After China's 1 billion dollar absorption of gold: electric Shang investment game heating up

South Cartography: Chen Ting

The Eye of the wind is always locked in the most profitable, most investment-worthy areas. If the first few years are online games, the 2010 E-commerce is to earn enough eyeballs, began to hot hair hot.

The newly released 2010-year e-commerce investment and financing report of Analysys Capital shows that as of December 13, 2010, China's E-commerce has received a total of 614 million U.S. dollars in investment and financing. Plus Jingdong Mall on December 23, 2010 revealed the 500 million dollar C-round financing, the entire e-commerce industry in 2010, the total amount of gold absorption of more than 1 billion U.S. dollars.

This fiery spectacle seems to herald that the financial problems that have plagued e-commerce have been greatly alleviated. Prior to that 2006-2009, China's platform for the Chinese business to absorb the wind investment is not 604 million dollars.

But the attendant is not all flowers and applause. Dangdang CEO Guoqing January 16 from the microblog on Weibo (Morgan Stanley employees), the chairman of Jingdong Mall Liu (micro-Bo) the relationship between Jingdong and investors as a "one-night stand"; Cool Yang CEO said "courtship" VCs to go through 81 difficult. In their words, they expressed their frustration or dissatisfaction with the venture.

Even the industry has the argument that "the entire e-commerce industry has been capital-coerced." "Is that so?" The rapid entry of capital will lead the E-commerce industry to where?

Rapid entry of funds

Through the institutional giants of the Jin, Macaulay, Dangdang on the Nasdaq listing, to the overseas market depicts a Chinese 457 million internet users to buy a big pie. Goldman Sachs GAO estimates that China's e-commerce market will grow at an annualised rate of 30% per cent over the next five years, up to $300 billion by 2015.

Moreover, the capital market has been from the Macaulay, when the body of real gold and silver. Public data show that the Tiger Fund in 2003 Dangdang 11 million U.S. dollars, after the listing of this part of the stock market value appreciation of 340 million yuan, investment returns more than 30 times times.

This gives the institutional giants the confidence to continue to blow the "wealth myth". Only early December 2010, there is a customer prudential goods fifth round of financing to get 100 million dollars, pull the net announced the second round of financing 50 million U.S. dollars, Dream Bazaar 60 million U.S. dollars to complete the financing ... "Life is endless, financing." "Handles net CEO Wu to South all reporter so jokingly, the wind invests the gold madly to pounce on the electronic commerce industry the excitement scene."

The newly released 2010-year e-commerce investment and financing report shows that as of December 13, 2010, China has 24 single e-commerce investment and financing information, the total amount of financing of about 614 million U.S. dollars. According to the amount of investment accounted for, group buying accounted for 84% of the 16%,B2C field. Immediately after December 23, 2010, Jingdong Mall and revealed that the C-round financing as high as 500 million U.S. dollars.

"This round of $500 million trillion in financing is more than any of the 102 Chinese companies listed at home and abroad in the last two months of 2010, or even more than two gold-sucking industries ——— wind and video. Chinaventure analyst Feng Po said.

Burning person is, Gome buys Bowser net, Shanxi "coal boss" announced invests 1 billion constructs the liquor class to be consumer, Guangzhou Day Extension Information Technology Holdings Limited company CEO Huang also to the South all reporter discloses, "The day extension will set up hundreds of millions of investment fund, uses in the support innovative electronic commerce enterprise development." "Industrial capital flooded into the e-commerce market like floods.

Lok Amoy Network Vice President Chen, the Future network Partnership founder Chen Chunlai and other industry insiders have said to the reporter, "Now, the most need for the business is money." ”

Valuation practices of institutions

Capital is never an emergency, according to statistics, in 2006-2009 years, China's business platform to absorb the wind investment is not 604 million U.S. dollars, E-commerce enterprises generally encounter financing difficulties.

Why are we turning 180 degrees now?

"First of all, China's e-commerce is a booming market, and more importantly, the integrated business platform in the 2010 market structure has been set, corporate seating has surfaced." Coupled with a few 2010 years of investment hotspots, this is the perfect time to enter the capital quickly. Cao Xia, the IDG investment manager, explained to South reporters that the cause of the 2010 E-commerce investment concentration outbreak.

"In the direction of the industry, the industry almost no differences in the background, as a well-known VC companies, if not to touch the hot plate, participate in an e-commerce enterprise, it seems difficult to establish their own in the Wind Investment Authority." "Yong, founder of the network of partners who have been engaged in multiple rounds with VC companies, told reporters v c there is a larger capital giants, they will be the V C performance requirements, V C naturally to their investment director, investment Manager performance assessment, for the operation of specific projects of investment managers, the most prudent way of course is" herd ", "In case the final set is not successful or unsatisfactory, it is the industry's fault, not the individual's fault," he said. ”

This kind of judgment is not unfounded, from the mechanism of the operation of the valuation of the electricity dealers can be discerned. "such as group buying, now the value of the logic is, referring to the U.S. G roupon valuation, and then calculate the difference between the U.S. and China's economy, estimating the overall size of the Chinese group buying market, and then to reverse the overall valuation of Chinese group buying website industry, assuming that the future domestic group buying site may be May become the industry's leading valuation. "Ecapital Capital CEO ran said that the electric quotient valuation method is not the former cash flow discount, absolute valuation method and so on."

The result of the high valuation is that the amount of financing of the electric business enterprises will also rise. If you examine the investment value of a single project is reasonable, the main cast-handle network two rounds of financing of the Jinsha River to create investment C EO Zhu Yuhu that, in the exchange of goods with van, the analogy, the handle net found the valuation basis. "Every customer prudential valuation No one questioned, the handle network valuation is also very reasonable."

"Electricity dealers are coerced by capital"

According to this situation, Dangdang CEO Guoqing denounced "Morgan Stanley to when valuations too low" seems to be reasonable. Guoqing's Rock lyrics on Weibo suggest that investment banks have given a 1 billion to 6 billion dollar valuation in order to get a deal, but when they came to Hong Kong to write prospectuses, they were in conflict with the Koreas, giving only 700 million to 800 million US dollar valuations. When it comes to the market, knowing that the market will have 2 billion dollars in the next day, it is priced at $16 only and is valued at $1.1 billion. In the view of investment banks, the valuations are understandable, because they need to refer to performance statements.

Discerning can be seen from both sides scold the agency to lead the path map: The future market size of enterprises to draw a pie, to make the expected valuation; financing burning money; To achieve the expected size, the final listing.

The problem is, "in an E-commerce subdivision area, if the eldest brother, second, in the back of the electric business enterprise old, old four, old five ... Can only compete for a listing of opportunities, the result of excessive competition in the industry, killing a large number of innovative electric business enterprises, users, traffic and advertising are several leading companies monopoly, with a few trees, other places barren. The capital helps to push the enterprise bigger and stronger at the same time, also in the overdraft industry development space. "Chen Chunlai, founder of the net partnership, said.

A number of electrical business enterprises of C E O told reporters that online shopping platform to obtain a purchase of the user's cost has risen to about 80 yuan, the portal of advertising over the past year more than 40%, navigation site prices in the past year rose four times times, the search engine prices also rose one times.

In this way, E-commerce enterprises have been from the competition integrated operational capacity, passively expanded to the financing capacity of the contest. "In fact, the whole industry is being coerced by capital." There is no money to rely on the size of financing, the financial capital to be listed on a scale. In fact, we all see the crisis of capital chain rupture, but the stop can only be eliminated. "A Guangzhou to get the wind to invest in the purchase of the site responsible Tang (alias) reluctantly said that the first round of investors enthusiasm, and then transferred to the next round of investors, one after another, listed as the tree on the fruit, the longer the higher, can't stop."

Side Report

South China Electric Business and VC

Still in the "honeymoon period."

The 2010-year e-commerce investment and financing report issued by the easy-view capital shows that Guangzhou has dreamed of bazaar, only goods will, 5151 group buying network and other E-commerce enterprises to obtain investment capital injection, the ability to absorb gold second only to Beijing. However, as opposed to when, Beijing-east and other beijing-based electric dealers and wind of the rattling, Guangzhou electric business seems to be not in a hurry to be "capital coerced", but is willing to play with the wind "playing hard to get" love game.

And why?

The route difference of electric quotient in south China

Now, the E-commerce industry has reached a consensus: industry development has entered the "burning Money" era, the big shuffle of the fish soon arrived.

"South China's electricity business will naturally be eager for financing expansion. However, with Beijing's e-commerce entrepreneurs to big projects, sell money quite different is that the E-commerce enterprises in South China mostly by industrialists to invest, their own funds are very abundant, the purpose of the founder of the Electric Power is more as a useful supplement offline channels. Chen Chunlai, founder of the network partnership, told reporters that the South China electric business is more inclined to do the profit, rather than blindly pursue the scale of bigger, the need for institutional funds "development" rather than "emergency".

Samples abound. For example, Shenzhen road network founder Guiven owned a large shoe factory, the shoe factory production scale can be ranked in the world's top five. The founder of the underwear E-commerce Enterprise, Benji, has an annual output value of more than 3 billion, the world's largest sales of apparel paper Company; The behind-the-scenes investor of the clothing network is a rich seafood wholesaler.

However, relying on traditional industrial capital development of the electric Business Project is mixed. In V C, PE seems, "E-commerce is quite the pursuit of speed, if only limited to add an online channel to meet the current consumption, will lag behind the peers." In other words, the business model of E-commerce is at least ten years ahead of the local market, so companies have a chance to win. "Guangzhou Sanyuan financing investment manager Wangji (alias) to the reporter frankly," Do E-commerce, want to finance must first burn money, first to the enterprise to do the deficit, increase logistics and system construction, accelerate market layout, then can ' alone big ' make money. ”

This combination of the actual situation is clearly not familiar with the South China entrepreneurs, Guangzhou Electric business is not in a hurry to embrace institutional funds also in the sense.

Still in the "honeymoon period."

However, in the financing tide, led by the Guangzhou Electric Power companies still show a relatively strong ability to absorb gold, there are already dream bazaar, only goods will, 5151 group buy nets and other enterprises to obtain VCs a round of capital injections, the total amount of financing second only to Beijing.

In contrast, "when, Jingdong Mall and other Beijing electric dealers have long passed a round of financing stage, it is not a year or two for them to follow suit, and in this process, it is possible that the performance can not meet the expected target also put forward for C-EO, C-FO; it is likely that the wind is rushing into the market and forcing the enterprise to go public in advance. South China Electric business, should be and VCs are still in the ' honeymoon period ', the relationship between the two must be more harmonious. Yong, founder of the network, explains why China's electricity dealers have not denounced the venture.

Already financing 20 million dollars of only goods will CEO Hong Xiaobo also told the South reporters, only products will be introduced into Sequoia Capital and D-CM injection, mainly because of the red Sequoia Capital also to the Mai Lin, good music buy, donkey mother and other E-commerce companies to inject capital, in favor of the only product will carry out resource integration, not for "financing and financing."

Perhaps, "lightly use its awn, move namely have injury" this old adage, now when the Electric trader introduces "capital weapon" also effective.