Online education O2O: Xu Xiaoping denies bubbles Mr Yu doesn't want mercenaries

Xu Xiaoping, one of the founders of the new Oriental, said online education was "not a bubble" at the 2014 annual summit of China's Young Angels on November 25, while Mr Yu, the new Oriental chairman, set up an angel fund to consider turning hiring thinking into an investment mindset and supporting Internet education innovation through capital forces. In addition, the O2O model of education industry is generally favored by investors. Today (November 26), New Oriental Chairman Yu Yu with the new partner-Huatai United Securities Co., Ltd. former chairman of the Sheng Hitei, co-founded the Hong-tai Fund will be formally established, Mr Yu has said, "entrepreneurial tide" has arrived, hoping to establish this Angel Fund, "to support more young people to entrepreneurial road." On the investment direction of the Hong Tai Fund, Mr Yu said in an interview with the media, "will look to the Internet technology", while paying more attention to the Internet education field, try to "cultivate some educational investment projects for the new Oriental". In fact, as early as 2000, the new Oriental set up an online education carrier-"New Oriental online", but until 2013, "New Oriental Online" income of about 200 million yuan, and less than the total revenue of the new Oriental group 3.4%. In response to the above problems, the founder partner of the Anglo-Li Zhu Foundation, who has long been concerned with investing in online education, analyzes the new reporter, whose main reason is that "internal innovation is inferior to external innovation" and that Mr Yu founded the Angel Fund is "aware of this problem and to innovate in vitro". Li Zhu further explained that "hiring thinking and investment thinking is completely different", the system people are too accustomed to the existing development model, so the way to hire is difficult to complete innovation, and through the way of investment can let people outside to start, encourage innovative products appear. With the capital market hot, more and more entrepreneurs participate in online education. Industry insiders believe that the online education bubble has emerged. For this view, the founder of the New Oriental, the founder of the Xu Xiaoping not agree, he said to the Caixin reporter, "I think there is no bubble." Li Zhu also believes that the online education bubble "has not yet been developed" because the current business market across the education sector is so fragmented that participants are still groping for direction. However, Koteng, vice president of China Investment Management Group, which has been involved in investing in online education projects, said that the online education sector does have a high valuation and has become a big problem in the market. As for the development trend of the education industry, Koteng and Li Zhu all mentioned the more optimistic O2O mode. Li Zhu said that some skills of education, such as art, music, not to say that a look on the Internet can learn, need to go online teaching content, "with O2O combination is a good direction."