Cai Wensheng, Chairman of Meitu and a renowned angel investor, recently shared his insights on the past, present, and future of the internet and blockchain. His journey from a domain name investor to a key player in the tech industry offers valuable lessons for entrepreneurs and investors alike.
From Domain Names to Angel Investing
Cai Wensheng began his internet career in 2000. Without a technical background, he started with domain names due to the low entry cost—just a computer and minimal capital. His early investments included high-value domains like uc.cn (for UC Browser) and qiyi.com (for iQiyi), earning him the title "Domain King."
By 2003, he created the personal website 265.com, which attracted investment from IDG Capital. This success inspired him to organize the first China Internet Site Owners Conference in Xiamen in 2005. The event brought together 150 top webmasters, including founders of hao123, 58.com, and Tudou, as well as investors like Lei Jun and Zhou Hongyi. This gathering marked the transition from personal to commercial websites and ignited the grassroots internet entrepreneurship wave.
Cai believes that understanding domain names provided a foundation for comprehending the entire internet landscape. It allowed him to identify successful websites, their creators, and their strategies—a methodology he later applied to angel investing and blockchain.
The Angel Investor's Perspective
As a member of the China Angel Investment Association, Cai has collaborated with prominent figures like Lei Jun, Xu Xiaoping, and Li Kaifu. Each investor, he notes, has a unique style:
- Li Kaifu focuses on logical, data-driven decisions.
- Xu Xiaoping is romantic, investing in projects that move him.
- Xue Manzi embraces new trends broadly.
- Yang Xiangyang invests with a sense of social responsibility.
Cai emphasizes that while early-stage investing aims for financial returns, experienced investors eventually prioritize social impact. For instance, he invested in projects like Xinnong Net (helping farmers with agricultural techniques) and Daibang Net (providing microloans to rural communities), knowing they might not yield profits but could create meaningful change.
When asked about missed opportunities, Cai admits he could have invested in Xiaomi, Meituan, and ByteDance—companies now rivaling BAT (Baidu, Alibaba, Tencent). However, timing and strategic choices led him to pass on these opportunities.
Embracing Blockchain: The New Frontier
Cai transitioned to blockchain investing during the 2018 Spring Festival, actively participating in the "3 AM No Sleep Blockchain" WeChat group. He views blockchain as an extension of P2P technology, similar to the early internet, offering transformative potential.
He believes blockchain represents the largest bubble in human history but argues that not participating is the greatest risk. While only 30 million people currently engage with cryptocurrencies, the technology’s global reach and disruptive capacity are undeniable.
The "3 AM" group gained traction due to its structured discussions, prohibition of spam (like repetitive greetings or红包), and inclusion of both internet and blockchain elites. Key contributors included Chen Weixing, Shuai Chu, Dovey Wan, and Wang Feng.
Addressing the BEC Controversy
Cai clarifies that Meitu did not create BeautyChain (BEC), though its overseas product BeautyPlus briefly collaborated with the project. BEC, issued via airdrops and user activities, faced technical vulnerabilities exploited by hackers. However, swift action by exchanges like OKEx prevented user losses, and the BEC Foundation compensated affected parties.
This incident highlights broader security challenges in blockchain. Cai stresses that blockchain entrepreneurship requires deep expertise in technology, economic logic, marketing, and community management—not merely issuing tokens.
Investment Strategy and Market Outlook
Cai personally owns over 10,000 Bitcoin, acquired during market downturns. He has invested in projects like Theta, Ontology (ONT), and ArcBlock (ABT), acknowledging short-term volatility but maintaining long-term optimism.
He distinguishes investment from speculation: true investors welcome price dips as buying opportunities, while speculators panic. He advises against relying solely on endorsements from famous investors, urging due diligence.
For those exploring blockchain opportunities, 👉 discover strategic investment approaches to navigate this evolving landscape.
Cai predicts that in the next three years, every internet company will integrate blockchain technology. Conversely, successful blockchain projects must leverage existing internet infrastructure and user bases.
The Role of Technology and Geography
Despite his grassroots origins, Cai acknowledges that technology is crucial for scaling businesses. Meitu, for example, employs over 2,000 people, 70% in technical roles, utilizing AI and big data in products like MeituPic and BeautyCam.
He dismisses regional stereotypes about Fujian entrepreneurs, emphasizing that success depends on execution and adaptability, not geography. His own investments, like 58.com and Baofeng Technology, took over a decade to mature—proof that enduring value requires patience.
Frequently Asked Questions
What is the relationship between blockchain and traditional internet companies?
Blockchain and internet technologies will increasingly merge. Internet companies will adopt blockchain for efficiency and transparency, while blockchain projects will rely on internet user networks for growth.
How can investors identify promising blockchain projects?
Focus on teams with strong technical skills, clear use cases, and active communities. Avoid projects prioritizing hype over substance. 👉 Learn more about evaluating blockchain ventures.
Are blockchain tokens essential for every project?
Not necessarily. Some applications, like banking or supply chain upgrades, can use blockchain without tokens. However, tokens often enhance value distribution and incentives.
What are the biggest risks in blockchain investing?
Security vulnerabilities, regulatory uncertainty, and market volatility. Investors should diversify and prioritize projects with proven track records.
How will blockchain impact global business models?
It may redefine organizational structures, enabling decentralized governance and new forms of value exchange beyond traditional currencies.
Can grassroots entrepreneurs still succeed in tech?
Yes, but they must combine creativity with technical prowess and adaptive leadership—as seen in companies like Meitu and ByteDance.
Conclusion: The Future Is Integration
Cai Wensheng’s journey reflects the evolution of the internet—from domain names to blockchain. He believes that the future lies at the intersection of AI, blockchain, and human-centric innovation. While technology drives progress, its true value emerges when it serves broader societal needs.
As he aptly puts it, "If I were a young entrepreneur today, I would still embrace new trends with passion and purpose." The key is continuous learning, resilience, and a commitment to creating meaningful impact.