Bertelsmann Yu: The current bubble is mainly concentrated in a round and angel wheel

On the site of Wise 1.0 this afternoon, Bertelsmann Asia Investment fund founder and management partner Yu delivered a keynote speech-"The Age of the Angels and the Giants, the dances".

Bubbles are mainly concentrated in a round and angel round

Yu that the current domestic Internet venture in the field of bubble mainly focused on early projects, A and angel wheel. She takes Bertelsmann as an example of "all investment institutions are going early." Bertelsmann currently manages more than $1 billion trillion, but has also started investing in the smart hardware industry with a cheque of $30 million and 100,000.

The influx of hot money so that entrepreneurs in the early appearance of the imbalance of mentality, complacent, did not use the money in the product, but to rob People, buy Baidu bid rankings, do promotion.

A round and angel investment is meant to be the smallest share price for product improvement and team building funds, enough can be. But now many entrepreneurs are financing to hit better valuations than rivals.

In this way, although more money, the use of funds to reduce the efficiency. Yu's experience is that in the early areas of the most willing to spread money is often not the most knowledgeable, but just entered the industry to try wrong. She advises entrepreneurs not to worry about early valuations, "even if the angel turns out to be less, a round will get you back if the product is up."

Yu The example of Zynga and Groupon, where the two companies have won 1 billion of billions of dollars at a very fast rate, but their valuations have fallen by 80%. Yu warns entrepreneurs:

Do not think that there will always be so much attention to you, entrepreneurship is a very lonely thing.

If winter comes, can spring be far behind?

While expressing concern about Bubbles, Yu is still confident about the future of China's venture-investment sector. More than 1 billion U.S. dollars of companies may have 35, but the United States 1 billion U.S. dollars listed companies may have more than 300, distributed in various sectors of the industry. Even in the field of the power of Alibaba rule, there will be jingdong, there will be only the appearance of goods. Now some private-equity investments in the TMT sector have reached IPO levels, such as dropping taxis and Mushroom street.

Yu said the goal of Bertelsmann Asia Investment Fund is to run the market. Even if the rate of return reaches only the Chinese average, it is already clearly outpacing the US and European businesses.

Bertelsmann invested in the easy car network in 09, when the field was far from being in the tuyere. When the market is not very good, the net market value is only 300 million U.S. dollars, but after the business model has been opened, now has reached 4 billion U.S. dollars in market capitalisation.

There are only products, although from the model, Bethasman that this type of flash-buy mode in Europe and the United States do not do little, but the final product will use products and sales to prove their value in the Chinese market. After the IPO, their earnings multiples reached an astonishing three digits.

So Yu suggests that early entrepreneurs might try something crazy and difficult. What if it succeeds?