Game industry Capital Puzzle: Gold mine huge success rate low VC love and Hate

In recent years, the game industry has become the Red Sea, we all see the profit space, the size of the competition between companies is also very fierce. I recently selected the "China's most profitable independent hand travel company TOP10 List" show that a lot of hand-swimming income of hundreds of millions of yuan, gross margin of up to 60%, net profit of about 30%, and the names of these companies are often a few years ago is unknown, while the high return on the other hand, is a game start-up company small-scale operations Also challenged industry investors. Titanium media entrepreneurs say that the column, thanks to the acquisition advantage in the western region, in a large number of independent tour companies continue to pay attention to the process, found a lot of hand-travel entrepreneurial class to face problems, including the confusion in capital and investment, exclusive interview "Rich and dangerous, from the hands of the bottom of the market struggle" The team is a typical example. So how do you look at the entire gaming industry from a capital perspective? Take a look at the Titanium Media columnist Yangxiaoyin: Classic hand Tour: Angry Birds in the past year, the game pattern changes very much, the page swims and the hand swims the opportunity to produce more, and social game such a category in China more than a year of time almost on the network difficult to survive. Mobile internet based mobile phone game but contains a great business opportunities. In such a rapid change in the industry, how the game in the end of the tour, the page and hand tour to find their own positioning? And how does capital perceive this potential? The game industry is actually a more traditional industry, like other content industry, with content production risks and challenges. From the earliest host game and the earliest PC-side tour, has developed more than 20 years of history, hand tour in two years of rapid development, and has a good opportunity, this opportunity with 03-year tour, with 07-year page tour, as well as the 09 Social game development key node to compare, there is no essential difference. It can be predicted that the future of the development of hand tour is broad, is small team economic growth opportunity, but also multifaceted and rapid shuffle process. The gaming industry is the easiest market for many first-time entrepreneurs, however, there is another scene in the mobile Internet game: The industry is actually a very low capital utilization of the industry, such as the Angry Birds development team are very small, almost a game, With very little money to make a very popular game around the world, and some of the game studios only two people (Hand Tour "Temple Escape" is a typical example-), the daily water swim hundreds of thousands of yuan, they do not even need to invest in financing. In fact, the game company's capital utilization rate will be lower than some Internet industries, such as electric dealers, the need for continuous capital investment, the majority of game companies do not need to continue to invest, their own business profits can support the company's organic growth, and most of the internet and the electric business industry are not the same. But many other companies spend a lot of money, hiring 3,500 of people do not necessarily hit him, which gives investors the problem, how to invest in these companies, as well as the company to get the money how to spend? A game company melts the money and the money isConsumption, the company must have something wrong. The future of gaming companies depends on the ability to build a system and management approach to mass replication. Game companies need VCs for a number of reasons: The 1th game has a risk in the industry, a capital reserve, and a large sum of money from the company's point of view, with the ability to take risks when many businesses start. Game companies to promote the financing of new games, pay royalties, invest to buy items, or buy users, do brand promotion and promotion. In addition, many game research and development enterprises into the role of investors, this approach stems from a successful game of the research and development enterprises, through the way of investment and financing to form a joint, passing some other games successful experience. There are a lot of small games behind the studio, eventually formed a research and development capacity of the Unit composed of a consortium. The success of the game company is divided into several paths: the first stage is to solve the problem of survival, generally by one, up to two games; to the second stage, to the problem of capital utilization, each company has its own solution, actually from the nature of a studio to a real company development process, Make the company no longer rely on a certain game, or no longer rely on a company made up of a group of companies, can have talent training mechanism, can have a variety of capital use of the way, this is the ability of VC value. If anyone can break through this method, it will become a very good game in the field of the company. In fact, the game industry for VC speaking is a love and hate industry. First of all, it's hard to judge a game before it succeeds, most investors are not gamers, so outsiders see lower success rates, and second, there is less chance that the second game will achieve the same success after the first success, and finally, even if the investment succeeds, Even if the company has good cash flow and profit, but the capital market does not give him good prices, so for investors to quit is a big problem. Today, the game industry tens of billions of of the market size, accounting for the entire Internet income is very large proportion, and every year, the rise of hundreds of start-up companies, VC can not give up such a large gold mine. Most of the capital believes that for the gaming industry, the first thing to do is to stick to early investment, when he has not really made a lot of money, without particularly high valuations. In addition, in the game industry to do "opportunistic" instead can effectively grasp the pace of investment. The game industry has changed very quickly, and early teams have found a particularly interesting point, whether it is a good experience, or the use of resources properly, you can run the data successfully. "More PE/VC, entrepreneurial field in-depth reports, pay attention to chinaventure official micro-letter!" (Micro-signal: china-venture) "