Yu Minhong, chairman of New Oriental Education Technology Group
Titanium Media Note: On August 10th, at the 2018 Level Opening Ceremony of the Eastern Coordinate School and the New Oriental Education and Culture Industry Fund Conference, New Oriental founder Yu Minhong said in an opening speech, “Young people may not like me, but at least There are two things that make young people have to be close to me, my connections and social resources, which can be used by you."
Yu Minhong recalled that he borrowed 2,000 yuan when he first started to establish new oriental and did not sleep for a month. At that time, his salary at Peking university was only 120 dollars a month, and no one could come and invest.
"Because I'm going to give my students a TOEFL class, a set of 12 tapes costs 60 yuan, which was equivalent to half a month's salary. After I buy it, I worry every day. Where is the money for half a month to buy food? "
Yu Minhong says that although New Oriental is already very big, it is still in the stage of entrepreneurship today. The harder and harder it is, the harder it is for him to live.
"when you start a business, you do it without it, you do it bad, you do it well, and you eat and drink and chat with a group of teachers and friends every day. But today New East. A little bit, investors who buy New Oriental shares, no matter how many shares they buy, can call New Oriental to ask how New Oriental is doing and how their interests are guaranteed. "
But over the last two decades, he has come to the conclusion that you can get older, you can be stupid, and you can't even understand the times. But you just have to do one thing, that is, you listen to the young people go forward, young people say everything is right. All you have to do is think so.
In June of this year, New Oriental established the Oriental Coordinate Academy, serving entrepreneurs after the A round, and recruited 35 students for the first time.
At the same time, the new oriental education and cultural industry fund was recently established, with a first phase of RMB fund of 1.5 billion. The contributors include citic trust, industrial and commercial bank of China, zhangjiagang industrial capital center, Noah wealth, 51job, suntech education, Gao Dun finance and economics and other institutions and enterprises.
The fund will focus primarily on the education industry and the extended pan-educational culture, investing mainly in early growth projects, not in the angel phase. The fund is expected to invest no more than 30 enterprises, the main project single investment amount between 20 million-100 million yuan.
On the basis of the first RMB fund, New Oriental plans to set up a parallel dollar fund in September. The overall size of the first US dollar fund is expected to be equivalent to that of the RMB fund. The investment strategy is basically the same, still focusing on the Chinese market and will also carry Investment in overseas outstanding projects. In addition, New Oriental is also planning PE M&A funds, mainly considering the continued opportunities in the vertical integration of education.
Xu Xiaoping, one of the founders of New Oriental and the founder of Zhenge Fund, has repeatedly said that he hopes that there will be a chance to incubate the next New Oriental. Yu Minhong believes that becoming the next new East is subject to conditions:
1. A profound understanding of education. 2, for the development of the education industry and the ideal of development. I think education should be a little idealistic. 3. Education now is different from what I started from scratch, from a class to a few hundred.
Mr Yu says it is now a combination of three-dimensional business models crisscrossed and crisscrossed. The combination of the Internet and the ground has created a new business model, the combination of the Internet artificial intelligence and the ground has produced a new model, the combination of artificial intelligence and block chain may have a new model, and new business opportunities will emerge immediately in any field. New opportunities.
But to seize the opportunity in the first place depends mainly on personal sensitivity and resources. But the problem that is now caused by the model of financing and entrepreneurship is that money is too easy, and the attitude of true responsibility declines. More than once, I found that after the entrepreneurs finished the money, the office changed from an inconspicuous corner to a very luxurious office. "It’s not your own money that doesn't feel bad."
The industrial fund established by new oriental aims to change China's educational model and methods through investment in the educational field and by means of the ecological circle industry chain in the educational field. it does not depend on new oriental alone, but must allow more people to participate in the development and investment in the educational field.
"if you just want to go public, just to make money, and finally sell the company after you make money, I think you'd better leave your education and do something else. I'm just telling you that education should be done more seriously, without any falsehood, without any impetuosity, with a real sense of responsibility. " Yu Minhong said. (first Titanium Media, author / Lee Cheng Cheng)
The following is the full text of Yu Minhong's speech, arranged by titanium media:
New Oriental has been working hard to start a business until now, and I think it is still in the entrepreneurial stage today. Although the size has been relatively large, but still in the middle of entrepreneurship. I think it's more difficult for me to live than I was when I started a business. When I started a business, I did it without doing it. When I did it bad, I did it badly. When I did it, I did it well. I had fun eating, drinking and chatting with a group of teachers and friends every day. Today, however, any move in New Oriental will attract attention, comment, criticism or praise, not only in China, but also in the world. Investors who buy New Oriental shares, no matter how many shares they buy, can call New Oriental to ask how it is doing and how their interests are guaranteed. So things are getting bigger and harder. But I think New Oriental has at least some experience and experience so far, which is good.
On the bad side, New Oriental has a lot of lessons to learn, although it is still in the middle of development, and it is doing well. But at first, if I or the New Oriental team had more experience and lessons from the past, we may now be able to do well in the development of the New Oriental. With all these experiences and lessons, I think it's time to share them with our new generation of entrepreneurs in education. I think this sharing must be valuable.
But in fact, we have another purpose, which is very simple for me. I have a belief that Mao Zedong said, "the world is yours and ours, but in the end it is yours. You are like the sun at eight or nine o'clock in the morning." Mao Zedong was a remark to Chinese students at Moscow University during a visit to the Soviet Union. This sentence should always be true, because the world is always young,
Statistics show that most of the world's most important inventions of science and technology were completed before the age of 35. When Einstein spoke the theory of relativity, it was about 27 years old. I went to check some areas of thought, even though we know that Laozi’s Tao Te Ching was written as an old man when he wrote to Guguan. We also know that the thought of the Analects is that Confucius is older and When Lu communicated with the students, it was a philosophical thought that summed up the world. Really creative humanistic thoughts, social thoughts, and scientific thoughts may all come from young people.
So I've come to the conclusion that you can be older, you can be stupid, you can't even understand this age. But all you have to do is to listen to the young people go on, and the young people are right in what they say. All you need to do is think about it. I said in a speech five years ago that I would like to be with young people all my life. I said that young people don't necessarily like me, but there are at least two things that make young people have to be close to me. First, my social and social resources. These resources can be used by you. This is very important. Yes. There is also a more important thing that young people need more money to start their own business. Of course, my personal money is not enough to support young entrepreneurs. But this benefit comes, for example, today we CITIC, ICBC, the Zhangjiagang government in our hometown why they sit here, because of the New Oriental Education and Culture Industry Fund.
As you all know, three years ago, when Premier Li Keqiang held a forum, I said that the activities of mass entrepreneurship and mass innovation are particularly good, and entrepreneurship and innovation should become a normal state for the Chinese people. But a calm market is the real market. So we actually had a cool process, and we also found that a lot of capital was invested in this project, but the results were not very good. We also found that a lot of young people did not start doing well after starting a business.
This morning, a media interview with me said, "teacher Yu, now you tell young people what they should pay attention to in starting a business." I say this is very simple, since they have already jumped into the sea, there is no other way to learn to swim in swimming, once you enter the business, you have to keep trying to exercise, constantly looking for new business models, constantly looking for your opportunities. You quit means you fail, exit means new opportunities come to you.
I've checked a little bit. Except for the big government-sponsored mentoring fund or parent fund, more than 1.5 billion funds have been set up this year. In one field, New Oriental is now the first in education. What does that mean? It means that you put too much trust in New Oriental.
Why do so many institutions trust us? The reason is still the first point. new oriental has accumulated rich educational resources, rich experience in the education industry and rich practical ability in the education industry for more than 20 years. I think it is easy to do with this thing. We put these two things together today on purpose. why? Because we have come to more than 30 today, it is really the founder or CEO of our carefully selected education company. their goal is basically to become the next new oriental. this is true. But there are conditions for becoming the next new east. To several aspects:
1. A deep understanding of education.
2. feelings and ideals for the development of the education industry. I think education should be somewhat idealistic.
3. Really is now doing education, and I was starting from scratch, a class to do hundreds of classes, is not the same.
Now it is a combination of crisscrossed three-dimensional business models. The combination of the internet and the ground has created a new business model. the combination of internet plus's artificial intelligence and the ground has created a new model. the combination of artificial intelligence and the block chain may create a new model. new business opportunities and new opportunities will appear immediately in any field. Therefore, under such circumstances, two things need to be accomplished. first, the ability to seize opportunities depends mainly on two points.
1. Personal sensitivity.
I have always believed that the sensitivity of individuals and teams to the future is the most important condition for seizing the next opportunity. Because there is no sensitivity of a personal team, giving you more money doesn't work. So it is very simple. Why did the two people become the biggest heads of rebellion in the Han Dynasty? One is Xiang Yu and the other is Liu Bang. Why is there no third party? In fact, there is a third party, but the two of them seized the opportunity and saw that the Qin Empire was unsustainable and saw the next blank space and battlefield. As long as they are willing to get up, they will be able to get it. But why Liu Bang occupied the world, and Xiang Yu finally failed. The reason is very simple, everyone sees the future is different. Xiang Yu’s vision is limited to being a dominant party, satisfying his vanity, and what Liu Bang sees is how to get the world down. This is totally different.
The most important resource for this resource is money. If the current startup company does not have the money to back it up, most companies can't support it. Because now we have produced such a business model. We can get enough time and sufficient financial resources to explore and lay the foundation for our business model by getting the money of the investors.
Therefore, we will now find that many fields of education, perhaps half of the education companies, do not earn money. But we are still thriving without making money. what is the reason? Because there are investors who give you money behind your back and are confident about your future business model. This event is absolutely impossible in our time. you lose money for a month and there is no room for you to live.
So when I first started doing new Oriental, I borrowed two thousand yuan, and I didn't fall asleep for a month. Why? Two thousand yuan for me at that time was a sum of money, the money borrowed from a friend. At that time, my salary in Peking University was only 120 yuan a month, when no one could invest in you. Yesterday I was looking back. I had a set of TOEFL tapes because I was going to teach them a TOEFL lesson. A set of 12 TOEFL tapes cost 60 yuan, which was equivalent to half a month's salary. After I buy it, I worry every day. Where is the money for half a month to buy food?
Which is like you now take our large sum of money, finished, finally the company closed down, finally said to me, teacher Yu sorry, spent your $10 million, but finally closed down no way, the next time to do the company to consider giving you some shares. That's basically it. I said good, keep working, next time a good business model continues to tell me, if true, I can continue to vote. How great do you think we investors are now! Really, great!
But this also brings up a problem, that is to say, sometimes the money comes so easily that the mentality of being truly responsible for money has dropped. This situation I have discovered more than once in entrepreneurs.
On one occasion, New Oriental invested a company and gave him 10 to 20 million yuan. Before I put it in, I went to their company to see it. The boss was working in a completely unremarkable work station in the corner. After I finished the investment, I spent another half month. Sitting in a very luxurious office, this is not your own money feel no pain. Of course, I don't object to entrepreneurs working in the office, I also work in the office. Because I find it hard to concentrate when I'm sitting outside like an Internet boss.
Let's use a simple example to explain a change in mentality. The change of mentality will eventually turn into a business model for the sake of the business model. financing for the sake of financing does not care whether the company feels that it can do it or not, whether it is doing something that can develop in the long run in an era and provide positive services to the market and the common people. it will be a problem to put it in the second place to consider. All the investors present today gave us the greatest trust. First, some of this money will go to our entrepreneurs. Therefore, the combination with new oriental has such advantages that we have achieved my two goals behind us.
First, new oriental wants to invest in the education field and change China's education mode and methods by investing in the education field with the help of the ecological circle industry chain in the education field. this is what we have to do.
Second, the money of New Oriental is not enough. We must let more people participate in the development and investment in the field of education. The release of this industrial culture fund today shows that this matter has already been established.
From another perspective, I hope that New Oriental can really use the experience of New Oriental, plus the financial resources of our industrial fund, can help our entrepreneurs here. Being able to move steadily to success, I feel that this success is not to say how much your company has done and how much it has earned, but in the long run, whether you create value for China's social development and progress.
Therefore, for new oriental, we in new oriental really need to find something strange, suddenly doubling our income, and new oriental can do it. However, we must not do this. we must carefully study every product, every curriculum system and every system that we have developed. Is it really helpful to the growth of every family and child, not just the improvement of scores, but also his personality, personality and physical signs. Therefore, by high-tech means, face-to-face means, artificial intelligence means, one-to-one means, or class means. Different users can provide different requirements.
Artificial intelligence and the internet are not the ultimate goals. if artificial intelligence and the internet do it, there is only one goal. this goal is to help us better serve our customers, that is, our students and parents. To make them more convenient, more effective and cheaper, or to accept our services more comfortably so that their children can grow up healthily, it is only with this as the core that the use of artificial intelligence and the internet is meaningful.
In this case, there is no artificial intelligence and the internet mode is still a good mode. For example, one-to-one can be done on the internet or on the ground. There is no way to define which is good. Completion on the internet can save teachers' and children's time, and transmission time through the internet is very flexible and very good. But is it not good to say that the ground is finished? The ground of new oriental is one - to - one, not to say that it is fully internet - based. What we want is how to accompany our children to grow up. what we want is one-to-one teacher training and education on personality and character.
For example, my son took a one-on-one course. My son's one-on-one course was divided into two ways. One was online. For my son's generation, it was too slippery to play online at the age of 16. He can switch from cell phone to computer in one second, from computer to TV, and three-screen synchronization is OK. Chat with classmates immediately switch to the phone, because to block my information. Listen to the teacher one-on-one class, immediately switch to the big screen, sit on the bed to listen to the teacher class, communicate with the teacher.
I think they play very well, but why do they still have two or three teachers who have to meet my son face to face and teach in my classroom at home? Because I deeply know that these teachers will have a profound impact on my children's personality, personality, learning habits.
Therefore, we just emphasize that my education is scientific and technological, internet - based, and does not have the real purpose of full education. Only a part of the education has been completed. new oriental is not without embracing the internet, and new oriental is not without embracing artificial intelligence. I just think that our education is a really good educational model that must cater to the needs of real customers and enable our children to grow up truly and healthily. I believe that our family and the model of a complete child are really good educational models. Uncle Kay tells the story why it is so popular, because every small product it makes is ultimately aimed at the healthy growth of the child's mind and the acquisition of happiness in knowledge, which is the core of its grasp. I think these are all very flexible, whether it is the way of using mobile app, the way of letting children listen directly with small toys, or the way of saying other things.
First, we only want to ask everyone to rest assured that your money will not be spent freely, because we must come back to invest in more education companies. If you spend 1.5 billion at a time, the last money will not come back. We can't help the education companies behind us, so we must let them come back in multiples, but we don't allow them to be taken back. We have to double our investment and let it contribute to Chinese education forever.
Second, our entrepreneurs, we report a true attitude of peace and education and serve the common people of Chinese parents. Provide the best educational products to make learning a pleasure. Let the children of the next generation in China become the next generation who are truly competitive under the world pattern and strive hard for their goals. Only based on these two goals can we make sense in education. If you just want to go public, just to make money, and finally to buy the company after making money, I think you'd better not do education first and do it in other fields first.
I just tell everyone that education needs to be done more seriously, without any falseness, without any impetuosity, and with a real sense of responsibility. At the same time, we should grasp the best business model, develop science and technology in an interconnected way, and do education together so as to do a good job in education. I believe that new oriental, as a hub, is only doing one thing, providing the best service for entrepreneurs and investors so that both sides can benefit at the same time. thank you.
More exciting content, focus on Titanium Media WeChat (ID: taimeiti), or download Titanium Media App