China's concept of bubble burst: mobile Internet investment dropped 50%

Facebook's listing was the pinnacle of the dotcom bubble and accelerated the bursting of the bubble. Affected by the business model, the domestic mobile internet has been in the doldrums since the end of last year. Facebook breaks are like a kick in the leg, making entrepreneurs feel colder this winter.

Data from the media showed that in the first half of 2012, the number of financing cases was 18, down 49% from 35 in the second half of 2011, down 44% from 32 in the same period last year.

Moreover, the gates of capital are closing. The 91 aides who had been preparing for the IPO recently slowed the pace of the listing, postponing it to the end of the year or early next year. NET Dragon CFO Hu Zemin also appears to be weak, said the listing to "do personnel, listen to destiny." ”

Zhang, the chief executive of the media consultancy, points out that, compared with last year, investors ' enthusiasm for investment was not reduced, but the number and amount of actual investments tended to be rational, meaning that mobile internet start-ups needed more patience and greater rationality.

Mobile Internet investment plunged 50%

2010-2012 first half of China Mobile Internet industry Investment and Financing events summary (Tencent Science and Technology map)

It is understood that, despite the promising future, but due to the delayed formation of the business model, mobile internet companies are mostly not optimistic overall revenue, there are still more than 60% development team loss-like. Baidu CEO Robin Li has said that the PC era of money-making models such as advertising, gaming, E-commerce in the mobile internet is challenged. The mobile internet age does not have enough users to make money.

Li pointed out, like a wine driving situation, luxury car, beauty, rain, road slippery, driving to 180 miles, accidentally will be fatal, very exciting, but very dangerous.

In the mobile Internet business model, even 360 chairman Zhou is full of confusion. Zhou when talking about 360 why do mobile phones, said the internet companies now talk about mobile internet layout point "pull", because we do not know after the business model is hardware or hardware plus software services to make money.

Domestic mobile internet companies, which had a capital slump at the end of last year, were counting on Facebook to be a strong pin, Chengxiang that Facebook quickly slipped below its IPO price, plunging the ailing capital market into a deeper slump.

According to Yanggo, Asia General manager of the NYSE's global listing business, it has been aihongbianye since the Facebook listing, with only one retail company from Chile listed. In the first half of this year, only 2 companies, such as the China market, were listed, far below the same period last year. Up to 2 to 3 companies are expected to go public by the end of the year.

Excluding millet technology access to 216 million of dollars in financing, in the pure mobile internet sector, this year to obtain financing enterprises are not many. A total of 18 mobile internet financing in the first half of 2012 was just above 16 in the first half of 2010, down from 32 in the first half of 2011 and 35 in the second half of 2012, according to data from al-Media.

Investors tend to be more cautious about investing in mobile internet projects. Although Jinsha's investment partner, Zhu Yuhu, said the Jinsha River's mobile internet strategy remained unchanged, it still cast 2 projects this year, but it is no doubt a low-key one compared with high-profile investment handles.

Jiang Haotien, managing director of the Arctic Light venture, told Tencent that the current strategy for investing in Northern Lights had not changed, but would be more cautious about high valuation projects. In the current situation, some VC financing also encounter challenges, which makes investment more cautious.

Zhang, the chief executive of the media consultancy, points out that, compared with last year, the number and amount of actual investments tend to be rational, meaning that mobile internet creation requires more patience and greater rationality. Currently has the hematopoiesis ability Enterprise is the capital aspect more value and is willing to invest the direction.

Profit as a developer consensus no longer simply by concept

Facebook's bid to buy Instagram at $1 billion is a boost for the industry and how many entrepreneurs want to start a Chinese Instagram. Wang Hua (a pseudonym) also had this idea, it is relying on the concept of Instagram, Wang Hua and friends to create based on the interest of mobile phone photo sharing applications, and easy access to the United States well-known funds of millions of dollars in investment.

While Wang was preparing for a big fight, the capital market changed dramatically, but the cost of application promotion was rising. Wang Hua's million-dollar financing is no doubt a drop in the bucket. This also makes its ideal face the reality severe test.

Helpless, Wang Hua suspended the promotion of the project, turned to help some magazines to do electronic magazines. "We can get thousands of to tens of thousands of dollars a month from magazines, and they can support the team temporarily." ”

At the end of the phone, Wang Hua is further business negotiations, and to Tencent technology to emphasize never to disclose his name. "When the capital environment is good, we may continue to start the project, and now temporarily do some business, you put my name and project exposure will affect my business." ”

Relative to the first two years of High-profile, nine City wireless also began to low-key do things. Nine City wireless general manager Shen revealed that the nine City game Center registered users have just broken through tens of millions, although there is no profit, but the project operation is very good, but no longer high-profile outward said.

Shen said that, like most developers, in the promotion of nine cities more experience, the previous developers are more to consider how to promote the product out, but now consider what the most effective promotion, how to obtain users, retention rate, the number of active after the retention of the number of important criteria for consideration.

Listen to Fate 91 Assistant postpone listing

Mobile Internet Industry Network Mirs under the 91 assistant business is undoubtedly a flashing star. Not only 91 mobile phone assistants and Android network in the mobile Internet market subdivision of the leading position, and other enterprises are not profitable, the network Dragon Wireless business has begun to profit.

The latest results show that the net Dragon Wireless business in the first quarter of the revenue reached 45.4 million yuan, the chain of increase of 84.1%, the proportion of total earnings of the company also from the previous quarter of 11.4% increased to 19.2%. The network Dragon also once wanted to promote the wireless business to be listed overseas this year.

However, in the current capital slump and Facebook break background, the Internet Dragon Wireless delayed the idea of listing. NET Dragon CFO Hu Zemin began to say to fight for the end of this year or early next year IPO. In the acceptance of Tencent technology telephone line, Hu Zemin emboldened slightly insufficient, he said listing to "do the personnel, listen to destiny." ”

Hu Zemin also revealed that the entire mobile internet industry began to return to the user demand level, no longer what the concept of what is popular to do. Network Dragon Wireless This year to do is to create a deep industrial chain, so that developers get more divided.

In fact, the entire mobile internet cold winter has also made the obvious impact of corporate innovation workshops, and last year, including Dot net, snacks, application sinks, peas and pods to obtain financing compared to the current innovation factory does not look glamorous, the project does not have much access to financing and attention. Innovation Factory chairman of Kai-Fu Lee also rarely in the micro-blog to promote the project, or even a long time to resist the "system of You Mo", so that outside doubt is to the direction of entertainment.

In this winter, the application store market has also undergone great changes, as a large number of developers no longer to the previous big promotion, coupled with their own high operating costs, the giant influx, the industry faces a big shuffle. The valuation of domestic app stores has fallen sharply from last year, with more than 50% dead, according to one industry insider.

According to the current situation of mobile internet downturn, Zhang, the chief executive of the media, said that entrepreneurial enterprises need to be more pragmatic, through reasonable industrial layout, to get through the upstream and downstream resources, to find the appropriate development of their own ideas, in the user development, product experience and advertising and value-added income, to find a reasonable

Zhang recommended that grassroots entrepreneurs break through the technical threshold, in the business model out of their own way, can form enough barriers and competitive advantage, otherwise, can not be directly with the traditional big enterprises, to the end is only foil.

(Responsible editor: The good of the Legacy)