VC Hunt Mobile Internet: initial valuation Bubbles and Matthew effect

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Tencent Science and Technology Zong June 9 Report

After the Dragon Boat Festival, today's headlines, fast teeth, big aunt, near, Mushroom Street, and other well-known mobile app has disclosed its own latest financing and valuation situation, the recent mobile Internet industry financing trend, whether the amount or density are far over the past few years industry average level, various indications, The capital feast for the mobile internet is slowly opening.

With such a dense financing, sing it, CEO Chen (Weibo) appears to be a "capital frenzy before the Alibaba IPO". Investing in a big environment is clearly not a business, but it is true that investment has warmed up. In a survey of the 2014 Agency LP (Financial Investment Limited partner), which was provided by the Qing Ke Research Center earlier this year, the mobile Internet was recognized by as much as 85.7% of the agency LP, becoming the most focused investment hotspot industry this year.

Zhu Yan, vice president of Fast Tooth, said that the current capital environment and resource environment are very good. "Many companies listed last year or by Tencent, Baidu and other bat companies to buy, VC and LP hands have a lot of cash."

In addition to ample capital, the VC has a big foray into mobile internet capital, another notable phenomenon is the generosity of valuations. Mushroom Street, for example, was valued at $200 million after the first two rounds, but only 8 months after the transformation of a vertical electric dealer, the valuation of Mushroom Street rose to 5 times times, reaching 1 billion.

Bo, chairman of Shanghai Shang Ya Investment Management Co., said that the value system of mobile Internet is different from that of traditional enterprises. The standard for valuation of traditional enterprises is first profit, while mobile internet is based on the growth of user and user value. The growth of the user and the growth of the value itself is also vague, and this round of intensive financing inevitably has a certain degree of valuation bubbles.

While these mobile internet companies are having a valuation bubble, new mobile Internet applications are also hard to access to a large number of users like these enterprises, in a sense, the stronger the mobile internet, the weaker the Matthew effect has begun to appear, for mobile internet players, the time window is decreasing.

VC Centralized Hunt Mobile internet

VC activity in the first half of this year and the second half of last year, "injured" feeling significantly different. In the second half of last year, as Sequoia Capital, Jingwei Ventures, IDG and other institutions in the mobile Internet investment Radical, mobile internet growth than expected, VC difficult to quit, they no longer rashly invest in new projects.

At the same time, strategic investors are active. Drip, fast, fast hotel housekeeper, Cicada travels, pp assistant, such as a group of large mobile internet app companies are included Tencent, Ali, Ctrip, UC and other strategic investors under the command.

Intelligent hardware and other intelligent projects of the hot to mobile internet new significance. Investors see that the value of mobile Internet is not limited to itself, in addition to mobile games, such as their own, in addition to advertising and other traditional profit models, mobile Internet applications in connection O2O, intelligent hardware, smart home, the value of the car began to show.

Whether it is the peak of the capital market cycle, or the revaluation of the value of mobile Internet, a phenomenon is that VC, PE in the second half of last year did not cast cash in the first half of the year focused on the cast out.

After the Dragon Boat Festival, the first to make a financial disclosure is the news app today headline, June 4, today's headlines officially announced that it won the Sequoia, Sina Weibo with a cast of the C round of 100 million U.S. dollars, the financing value of 500 million U.S. dollars. The overvaluation has also sparked a discussion of today's headlines, the legal risks of its copyrights, and the debate about technology-driven authenticity that has sparked a battle between old and new media, which has not yet ceased.

Next, the Mobile phone file sharing tool quick teeth announced on the eve of the Dragon Boat Festival to complete a new round of financing, this round of financing by IDG, innovation Workshop, Northern Lights with the investment, the total amount of more than 20 million U.S. dollars.

June 5, women's menstrual management software aunt? Announced a 30 million-dollar C-round financing. This round of investment by the strategic source venture investment, Sequoia Capital and Bertelsmann with the vote.

On the same day, another newly emerging stranger Social Software announced the completion of a round of 15 million dollar financing, the investment side for Qiming Venture and Morning Hing Venture, the Qing Branch capital for the current round of financing of the exclusive financial advisor.

June 6, Shopping guide Mushroom Street disclosure of financing and valuation more breakthrough in the industry's psychological expectations. Mushroom Street announced a C-round of $200 million trillion in financing, the valuation reached 1 billion U.S. dollars. Comparing previous financing and valuation data, the first two rounds were financed at $20 million trillion, and Mushroom street valued at $200 million. However, 8 months after the transformation of the vertical electric operators, the valuation of Mushroom Street increased to 5 times times.

Industry insiders said that in the next few months, there will be more mobile internet mega-financing cases will be disclosed. Valuations are higher than in the past, he said, mainly because of the slowdown in mobile Internet development and the growing number of projects that are rapidly growing, which means that once the "winners" have been hard to replace.

The early Matthew Effect of mobile internet industry

From an entrepreneur's point of view, it is true that more financing is needed to deal with the next more brutal market competition.

In the eyes of Aunt CEO Rauschecker, the decline in smartphone shipments this year has slowed the growth of the incremental market for mobile Internet applications, and this year's competition has focused on the retention of the competitive stock market for mobile apps that already have a certain size.

The drop in smartphone shipments, the smaller incremental opportunities for mobile distribution platforms such as mobile phone assistants and the application market, and the overall slowdown in mobile application distribution, in which case the new app would have been difficult and hard to gain by adding users to the 2012-2013 rate. "New apps are hard to come by. Rauschecker regrets.

This can also explain why the recent disclosure of financing companies is the B-round or the C-round phase. For example, today's headline and aunt are all C-round financing, the fast tooth is the B-round financing, the newer one is the next neighbor is a round of financing. Sing it. The upcoming next round of financing is also in the C-round phase.

"Good projects are already expensive, or have been invested or controlled by bat, can continue to grow, have a business model, and the team's overall neat project is very small." "Zhu Yan that the entrepreneurial team now seems to be more, but in fact has embarked on the Matthew effect of the vicious circle, the strong constant strong, weak and weak."

Already has tens of millions of or even hundreds of millions of users of the application of the heel is not so stable, their common feature is that new financing are used for technical input, build their own moat.

Rauschecker revealed that this round of financing will be mainly in products, users and brands in three directions to expand. Grinding products, further excavation based on mass user generated health large data, recruit more talent, become one of the important direction, another is to integrate potential users, the user retention.

Today's headline also said that this round of financing to increase technical input to build a perfect mobile internet content ecosystem.

Fast tooth investment mainly focus on overseas market input, such as Southeast Asia, such as the population, cell phone density, network links, flow rates expensive areas, will become the next focus of the rapid teeth direction. Mushroom Street New round of financing will be put into the consumer experience upgrade, business platform construction and team development.

This for the new mobile Internet play, means that the more difficult to enter the Bureau, but the same as the PC Internet age, the strong moat is difficult to hinder the development and growth of the Forces nouvelles, but the cost of trial and error will be more and more high.