Google’s former China chief Lee Kaifu has launched a technology incubator for start-ups in China, backed by $115 million in Silicon Valley funding.
Innovation Works is backed by YouTube co-founder Steve Chen, Foxconn Technology Group, Legend Group and New Oriental Education & Technology Group. The lead VC investor is the WI Harper Group.
The company, which will be based at Tsinghua University, Beijing, - will concentrate on internet, mobile and cloud computing technology targeted at the Greater China market.
The aim of Innovation Works is to accelerate local Chinese innovations and assist entrepreneurs to prove ideas, obtain additional funding and then spin-off into an independent company.
Lee, who announced his departure from Google last Friday, said hiring was already underway for up to 150 staff.
“The Chinese entrepreneurial environment is still in its formative stage, with significant barriers for the early-stage entrepreneur: the lack of management experience and coaching, the reluctance of venture capitalists to invest in companies in the formation stage, and the lack of networking and experience to pull a company together,” Lee said.
He said Innovation Works would improve success rates and speed time-to-market.
Lee told Venture Beat that the initial target was to try 20 ideas over the first year with an expectation that 10 would be seed-funded out and three to five would go on to Series A funding.
“The size and scope of what we’re doing is very unique. The approach we’re advocating is really designed for China. In the US, there’s a more developed ecosystem of ideas and entrepreneurs. The right combination will happen there organically. But here, people keep ideas to themselves. Until the culture of innovation in Beijing is like Silicon Valley, there is an opportunity and a need for a hands-on approach,” he said.
Steve Chen said “as a co-founder of YouTube and PayPal, I deeply believe that passion and dedication are critical success factors of start-ups. Every time I visit China, I am encouraged by the enthusiasm and commitment shown by the entrepreneurs there.”
Lee, who has a PhD in voice synthesis technology, became VP and president of Google Greater China in 2005, building a company with 700 staff and about 20% of the mainland China search market.