An interview with Min Zhu, Webex founder and active venture investor in China.

• Author: Fu, Shenzhao

In a public speech on April 21, 2007, Bill Gates acknowledged, "There was a survey done in the U.S. that asked where the next Bill Gates will come from. Sixty percent of the United States said that the next stunning success would come from Asia. I think it's true and amazing that it's so well organized that the investment and change here are leading to very innovative work."

To learn more about the current status of venture investment in China, we interviewed Mr. Min Zhu, who co-founded Webex in Silicon Valley, and recently moved to China to focus on venture capital investment. He answered JABS questions on May 12, 2007 in Hangzhou, China.

JABS: Why did you choose to go to China and become a venture capitalist there?

A: In 2003 I was considering to retire from Webex. At the same time, New Enterprise Associates (NEA) was considering to enter China and invest directly in startup companies there. Knowing that I had set up software development teams for Webex in China, Scott Sandell, an NEA general partner and Webex board member, invited me to join NEA as a venture partner. I then helped NEA to become the largest investor in Spreadtrum Communications in Shanghai, even though NEA participated only in a late round of venture investment. Spreadtrum is expected to be a near-billion-dollar IPO company later this year. (It went IPO on the NASDAQ on 6/27/2007, with a valuation around $850 million.) In 2005, I decided to leave Webex and become a full time venture capitalist in China. I founded Cybernaut in Hangzhou, Zhejiang Province, which runs a venture investment fund and operates an incubator.

JABS: What's the relationship between nea and Cybernaut?

A: NEA is a sponsor, or strategic investor. NEA essentially invests money in Cybernaut, and helps us to go through all the processes.

JABS: do you use the same criteria and follow the same procedure to evaluate projects in China?

A: In principle, yes. But the types of companies we invest in are much broader in China. In the U.S., NEA is an early and growth stage investor. In China, however, NEA also invests in later stage companies. Moreover, in the U.S., NEA focuses on the technology sector. But in China, the market is much broader. It may go as far as investing in a restaurant chain.

JABS: how do you get your name known to attract entrepreneurs to submit proposals?

A: I do not need to publicize Cybernaut's name. I receive enough proposals from local entrepreneurs, mostly from Zhejiang province. Most...