Delft 13 april 2018 -The Dutch prime minister Mark Rutte has visited China some weeks ago to strengthen the relationship between our countries, and because China is HOT!During a recent trip to China with Yes!Delft Incubator, I also had an up close experience with the Chinese way of doing business. I visited companies founded within the past few years that now make billions in revenue. They share one secret: go where the demand is.
A good example of such rapid growth in a short time is the Royole Corporation, a Chinese producer of flexible screen technology. The company, founded by two Stanford PhD’s in 2013 in Silicon Valley, quickly realized the demand was highest in China and transferred their operations there. They found a strong demand from the high tech manufacturing ecosystem for flexible screens and novel virtual reality technology. There was also immense interest from investors and funders for these kinds of innovative technologies.
Entrepreneurs in the West must learn about how market demand works from successful entrepreneurs such as Eric Ries, who stresses the importance of testing market demand as early as possible. Chinese entrepreneurs, however, seemingly have the concept of market demand embedded in their DNA. Indeed, every conversation starts and ends with market demand.
Western business conversations, in contrast, start and end with vision, usually translating into beautiful plans with no actual viability. More and more, these two ways of thinking come together in China.
The new generation of entrepreneurs in China is already combining vision with market demand – they are smart, highly educated and know how to take advantage of existing incentives in China.
Venture capital funds of 1.5 billion US dollars or more (rare in the EU) are very common in big Chinese cities and the government invests heavily in infrastructure to boost innovation with incubators, special economic zones and patent application support. Because of this support, a small startup in Shenzhen, started in 2016, could hold 31 patents in robotics, while typical Dutch startups delay their patent applications as long as possible because of the costs involved. Local governments, research institutes and universities also provide free office space for foreign companies, and most big tech firms have offices and research and development units at strategic locations. Meanwhile,the welfare of the Chinese population is increasing rapidly and its sheer size alone has made it the second biggest consumer market on the planet. All this leads to a high demand for innovative technology, from hardware to software.
At VSPARTICLE, we see the growing demands for nanoparticle technology in China and have decided to enter the market with a local distributor, Bio-Sun, currently a leader in promoting nanotechnology and biotechnology instruments in China. It may seem like the most obvious step, but actually entering the Chinese market is the hardest step for most companies in the West. Luckily we had a lot of help with our international expansion to Asia, for example from the Innovation Attache networkof the Dutch Embassies. I expect that our technology will enable top researchers in China to develop new materials that will fundamentally innovate high-impact markets such as healthcare, sustainable energy production and microelectronics.
Born out of the research labs of Delft University of Technology, with over 20 years of experience in the synthesis of aerosol, VSPARTICLE believes there is a whole new world of possibilities and materials at the nanoscale. The company was founded in 2014 and has an international sales network in Europe, Japan and China.
Bio-Sun was founded in Beijing in 2010 and is a leader in promoting nanotechnology and biotechnology instruments in China. It serves many renowned customers in life science, drug discovery and material science. Bio-Sun has four branch offices in Qingdao, Shanghai, Guangzhou and Wuhan City, and a nationwide sale network.