Kai-Fu Lee, the charismatic former Microsoft VP and founding director of the company’s research lab in Beijing who reported last week that he was quitting as head of Google’s China arm, has announced that he has raised $115 million to create a new incubator for high-tech startups in China.
The new organization, Innovation Works, will mentor and prepare entrepreneurs to launch new businesses, chiefly in the Internet, mobile Internet, and cloud computing spaces, according to its website. A particular area of focus inside these sectors is e-commerce targeting the financial, medical services, and educational markets.
Innovation Works will be based in Beijing, apparently near the famous Tsinghua University, China’s most prestigious science and technology university. It is funded by a high-powered group of investors and VCs that includes Steve Chen, a co-founder of YouTube, Foxconn Technology Group, the Legend Group, and the New Oriental Education & Technology Group. The lead venture investor is WI Harper Group. Lee is named as founder, chairman, and CEO.
The goal is to target “the Greater China market, and build ‘dream teams’ to collect, analyze, prioritize and execute on the most promising ideas,” according to the Innovation Works website. “Innovation Works will accelerate an entrepreneur’s ability to prove ideas, obtain additional external funding, and then spin-off into an independent company.”
“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
