China's internet entrepreneurial boom hits capital cold: Who will Survive

Internet Storm Author: Zhu Xudong not long ago, optimists also believe that the new wave of internet has just begun. On the surface it seems so. Since the second half of last year, the surge in liquidity after the economic crisis has led to a rapid warming of the capital markets, and in October 2010, Macaulay Rose 56.9% on the Nasdaq listing. Macaulay's listing has opened up 7 months of Chinese concept stocks to the United States listing big screen. The 7 months to the capital market continued to warm up, the end of the video site Youku, E-commerce site when and mobile internet company Skye successfully listed.　　March 2011 Qihoo 360 landed in the NYSE, the beginning of May, everyone, the Network Qin, Century Jia Yuan successively listed successfully to the peak of this wave. The madness of the capital market for the Chinese concept has also rapidly affected the entrepreneurial market, with a large number of startups getting investment. The most crazy group buy, for example, the United States to get 20 million U.S. dollars in the end of the 2010 Sequoia Investment, handle the end of the completion of up to 50 million of the second round of financing, a few months after the financing of 110 million U.S. dollars, the public comments network in early 2011 financing of 100 million U.S. dollars. The Kai-UK network, which took on social concepts, also received 15 million dollars in early 2011, while the E-commerce giant, which started with 3C products, financed 1.5 billion dollars.　　Startups appear almost every day in the emerging Mobile world, with a single business plan to get the angel investment, and some angel investors even fill the suitcase with cash to see the entrepreneur. However, after the high tide of the IPO in early May, Chinese concept stocks plummeted from their peaks as some US investment firms deliberately shorted and a series of fraud scandals. All but 360 of all other Chinese concept stocks listed in 2011 have all been break.　　And the original listing plan in addition to Rice successfully landed New York, Thunderbolt, Shanda literature have postponed the listing plan, almost overnight, the door to the U.S. listing closed tightly. No one expected the golden window of the capital market to be so short.　　There is widespread optimism that the wave will last for one or two years, even though capital market valuations have been sky-high, but the most talked about is just how much the dotcom boom's bubble costs. The real crisis is coming quickly. Time into the August, the European and American economic volatility, financial crisis two of the risk of the bottom of the moment to become a reality, the possibility of expansion of liquidity is not large, the capital market fear quickly rise.　　People will not forget that, when the financial crisis broke out in 2008, the venture capital of Sequoia gave the tombstone warning of the "Golden Age of Rest" for all investment objects. But just as many people deny that this is an internet bubble, the hottest internet industry, such as e-commerce, social networking, mobile Internet, has a huge user base that is not the same as the castles in the castle 10 years ago.　　But if the crisis worsens further, the heavily capitalised Internet industries, such as E-commerce and video, will suffer, and venture capitalists will again call for cost-cutting by start-up companies. By capitalThe false boom that is being pushed will be dashed. "When the capital market is hot, investors think," I hit 10 million, and then 50 million came in. When capital markets are good, [investors] don't worry about how much money is behind them. But when the capital market cools, if investors need to hit 10 million but are not sure there is a second round, he may not vote. Investors are realistic. They will be cautious when they do not see the next round.　　"Chenhao, CEO of Touch Technology, who joined the mobile internet venture, told global entrepreneur."　　Is the Internet winter coming?　　Silicon Valley puzzle investors once thought the US internet boom would continue to go to Facebook, but it now looks overly optimistic. As the world's most innovative region, the United States is the global Internet innovation and investment vane.　　It's hard to say when this wave of Internet entrepreneurship started in the US, but 2009 was definitely a key year, and the hot spots for group buying, social networking, mobile Internet, and so on, were in the year ahead. This is an excellent year for Internet innovation companies. Groupon, which was set up at the end of 2008, has grown recklessly in adolescence, laying the groundwork for a 3-year valuation of billions of dollars, with the new-rising Twitter users less than 4 million in early 2009, up 10 times to 40 million by the end of Jaiku, Plurk and other competitors; the social-platform war was a year in which Facebook overtook MySpace to become the King of social networking, and social-game giant Zynga also played in 2009, with more than 60 million active users by year-end.　　While Apple's App Store, launched in 2008, has its 1 billionth and No. 2 billion downloads in the second year, and the first mobile phone to use the Android operating system in 2009, the mobile internet has sparked an unprecedented upsurge. This year's venture capital also ushered in a new round of feast. Foursquare, a popular company based in Location-based Services, won its first investment in 2009, and Groupon won its first $30 million trillion in 2009, with Russian investment company DST officially starting to invest in Silicon Valley in 2009,　　After having invested in Facebook and zynga--as a typical late-stage investment company, DST's shot partly explains that already a group of internet companies have the conditions to go public, just hoping for a better time. With the outbreak of Silicon Valley innovation, the Internet popular model also began to set off a frenzy in China.　　The first benefit is happy net, stealing vegetables and other applications of hot let happy net quickly occupied white-collar SNS market, and in the mobile Internet field suddenly emerged a large number of lbs companies, LBS has become the preferred mode of mobile internet entrepreneurship. After the turn to buy and micro-Bo Hot debut, the two immediately became nearly a year in ChinaThe hottest innovative applications of the Internet. As the business model of group buying is relatively clear, investors are betting that there will soon be thousands of group buying sites in a frenzy of war, and market leaders ' valuations are soaring.　　Unlike the "thousand-Regiment Wars", the micro-broad war is almost an upgraded version of the Portal war, Sina, Tencent, Sohu, NetEase and other portals are exerting force on Weibo, especially Sina to make full efforts to transform micro-blogging business, and by holding high hit strategy to quickly create another heavyweight Internet portal, Sina's market value has been doubled several times. Mobile Internet, the App Store has attracted Chinese developers, and the opening of Android has also allowed big domestic handset makers to launch their own Android handsets and feed a handful of Chinese Android apps.　　Chinese entrepreneurs also benefit directly from platform-level innovation in the United States, such as a large number of Chinese social-game developers on Facebook's open platform, and a large number of iOS and Android developers in China, whose success has benefited from US internet innovation.　　But will Chinese entrepreneurs continue to draw more nutrients from American internet innovation? This expectation is or has been difficult. On the one hand, Facebook has entered the platform period, it is difficult to repeat the outbreak of growth, in some countries, the penetration rate of more than 50%, the number of global user growth has begun to slow down, on the other hand,　　Both Groupon and Zynga, with the exception of Facebook, have submitted prospectuses that, once listed, are likely to herald the culmination of the Internet innovation boom. At home, Renren has been listed, and there is no short-term product with more investment value in traditional social networking sites.　　Tencent's traditional social layout has also raised the barriers to competition in social networking sites, and the entrepreneurial team will hardly ever choose to start a business in traditional social networking. Groupon and Zynga's listing plans have a big impact on the Chinese market than Facebook's future listings. Domestic group buying sites are coming out of the listing plan, but there is no real action. Groupon is about to be listed before the query, the joint will make domestic group buying websites will be more difficult to go on the road, and the current domestic those who get huge financing of the purchase site if the listing is blocked, will inevitably have a great impact on investors.　　As the group buys into the bottleneck and integration period, nearly one of China's most crazy internet entrepreneurial model will usher in the ebb of time. As the biggest social gaming company on Facebook, Zynga's success has been hard to replicate. Zynga's IPO means that the future of social gaming is a foregone conclusion, and that it is unlikely that social gaming companies will be able to give investors more space in the capital markets than Zynga in the short term. There is no social platform as mature and healthy as Facebook, and although Tencent also has a social game that earns tens of millions of dollars a month on its open platform, Tencent will not lose control of its platform,Companies attached to Tencent's platform are also hard pressed to become another giant, which is also very limited in attracting capital markets. Compared to the impact of facebook,twitter on the domestic internet is much smaller, domestic micro-blog has been out of the Twitter model.　　But Twitter itself faces a lot of problems, especially the search for profit patterns has not been too good, which is also the challenge of domestic microblogs. The big worry is that Silicon Valley has no other disruptive innovation companies outside Facebook, Twitter, Groupon and Zynga. Now that the most wind-water companies in Silicon Valley are founded before 2009, and after that, there have been a lot of outstanding start-up companies, but few companies can drive a big wave, and even some of the early bright new models are quickly showing signs of weakness, For example, the social new favorite question website Quora has seen a sign of the decline of independent visitors after a lively discussion.