Summary of Key Points
Recently, the phenomenon of Dajiang employees leaving to start their own businesses has become a significant event in the venture capital community: investors are eagerly seeking out these talents, with some employees securing tens of millions in funding before they even have a clear business plan. These entrepreneurs leverage Dajiang’s 20 years of core technology, which focuses on making moving objects stable, to quickly develop successful products in various fields such as 3D printing, energy storage, and lawn mowing robots. The main reasons for the brain drain include Dajiang’s decision not to go public, which prevents the realization of employee stock options, and the lack of internal opportunities for entrepreneurship. Shenzhen has successfully attracted most of these startups due to its strong supply chain, capital, and a high density of entrepreneurial cases, while Shanghai is making inroads with its AI talent and relevant industry applications. If Dajiang begins to systematically invest in these former employees’ companies, it could transform from a “talent drain” into an “ecosystem leader.”
Why Do Investors Flock to Dajiang’s Employees?
The reason investors are so keen on Dajiang’s entrepreneurs is not just because they have plenty of money; rather, they see three key capabilities that have been proven by Dajiang itself:
1. Comprehensive Hardware Skills: These entrepreneurs have a deep understanding of everything from mechanical design and algorithms to mass production. For example, Tuozhu Technology, which develops 3D printers, has iterated on its prototype 7 times in 22 months and made 10,000 units with minimal rework—a rarity in the tech industry, where only 10% of teams succeed in moving from prototype to mass production.
2. Product Definition Ability: They inherit Dajiang’s commitment to quality, ensuring that products are only released when they are fully developed. For instance, Zhenghao Energy’s fast charging technology outperforms competitors by 10-20 times, thanks to Dajiang’s rigorous development process.
3. Global Orientation: Dajiang is a global player, and its employees are accustomed to working first in overseas markets before entering the Chinese market. Tuozhu and Zhenghao’s products are sold worldwide, and Yushu Robotics holds 70% of the global quadrotor robot market, indicating significant growth potential for investors.
Why Has Dajiang Become a “Startup Factory”?
The inability to retain talent at Dajiang is due to two major issues:
1. Lack of Public Listing: Employee stock options cannot be cashed in, making it tempting for them to leave for better opportunities.
2. Limited Internal Entrepreneurial Opportunities: The company’s strong leadership culture means that employees with innovative ideas often have to leave to pursue their dreams. For example, Tao Ye, the founder of Tuozhu, left Dajiang to start his own business because he couldn’t implement his 3D printing ideas there.
What Is the “Universal Technology” Behind Dajiang’s Success?
Dajiang’s employees’ ability to create products in various fields stems from a fundamental skill: Universal Motion Control. This involves using sensors to determine the position of moving parts, algorithms to calculate corrections, and motors to act precisely within milliseconds. Dajiang has honed this skill over 20 years, making it world-leading. This technology can be applied to almost all moving objects:
- Using drone lidar in 3D printers to improve speed and reliability (Tuozhu).
- Incorporating fast charging technology from drones into energy storage devices (Zhenghao).
- Transferring flight control algorithms to ground-based mowing robots (Songling).
- Applying motor technology to lightweight hair dryers (Species Origin).
Local Governments: Focus on Attracting Talent
This entrepreneurial wave highlights the importance of attracting talent from companies like Dajiang. For example, Shenzhen’s advantage lies in its comprehensive infrastructure (supply chain, capital, and entrepreneurial cases), while Shanghai leverages AI talent and industry applications. Other cities should focus on the “soft aspects” of technology, such as algorithms and data, to attract Dajiang’s teams.
Could Dajiang Become an “Ecosystem Leader” in the Future?
In February 2026, Dajiang made its first direct investment in a former employee’s company, Chilong Power, signaling a potential shift. If Dajiang begins to regularly invest in these startups, it could transform from a talent drain into an ecosystem leader, benefiting both itself and its former employees. Tencent, for instance, has built an ecosystem by investing in companies like Futu and XiaoeTong. Could Dajiang follow suit?
A Thought Question for You
Does your city have a company similar to Dajiang that is attracting and retaining talent? Is your city focusing on preventing brain drain or on creating the right conditions for talent to thrive? The outcome can greatly differ depending on the approach taken.