Success lies in understanding what Silicon Valley is (2)

Another element differentiating Silicon Valley from other places is that people here are motivated by equity participation. "They work not for weekly pay check but the ownership interest of the company. That's a big motivator for Silicon Valley".

And companies must learn venture capitalists here are risk takers. Venture Capital is very important to local economy. In many parts of the United States, venture capitalists are formal bankers not risk takers. But here in Silicon Valley, venture capitalists are formal entrepreneurs. They take risks and they understand that some ventures fail. They make regroup and find a way to succeed.

Venture capital does drive Silicon Valley. About 60 percent of all U.S. venture capital is managed from Silicon Valley. Venture Capital is part of life blood. It's ecosystem in Silicon Valley.

Referring to specific suggestions for Chinese companies that wish to open business in Silicon Valley, he suggested they should understand the law by getting good legal advisor and financial advisor.