CBNWeekly, a well-known business news magazine in China, introduced TrustLook’s start-up story in their cover headline article. (Link: http://storeweb.cbnweek.com/v/article?id=5875)
This article is about the choice on investors for the Silicon Valley entrepreneurs, the path of TrustLook seeking their series A funding has been cited as an example:
Before Allan Zhang decided to quit job and work full-time for his TrustLook, Lane Bess, the CEO of Palo Alto Networks had a dinner with him. On the next day, Lane offered him a $100,000 check.
The most surprising investor appeared one week before TrustLook launches its product, which was in Jly 2013. Allan had a special visitor at his office in San Jose – Zhou, Hongyi, founder & CEO of QiHoo 360 (NYSE: QIHU). And he came for investing TrustLook. At the same day, they completed all the negotiations: QiHoo wants to take 25% equity regardless of the valuation. No extra clause added. The benefits outside the investment contract is, QiHoo could give great support to this Silicon-Valley based start-up entering the Chinese security market.
Although the offer is attractive to the TrustLook team, they have not reached the conclusion of accepting the investment from QiHoo. One reason is that funding is not the greatest concern for him – in the first week he launched TrustLook, he already secured the seed funding of $1.4 million.
“The cost is less than ever to establish a start-up. Money is no longer the problem. The most important thing is, you should know what kind of support you need.” Allan Zhang said to CBNWeekly.
Besides QiHoo, Tencent, Baidu and Shengda have all entered in Silicon Valley to seek their investment target, struggling to attract entrepreneurs like Allan Zhang. And the problem for early stage start-up has become “whose money is more valuable”, instead of “who is willing to invest”.