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Article / Liu Jingmu
Source / minced pepper investment (ID: ylwanjia)
Original title: how to get the investment of byte jumping? From 89 cases, we analyzed three “byte styles”
Unconsciously, byte skipping is a giant with a valuation of more than $100 billion in private equity trading.
Complementary to it is the growing investment ambition of byte beat.
Entertainment capital has sorted out all the public and private investment activities of bybeat since 2014. It is found that in the past seven years, only 89 investment activities disclosed by bybeat are far lower than the old Internet giants such as bat, which is very low-key. Among them, the number of M & A is the most, 26; the number of investment in 2019 is 29, reaching the peak in seven years. Under the “epidemic”, bytecode has invested in nine companies as of April 2020, obviously speeding up its pace.
These investments involve 14 sub sectors in total. In addition to the main business areas such as media and community, they also include enterprise services, education, games, finance, real estate, artificial intelligence, hardware and so on. For the key layout of the track is not stingy, such as education, game field, in the past two years crazy investment, acquisition of industry companies.
What kind of company does byte bounce like to invest in?
Through combing, we found that:
1. Unlike Tencent, which often invests in 22 listed companies, its wealth is bouncing, but it doesn’t invest in any listed company, nor just to buy profits and revenue;
2. After acquiring a company, byte prefers to break up the original team and integrate it into its own business, which may stop the development of the company’s original business;
3. These invested companies may not have strong market share and high market awareness, but they are usually excellent in product R & D technology, licensing, or intellectual property.
From these points, it can be roughly seen that the investment logic of byte beating is actually very simple: it is to make up for the lack of content development and technology research and development brought by business expansion through investment, so as to make the team’s R & D capability for its own use, rather than simply financial investment.
This investment style is quite different from Tencent’s and Alibaba’s.
Under the thinking of engineer Zhang Yiming, byte’s investment seems to be acquiring one workshop after another, and then rebuilding one new “factory” after another through byte’s powerful operation and commercialization capabilities.
Focus on team and R & D capabilities more than company size
Tencent, which used to easily invest in 22 listed companies, and Alibaba, which invested in microblog, Youku and other “giants”, compared with the company size of byte jump investment, the general scale is not large.
In addition to several well-known vertical platforms such as graphite documents, quick reading comics and Qingbei online school, there are no listed companies in this investment list, and there are few unicorns with a valuation of more than 1 billion. And these well-known platforms are basically only medium-sized enterprises.
However, small entertainment found that although the number of companies acquired was small, they basically became byte’s own business through investment or acquisition. Such as Feishu technology, gogokid, new grass app, faceu Musical.ly , curtain and so on, whether or not M & A, have finally become the products of byte beating, serving the overall business development of byte.
The similarity between this style and Ali is that the investment style is relatively strong: the company will be used by itself, after investment, it tends to directly control and completely absorb the income of its own system. Unless the volume is large and the revenue capacity is strong, such as Weibo, Momo, etc.
In the acquisition area of byte beating, there is a product called Zhaoxi calendar, which is an intelligent social calendar used to manage time and set schedule. It was once popular for a while with the function of “getting up early to punch in”. Acquired by byte in April 2018.
The function is very good, but Chaoxi calendar was only a small app at that time, with low popularity, small number of users and limited business ability.
“The reason why byte acquired Chaoxi calendar is that it is interested in the strong R & D ability of the team in the intelligent calendar.” Annie, a former employee of the morning and evening calendar, told Xiaoyu. Annie said that byte, along with the founder and some R & D teams, brought in byte after the acquisition of Chaoxi calendar.
According to Xiao a, a former employee, the team of Chaoxi calendar stopped the development of Chaoxi calendar products and divided the team into multiple products, such as Feishu, although the work content is still the original content after entering bytes. “At that time, Feishu products needed the technology of making calendar plate, and the experience of making calendar in the morning and in the evening was just enough to absorb them.”
Unlike most companies that invest to make money, byte investment is partly for buying teams. “As long as the team is good enough, it can be bought in the process of investing in the company.” Another byte employee revealed that in addition to the R & D team of Asahi calendar, including the CEO of tuzou.com, when tuzou.com was acquired by byte, “by the way, we took it together.”.
However, with the expansion of the company’s business map, we can see that byte has slightly changed its investment layout. Start to invest in companies with large volume and high visibility to seek strategic cooperation. In addition, some of the investment targets and products also have clear competitors. For example, Hupu, 36 krypton invested in 2019, or gogokid benchmarked with vipkid, etc.
Whatever business you do, invest in whatever company
If we match the development of byte, we can find that almost every investment of byte is related to the business focus of the year. It also verifies its investment logic: relying on the investment mode of wide spread network to make up for the lack of business.
Media information and social platform: niche vertical, business collaboration
In August 2012, byte skipping launched today’s headlines. According to the data, by 2014, the number of headline DAU has reached about 13000000, which is equal to that of WeChat. Since then, bytecode has been developing app crazily, with the name of “app factory”.
“I’ve been working on byte skipping for 5 years, and I don’t know how many apps byte has developed.” A byte old employee told Xiaoyu.
This crazy tiktok volcano has also launched many popular App including jitter, including the content, the tiktok, the little video of volcano, the jitter, the watermelon video.
As you can see, among the byte investment areas, the areas that can bring collaboration to these popular apps account for a larger proportion. Such as tool software (14), media information (13), social platforms (11).
For example, today’s e-commerce platform is on sale, becoming the e-commerce channel for headlines; photo creation communities such as tuchong.com and Dongfang IC, and visual copyright creative websites; there are also short story intelligent recommendation platforms such as “read new stories every day”, which can provide technical support for the user recommendation mechanism of headlines.
In today’s headlines, byte also expands its content richness by investing in other media platforms.
The media and information companies invested by byte rarely see mass media, instead, they are all vertical media, with extremely subdivided fields. For example, wall street news of financial information and Caixin world say that 30 seconds of understanding of cars, vertical self media of catering, tourism news media, and even vertical community of trend culture, jewelry exchange community, COSPLAY painting and novel community, etc. in the field of automobiles.
These vertical media and social platforms, the role of investment, also need to expand the content of today’s headlines to a greater extent. Including the price of 1 billion 260 million yuan to become the second largest shareholder of tiger pads, the shareholding ratio of 30%, is also for today’s tiktok and jitter sports related business synergy.
Culture and entertainment: starting from the content upstream and grasping the initiative
In the field of culture and entertainment, byte is always cautious.
Although the business is closely related to entertainment, in the past few years, byte did not pay attention to the investment in this field, and only started to make efforts this year. Since 2014, byte jumping has invested in nine companies in the field of entertainment. In the first half of 2020, it accounted for one third of the investment.
In addition, the previous entertainment companies are basically related to animation, games, animation production and other fields, such as cartoon app quick view comics, game short video supplier Weilong culture, animation production supplier audio-visual animation and so on. As a short video distribution platform, byte has never been sold to any MCN organization or film and television company.
Finally this year.
Fengmanau media, which completed strategic financing in February this year, is a MCN organization focusing on sea video and the first MCN invested by byte. His fisherman, a Feng, is famous in watermelon video and station B for chasing the sea video. This makes people can’t help but think of the news that recently, wizard finance left station B and came to watermelon video. In fact, before the wizard finance, there were many B station up owners who signed the exclusive watermelon. Watermelon video and B station of the KOL battle, it seems to have dark rub rub to play inseparable. This investment, let a Feng appear in B station day, less and less.
Of course, as the vertical category of watermelon video launched in 2018, catch up with the sea video will naturally vigorously support the long tail ecology and commercialization of content. However, the sea video itself is not a sustainable quality content. In essence, it’s just a moment of freshness and curiosity, and it’s easy to lose users if you repeat more.
It’s not known how much revenue Wind Horse bull media can bring to byte, but in terms of investment behavior of MCN institutions, it can be predicted that byte may plan to start self-made short video content business, from “referee” to “contestant”.
In order to enter the director’s video, the byte layout has been a long time.
Last year, taiyangchuanhe investment, which was talked about all the time, was finally settled this year, with byte participating in its round B financing at the price of 180 million RMB. Recently, tiktok’s artist Chen he has been in the process of selling live goods with his voice, and the product has been selling well. But obviously, behind the 180 million investment, byte hopes to obtain more entertainment resources and linkage.
In addition, tiktok, the company behind the “voice of the red man” Yan, also got strategic investment from bytes in April. The company’s main business is artist brokerage, music production and distribution, variety production, etc. This round of investment can open up more star resources for bytes and facilitate the layout of long and short video content.
At the same time, in terms of IP copyright, byte skipping also arranges multiple projects.
On June 23, byte beat became a shareholder of Beijing Dingtian culture and entertainment Co., Ltd., with a shareholding ratio of 10%.
It is understood that Dingtian culture has three online culture platforms, namely sweet reading, melon seed novel network and Duomi reading network. In addition to the online culture IP “power to dote on the world” and “power to dote on Beijing”, there are also realism non online culture IP, such as “Confucius” and “China’s new workers: culture and destiny”. According to the data, byte will expand the copyright content pool for itself by docking with the novel copyright resources under Dingtian culture. In addition, Dingtian culture has also had the experience of film distribution and production. It has jointly produced the Internet University’s “power office” and the platform’s literary work “that river” adapted film of the same name.
In addition, byte beat also invested in Xiuwen technology, a subsidiary of moti, this year. The main network platform of Xiu Wen’s technology is YYUN academy, and official account such as romance, romance and so on. At present, the main types of books in “Yiyun academy” are female oriented books such as romance, crossing, harem, etc.
It can be seen that the long video strategy of byte skipping, more hope to expand from the video content production upstream to grasp the initiative.
Education and training: fat people can’t get a stutter
In 2018, byte jumping began to lay out the education field, and education and training companies began to appear on the investment list.
In 2018-2019, byte invested in and acquired 7 educational institutions, including aikid, the Minerva project, Qingbei online school, good learning and vigorous classroom education products.
Similar to media information, educational institutions and companies are also vertical: early education content, online children’s English, K12 online school, AI intelligent university education, knowledge sharing platform It can be said that the most popular mode of educational institutions at present has all bytes. It can be seen that in the past two years, byte skipping has been constantly adjusting the content of education, trying to find a suitable entry point.
Byte is also radical in the development of educational products. Since 2018, byte has released many educational products, such as gogokid, Kaiyan English, tangyuan English, Dali classroom, guaguagualong English. However, so far, there is still a lot of room for improvement in the market awareness of these products.
Game: long R & D period, can bytes hold up?
The other byte has also announced the key investment area – Games, which is much more low-key and has a clearer path.
In 2019, byte began to lay out the field of games. At present, through M & A, it has bought three game development companies, including Moji technology, which was acquired from the hands of 37 mutual entertainment, game research and development around famous IP, as well as big eye starry sky and deep extreme intelligence, a mobile game development service provider and an AI game manufacturer. From game IP development to technical support, through the way of M & A, the bytes are accumulated in the infrastructure.
From the perspective of investment target, the development direction of byte for the game is relatively clear – the development of heavy self-developed mobile games based on well-known IP.
The game is a slow-moving product, but also need to give bytes more time to develop. However, as the data-oriented byte skipping with the highest priority, it is not known whether it can bear the long development time of a self-developed heavy game.
In 7 years and 14 fields, appetite is getting better and better
Horizontally, there are many fields of byte jump investment, involving 14 fields in 7 years; compared with the vertical time axis, the number of byte investment in the previous years is not large, and the number has increased sharply since 2019.
Since 2014, he has been involved in the investment business, including social platforms, media information, tool software, education and training, finance, enterprise services, automobile transportation, artificial intelligence, cultural entertainment, hardware, games, e-commerce, real estate, clothing and textile, etc.
If we pull the dimension onto the timeline, we will find that, in addition to covering a wide range of fields, the willingness to invest in byte jumping is also increasing year by year.
In 2014, when byte started its investment business, there were only two investment activities in the whole year, namely, today’s special sale and touchong.com, which were internalized into byte’s own business. In 2015, the number of investments increased slightly, with a total of 8.
From 2016 to 2018, byte’s investment events remained relatively stable, with 10, 16 and 15 companies respectively. The investment companies also focused on media information, social platforms, tool software, etc.
In 2018, it is also the watershed of byte jumping investment layout. In this year, byte business extended from information platform and short video to education, game and enterprise services, as well as finance, real estate, artificial intelligence, hardware and other fields. A big investment network of byte beating is being built.
Interestingly, however, investment in media information and social platforms has declined since 2018. In 2018, there was no investment in media and information, only three in 2019, and only four in social platforms since then. It seems that when the R & D and team of main business are maturing, byte does not need to strengthen the coordination of main business through investment activities.
Last year, the number of bytes invested reached a peak. There were 29 investment events in the whole year, almost the sum of the previous two years. Hu Pu, 36 krypton and other head vertical social platforms and media completed byte investment in 2019.
It is worth noting that it is coordinated with the overseas layout of byte skipping. Since 2018, byte jumping has occupied overseas territory, and overseas investment business has increased significantly.
According to media reports, in January of the same year, today’s headlines set up a 200 million yuan content investment fund, which specializes in early new media content entrepreneurship projects, especially focusing on short video projects. Many overseas short video projects are explored through the fund.
For example, dailyhunt, the aggregation news platform of India known as “India’s today’s headlines”, flipagram, the mobile video application in the United States, and the popular music short video creation application in Europe and the United States Musical.ly Etc. are invested or merged by the fund. among Musical.ly After merging with tiktok, it has become the most successful overseas product of byte.
It seems that byte appetite is getting better and better.
After intensive investment, can byte jump reap the next “burst”?
It is obvious that this is a shortcut key to make up for the lack of R & D capacity due to business expansion.
However, what byte skipping wants more is to put together a “burst” by merging multiple companies’ businesses.
Nowadays, although bytes are sitting on the top of today’s headlines and the two tiktok of trumpet, but still want to be the Internet giant, they still need to occupy the head Market in many areas, such as education and games.
And through “buy buy buy”, the business of other companies will be combined, set the length of 100, and then launch new products, is the fastest way.
Because of this, byte jumping is more willing to achieve holding through M & A in terms of investment actions. Among all the investment events, there are 26 M & A companies. Among them, M & A tools and software accounted for the highest proportion, with a total of 7 companies. There are M & A companies in the fields of enterprise services, education and training, games, social platforms and media information.
Especially in the field of education, which is one of the new circuits for byte betting, it is obvious that byte jumping is “in a hurry”.
In 2018, byte beat just completed an assignment in March and an investment in Xiaoyang education in May, and launched online children’s English learning platform gogokid in June. However, because there are too many advertisements and the user experience is not as good as the competitive vipkid, a large-scale layoffs will be made one year later. Now, guaguagualong English, the AI interactive course of “zebra” brand, is not clearly separated from the competitive products.
In such a completely competitive market, a new product has not made much innovation and change, and it is not wise to be introduced into the battlefield quickly just to seize market share. Behind this, byte’s desire for burst funds and the pursuit of development speed.
Byte’s investment direction, from the old bank of media information and social platforms to corporate services, finance, entertainment, education, games, e-commerce and many other fields.
The bigger the net is, the more cards it grabs. However, how to play a good hand is the next question for byte skipping.
(statement: This article only represents the author’s point of view, not Sina’s point of view.)