A bubble of highly valued capital

Absrtact: March 29 News, 10 years ago, the internet bubble, the shadow has gone, vigilance is still. In the face of the IPO boom, investment fever and high valuations that began last year, the debate over whether there is a bubble in the Internet industry is also ringing. At a conference this year

March 29 News, 10 years ago, the internet bubble, the shadow has gone, alert still. In the face of the "IPO boom, investment fever and high valuation" that began last year, the debate over whether there is a bubble in the Internet industry is also ringing.

At a conference this year, Sohu it targeted on the "Internet whether there is a bubble", the seven internet big Guy interviewed, is the investment sector Four people: Innovation Workshop CEO Lee Kai-Fu, IDG Global executive vice president and Asia President Shong, Gavin Group CEO and president of the Northern Lights venture capital company founder Deng, three entrepreneurs: Microsoft Global Senior Vice President Zhang, click Technology Chairman Zhidong, A8 music Liu Xiaosong.

The views of some of the big guys are not exactly the same, but most believe that internet investment has been a bubble, but the internet industry has no bubbles. The debate over the dotcom bubble will continue, but such a debate may give the industry more sober thinking than it would have been.

A bubble of highly valued capital

Of the seven respondents surveyed, six said the dotcom bubble had emerged, leading to a high valuation of the entire Chinese internet market.

Gavin, a partner of the Qing Branch, believes that the influx of hot money has led to a "little bubble" in the Chinese Internet. "We spent 10 years on dollars, and now there's a lot of money coming in from domestic renminbi funds, so it's a lot more," he said.

Zhidong that the current bubble of capital, "bubble is a feature of capital, because it mainly see the opportunity, everyone will be swarming."

Zhang points out that at present some companies may have some bubbles, reflected in valuations.

Deng, although he thinks some internet companies are overvalued, said, "while others are valued at a higher rate, valuations may be appropriate at the pace of their development." ”

Kai-Fu Lee concluded more boldly, and he thinks the entire Chinese internet valuation, "from the listed companies to the start-up companies, may be a bit high." "He has roughly two reasons: one foreign investor is bullish. "So today, if there is a lot of Chinese companies cheaper than the United States, to invest in it, 5 years later it must be a good return, they are moving towards such a mindset to do high valuations." "The second cast is the future. "It does have an overvalued possibility to position any company's share price as a share price in two years or three years."

Liu Xiaosong also said that investment in the Internet industry has been a bubble.

The bubble didn't come.

Among the big-picture respondents, Shong, the global vice-president of IDG Capital, holds a bubble negative. He thinks the Chinese internet bubble has not come. IDG Capital investment Dangdang and SouFun last year's successful IPO in the United States, its investment in Qihoo 360 also this year in the United States submitted an IPO application. Shong, for example, has made it clear that there is no bubble in the Internet, and that the market and investment boom are the choices of the markets. "Because a company develops to a certain degree of time need capital, listing is a better choice." He said, "Investors are not fools, as investors, he must have a fancy to the industry." ”

No bubbles in the Internet industry

Does the emergence of a capital bubble mean that the internet industry bubble will come? Most bosses do not think the internet industry is a bubble.

Zhang said it was not "worried" and used the "Internet Bubble 2.0" to describe the bubble. He thinks the internet industry is not a bubble, because "unlike the last bubble, it was built on the powerful internet industry".

Zhidong said, "The domestic internet has been continuous development, whether it is the Internet users, the entire industrial economy of the Internet is constantly maturing", so the internet itself is not a bubble. He also believes that investing in bubbles is a good thing for the Internet. "Ebb tide in the process, in fact, those who purely to do the concept, or the pure speculation of the enterprise will be eliminated, and finally left behind I think the internet industry itself is a final benefit." ”

Kai-Fu Lee said "not to use bubbles to call it"! He made an image of the dotcom bubble 10 years ago: The bubble represents a big blow now, and then one day there is a person poking, the whole will explode, worthless.

He thinks Chinese internet companies are not what they were 10 years ago, and they are worth supporting. "Now the size of the user or profit model is good, very sound, today's money is not enough, later will earn more, today's users are not enough, later will be more."

Gavin pointed out that the current bubble is not the same as before, although companies are still hard to earn money, but there is income. "Some companies are voting for one months only 100,000 of the income, now one months is 70 million or 80 million of the income, the past may be 20 months rose five hundred or six hundred times times." ”

Liu Xiaosong also expressed a similar view: "The Internet industry is now more integrated with it and the business of the Internet is more authentic than the 2000 bubble" (He Feng)