Crazy vote mobile internet

Internet storytellers have always had, after experiencing the Internet age, such as portals, online games, e-commerce, video sites, the mobile Internet has slowly become a new "talk" in the investment circle. For local entrepreneurs, Facebook's listing has largely stimulated their passion, and behind them, investors have long been in no hurry.

Mobile Internet force

From the very moment Zuckerberg was ringing at the Nasdaq, Facebook created history and was a great company, no matter what the future would say. This success, dubbed the "great" name, spreads like a cancer cell to the world. Mobile Internet has become a catalyst for this success, and emerging industries based on a globally integrated platform have become the best dream accelerator for young entrepreneurs compared to traditional industries.

The so-called Mobile Internet (MI) is a new industry that combines the two technologies of mobile communication and Internet and is designed to meet the needs of users in any way and at any time, anywhere, to obtain and process information. It is considered as The future of the Internet's main direction of development.

Investment in the group data show that since 2006, the number of active users of mobile Internet in China with a compound annual growth rate of 61.2% annual growth rapidly, reaching about 340 million by the end of 2011; However, the size of China's mobile Internet market compound annual growth rate of the same period only At 32.4%. By 2011, the overall market size will be about 39.31 billion yuan and the per capita annual consumption will only be 116.3 yuan, well below the average level of the mature countries in the industry.

Hu Bin, vice president of Qiming Venture Capital believes that the rise of the mobile Internet is not overnight, but after the SP era.

The first generation of SP companies rise in 2002, but by the operator suppressed disease-free, the representatives of such companies are mainly Hurray (later Shanda acquired renamed the cool six network); the second generation of SP was born in 2005 to WAP Application as a symbol, began to achieve customized services, on behalf of the company for the Sky and Net Qin.

PE gluttonous feast open

It seems in Hu Bin, the first two generations of the SP did accomplish some companies, but mostly short-lived. For investors, the advent of mobile Internet has brought gold investment opportunities. Because of this, when the mobile Internet started to rise in 2010, both investors and entrepreneurs became crazy because of the mobile Internet.

Investment in the Group statistics show that in 2011 a total of 59 mobile Internet companies have access to venture capital, has disclosed the scale of financing amounted to 470 million US dollars; as of March this year, there are six applications, such as the exchange of foreign exchange, easy to help, pointing media 6 mobile Internet companies Access to investment, the amount of investment has been disclosed reached 27.7 million US dollars.

Yang Xuecheng's identity is an angel investor, his job is to participate in a variety of investment and TMT circle of meetings, in order to find a project with investment value. Since 2011, Yang Xuecheng has noticed that the number of young entrepreneurs in the conference has been on the rise. The young entrepreneurs introduced him to the project without exception in connection with the mobile Internet. This kind of scene deja vu, 2010, he heard the most in the meeting is the group buy, but he did not invest in a buy site and was fortunate.

From the perspective of the mobile Internet segment, the mobile terminals (such as smart phones, tablet computers, electronic paper books / MIDs) are monopolized by several major international giants and have high technical and patent barriers, making it more difficult in the short term Investment space. Similarly, the Operating System (OS) is essentially dominated by several major international giants such as Apple, Google and Microsoft.

The risk behind the scorching heat

It is not difficult to find that in the industrial chain composed of mobile terminals, mobile operators, mobile system software and mobile application software, the real investment area of ​​VC / PE is only the content and application of mobile Internet.

In the 21st century Angel Capital Investment Manager Yang Haitao view, the mobile Internet is more a trend investment. Many VC / PE investors are investing in a trend-following manner.

In his opinion, the management time of a PE RMB fund is only about 3 years. The management time of a VC RMB fund is only about 5 years. The US dollar fund will be better, about 4 to 8 years. In the investment process, more fund companies choose to invest in the subject or based on industry trends. "Even if you know that the mobile Internet is at risk, but investors still have to invest, because you do not invest, LP will question you missed such a big investment trend." Depending on the period of the enterprise stage, the range of mobile Internet valuation And the metrics are not the same. From the industry as a whole, it is in its infancy, so the number of users, including the cumulative number of users, daily active users, monthly active users, daily new users ARPU (Average revenue per user, or average revenue per user) and growth (Market potential) as a key factor in measuring the value of an organization's investment.

"In the past, an angel round of investment is about 2 million US dollars, and now has risen to 5 million USdollars.Original boundaries clearly the investment cycle has now become confused.It seems the business fancy just money, even if a newly formed team may wish to open the mouth may It will be tens of millions of dollars. "Yang Haitao believes that the influx of large amounts of VC / PE capital growth has increased the desire for the valuation, which is likely to burn the industry itself.

APP Promo survey shows that up to 59% of APP developers are losing money, and 80% of developers can not support the independent developer's operation; only 12% of developers can make more than 500,000 U.S. dollars , And these developers have invested an average of 30,000 US dollars in marketing budget, and spent 14% of the time on marketing.

At present, the revenue from mobile Internet applications mainly depends on advertising, e-commerce and value-added services. However, compared with the traditional Internet, the market share of the three is very small, and it is still difficult for mobile Internet companies to make a profit in a short period of time. Second, although not as powerful as the SP era, the decisions of operators on the mobile Internet will still affect the future fate of such companies. In addition, mobile Internet companies also face the risk of plagiarism and homogenization. Taking the mobile SNS website as an example, a large number of address book-based mobile Internet companies are not in history while WeChat is successful.

Four basic areas of investment to small and large

As the top of the industry chain are monopolized by the Internet giant, VC / PE investment in mobile Internet is more application software. Take application software on the APP platform as an example. Basic applications, games, e-commerce and O2O, instant messaging, entertainment and SNS are the main directions for investment. Investment statistics show that about 35.7% of the investors that the game application is the most investment value of the current type of application, basic tools applications ranked 28.6% second, instant messaging and social applications ranked 21.4% three.

Mobile gaming capital to be excavated gold mine

On behalf of the company: papaya move, graffiti move, stone interaction

Applications that succeed on the traditional internet often have the same opportunities on the mobile internet.

Investment in the group study pointed out that the current market size of games applications, growth is good, the market share has not yet set the shape, so more investment value; but at the same time can continue to innovate, continue to introduce popular games is the type of business success Whether or not the key factor.

At present, the profit model of domestic mobile games is mainly based on paid downloads, value-added props and implanted advertisements. The model is relatively simple and has not given full play to the characteristics of mobile Internet mobility, interaction, location and community. According to Hu Bin, vice president of Qiming Venture Capital, more mobile games are facing the problem of lack of growth. "Most mobile game companies may be successful in some mobile games, but the popularity of a game in a highly competitive APP is hard to maintain for a long time."

Previously, he had been in contact with a mobile game company, the other party advertised himself as China's zynga, but in fact the company has only a team of less than 10 people and some games are not on the line. Even so, each other is still out of a valuation of 100 million US dollars. This seems unacceptable Hu Bin, but in the end the mobile game company or melt into the amount they want.

Some VC / PE hopes to appear in the field of mobile Internet once grand or even Blizzard.But they have to face the problem that, Shanda also began to layout in the field of mobile Internet, mobile gaming in the future may be several Internet giants to compete Battlefield. "

Fundamentals of application or real-time investment valuation risk

On behalf of the company: ink situation, Tangrui Miles, Aotian Huijin

As the backbone of mobile Internet applications, the basic application is the first to enter the APP platform, is also the most user-approved. Including maps, weather, hotels, flight inquiries and other applications are subject to investor concerns. Compared with other applications, the basic application of the tool determines that it must have some technical barriers, in addition to better reflect the underlying application of mobile Internet anytime, anywhere features, so once a user in a basic application of the formation of viscosity, and other later It is difficult to surpass.

Tong Wei Liang, Managing Director of Gobi Investment, it seems that the tool because of its practicality and innovation, you can quickly accumulate users, derived from cloud services, community are very imaginative mode of development. Previously, Gobi Investment led the Camera 360 is considered a try.

Tong Wei Liang believes that tools such as Camera360 applications, has accumulated a certain amount of popularity and the amount of users in the classification of applications ranked first, the profit model is stable, which is the ultimate reason for the lead. "The underlying tools applications can often avoid the impact of the Internet giant looking for opportunities in the market segments, even if the future can not be listed for the VC / PE, such investments can also be the same as the Facebook acquisition of Instagram exit through mergers and acquisitions.

However, Tong Wei Liang also pointed out that the current investment in such enterprises may face some valuation risk.

Instant messaging and SNS profit points are the key to break through

On behalf of the company: Friends plus, turn over, street unfamiliar

Compared with the former two, SNS based on instant messaging is difficult to get a short-term return due to the long investment cycle. However, SNS users occupy certain advantages in viscosity. Once accumulated to a certain scale, the biggest problem that SNS applications face is how to convert the number of users into profit. Facebook is undoubtedly one of the representatives, with reference to its development model, SNS applications more is combined with the mobile Internet anytime, anywhere features, becoming advertisers favored object.

However, the domestic SNS business model is still in the exploratory period. Zero2IPO Research reports that some of the profitable social networks, on the one hand, receive revenue through paid service charges from value-added service users and on the other hand, through advertising. However, these two major profit models have not yet generated substantial revenues for most social networking companies and are not enough to support the sustainable development of their businesses.

Bin Hu believes that the future direction of mobile SNS should be a platform for the development path, including games, music, reading, etc., including many applications. This move SNS business model can be two-way profit through value-added services and advertising services. However, the rise of WeChat for the organizations currently investing in the field suggests that the traditional Internet giants are also eyeing the field.

E-commerce and O2O melee problems to be solved

On behalf of the company: public comment, 58 city, the United States network

IResearch pointed out that in the first quarter of 2012, mobile e-commerce has surpassed mobile value-added services and has become the largest segment of the domestic mobile Internet industry, accounting for 42% of the total domestic mobile Internet. The data show that the first quarter of 2012, mobile e-commerce transactions reached 6.67 billion yuan, an increase of 530.1%.

Compared with the traditional e-commerce, mobile e-commerce to overcome the time and space constraints, anytime, anywhere shopping using mobile devices become a trend. Among them, the biggest role of mobile e-commerce can drive the development of localized services, which is also the most watched O2O mode.

Representatives in this area is undoubtedly the public comment network, as of now, the public comment network conducted a total of three rounds of financing. In January 2006, the first round of investors was Sequoia Capital; the second round of financing was held in May 2007 with Google as the investor; the third round of financing was April 2011, and the investor was Zhixin Capital , Sequoia Capital, Qiming Venture Capital and venture capital. Hu Bin frankly, it is the advent of the mobile Internet gave birth to the public comment network such O2O website outbreak.

However, the public comment network model not all businesses can copy. Yang Haitao angel capital investment manager in the 21st century view, O2O required technical barriers are not high, similar to buy site mainly lies in the integration of offline resources, but also because of this, the current O2O market is in a "chaotic war" The state, you want to stand out from it is not easy. In first-tier cities such as Beijing and Shanghai, the future business model of O2O remains to be seen.