VIDEO: Yilu Zhao of Qunar

"We have full respect for the entrepreneur. The entrepreneur often time is the one to drive company growth and company strategy. We invest in people more than we invest in company," Zhao said.

She recalled that when Baidu acquired a 60% stake in Qunar in 2011 it was with the understanding that the founders wanted to pursue an IPO. The search engine supported Qunar went public in the US last year, while VC backers including GGV Capital and GSR Ventures remained equity interests in the portfolio company.

It could be argued that Baidu helped the travel site realize its full potential - it is now valued at more than $3 billion, compared to $600 million when Baidu acquired its majority stake.

"They [Baidu] honored that commitment. We will take much the same approach. We would like to honor our commitment to entrepreneurs in terms of choosing routes of growth," Zhao said.

Furthermore, she denied that strategic investors drive up the valuations of start-ups; rather, they bring additional value. "From a valuation perspective, we actually work with VC and PE funds. We don't compete head-to-head against them. What we bring to the table is something extra - a strategic angle. We're able to provide target companies with systems support and technology support and the operational advice that only strategic investors can offer," Zhao said.

In May Qunar participated in a Series B round of funding worth more than $15 million for GrabTaxi, a Southeast Asia-focused taxi-booking mobile phone app. VC firm GGV led the round. Zhao said GrabTaxi is a value-add service for Qunar's consumers when they travel outside of China, with Southeast Asia among the most popular destinations.

"We would be able to offer our consumers the opportunity to book taxi services through this app, and increase the safety level," she explained. "First of all, when the booking is done through an app, we can track the phone number, the driver's name and where the taxi is going. Secondly, for those consumers who are willing to pay a little bit more for call services, we would be able to connect them with Chinese-speaking driver who has a good record."

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