The VR/AR industry needs the same critical point as the thousand yuan machine

Speaking of Qualcomm, many people may have the first impression of Qualcomm Snapdragon processor. According to the evaluation software Ann Bunny announced the first half of 2016 Android mobile phone processor market share rankings, the market share of the top ten processors, Qualcomm Xiaolong processor occupied 6 rankings. Among them, Xiaolong 820 is ranked first, with a market share of 9.66%.

On December 7, Qualcomm announced the availability of the world's first commercial sample of 10 nanometer server processors with up to 48 cores. The computing power of mobile phones is approaching its peak, so it is important and urgent to open up a broader computing platform in the future.

In an interview with reporters, Qualcomm Global Vice President and Qualcomm Ventures China Managing Director Shen Jin said that the focus of Qualcomm Ventures has shifted from mobile phone ecosystem to VR/AR, drone and other extended computing platforms.

In a calm words, "the drone is in our eyes, it is the mobile phone that can fly; the virtual reality helmet and wearable device are the mobile phones that can be worn on the body." Although the shape is different, but the change is not the same: the core is the extension of computing power, and different carriers, such as virtual reality devices, wearable devices, drones, are just different variants that meet the needs of people. For Qualcomm, the core technology is intelligent computing.

Strategic investors: upgrading the industrial chain

“Technical companies must be very cautious in selecting investors. For example, Qualcomm’s investment in a highly technical company is considered to be more valuable. Otherwise, it is rich and has long-term strategic significance.” One of the core technologies of VR/AR is eye tracking technology. Qingyan Technology Co., Ltd. is financing, and its general manager Du Yu told the International Finance News reporter.

Qingyan Technology represents the universal logic of a core technology company: the technology "Da Niu" even likes to take the money of technology "big cow".

In fact, many of China's top venture capitalists interviewed by the International Finance News have a consensus on the industry's general trend: In the past, China's venture capital market was mainly an investment model innovation, and technological innovation will become an important trend in the future. Among them, companies such as Qualcomm, which have always used technology as its core competitiveness, are strategic representatives of China's technology ventures.

It is generally believed that independent venture capital funds mostly focus on financial returns, because the fund manager must finance the investors and collect the profit share from the financial returns of the investment. The time limit is generally “5+2”, that is, the 5-year investment period +2 Year of withdrawal.

The only funder (LP) of Qualcomm Ventures is Qualcomm, so Qualcomm's strategic significance is more important than financial returns. "There is not much pressure on the return, and the investment period is not particularly limited." Shen Jin said.

What is the difference between Qualcomm Ventures as a strategic investor and a venture capital fund as a financial investor? Shen Jin said that the primary advantage is the deep insight into the industry chain, because Qualcomm is in an important part of the entire industry chain, and is the upstream link.

“In addition, our company has many engineers. We can help companies to develop products for startups. And we have many customers and partners in the industry chain. We can introduce them to them and become their partners.” Shen Jin Say.

In fact, Qualcomm, which has computing power, has been trying to integrate mobile phones with other terminals, such as desktop computers and tablets.

On December 8, Qualcomm announced that it will be fully compatible with the Windows 10 ecosystem, enabling Windows hardware developers to create next-generation terminal forms that provide mobility for cloud computing.

The VR/AR industry needs the same critical point as the thousand yuan machine

The Qualcomm Group's strategy is clear: around the computing power, the major companies that need computing power are included in their own ecosystem: In November, Qualcomm and Tencent Interactive Entertainment Group reached a strategic partnership to establish a joint innovation center to play in the game and The entertainment sector identifies and builds a leading immersive mobile user experience; at the same time, it is working with Samsung to create the latest Snapdragon 835 mobile processor using a 10nm process; previously, Qualcomm also worked with Telstra, Ericsson and NETGEAR released the world's first Gigabit LTE mobile terminal and a ready-to-go Gigabit network.

So, when choosing a startup, what does Qualcomm Ventures mainly value? In addition to financial returns, Shen Jin said that it also considers three aspects: related to Qualcomm's product technology, can help Qualcomm to see the areas that are not understood, and promote the overall improvement of the industry chain.

“We like companies that are directly related to Qualcomm's technology and products. For example, Xiaomi, which we invested a few years ago, is a very important customer of Qualcomm and is directly related to Qualcomm's product technology and has strategic significance.”

Shen Jin said: "We need to perceive the most cutting-edge dynamics. Although Qualcomm has not been involved in many fields, through the growth of startups in the front line, we can learn from them about the demand and development trend of smart technology, we will compare Others know a little earlier."

Even if it is not related to product technology, it cannot be used as a tentacles to provide cutting-edge information. If a startup can promote the development of the industry chain, Qualcomm Ventures will also consider investing.

"If an industry chain is not mature, and we do well in the industry chain, we will also benefit ourselves. For example, before we will vote for some game companies, although it does not use Qualcomm technology, it can not help us to feel anything, but for 4G The popularity of the game, the game has played a big role in promoting the demand for mobile data." Shen Jin said.

Turn to cutting edge technology

From 2008 to 2015, Qualcomm Ventures' main investment direction is mobile internet, which invested in Xiaomi in China, Zhongke Chuangda, which provides the underlying software for the Android mobile phone industry chain, and free phone TouchPal, and every investment is clear. Industry chain logic: "From 2008 to 2015, we focused on mobile Internet as an investment. The investment idea is along the mobile Internet industry chain, from upstream semiconductors to our very familiar terminal manufacturing, terminal design, and then Go to human-machine interface technology, then to the mass application, to the vertical industries that have changed through the mobile Internet."

Since 2015, Qualcomm has invested in the next generation of cutting-edge technology. In Shen Jin's view, the so-called cutting-edge technology is the five aspects of artificial intelligence, AR / VR, drones, robots, space technology, including both smart technology and new business models.

Qualcomm has always been regarded as the pioneer of computing power of mobile terminals, but what is the core essence of mobile terminals, whether it is mobile phones or the next VR/AR devices and drones?

In this regard, Qualcomm has its own understanding: "We believe that the so-called 'mobile' is to gather scattered resources, mobile is a coverage, is a scale, so if you can start entrepreneurial innovation from these angles and values, I think They are very good. So we also agree in particular with the idea of ​​crowdfunding and sharing the economy. Their fundamental principle is to mobilize scattered resources, which is actually the power of mobility."

In areas where you are good at, Qualcomm Ventures may be more competitive than top VCs. “When we were competing in the mobile Internet field, we were better than other VCs. While focusing on cutting-edge technology, Qualcomm may be the most popular among many investors. Entrepreneurs may have higher priority than other top VCs. "Shen Jin said.

Shen Jin believes that the VR/AR industry needs a critical point like the mobile phone thousand yuan machine in the process of popularization. “Reviewing the past, big-screen smartphones can break out when they are able to do a thousand yuan. Now VR/AR is making content, but in the end there must be a benign business model. To use this content, users need to have enough Users and equipment need equipment that is convenient enough and low enough. So the same reason, the explosion point of VR/AR is whether it has already ushered in the so-called 'thousand yuan' price segment, not necessarily the same thousand yuan machine. But basically it is such a concept."

In Shen Jin's view, the difference between VR/AR devices and smart phones is mainly in terms of interaction. Because interactive tools such as handles are needed, as well as gesture recognition, this part has high processing power requirements, so VR/AR should use the most flagship. Chip to do.

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