On September 4th, Li Kaifu, Google's vice president and Greater China CEO, officially announced he would resign from Google. His resignation means he is abandoning one of the Internet giants, as well as options and stocks worth $14 million, but the compensation is a job with starting funds worth 800 million yuan to play with where he can "control it all."
"For Google, I have no regrets now, but there is a dream which has not been realized in my life, and I want to make up for it," Li said on his blog.
The dream has been to start his own business. "I am afraid I won't have enough time if I don't do it now," he said. Today, he joined with WI Harper Group in announcing his project, the "Innovation Factory," an entrepreneurial platform for young people.
The project's investors include the founder of video site YouTube, Lenovo Holdings president Liu Chuanzhi, and WI Harper Group, with initial financing of 8 billion yuan. On-line testing for the "Innovation Factory" website has already begun despite its incomplete content, and recruitment is underway.
In a forthcoming book The World Will Become Different Because of You, Li recalls his resignation process.
On August 5, Li flew to the United States. In his meeting with Alan Eustace, Google's senior vice president of engineering, Lee told of his decision to leave the company. Eustace was very surprised. On the morning of August 6, Google CEO Eric Schmidt sent Li an email, asking him to reconsider.
"Money is not so important," Li says. During his tenure as president of Google China, Lee preferred to be called "Teacher Li" rather than "Boss Li," and enjoyed helping young people, answering their questions and helping them find their way.
Over the past four years, rumors of Lee's resignation have been a "crying wolf" story, often heard, so even the official announcement this time is considered by many, especially Google employees, as same old, same old.
Since entering the Chinese market in 2005, Google has had three leaders resign: Google Asia Pacific Marketing Director Wang Huainan, Google vice president and Greater China president Johnny Chou, and Li Kaifu.
In November and December 2006, Wang Huainan and Johnny Chou left Google one after the other. Li has served the longest. Wang Huainan joined hands with Shao Yibao, former chief executive of eBay in China, establishing an e-commerce business, Baby Tree. According to Johnny Chou's former colleagues, Chou is starting his own business in the logistics industry.
Google's development in China has been uneven. It took Google more than two years to get "legal status" in China, an ICP license. A tax evasion case and pornographic access scandal in July didn't do it any good. And then, Google faces strong competition from the domestic search engine Baidu.
Google's market share in China has climbed, up to 31% from 16.1% in 2006, but that is only about half of Baidu's more than 60% share.
The short service and resignation of two of Google China's leaders and then the loss of the third is thought-provoking. Wang Huainan explained that his departure was due to contractual reasons, complicated by localization issues. It is rumored that Chou's departure was also due to the lack of acceptance of a localized program he had submitted to headquarters.
A Google insider told a China Business News reporter, "Li Kaifu has done so much and tried so hard over the past few years. He had to keep shuttling between US headquarters and the Chinese government in communication and coordination. It was like dancing on the knife's edge."
A recent article on Li's blog states his own reason for his departure: "It is very simple: my new job is really exciting!"
In the weeks since Li tendered his resignation, he has been completing work on his new business, including a business plan, financing, and strategic cooperation.
"Innovation Factory" is a comprehensive business platform. Under Li's leadership, the platform will create projects with marketable prices and commercial potential, and start R&D and operations. When the project reaches a certain level of maturity, it will be spun off as an independent subsidiary, with the final goal of being listed or purchased. Projects are to focus on the Internet, mobile Internet, and cloud computing.
The new platform is like an angel venture organization, or an incubator for innovative projects, playing the role of both investor and entrepreneur.
Over the past 20 years, Dr. Li Kaifu has held high positions at three IT colossi: Apple, Microsoft and Google. The only way to improve on that CV is for him to start and run his own successful business.