Chinese VC William Bao Bean warns against Aussie start-ups expanding to China
Renowned Chinese investor and managing director of the fast growing country’s first start-up accelerator, William Bao Bean, has warned Australian start-ups against seeking riches by expanding to the region, saying products that work in Australia rarely succeed in Asia.
Mr Bao Bean, who is also a partner at Chinaccelerator’s venture capital fund owner SOSV, is in Australia this week to speak at the Creative3 conference in Brisbane and will also be hunting for potential local investment opportunities.
“I think Australian start-ups should take a look at expanding closer to home. The vast majority do not belong in South East Asia or China,” he said.
“Something you build for Australia is almost certainly not going to work in the rest of Asia. If you want to expand there, the first step is to take your product and throw it in the garbage. Then take your special sauce and build a new product.”
Mr Bao Bean, who has also worked with Softbank China and India and SingTel Innov8, also recommended Aussie entrepreneurs interested in Asia “get out of the building” and spend time exploring and understanding the market before attempting to launch a business there.
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Image courtesy of Australian Financial Review.