Review those failed cases

The launch of the gem, so that a group of entrepreneurs under the fluorescent light is very scenery, but also let a number of latent venture capital companies to achieve great success, it is rich and famous, which makes venture capital in the domestic development become faster. Now think about the failed case, which may give entrepreneurs and investors a lot to think about.

Billion Tang (www.etang.com)

Case study: The biggest case of financing in China Internet industry

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In the Internet industry, the birth and death of a company is hard to draw attention to, but the company is undoubtedly the exception: it is a former upstart, a high-profile birth, it did nothing, down to even the domain name are auctioned. This company is etang.com.

On the eve of the first dotcom bust in 1999, Tanghaisong, a Harvard Business School MBA, created the billion-Tang company, a "dream Team" consisting of 5 Harvard MBAs and 2 Chicago University MBAs. With attractive entrepreneurial plan, billion tang from two well-known U.S. venture capital DFJ, Sevinrosen hands to two period of about 50 million U.S. dollars of financing. Even today, it is one of the biggest private-equity cases in China's internet sector.

Billion Tang claimed that he is not only an internet company, but also billion Tang is a "life fashion Group", is committed to the network, retail and wireless services to create and introduce the international advanced level of life fashion products, fully serve the so-called "yellow e" between the age of 18-35, the definition of China's economic and cultural future

Billion Tang network overnight turned out, quickly in the major universities siege, in the country quickly "burn money": In addition to Beijing, Guangzhou, Shenzhen Three to establish branch offices, billion Tang also recruit staff, and in various places to carry out large-scale publicity campaign. At the end of 2000, the Internet's cold winter suddenly, billion tang money burned more than half, still unable to profit. From 2001 to 2003, Billion Tang continuously through with the professional company, launched a hand bag, backpack, condoms, underwear and other daily necessities, and online offline at the same time to sell, but also quietly try mobile phone wireless business. Two years later, relying on the SP business to survive the billion tang, the only to impress the user is to become the CET (CET) Examination of the official news release website.

September 2005, Billion Tang decided to completely overthrow the previous development model, and to the then rage Web2.0 on par with the launch of a personal virtual community called hompy.cn site. Subsequently, in addition to the million-Tang mailbox, such as a few page reservations, billion Tang will all other pages and traffic have turned to the new site hompy.cn, the scenery of the billion-tang site so transformed into a new web2.0 website. 2006, Billion Tang to its best SP assets (licensing resources) cheap to Qihoo company for 1 million of dollars, trying to do a last struggle on the hompy.cn. However, hompy.cn in 2008 has been closed billion Tang company also only left the shell, the former "Dream Team" in the company after burning money has also chosen to flee.

In May 2009, the etang.com domain name was publicly auctioned for no renewals, and the final bidder was given a 35,000 dollar price.

Billion Tong great, dead but not glorious, can only say is insipid, even miserable. Other dead sites are more or less some assets are acquired by other companies, in the self-cultivation may also have the opportunity to return to the lake, but the million Tang was reduced to the domain name no renewals and reduced to the end of the auction. Billion Tang to China's Internet can be said to make no mention of any contribution, perhaps the only contribution is to provide a very failed investment case. It was born with a gold spoon in the nobility, tens of millions of dollars of money in exchange for only a sigh.