The era of overseas capital in China's search for US-style investment is continuing

While the era of overseas capital seeking "American model" investment in China continues, Cross-border capital is starting to reverse its investment in the "China model" overseas.

In the past more than 10 years of internet development, China and the United States the rapid rise of the Internet industry to form different industries, especially in China, by the Silicon Valley in the 8 years of imitation of the Internet project is particularly numerous, and even covered with a cottage Silicon Valley hat.

While the innovation model in the United States is absolute innovation, as subversive services such as Facebook, Twitter and LinkedIn all come from Silicon Valley, in the eyes of GGV GGV Capital Management partner Donshau, China still has some of the leading advantages of Internet models, which are difficult to find in overseas markets, And he is bringing China's leading business form and investment experience to other countries.

Dong Shihao joined GGV GGV Capital for only 6 months, with 3 projects and 2 projects with Chinese characteristics, branded as the Chinese Internet model. GGV GGV Capital is a platform that focuses on cross-border investments between China and the US, managing 2.2 billion of billions of dollars in capital.

Three types of Chinese models have opportunities overseas

Dong Shihao in the eyes of the Chinese Internet model there are three categories: Taobao type of electronic services, QQ, yy virtual product services, as well as ucweb, Leopard mobile phone tool applications, these three types of models in the Chinese market development mature. However, overseas markets cannot find such a model, and there is a great chance of replicating them abroad for success.

The first is to do tools, such as 3G portals, Cheetahs, 360,ucweb, browser, anti-virus software and other applications in overseas markets are very opportunities.

The second is Taobao-type electricity dealers, which can replace the low efficiency of the offline retail model, similar to the model of Dong Shihao care about Cross-border E-commerce.

The LightInTheBox is doing well, but the Chinese team needs more understanding of the overseas market and needs to find more local talent, and it will do even more if more overseas talent is involved. The Cross-border electricity dealer is the second chance he sees.

The third opportunity is the currency model of virtual products, props and entertainment. Virtual products are the use of empty economic models, which are more adapted to the needs of the economically developed regions. There are few overseas, only South Korea, Japan and China, and Zynga has proved that the model has a chance in the U.S. market and will be a big opportunity for the future.

Basically the whole of China's internet is cock silk economy and fan economy, see how you apply to these two pieces. The world's cock silk user market is about three or four times times that of China, if you understand internationalization, in fact, China's model overseas market.

Taobao sample landing in the United States

At the beginning of the article mentioned Dong Shihao came to GGV GGV Capital invested 3 projects, are in accordance with the Chinese Internet model investment, then the next one of the projects described in the class Taobao model.

The project is a Cross-border electricity business platform, headquartered in San Francisco, named Cytopathic, and Taobao model is very similar. Recently, Cytopathic has just won a new round of 50 million U.S. dollars in financing, Yahoo co-founder Jerry Yang also participated.

Cytopathic co-founder Zhang Yi, who was born in the country, went to a foreign university and founded his current company Cytopathic in San Francisco after graduating.

When Dong Shihao saw Zhang Yi in April 2013, Dong Shihao did not join GGV GGV capital. At that time, cytopathic products have not yet formed, but to share the image of the user like, has not started to sell the picture of things. Because Dong Shihao at that time the VC company only concentrates on the domestic, still cannot invest the overseas project, has not followed up, but this product has left the impression to him.

Later, after Dong Shihao joined GGV GGV Capital, Cytopathic began to sell products. Cytopathic's sellers come mainly from many domestic sellers on ebay, most of which are now from China. Almost no brand-name products, are manufacturers of their own products. The main force to buy from the U.S. two or three line of the city's cock wire users. Users account for 60% of the U.S. market, leaving 40% from overseas, so it's a global process that takes less than six months to reach.

Thank Jack Ma and Taobao

This is more than rooted in the domestic Taobao has a lot of advantages, Taobao has more than 8 million of Chinese sellers, but now sold to overseas market is probably less than 1%. But there are a lot of Chinese sellers on ebay are selling, because the foreign users to pay more applications, not so love to compare prices, so the competition is not as strong as Taobao, but foreign users can pay more money, the same products can be sold to a higher price.

Over the next 10 years, in Dong Shihao's view, many Taobao sellers will use channels such as cytopathic to start exporting, which may account for nearly half of their income in the future. So GGV GGV Capital immediately invested them.

However, such a pattern like Taobao 5 years ago, was copied to overseas development certainly not, because China's sellers are immature, not enough size, not enough experience. Now, in Taobao has been dry for 10 years, the value chain to bring up, the credibility of a relatively high number of sellers. This is the opportunity to do multinational operators. So thanks to Taobao and Ma Yun.

Moving the Chinese model overseas

China's Internet model is the first or the tool that can be used overseas.

From tools to platforms, tools to find traffic, the flow is cheap, then turned into a browser or guide him to do other consumption, whether it is entertainment or electric business type, this tool cut into this point many American companies and European companies do not think so, so this is the opportunity for Chinese companies to do it.

It is important for American companies to make simple applications, but China will find a breakthrough. You ask Fu or jindong, so this play is not a global thinking, but China's own thinking, but to other markets there are opportunities, the truth is the same.

The second is to do virtual products how to impress users online to buy virtual products, to offline entertainment consumption, this opportunity actually exists in other markets, but you have to know how to impress the local user's mentality so that he is willing to pay for consumption, the localization of the challenge is relatively high, than the first difficulty.

The third is between the two, is to do the mobile Internet electricity business, as long as China has a continuous production base, the world's factories can have the opportunity to do such things.

Wen/Cao Tianpeng