China's virtual landscape

YY (YY) is similar to YouTube, but with a twist. Like YouTube, users watch videos; in YY's case, all videos are live performances streamed in real time.

YY started as a messaging service for online gamers to form a virtual strategy huddle. Some users began staging impromptu karaoke performances, and it wasn't long before management saw profit potential. The company now makes money by allowing spectators to upgrade site privileges and to buy gifts -- virtual teddy bears, roses and more -- for performers. (Performers get a cut.)

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Keep an eye on this one: In the year since its New York IPO, shares of the Guangzhou-based company have already soared 357% to reach a $3 billion market cap.

The company was co-founded by Lei Jun, a Chinese tech entrepreneur often compared to Steve Jobs. Lei is chairman of YY, and also the CEO of smartphone company Xiaomi.

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