This article comes from the Global Desk, a collaboration between The Gazelle, WSN and On Century Avenue. Read more by searching ‘global.’ On Dec. 2, On Century Avenue had the chance to sit down with entrepreneur, investor and app creator Moshe Hogeg. He is the founder of social networking site Mobli: a visual search engine and the popular social application ‘Yo’, where individuals send each other ‘Yo’s’ as a form of communication. Organized by NYU Shanghai’s Senior Executive in Residence, Elizabeth Chen, Hogeg gave us insight into his love for learning, his background, and his experience with the technological world. Could you discuss some of the tribulations and triumphs you faced during your formative years that guided your eventual career choice? How crucial were those years in terms of shaping what you wanted to do later in life?Moshe Hogeg: Actually, I was born in the generation where the Internet was just beginning. When I was 15, I got the Internet at home. Back then it was so expensive, we only used it after 10 p.m. - when it was cheaper. I was fascinated by the internet … It caused me to miss a lot of school, and because I was learning so much from the Internet, I became addicted to it. I remember between the ages of 16 and 17, I barely went to school. I just sat at my computer all day and night. I [also] had this perception in mind that I hated tests. I love learning, I [still] love it everyday, but I hated tests and the idea of tests. In Israel, the education system ... nurture[s] you to memorize [things] and not fully understand the answer, and I hate remembering things I like to understand things … My parents didn’t like it, but I refused to do tests. All I wanted was to learn, I didn’t care about the grades. So I was busy with learning in school, but more so learning about computers. So that was my schooling life. Then, when you turn eighteen, you join the army. I spent seven years in the army, I was an officer and managed to learn a lot about computers. When I left the army, I was 26. I left with a lot of experience in managing, with computers and controlling budgets. Immediately after I left the army, I started my own business. So I didn’t even get a chance to go to college. What suddenly triggered your change to entrepreneurship and social media?MH: The attraction started when I was a kid. I always researched and I always studied, and I really loved psychology. I loved understanding why people make decisions in certain ways, or understanding behavioral psychology … I decided to leave the army because I couldn’t get my mind off it. I was a very successful officer, and I got to be a company commander, and the position after a company commander was like an office position and you were no longer involved with people. And I really cared about people and understanding what makes people act. So for me, that was that. I left the army, which was a risky decision considering that the army is such a safe job. After that, I started my first company called Web2Sport, which was a very interesting company. I love sports - it builds up character. When you like to compete, when you like to study and like to understand how and why something works - it all builds your character. So, I started my first company and didn’t know anything about being in a company. And what I did know about technology was not enough to build my own company. It started from an idea. I loved football, it was 2006, there was the world cup, and Messi was a young player and the coach decided not to let him play. I was going crazy, everyone wanted to see Messi play. So I thought about crowdsourcing a football team. I took a real football team from Israel. I bought it for pretty cheap. I fired the coach and I told the fans that I was setting up a computer system, and that they would decide the starting line-up and they’d be the coach. They would decide who takes the penalty kicks, they would decide rotations and everything. This was a big success in terms of the idea, but in terms of the execution, it was poor. So, the company failed. You sold it to an Israeli sports channel, correct?MH: I had two parts to that company, I had the international company and the Israeli company. The story was so interesting and people were fascinated by the idea. The Israeli company was good, we made money. For the international company, we wanted to translate it into English and do things globally, but it just didn’t work. It was then 2008 and the global financial crisis hit. From 2008 to 2010, you couldn’t raise a dollar, and everyone was busy selling, not buying. So I sold. Then I switched to online marketing. I moved to Nike and then I created Mobli. Given that everything is moving so fast in the technological world, how do you decide what is going to work and what isn’t? How do you distinguish an idea that is original and worth it?MH: That’s a complicated question which has a complicated answer. I’ll answer it in two parts. One, I think an idea is very important, but 99% of the time somebody else already thought of the idea. It’s not only the idea, but it’s about the execution. The execution is much more important … If you have a great idea, but somebody else tried and failed, go for it because your execution might be better. The second thing, is that there is still room for innovation. There is also something important when dealing with the Internet ... There’s always room to build on top. [My app] Yo proves that there is room for innovation. The Internet was also based on communication and information. … It makes us communicate in a different way. Why has your investment group turned to celebrities, such as Leonardo Dicaprio and Tobey Maguire, to invest in your company? Was this a deliberate move? If so, what inspired this?MH: Different products require different marketing strategies. When you are a young company and trying to make a name for yourself, it’s smart to align yourself with a brand that is well known. You can use their reputation to help yours. To gain a trust level for Mobli, we used celebrities. They are platforms. For Yo, we wanted to prove something for ourselves. With zero dollars and without attaching our names to it, we wanted to prove that we could create something that could succeed. We tried to prove that an idea, a good idea, can cover the world ... Business schools and marketing classes all around the world are teaching people about Yo. It did go global. 50% of people said it was the stupidest idea ever. Of course, and the other 50% you’re missing the point: it’s genius. There’s a line between genius and stupid. Anyone that calls it stupid, doesn’t get it. From an investor’s point of view, how do you identify an idea worth investing into?MH: Very shortly, I start by looking at the team. A good team is better than a great idea. Take Instagram for instance- they started out as Bourbon. Initially they did a location service which failed, however, despite that they pivoted to become a successful company. So, the first thing I look at is the quality, motivation, and character of the team that comes to me with a proposal. If I like the team, then I’m probably going to invest even if I do not like their idea. We look at their experience and past records. They don’t necessarily have to be successful. Having failed the first time demonstrates that the same team has a lot more motivation, and there is a greater likelihood of them not repeating their past mistakes. The second thing we do is evaluate the market. Timing is of the essence. If the idea and the team is amazing, and the market is booming then we definitely make an investment. We also invest at different stages of app development. If I like a team but not their idea, I will invest, but probably something around $50,000. If I am confident about an idea, and have faith in the team running it then I can invest in the millions. NYU Shanghai is a startup institution and all of us, faculty and students included have invested our futures in this university without knowing how everything will shape by the time we graduate. Bearing that in mind, how can we make the most of our time here at NYUSH?MH: I really envy all of you. Firstly, there is no such thing as certain; it’s bullshit. You are in the most fascinating, interesting market in the world. It’s not America that is the pioneer in the status-quo, it’s China that is number one, and you are building something new in China. I’m sure you’ve heard of the phrase: “If you build it, [they] will come.” Believe in the power of new, creative ideas. You have a world-class faculty and you’re in the right market so I’m sure that this institution will prosper. So my best advice to you is to keep working and taking risks. This article was written by Alhan Fakhr. Send an email to [email protected] to get in touch. Photo Credit: Richard Huang