's invention gave him an opportunity to start his own business. Wang Ke worked part-time in the company. He understood the market demand for projectors and the high prices of imported products. Tsinghua University's technical sensitivity made him aware of the "value" of this invention. He proposed to sell it for more than 100,000 yuan. Buy Qiu Hongyun's technology. However, the smart Wang Ke quickly realized that this highly professional and technical product would be difficult to exert its due value without technical support and continuous breakthroughs. Therefore, Wang Ke persuaded Qiu Hongyun to invest in the technology and jointly develop it into a market product.

If business sensitivity enabled Wang Ke to seize the signs of business opportunities in a timely manner, then another demonstration of his business talent was that he organized a core entrepreneurial team - and then pulled Qiu Hongyun, the technical core, into the "sea" Later, Wang Ke began to look for management talents. Such understanding and accumulation of human resources also stem from business plan competitions. Two weeks later, Xu Zhong, the leader of the MBA class at Tsinghua University School of Economics and Management, an active member of the last entrepreneurship competition, also joined.

The success of Simile so far is due to luck and accident. For example, media attention has attracted much attention since its birth, which is very beneficial to the company's image, financing, etc. And this cannot be imitated. But its success is more regular and inevitable, which is also the most worthy of analysis and summary.

In the venture capital model, the first important thing is people, the second is people, and the third is people. According to investment management consultant Pan Fuxiang, Shimeile's team is a "golden combination." In the story of Shimeile's introduction of venture capital to start a business, the first thing the two investors emphasized was that they took a fancy to this team.

Qiu Hongyun is a talent called "Tsinghua Edison" by the president of Tsinghua University. He has won awards every year in student extracurricular science and technology competitions since he entered college. His talent and growth experience are somewhat legendary, and he is an extremely rare inventor.

"Wang Ke is a strategist and entrepreneurial talent. He is very good at using various resources for me when external conditions are not met. He is enterprising, imaginative, provocative and enthusiastic. He can do a lot of things that others dare not do, and he is a handsome man." This is the evaluation of Pan Fuxiang, a consultant at Shimeile. He also believes that "Xuzhong and Wang Ke complement each other perfectly. Xu Zhong is a manager who is really focused on implementation. Before going to Tsinghua to study, he had worked for 6 years. He first engaged in mechanical design at Great Wall Special Steel Company, and later served as secretary of the Youth League Committee. Therefore, he has the opportunity to participate in leadership meetings of large companies at a young age. In a student company, he is definitely well-informed and has rich corporate experience, and his work style is practical and steady.

Wang Ke is Shimei. If Wang Ke, the organizer of Le Creation, had not been in charge, Shimeile would not have achieved such a big 'momentum' and would not have advanced so fast; without Xuzhong, Wang Ke would have had almost no experience in corporate management and engineering operations. After igniting a vigorous entrepreneurial fire, it is impossible to control it; but talented and responsible engineers like Qiu Hongyun are hard to come by."

What Wang Ke particularly emphasized is: we are different from ordinary students. The biggest difference between start-up companies is that there is a person like Xu Zhong who has corporate experience. He told a short story: In order to develop a product and complete the pilot test, Wang Ke and Qiu Hongyun made a budget - it needed more than 200,000 yuan. The method was that Qiu Hongyun would make a machine for a student competition for a thousand yuan, and then make a machine worth more than 20 yuan. A molding machine costs tens of thousands. Don't laugh, this is the way students on campus think. After Xu Zhong got involved, he told them that if they wanted to industrialize, it would cost more than 200,000 yuan to open a mold in the factory. The detailed budget was 2.5 million.

For this amount, Wang Ke felt that it was so big that they had nothing to do. Xu Zhongze smiled and told him that for a large company to develop new products, this little money is not a problem at all.

After further thinking, we thought: Xu Zhong’s experience is important, but Wang Ke’s understanding of his own shortcomings and his acceptance of Xu Zhong’s opinions are more important. Let’s go back to Pan Fuxiang’s summary: This team has students’ innovative spirit, technical advantages, energy and dedication, as well as a certain amount of corporate experience accumulation. What is especially rare is mutual cooperation and sincere unity. Such a team will always have good projects and always have the potential to succeed. A win-win model between entrepreneurial teams and consulting companies - "The Godfather" and "Model Show"

The growth of Shimeile has its own regularity and uniqueness, and its win-win cooperation with consulting companies leads to success. Another key. It is now increasingly recognized and accepted that student entrepreneurial teams need to cooperate with investment management consulting companies, but if they want to form a cooperative relationship like that between Shimeile and Tsinghua Industrial, they must rely on both strength and opportunity.

First of all, the entrepreneurial competition gave them the opportunity to get acquainted with each other based on trust. Shimeile was established during the process of participating in the business plan competition. In the Tsinghua preliminaries, they met Pan Fuxiang, general manager of Tsinghua Industrial Investment Management Company (hereinafter referred to as Xingye), who was a judge and had a background in Tsinghua Enterprise Group. At that time, Xingye had just been established and was looking for its first project.

Their cooperation model was determined after a typical three rounds of contact.

The first time was when Pan Fuxiang came to the student dormitory where Shimeile was located. He was shocked by the wonderful but simple inventions. This man has been working hard in the capital market for many years and now officially works at Tsinghua University. The teacher and CEO, who teaches a securities market class and also runs an investment management company, asked the entrepreneurs a series of questions ranging from funds, products to markets. "Teacher Pan pulled us from the sky of blind optimism to the ground. At that time, we felt that Teacher Pan was too high." At the same time, Pan Fuxiang was also optimistic about the quality, drive, willpower, and works of several young men.

The second time, the Simile team came to Xingye’s office with a carefully listed budget of capital requirements to discuss their problem - it was difficult to raise funds entirely on their own. This time, the boys were carefully prepared: dress formally - wear a suit and tie; speak in an orderly manner - pay attention to cooperation and especially listen to each other's opinions; and be neither humble nor overbearing. The result was: Pan Fuxiang said that he could help with financing, and Shimeile asked Xingye to come up with a written plan. There was an episode: Wang Ke and the others made preparations for cooperation more seriously after asking someone to find out the details of Xingye.

Just a few days after the third contact, Xingye came up with a standardized investment management consulting plan, proposed a venture capital investment operation model, and came up with a plan to help with financing, management, and growth. At the same time, the responsibilities, rights and interests of both parties were standardized and put forward. What is very important is: here is another little episode: Xingye was not the only candidate for SMILE at that time, but it responded quickly and operated in a standardized manner, especially when it wanted to make high-quality products and make SMILE a "model opera" The concept made SMILE choose this new company as their first project without hesitation.

The cooperation model between Shimeile and Xingye is to bear risks and enjoy profits - Xingye owns the shares of Shimeile 5 in order to provide a full range of consulting services.

From then on, financing, management, human resources and other major issues in the development of Shimeile were all inseparable from Xingye’s senior advisor. In terms of financing, Xingye played a decisive role, so much so that the CEO of Shanghai 100 called Pan Fuxiang the "godfather" of Shimeile. At the same time, the success of Shimeile has also brought economic returns to Xingye. More importantly, it is a reputation that the industry can be proud of. The "model opera" was indeed called.

Rational cooperation with investors - optimizing resources and being responsible for capital

Industry experts pointed out: There are three misunderstandings in attracting investment for student entrepreneurship - first, eager to obtain funds, giving away big shares for small money, and selling technology at a low price and creativity, so that after the company has been operating for a period of time, many technology owners are deeply dissatisfied with the original agreement and propose to break the contract. The consequence is that they are notorious in the capital market; secondly, even if the investors cannot provide value-added services and guidance, they still continue to cooperate with them. tied together; the third is the irresponsible use of venture capital, burning other people's money to realize one's own dreams.

With the guidance and help of Xingye, Shimeile, which successfully completed the investment attraction, has completely overcome these three misunderstandings.

First of all, in accordance with the ideal model of high-tech companies respecting intellectual property rights, controlling high risks, and pursuing high returns, Shimeile made a financing plan to introduce venture capital and implemented it without compromise. In fact, in 1999, when venture capital was still little known among domestic companies, this intransigence greatly increased the difficulty of attracting investment. However, Shimelo, who firmly believed in the strength of his project, persisted. Fortunately, relying on Pan Fuxiang's social connections and industry reputation, Shimeile's project quickly attracted the attention of Shanghai 100, which is determined to innovate and hopes to vigorously develop high-tech projects. After careful inspection and negotiation, in July 1999, both parties Reached a two-phase venture capital agreement worth RMB 52.5 million. In the first phase, Shanghai Baidu invested RMB 2.5 million for product pilot testing, accounting for 20 shares. The entrepreneurial team occupied the company with a registered capital of RMB 500,000 and intangible assets such as technology and creativity. 80 shares. After the pilot test is successful, another 50 million yuan will be invested in industrial production. This is my country's first localized venture investment case, causing a huge sensation in the capital market.

At the end of 1999, the pilot test of Simile multimedia projector was successful. Over the past few months, Shanghai 100, which has been paying attention to the progress of the pilot test, realized that industrialization after the pilot test was not as simple as finding a manufacturer to invest in production. The technology of the product was very complex, and there was no domestic agency that could process it. of factory. To organize new production capabilities and manage production, business leaders are not good at it. With the goal of expanding the business, Shimeile negotiated with Baibai and decided to introduce home appliance manufacturers with production management experience to join. As the news spread, more than 10 domestic and foreign investment companies and home appliance manufacturers came to negotiate, hoping to participate in the second phase of investment.

Simeile finally chose Aucma Group as the second-phase investor because of its determination and strength in developing high-tech industries and the sincerity and decisiveness of Chairman Lu Qunsheng.

Aucma learned about SMILE’s project through a newspaper on the plane. Lu Qunsheng quickly decided to go to Beijing for an interview in person. It happened to be snowing heavily and the airport was closed. The boss of a group with assets worth billions of billions actually took a train and rushed to Shimeile. Subsequent negotiations went smoothly.

In April 2000, Aucma decided to invest 30 million yuan and signed a joint venture agreement with Aucma Vision to establish Beijing Aucma Vision Corporation (hereinafter referred to as Aucma Company). Both parties would each occupy 50% of the new company. shares, develops, produces and sells multimedia projectors and related audio-visual products. Shimeile Company still exists and will develop new projects and industrialize them in the future. Shanghai 100 has canceled its original second-phase investment plan, and its original shares will enter the ATV company along with Simile. In the later period, it will participate in market sales with its commercial leadership advantage. At this point, after resource optimization, the investment to support the product to market has finally been successfully completed. Shimeile has found excellent investors and does not neglect its responsibility to investors. Needless to say, they devote themselves fully to their work and report progress at any time. When it comes to spending money, they can save as much as they can except what is necessary for work. So far, Wang Ke, Xuzhong and Qiu Hongyun do not have cars and often ride bicycles to and fro. So far, Xu Zhong’s salary is still the lowest among MBA students. Successfully took off the hat of a student company - team building, management, and product maturity

In July 1999, Wang Ke graduated, in July 2000, he graduated from Xuzhong, and Qiu Hongyun directly studied as a graduate student in the Department of Precision Instruments. So far, except for three part-time doctoral students, more than 80 members of Shimeile are professional. Student is an objective identity, but student company means lack of experience and immaturity.

It is said that SMILE has taken off its label as a student company, not only because the vast majority of its staff are no longer students, but more importantly, the company's team building, management, and products have matured step by step over the past year.

Team building is the first priority for any company, but it is more difficult for student companies. Not long after Shimeile received its first investment, a well-informed media person said: You will make money, but if one Ningbo person, two Sichuan people, and a group of Shanghai people come together, you will break your head. Blood flow.

Wang Ke and Xu Zhong have firmly remembered this passage. It is both pressure and motivation. "The Shimelo team has had conflicts during its growth, but they face up to the problems and have the ability to solve them." Pan Fuxiang said. In July, Wang Ke proposed that AusTV make personnel adjustments. The former vice president Xu Zhong would be the general manager, responsible for the company's overall management, including human resources, finance, production, sales, and marketing. He was changed from general manager to president. Responsible for developing new technologies and establishing new strategic cooperation. Wang Ke said: "I realized that with the development of the company, my management ability could not keep up. It is more suitable for Xu Zhong to be the general manager, so that he can make decisions independently without having to discuss many things with me and be more capable. His management skills."

Chairman Lu Qunsheng agreed to this proposal, and "godfather" Pan Fuxiang was even more excited: "The most difficult thing for our company to get rid of is the struggle for power and internal fighting. Wang Ke can make the most of important things. It’s amazing to take the initiative to hand over the power to a more suitable person.”

Taking career success as the goal and not coveting personal power is also based on the premise of modern system and clear equity. Our company’s equity has been clear since its establishment. "Young people lack experience, but at the same time they have no baggage. They have strong learning ability and strong innovation ability." Since the division of labor and power has become clearer, the company has become more efficient. Xuzhong's work is very effective, and I am also very active in external liaison and exploring new business opportunities, which I am good at. ”

Like all high-tech companies based on R&D, Shimeile attaches great importance to the role of scientific and technological talents. It now has more than 60 senior engineers, doctors, masters and other professional and technical personnel. It can be said that there is a team of A professional team of high-quality talents.

In terms of management, it started with almost random operations of mostly part-time students for a long time, to the establishment of a human resources department, standardized recruitment of talents, and establishment of a management system. , Shimeile has also gone through a process of gradual improvement. Xu Zhong originally had some management experience. In addition to continuous exploration in practice, he also has a counselor in the MBA program - "Harvard Management Complete Works". The real establishment of the system was the result of Tsinghua Industrial's promotion.

In November, Xingye hired an associate professor from Tsinghua University School of Economics and Management and a team of MBAs to make a diagnosis for Shimeile. A few weeks later, it came out. A targeted and standardized modern management system program. Practice has proved that reasonable systems and incentive and supervision mechanisms have greatly improved the company's efficiency.

AusTV has a domestic first-class R&D center in Beijing. , established a 3,500-square-meter modern independent factory and a production line with an annual production capacity of 100,000 units in Qingdao, signed agency agreements with more than 60 dealers, and launched three Ausv projectors on the market at the results report meeting in December. There are "small movies" on screens of different sizes. Indeed, the color, clarity and projection method give people the feeling of watching a movie.

The world’s “first” and “best”

·Spreadtrum Communications, a company in the park, developed the world’s first SCDMA chip (2004)

·Tongfangwei, a company in the park "Visual" container inspection system achieved the world's largest market share (2003)

·The world's largest online gaming company---Lianzhong Company entered the park in 2003 (2003)

·Owned Tsinghua Unigroup Wentong Company, the world's most advanced Chinese scanning recognition system (TH-OCR), entered the park (2001)

·Tsinghua Wuxing Company, a park-entered company, developed the world's first Chinese filtering software-- -Guardians of the Five Elements (1999)

China's "First" and "Best":

·The largest building in China's university science and technology park - 188,000 square meters of Tsinghua University Science and Technology The building was completed (2004)

·China's largest software distribution company - Zhengpu Technology Company entered the park (2004)

·China's first nanobone project was incubated in Tsinghua Science and Technology Park (2004)

·Tsinghua Science and Technology Park was rated as the only Class A university science and technology park in China (2003)

·China's first commercial superconducting company invested by Tsinghua Science and Technology Park Inner Superconductor Company pulled out the longest commercial superconducting wire in China (2003)

·Cotech Century Company, a company in the park, developed China's first commercial micro-operating system (2003)

·Tsinghua Entrepreneurship Park won China's first international incubator award - Scientific Incubator Best Practice Award (2002)

·China's first company without business scope - Tsinghua Science Park Technology Asset Management Co., Ltd. was registered and established (2001)

· Tsinghua Tongfang Optical Disc Company, a registered enterprise in the park, launched China’s first large-scale and dynamic professional education knowledge resource warehouse for basic education and vocational and technical education - "China Basic Education Knowledge Warehouse" (CFED) (2001)

·China's first industrialized large-scale container inspection system manufacturer - Tongfang Nuctech was established in Tsinghua Science and Technology Park (2000)

·Tsinghua Tongfang, a registered company in the park, launched China’s first broadband network CAS conditional reception system (2000)

·Tsinghua Unigroup, a registered company in the park, launched the first self-branded digital camera in mainland China (2000)

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·Tsinghua Unigroup, a company in the park, launched the first self-branded scanner in mainland China, and since 1999, Unisoc’s scanners have occupied the number one position in the market.

·China's first entrepreneurial enterprise founded by college students during their suspension of studies - Fanso was born in Tsinghua Entrepreneurship Park (1999)

·China's most influential student entrepreneurial enterprise - Fanso Meile Company was born in Tsinghua Pioneer Park (1999)

·China's first and currently largest electronic magazine - China Academic Journals (CD version) electronic magazine was established in Tsinghua Science and Technology Park ( 1998).