The age of invention(2)

A young inventor at an event run by Beijing Makerspace. Photo: Courtesy of Beijing Makerspace

"I've spent a lot of time researching the project, and now it's time to turn it into a product that can be launched," said Qi in an interview with China Central Television (CCTV). "So I decided to quit my studies for a year to develop it."

Another teenager with hopes of making it big with his invention is 15-year-old Wang Yixiao, a student at the High School Affiliated to Renmin University of China's Chaoyang School.

"I want to build an online platform for the exchange of intellectual property, such as code," said Wang, who has founded a startup with two other budding entrepreneurs in their 20s.

Wang was reticent to reveal more about his project for confidentiality reasons, but said that his idea was born out of the need to resolve conflicts between open source and closed source code.

Li Yan said that young entrepreneurs had certain advantages that made them attractive to investors.

"Firstly, they have a more open mind, without being limited by ideas of what is and isn't possible in the way that adults are," said Li Yan. "Secondly, their ideas in some ways indicate future trends in the market, because they themselves will be the consumers of the future."

Li Yan noted that the China office of the International Data Group (IDG), a technology and venture capital conglomerate with its headquarters in the US, had set up a special fund for young entrepreneurs born after 1990 this August.

Two sides of the coin

Some other industry insiders however are less optimistic about the prospects of investing in adolescent inventors and entrepreneurs.

"From a market standpoint, projects like Wu's, Wang's and Qi's haven't yet achieved any success," said Xiao Wenpeng, co-founder of Beijing Makerspace, a technology lab and incubator space. "The investment [that Wu] has received is not especially large and their projects are not particularly original."

Xiao also said he thought teenage entrepreneurs' lack of experience would hurt them.

"Having former business connections is very important for startups," said Xiao. "Also, the conditions for entrepreneurship in China are not very good at the moment. Even for those who have a good idea, a wealth of experience and a lot of connections, the success rate for startups is below 10 percent."

Xiao did acknowledge however, that investment in adolescent inventors could reap rewards in the long term, even if they failed to make a return on their initial investment.

"If [an investor] doesn't care whether their initial investment pays off, and they believe in the teen's potential, then it can be worthwhile," said Xiao. "Then if the teenager succeeds in his or her second start-up venture as he or she enters the 20s, which is the golden age for entrepreneurship, the investor will probably have the opportunity to profit."

An investment manager surnamed Zhuang at a venture capital company in China, was also skeptical about investors being able to quickly profit from adolescent entrepreneurs.

"Trying to profit from these kids too early is like trying to make rice shoots grow by pulling them out of the ground," said Zhuang.

Li Yan said that young entrepreneurs would be best served by partnering with large investment companies rather than small investors.

"Large investment companies will not push them so hard to make a profit immediately," said Li Yan. "They will see the projects as a long-term commitment and a way to build a relationship with a young entrepreneur."

Wang said that age had nothing to do with whether a project would be successful or not.

"Investors should not judge us by our age but by our thinking, our insight, our decision-making abilities and our skills," said Wang. "Many young inventors are more mature and more creative than their peers of the same age."

Planting the seed

Qu Tian, the angel investor who is supporting Wu, said that he only decided to give Wu the capital after meeting him and being impressed by his maturity, despite his tender age.

"I hope this amount of money will provide an economic security for Wu's research. Perhaps this project will not succeed in five or 10 years, but I think he will finally achieve something," said Qu in an interview with Sanlian Lifeweek Magazine.

Speaking about her son Wu, Li Ailu said that he was simply embracing the present.

"Although a lot of people are not optimistic about his future and think that he's too young to be put in a position of such responsibility, we think it's the right time for him to transform his idea into reality and to realize its value [on the market]," she said.