Why is there a particularly high amount of financing in the field?

In the 36 Krypton Search "" ", the amount of funding is basically tens of millions of or even hundreds of millions of, why the field of venture capital projects so high? Where do you usually spend your money?

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The high level of financing in the field is due to the high return of the venture to the field. This is the performance of the market, the transfer of funds to high-profit industries, the field of integration into the money of the project is high profits to not necessarily, but definitely there is the possibility of obtaining high profits, or the VC will not be hit, summed up the reasons for this:

1, the essence of this is to change a consumer habits, is actually in the mature market to rob customers, do not need to stimulate demand. For example, take-out, fitness, car wash These services are very traditional service industry, only changed the customer's consumption habits, from offline physical store consumption into the online order. For OTO service providers, customers are off-the-shelf, demand is ready, and the traditional mode of rent, warehousing and other costs can be reduced, so theoretically the income has not changed or increased (because the mobile consumer convenience and increased), and the cost is lower, so the profit space is greater, should be said to be a very low risk of business investment, So the VC is willing to throw more money to rob the market.

2. After vertical subdivision, the high-frequency trading and expandable industry projects can be obtained. To give a simple example, called takeout and nail is typical, you can call 3 times a day outside, but do not do 3 times a day nail, nail is the industry's market size is limited, the ceiling is relatively low; the insurance industry theoretically does not belong to the high-frequency trading, one year to buy 2 insurance head, but the type of insurance is many, Can be expanded to invest in financial insurance, and like health, the annual insurance, sticky, so Ali also won the public security insurance also take Xinhua life

3, the consumer industry in the industry, a large population base, after the market, as the diversion port of other consumption has great value, so the VC is willing to hit the money to rob the market

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Several major reasons (in order):
1. More money to be cast, just in time to catch the tuyere. This is the main reason, and now seems to be more than the previous tuyere, such as e-commerce business more money because of China's entire venture capital market capital increased sharply.
2. The business model is heavy and the amount of investment required is large. Push, ground operations team and so on??
3. The lower threshold, the financing capacity has become an important competitive advantage.
4. Scale effect is significant, scale economy, concentration trend. The online promotion is relatively non-regional, the offline service has a regional, and the higher the density, the more economical.
5. The speed of development is very important, because unlike business-to-consumer e-commerce, due to the offline end of the geographical restrictions, it is likely to be later in some empty city

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Reference: http://www.zhihu.com/question/34409196/answer/59895055

Why is there a particularly high amount of financing in the field?