Who is the fourth largest Internet giant outside of bat?

Summary: Who is the fourth largest Internet giant outside of bat? A year ago, the answer to the question was still hovering between the tens of billions of dollars worth of Qihoo 360 and the billions of dollars of millet valuations; a year later, Qihoo 360 is now about $7 billion trillion, and jingdong market capitalisation after the IPO exceeds

Who is the fourth largest Internet giant outside of bat?

A year ago, the answer to the question was also in the tens of billions of dollars in the market value of Qihoo 360 and billions of dollars valued millet between the wandering; a year later, Qihoo 360 is now about $7 billion trillion, the market capitalisation of more than 30 billion U.S. dollars after the IPO, becoming the new pole of the Internet camp, while the latest value of millet reached 45 billion dollars.

On the afternoon of December 29, Millet founder Lei finally announced a new round of financing on Weibo. He revealed that Millet is valued at $45 billion trillion, with a total financing amount of $1.1 billion. Millet new round of investors include All-Stars, DST, GIC, Hopu Investment and Yunfeng Fund and other investment institutions.

Earlier, there were millet insiders on the "first financial daily" confirmed the sixth round of millet financing. Based on a 45 billion dollar valuation, millet will become China's fourth-largest internet company, after Ali, Tencent and Baidu. In China's hardware companies, Millet is almost the equivalent of three Lenovo groups (currently worth about 15 billion U.S. dollars).

What investors are standing behind lei? They are optimistic about millet what, so that millet in 4 years time to turn the value of 180 times times? These are the most concerned topics in the industry.

Investors behind Lei

Millet maintains a yearly pace of financing. Almost every round of financing is completed, its value will be "triple".

April 2010, Lei and team, Morning Hing Venture, qiming Venture investment in the establishment of millet; at the end of 2010, another round of new financing, the investment side more IDG, The company valued 250 million U.S. dollars and accumulated a total of 41 million dollars a year; in December 2011, Millet was 90 million dollars in financing, valued at 1 billion dollars; at the end of June 2012, Millet announced the financing of 216 million U.S. dollars, valued 4 billion U.S. dollars; August 2013, Millet new round of financing valuation of 10 billion U.S. dollars.

This time, the value of millet was 45 billion dollars, up nearly 180 times times the value of $250 million in 2010.

It is said that this time the high value of millet "scare away" some large investment institutions. And willing to give the "4-year-old" 45 billion U.S. dollar valuation of the investment side, by Morgan Stanley, former Asia managing director, star analyst Ji operation of the Technology Investment Fund All-Stars is the new face of the investment circle.

Last March, Ji, who had been in the TMT field for years, left Morgan Stanley. There were rumours that he had joined the Hopu fund. But public information shows that he teamed up with Morgan Stanley's former colleague, Fuming, to form a All-Stars and received a fund licence at the end of last year.

Foreign media quoted insiders as saying that the All-Stars fund's investment style is "friendly activist investor", trying to influence technology companies by establishing links between technology companies and wealthy individual investors who may help them develop.

It is noteworthy that, in May 2013, Ji was appointed as an independent director and member of the audit Committee at the time of the get-together. Gathering time is "Lei department" in a company, Lei as a gathering time chairman and director.

All-Stars, Ma Yun's Yunfeng Fund, and even Magnolia officinalis investment is the first time in the list of investors in millet.

Yunfeng Fund was founded in January 2010, Alibaba founder Jack Ma and the mass media founder Shang name named. The Fund's partners also have giant network founder Shi Yuzhu, New Hope Group chairman Liu, Yintai Investment Chairman Shen, the media board chairman Jason and so on more than 10 entrepreneurs.

Not long ago in Wu Town held the World Internet Conference, Ma Yun is still in with Lei Bicker, gave him a basin of cold water, said the air is not, water is not, you Lei Army mobile phone do well, what use? Soon thereafter, Lei announced that he had invested in a start-up company and had made an air purifier. And earlier, Lei investment in UC, has now been Alibaba income SAC, become UC Mobile internet business Group.

And rumors of Ji left Morgan Stanley to invest in Magnolia officinalis, is also one of millet this round of investors, the fund by the well-known investors Fang management.

Magnolia officinalis Investment has been regarded as "PE in the high handsome." The three founding partners were the former chairman of Goldman Sachs Gao Securities Corporation, the former president of KPMG, China and Hong Kong, and the former He Chao of Goldman Sachs Asia investment Bank, respectively, to help Goldman establish a securities joint venture in China.

Hopu Investment has invested in many of the most high-profile companies, such as Mengniu Dairy, yurun Food, Construction Bank, Bank of China and so on. In the investment millet before, Magnolia officinalis investment in the field of public investment in TMT is rare, this year, Magnolia officinalis investment has been with Zhi-Xin capital jointly led the Mushroom Street more than 200 million U.S. dollars in financing.

Compared with the new Faces of All-Stars, Yunfeng Fund and Hopu, the Singapore sovereign wealth fund GIC and the Russian Investment Corporation DST are the old faces of the multi-round millet financing.

For example, in 2011, Millet was given a personal investment by DST boss Yuri. Lei said that the initial DST option to vote, but millet this round of financing has to end, DST too late to enter. Finally Yuri adhere to individual investment millet, millet choose to accept. Lei's comment on Yuri is "very sharp and very smart".

Why is it worth so much money?

What is it that supports the high valuations of millet 45 billion dollars?

The launch of the mobile phone for more than 3 years is indeed ferocious: in the first half of 2014, millet tax sales of about 33 billion yuan, an increase of 149%. With annual shipments of 60 million, millet is expected to achieve 2014 annual revenue is expected to reach 80 billion yuan. The value of millet, estimated at $45 billion trillion, is nearly 3 times times higher than expected this year.

In November this year, IDC and Strategyanalytics, the International Research Institute, published the third-quarter survey of the global smartphone market, releasing shipments and the top five list of market share. The two reports, Millet mobile phone shipments and market share are ranked third in the world, followed by Samsung and Apple.

Let lei to sum up, millet this 3 years to do things, really learning is the several companies: Tongren temple, seabed fishing, Wal-Mart and Costco. Like the Tong Ren Tong to do products, genuine, have faith, to the seabed fishing User Services, do a more than expected Word-of-mouth, to Wal-Mart, Costco, such as the company to learn operational efficiency.

"The nature of business is efficiency. Lei once to "the first financial daily" reporter summary said. This explains to some extent the outside world for millet profit low doubt, millet do is in high efficiency low margin operation.

In addition to its own growth rate, millet high valuation of one of the reasons for its electrical quotient. According to the Chinese Society for electronic Commerce as at the end of June 2014, China Consumer Network retail market research, Millet has been ranked third E-commerce companies, the top two is Taobao department, Jingdong Mall.

On the valuation of millet, Lei recently said: "Important investors see the company is not to see how much money the company can be, but to see how much money the company can make in the future, this is a huge thinking of different," for example, last September, millet valuation of 10 billion dollars, how do not understand how the value of so much, I do not understand, But investors think that the investment in millet will make enough money in the future, the risk factor into the feeling now worth 10 billion dollars.

Support Millet valuation hurricane, not only mobile phone hardware shipments, as well as the huge ecological system story.

Familiar with millet internal affairs of people familiar with the "First financial daily" reporter interpretation that the future of millet can be understood as: Millet mobile phone (including millet plate), millet TV (including millet box) and millet router three hardware core product line is "The first millet", Millet system MIUI and its construction of mobile Internet content and service ecology is equivalent to "second millet", and millet plans to spend 5 billion of dollars of smart hardware to invest in 100 companies will become "the third millet." and established in the Millet mobile phone, miui ecology, mobile phone outside the new pattern of millet ecology, may also support millet 45 billion dollar valuation of one of the reasons.

Although Lei himself has repeatedly denied the existence of the Internet "lei system" in public, but under the layout of many years of planning, "lei" has become faint bat outside the fourth-largest force.

No IPO plan for five years

In the meantime, Lei has already made the VIE (Variable interest entity) framework for future listings.

"First Financial daily" reporter after consulting the industry and commerce data found that the millet, including a number of companies, in addition to millet technology, but also including millet communications, millet electronic software, millet payment, millet mobile software, millet software technology, millet digital technology, such as at least 7 companies. These corporate representatives include Lei, Li Vanchang, Lin, Liu De, and many other millet executives. In addition, millet in Hong Kong there are xiaomih.k.limited and other companies.

and Millet, another subsidiary of the Millet communication is a pure foreign company. Business information shows that the company was founded on November 24, 2010. by October 24, 2011, the investment of Millet newsletter changed to xiaomih.k.limited, the amount of investment rose to 18 million U.S. dollars, by August 2013, the amount of capital increase to 130 million U.S. dollars.

Outside speculation, millet in Hong Kong platform company Xiaomih.k.limited, should be the overseas financing of millet or operation of the main body, but also foreign investors familiar with millet. The choice of Hong Kong, perhaps with Lei as chairman of Kingsoft Software in Hong Kong listing.

But the lei of the VIE structure for future listings is not in a hurry to go public.

Lei recently to our correspondent stressed that "within five years there is no IPO plan", but this is not a guarantee, "perhaps millet three years after the IPO, said five years no IPO plan is my mentality today."

Lei admits that he is now the controller and major shareholder of 4 listed companies, and past experience tells him that listed companies have many short-term investors, when the size and stability of the company is not big enough, the listing will bear a lot of pressure, so that long-term goals are distorted.

Lei said, a friend gave him a word to let him reap a lot: adhere to the original road. For an unlisted company, the profit is not important, increase investment, do not be engaged in the market.

For example, on the outside about the millet car rumors, Lei told reporters, do business has its own expansion boundaries, in the foreseeable 3-5 years millet will not consider to do real estate and cars.