Group Buying Website Is Accused Of Burning Money: Venture Capital Is A Big Enemy.

"If you were there a year ago Groupon You can also see something worth showing, so you can say that since May of this year, I have hardly consumed any group buying website. Zhang Nan, who was once a group buying fan, told reporters, "because there is nothing particularly interesting." As a member of many group buying consumers, Zhang Nan joined the group buying army from the 2009 group buying website. However, to this day, the early adopters are already in the market. Taste fresh The lesson has been bought. "Once the consumer has been there, you can't expect him to be fooled."

Perhaps this is also a summary of the tragic situation of the group buying website in 2011. Nowadays, many of the group buying websites, including the original high-profile entry into China, such as Gao Peng network, happy group, clam group and so on, almost start layoffs. Among them, not so long ago, the Gao Peng network, which launched its advertising on major websites, cut more than 20 employees in one day.

Another insider, a well-known nationwide group buying website, told reporters privately: "group buying website really looks just beautiful." Never been outsiders exposure In fact, since July, wages have not been paid on time, and "the boss is looking for the right family."

Regarding this, Ni Zhengdong, founder and chairman of the Qing Ke group, said in an interview with the "China Times" reporter that the life and death battle of the group buying website is just now. Unveiling "No more than 12 months, 90% of group buying websites will be dead" - because the initial investment from PE and VC has been spent.

　　 Capital chain break?

I believe many people are familiar with the group buying advertisements. These famous group buying websites, such as handshake net, F group and American group, almost appear on TV, network and even car body advertisements almost every day.

"If any group buying website suddenly put up advertisements on a large scale, you will know that they are melting into the money." In the Qing Dynasty mobile Internet investment and financing Summit Forum, Zhang Ming, an investment manager who came to find suitable investment projects, told reporters.

In his view, the group buying website is different from other Internet industries, mainly relying on the user's oral and reputation. "In order to occupy as many market shares as possible and lay the foundation for financing, many group buying websites have fought the advertising campaign at all costs," Zhang said. "However, the industry itself is not a profiteering industry. Most of the group buying websites are under the competitive pressure of thousands of group buying websites. Lose money "

It is understood that many domestic group buying sites profit models are achieved through profits sharing with merchants, but the proportion is quite low, only 1: 9, and profit space is far from advertising input. A more serious problem is that on the one hand, the enterprise has moved the initial venture financing to advertisers, and on the other hand, it has given the insiders the opportunity to dig up the wall because of its lax supervision. These people admitted that most of his funds went to all kinds of advertisements after his company got the financing, but the advertising effect was very small. "One month's advertising didn't even see the employees of the company, and the 3 million 800 thousand yuan directly went away." Such a business team, more money is also bottomless. " What's more, companies that look good on the surface have begun to secretly lay off their employees. "Many of the marketing projects have been suspended. As the old saying goes, money is coming too fast and moving fast. The boss has started looking for the right family. He said. {page_break}

Fu Xinghua, director of the research department of the Qing Ke group, told reporters that under normal circumstances, venture capitalists will have corresponding financial audit when they invest in enterprises, and at the same time, they have corresponding seats in the board of directors to supervise the operation of enterprises.

　　 PE investment into Burn money Injustice?

In fact, for all investors who are concerned about the Internet, group buying websites enter their vision starting in the second half of 2009.

At a reception at a roadshow, several newly established RMB fund partners and investment managers privately indicated that the large group buying website like "pull hand net" was "very interesting" because it was not established for a long time, but many people around them became their users. However, when the reporter talked about whether he would invest, several investors invariably indicated that they would not enter. A person from Taishan angel investment said frankly, "because their mode is too simple and too easy to imitate."

But less than half a year later, the handover network announced publicly that it would jointly invest 100 million yuan with the angel of Taishan to set up an investment venture fund to actively support local group buying websites and vertical group buying websites. Obviously, although the group buying website was not initially optimistic, the Taishan angels still chose to enter.

There are not many investors like them. In the second half of 2010, the group buying website became the first venture of many venture capital companies. a favorite " IDG capital entered the ticklish group, and CDH entered the Qijia network. Kai Peng Hua Ying invested in the net and Mitsui ventures entered the F group. Meng power capital invested in the Arab League group, while the most favoured handshake net got two financing in half a year, totaling 55 million US dollars.

"Obviously, to get the funds of PE and VC, for these group buying websites, the next capital competition is not a problem." Zhang Ming pointed out that in order to attract users, most of the group buying websites now adopt the most primitive method to carry out large area advertising, which is bound to cause higher costs. When those companies that get venture capital injection begin to feel the pressure of cost increase, those small group buying websites may well have closed down.

More voices pointed out that the group buying website began to shuffle the industry in such a short time. The reason is very simple, that is, all burning money, the money is burned, and the company is over. Although it may not be empty handed for the founders of the business, the gambling for PE and VC is completely defeated.