How long can startups ' valuations go crazy?

Absrtact: Last night, China's electric giant Alibaba listed in the US New York Stock Exchange, the first day closed at 93.89 U.S. dollars, more than 68 U.S. dollar issued price rose 38.07%. With a 93.89 dollar closing price, Alibaba has a market capitalisation of $231.44 billion, a figure that exceeds the Faceboo

Last night, China's power giant, Alibaba, was listed on the NYSE as the first day closed at $93.89 trillion, up 38.07% per cent from its 68 dollar offer.

With a 93.89 dollar closing price, Alibaba is worth 231.44 billion dollars, a figure that exceeds the market capitalisation of US companies such as Facebook, IBM, Oracle, and Amazon, after Apple, Google (Weibo) and Microsoft, Makes Alibaba the world's fourth-largest High-tech company and the world's second-largest internet company.

Since then, the founder of Ma Yun (micro-bo) mouth of the "alligator" finally surfaced level, "Giant beast" no longer sneak.

Alibaba Group actively prepare for the IPO, and the IPO crazy investment layout of high, UC, Youku, culture China and other enterprises in this year, the domestic science and technology companies are also enjoying the dividend, this year, more than 100 million of dollars in financing cases are not uncommon.

Many early internet entrepreneurs have turned around to make investors, the traditional enterprises also a large number of mergers and acquisitions of internet enterprises, a national investment era has come, however, the vanity behind the hidden worries, technology companies frequently financing behind, some of the phenomenon is worth vigilance.

Some senior investors have seen the worry. Today, capital partner Xu to invest in Beijing-east well-known, Xu recently not without worry, said that this year's investment environment, investment institutions too fast decision-making, entrepreneurial projects overvalued, it is easy to produce bubbles.

Ecapital Capital CEO Ran said that Ali IPO will absorb some of the money, but will not drag on the stock market. In contrast, some start-ups in China have recently been mad about their valuations and will be corrected within six months. If the entrepreneur just on the road, the proposal can take the financing hurriedly.

With Alibaba's IPO, a post-Ali era is coming, when Facebook went public, the capital market has been cold for a long time. One investor, Tencent Technology, said it was not known how long the current start-up financing wave would last.

The coming of Capital era: financing 100 million dollars is not a rare thing

Time back two years ago, if an internet company to get 100 million of dollars in financing, is bound to be the Internet industry blockbuster news, but in 2014 it all seems normal, including Alibaba for the 2-year investment in mergers and acquisitions funds more than 8 billion U.S. dollars.

In addition to investing in Sina Weibo, Youku potatoes, mergers and acquisitions of gold, UC, Alibaba this year from March to April a series of capital operations, the culture of China, Yintai Group, Hang Seng Electronics, the number of companies such as the Internet is not related to the network in the surrounding.

Alibaba also pays 1.2 billion yuan to Evergrande, and holds 50% stake in Evergrande Football Club. Alibaba's deal is a huge business of more than 100 million dollars, not only to buy half the internet, but also to buy the whole world.

Tencent has also carried out a series of precision layout this year, has invested in Beijing and east, the public comments, 58 with the city, Le Habitat, of which, only 58 of the city in June this year by Tencent 736 million dollar strategic investment, le Habitat to obtain 200 million U.S. dollars investment.

Excluding Alibaba and Tencent these big deals, put in the Internet industry, now the case of financing more than 100 million dollars is also everywhere, such as Mushroom Street, today's headlines, passers-by home network, where guests, fairs, Temple Library, drop a taxi, everyone loans.

According to Tencent Science and technology statistics, this year, internet companies to raise more than 50 million U.S. dollars of enterprises have more than 20, and the basic financing of tens of millions of dollars is not a major industry news, financing in millions other is everywhere.

The internet is becoming the mainstream of the society, in the millet, music, such as enterprises to talk about "subversion", "innovation" of the tide, the traditional enterprises, whether willing or unwilling, itself very anxious, also in the Times 裹胁 forward, and accelerate to the mobile Internet transformation.

An investment industry said Tencent technology, the internet has been deeply rooted in the impact of traditional industries, but also a group of people in the wave of the internet to make money, we are afraid to miss this wave, have been willing to invest, but also to promote asset prices.

Traditional enterprise This round of investment presents several major characteristics:

1, the general amount of investment is very high, and like wholly-owned mergers and acquisitions;

2, a preference for game-type enterprises, these enterprises generally have relatively well-known game products;

3, with the investment enterprises have signed a gambling agreement.

According to Tencent Science and technology incomplete statistics, this year, the traditional enterprises to invest more than 100 million yuan in the Internet business case in more than 20, of which, 10 transactions over 1 billion yuan, respectively, the merger of 1.5 billion yuan acquisition 5173, love to make the shares of 1.18 billion yuan acquisition travel time, Chinese media 2.7 billion yuan acquisition of Wisdom Star Pass, Dragon tube Industry 3 billion yuan acquisition Agras.

According to incomplete statistics, this year, the traditional enterprises in the Internet enterprises in the field of mergers and acquisitions amount to more than 18 billion. Moreover, since June this year, the traditional enterprises in the Internet Enterprise investment and acquisition of the obvious acceleration state.

Flashy worries: valuations and pace of growth will adjust

This is the best entrepreneurial age. Qing Branch CEO Gavin said, now the investor pressure Alexander, all suffering from "investment anxiety disorder." Behind the Gavin "Anxiety", "3-person companies valued $5 million, 8-person companies valued 80 million dollars." ”

Gavin said that in the first half of the year VC investment in the Internet and mobile Internet 3 billion, PE investment is 4.5 billion U.S. dollars, VC and PE in the mobile Internet total investment of 7.5 billion. PE and VC fund-raising speed may not be able to catch the speed of investment.

Gavin told a story, the Qing branch an investment manager to introduce a start-up company, the company only 2 million, accounting for 10%, Gavin just agreed, another famous VC will cast 1.5 million U.S. dollars, or accounted for 10% of the shares.

So Gavin said, "Now money is not really money, now you want to go public, your valuation is less than 500 million dollars, you are embarrassed to say." Now the enterprise financing Angel Round is the price of a round, even more expensive than the price of a round. ”

The most exaggerated is that the same project, after lunch, dinner, investment prices are not the same. The previous lock is usually 75 days, 60 days, then 40 days, now do not put in, the next round and have to rise 3, 5 times times.

Xu also suffered "embarrassment." "I've received a few letters of intent, and if you don't give me a letter of intent, I'll sign with the other family," the entrepreneur said directly to Xu. "We are also being pushed faster," Xu admits, as the overall pace of investment accelerates.

Once big investment industry these two years suddenly "weak". That's not surprising, the current Internet industry has a very strong money-making effect, the traditional enterprises pull very large, on the other hand, the threshold of business is greatly reduced, and mobile internet users to show the geometric level of growth, there will be a chance of getting rich again, who would like to miss investment next Alibaba and Tencent.

Huang Shenli, former Huaxing capital partner, said that with Alibaba on the market, creating a strong wealth-creating effect, more people willing to invest, quality Internet product value will be greatly increased, which is different from the buyer's market in 1999 years, is now completely a seller's markets.

Talking about this profound change in the industry today, soft silver race rich investment fund partner Sheep east to Tencent technology, said that there is a concept called VC stock market, when the operation is simple, we are more active trading, active after a lot of novice in the inside.

"A bit like the stock market, some people fry short-term, some long-term hold, some people are investment growth type, some are quantitative model to fry." "When these needs are released at the same time, the stock can only go up," said Goat Dong.

"I believe that today's market is not going to be able to keep us out of the day and certainly there will be adjustments." "Sheep East said, today just cast these companies, it is not easy to go up, valuations and development speed will be adjusted."