Video website popcorn network received a 6 million yuan investment from the Hangzhou municipal government

In 2009, when the video industry suffered a general slump, the first news about investment was related to government-led state-owned capital.

Recently, a news source told Daily Economic News that the headquarters of the video website popcorn network has quietly migrated from Beijing to Hangzhou, the company also received an investment of RMB 6 million from the Hangzhou municipal government. This message is expected to be officially announced in early April. At the same time, an overseas company that invested in popcorn net in 2007 is expected to continue to add a quota of 10 million to this year ~ Venture capital between $20 million. The website CEO said that the willingness of venture capital to continue investing may be related to the new website development model.

Government funds allocated RMB 6 million

The above message was confirmed by Zhao pinhong, CEO of popcorn net. It is understood that the investment funds come from the Hangzhou municipal government Venture Capital Guiding Fund. Government venture capital companies at the municipal and district levels jointly invested 6 million yuan, and the funds will be put in place gradually after April this year.

People familiar with the matter revealed that the intention to relocate popcorn began at a forum between the Hangzhou municipal government and Beijing-Zhejiang businessmen in last December. At the meeting, Cai Qi, mayor of Hangzhou, proposed that more Zhejiang enterprises should return to their homes and participate in the construction of Hangzhou Paradise Silicon Valley, the Hangzhou municipal government promises to provide strong support in terms of policies and funds.

Due to the impact of the financial crisis, the current video industry is sluggish, coupled with the urgent need for financial support, popcorn network immediately decided to relocate. More than a month later, popcorn net registered and established a new company in Hangzhou, giving Zhejiang province the first private video license. The Hangzhou municipal government has also fulfilled its commitment and quickly issued a notice on the issuance of the venture capital guidance fund in 2009.

Zhao pinhong admitted that compared with the ten millions of US dollars of venture capital obtained by video websites, the RMB 6 million yuan quota is not large, but government-oriented investment is for start-up enterprises, it is a recognition of its own value.

Venture capital or an additional 10 million USD investment

In March 2008, when the Hangzhou municipal government venture capital fund was founded, the Hangzhou municipal government once said, "the government Venture Capital Guiding Fund aims to play the role of 'four, two, two distrike, demonstration, stimulate more social capital investment ".

According to existing data, many domestic and foreign venture capital institutions have followed the government and added large investments to enterprises.

Daily Economic News reporter learned from a message that the mysterious overseas venture capital company investing in popcorn net in 2007 may also follow the guiding fund and add another round of new investment. According to the data, the Asian investment fund, which was not named at the time, was a venture investor in Singapore. At the end of 2007, both parties jointly established BVI, of which popcorn Net took 30% of the company's shares, raise $17 million.

"Daily Economic News" reporter told Zhao pinhong about the matter, he said due to intensive control, the company's spending on venture capital in 2007 is less than 10 million US dollars. At present, we are indeed negotiating with Singapore investment companies. This year, we may receive a second round of additional investment. The estimated amount is between 10 million and ~ Between 20 million US dollars, the major shareholder remains in China after the investment.

Analysis

What is the new way out for 3G video websites?

After the first two years of video website enclosure movement, a large number of websites, such as Youku and Tudou, have been squeezed out of the first line of competition and began to focus on differentiated fields. Zhao pinhong believes that the interests of VCs may be related to optimistic about the company's new development model.

In last December, Popcorn Network adjusted its position and proposed a new media group strategy of "video triple play", namely "video website platform + traditional TV channel management + 3G wireless platform ". He explained to "traditional TV channels" that private enterprises have the opportunity to participate in operating channels because the State Administration of Radio, Film, and television now permits the separation of production and broadcasting. Popcorn Network plans to gradually contract some TV station channels in the future, package all content production and advertising services, and promote each other with the Internet video platform. According to him, the company selected some TV stations in Zhejiang province as pilot channels and is currently negotiating with several of them.

Zhao pinhong introduced 3G wireless networks as a video platform based on a communication network. As China's 3G process continues to deepen, Internet merchants have begun to develop their idea of communication networks. 3G means that the Internet access rate will be greatly increased in the future, and the diversity of mobile phone videos will become possible.

An Internet company that has been paying attention to 3G for a long time said that although the three operators are vigorously building a communication network, they can feel that the network is relatively closed to the outside world. The 3G network model is different from the model of completely free resource development on the internet. Now Internet users can access the Internet without restrictions when paying the monthly subscription fee, but the communication operator still charges mobile terminals by traffic. Although mobile internet fees will inevitably fall in the future, high fees are still a hindrance for internet companies to get involved in 3G.