The next G-point of venture capital in the Internet

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

Now, it's pretty easy to start a web company. Set up a website, accurate location to obtain traffic, add ads to earn revenue, attract VCs to get funds, and then sold to Yahoo, Google and other network giants. Such a "Create-ad-venture-sell" business model minimizes the cost of start-up, making it a huge success for a group of online companies, such as Facebook and Twitter, that are not innovative and rely on advanced ideas. Such "Network myth" not only changed the technology supremacy of the network pattern, but also changed the investment concept of venture capitalists, "to technological innovation as an investment standard" view of the outdated, it is really "technical sincerity precious", "higher creative price."

The Wharton school David Hsu said that advanced ideas are more valuable than technological innovation, and are already a consensus in the field of venture capital. For entrepreneurs, it is gratifying that the technical threshold of gradual decline, entrepreneurs can easily cross technical barriers to achieve their own creativity. The worry is that, because of the civilian and replicable technology, the new network companies are difficult to escape the "creative is imitated or copied, in the cracks of many imitators survive" fate.

In terms of money, entrepreneurs can get venture capital in the form of public offerings in the 90 's, and now public offerings are no longer easy, and VCs are more likely to invest through mergers and acquisitions. Therefore, in the fierce competition, many new network companies choose to be acquired. In 2005, News Corp bought del.icio.us and flickr.;2006 for 580 million dollars for Myspace;yahoo! to buy YouTube for 1.65 billion dollars. In August 2007, Disney successfully acquired the club Penguin with 350 million dollars.

Compared to the fierce competitive environment of entrepreneurs, the life of venture capitalists is no longer better. The growing number of small investment companies, let the wind cast the giant crocodile "rich is big ye" the end of history. Capital markets, huge sums of money suffer from no home, scrambling to find profitable enterprises. What kind of company is worth investing in, in an environment where investment standards change and technology can be replicated overnight? In the context of Web2.0 participation, sharing and interaction, how much business return can the site traffic bring? Venture capital is confronted with unprecedented competition and risk.

It can be seen that "higher creative prices", to entrepreneurs and venture capitalists bring opportunities and challenges.

A good idea needs a person to realize. The investment, market evaluation, competitive potential and profit prospect of network companies depend on the decision of the entrepreneur. Therefore, venture capitalists tend to evaluate the site's prospects according to their ability and strength. In addition, the investors also value three points: first, the website has the user's own derivative ability (viral substituting), second, whether the website has the ability to profit through the advertisement; third, the website has the ability to profit through the transaction in the station. Audience and traffic are the prerequisites for getting advertising and trading. A Web site with strong user-derived growth capabilities is critical. Higher attention, greater flow, and a steadily rising user base can bring advertising revenue to the site. and the website internal active degree and the perfect user Exchange platform, will decide whether the website can benefit from the fictitious transaction.

By contrast, Smart founders should ask themselves: can the site provide useful or interesting information to attract netizens? Can the website realize the interaction, communication and participation of netizens? Do people come to this site to read information or to participate in interaction? These questions and answers are crucial, if netizens come to your site to "see", then advertising should be your main profit model; If the Internet users come to your site to "play", then virtual transactions can bring you benefits.

Investment experts believe that the next direction of internet development is "vertical community." In recent years, the darling of venture capital from the initial "information aggregation" to the later "Data Search", and in the future, venture capitalists will focus on targeted, audience-specific "vertical community." Yahoo and Sina are typical of information-aggregation websites, and Google and Baidu are examples of data-search sites. The "vertical community" type of Web site has not yet become an amplifier, but it has not been a new direction for the development of the network. If you are an entrepreneur, if you have a great idea, if you are interested in building a "vertical community", make a quick effort and the next goal of VCs is you.

There are poems Yue: The technology is valuable, the creative price is higher. If you love the Wind, "vertical" is the goal.