Chen Weiguang vs. Zhang Yusheng: Who Is Your True Startup Partner? (StarMed Sharing Medical Salon Public Lecture Series 6)

Event Name:StarMed HubIssue 1Open Course

Event Dates: November 7–8, 2015

Organizers: Legend Star, VCBeat, BlueRun Ventures

Guest Speaker:

Chen Weiguang
Partner, BlueRun Ventures
Joined BlueRun Ventures in 2001 as a Partner, based in Beijing, focusing on early-stage investments in mobile healthcare, mobile internet, big data, and enterprise applications. Currently serves as a board member for several innovative companies, including Ganji.com, Chunyu Doctor, Medtrees, Echo, and QingCloud.

Zhang Yusheng
Founder and CEO of Apricot Forest
Previously served as Research Manager in the Medical Strategy Department at Wellpoint, the largest health insurance group in the United States. Named one of Fast Company’s 100 Most Creative People in Chinese Business in 2015, and champion of the inaugural China Pharmaceutical Internet Entrepreneurship Competition.

Below, we dive straight into the engaging dialogue between our two guests. For the full presentations, please follow VCBeat’s WeChat account (vcbeat) to watch.

Chen Weiguang: How Difficult Is It for Doctors to Become Entrepreneurs?
Zhang Yusheng: For physicians embarking on entrepreneurship, the level of difficulty is relative. When you are passionate about what you do, it does not feel difficult. It is a great fortune to discover your true calling during your prime years. Throughout this journey, my passion for medicine and technology has surpassed all else.
The challenge lies in continuously identifying issues, recognizing one’s weaknesses and shortcomings during the process—some of which may even be insurmountable without external assistance. This is also the most difficult aspect of entrepreneurship.

Chen Weiguang: Building the team is the most important...
Zhang Yusheng: I have made many mistakes. In the beginning, there were four of us co-founding the venture, covering product, technology, and two medical specialties. If team members are not true co-founders, it is easy to make missteps in entrepreneurship. It is difficult to distinguish who are the truly suitable partners; this requires trial and error. When uncertain, you should ask more questions and engage in more discussions to identify who the truly capable individuals are within this circle.
The first challenge was building the team. During our second meeting, an investor pointed out issues with my equity allocation: first, my own equity stake needed to be increased; second, the other two team members lacked sufficient capability and were likely to leave. Indeed, those two members departed two years later. My takeaway is that if you are uncertain about someone’s competence, you must meet with more candidates and identify the strongest possible individuals to help make informed judgments.
My second piece of advice is that failing to encounter suitable candidates for a position can lead to the mistaken belief that the role is unnecessary. For instance, there was a time when we thought a Marketing Director was not needed; however, only after hiring an outstanding Marketing Director did we realize the immense value such a professional brings. Therefore, it is crucial to seek out top talent. Moreover, it is essential to find individuals who can collaborate seamlessly with you.

Chen Weiguang: What is the value of Apricot Forest?
Zhang Yusheng: Let me tell a little story: The “Three Treasures” of Peking Union Medical College Hospital are its library, medical records department, and senior professors. Becoming a good physician is inseparable from these three invaluable resources.
Peking Union Medical College Hospital’s library excels in classification, facilitating easy access to medical record indices and enabling the systematic accumulation of valuable resources. We hope that Xingshulin will facilitate the effective dissemination of professional knowledge among doctors across China, fostering a collaborative network. As a company dedicated to serving physicians and addressing clinical challenges, our product—Medical Record Folder—enables the collection of medical record data. Looking ahead, we aim to promote the sharing of complex case records, thereby preserving and accumulating expert experience.

Chen Weiguang: How to persuade doctors to use our product?
Zhang Yusheng: Initially, physician resources were acquired through social networks such as Weibo and offline hospital connections; later, a systematic approach was developed to acquire users.

Chen Weiguang: What are the challenges faced?
Zhang Yusheng: In terms of business model construction, how can one develop a scalable and replicable business model? The second challenge lies in human resources; identifying and securing the talent necessary to achieve objectives is also a significant hurdle.

Chen Weiguang: Which types of companies will you collaborate with?
Zhang Yusheng: There are three categories: pharmaceuticals; second, smart wearable devices, such as handheld ECG monitors that allow patients to measure their electrocardiograms at home and transmit the data to hospitals, as well as devices for monitoring blood oxygen, blood pressure, and respiration; and third, the standardization of data processing and structured data, in collaboration with insurance companies.

Chen Weiguang: From Angel to Series C, How to Raise Funds and What Are the Challenges?
Zhang Yusheng: As a founder, you must remain perpetually ready to raise capital, never letting your guard down, and always maintaining a state of strategic readiness. For instance, leverage your existing investors to expand your professional network and stay vigilant for potential investors who may participate in the next funding round. By maintaining this constant state of fundraising readiness, you will increase your chances of securing investment.

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