Lei feng’s network (search for “Lei feng’s network” public attention): this article by author Thomas skull of based on mercy killing game grapes speech finishing, Le Department of Peking University, Bachelor, Bachelor of Economics, has been involved in vis was founded HiALL, job site, street networks, online recruitment expert has invested in VR, and dreams AR glasses, conductor incubator for VR, VR, tenth district and so on.
Grand capital VR industry and partner of Le
Le believes that, including game content production is a hot VR investment this year is very important, but content is also featuring market. In addition, VR getting cold in the secondary market for investment capital more rational; capital investments worth entrepreneurs and the circle considered relative to the host and UE4 development team, there is little hand and Unity development team welcomed by investors and entrepreneurial opportunity now VR content.
The following speeches:
Four hot VR investment
First topic was VR investment hot spot this year. Contacts between our investors and basically reached some consensus:
The first hot, or online experience here. Through current data we can see that offline experience is the most practical and effective game distribution channel, the actual distribution a lot stronger than mobile phone one. Judging from the recent case, line number of chain store under the brand content platform, and hardware manufacturers such as wheels and A+ wheels to a stage, in this area it’s hard to get an angel round. Because several large companies financial data has been well run, and companies may take b-round investment in the second half of this year, so this is a more mature investment hot spot, has been recognized by many veteran investors.
The second hot spot was in the AR field. Because it was generally agreed that VR has no hardware investment opportunities this year, so no VR hardware company financing in recent months news. Late last year, several major VR hardware manufacturers, such as friends, ants, 3Glass got a b round of investment, so now a startup as a VR Head difficult to get investment. This year the focus of attention in the AR this piece, such as programme or optical waveguide surface and the company. Some financial investors focus more on the early AR technology, sort of like vote in VR Head of State two years ago.
The third hot spot, is content. Mainly gaming, broadcast, film and television production. VR games, after all, from the original games, end of tour, the hand doing Tawaaf technical bottlenecks is relatively small, so it should be a very important topic. Live bandwidth technology limited, VR video video production threshold, so everyone is still in wait-and-see, but have good content out.
The fourth hotspots are applications. Including entertainment, tourism, real estate applications. Application HTC Vive is important background for the outbreak of this year shipped. HTC To the c-terminal of mass popularity, but To b has a very nice user experience. VR application recently exclusively for the company on the HTC Vive, and applications are not expensive to care, as long as you use, can solve the pain points of b-end user can. So To the VR application b is an investment, and this area of first-mover advantage is more obvious.
Like VR, AR hardware and underlying technologies, including industrial applications are among the first-mover advantage. Who made who there leading, capital will flow into the entrepreneurial team. If you started relatively late, it might lose business opportunities. Content, including games and video featuring market, often early in the industry, excellent content team is reluctant to enter this field. Instead, wait until the market matures, the team a little more, games really high level entrepreneur will really pour in.
Probably summarized the above several investment hotspot in the eyes of investors, I wanted to share my personal experience in VR investment circles, but this is not a very precise statistics.
Getting cold in the secondary market, capital tends to rational
About VR business 800-1000 companies on the market today, almost 200 or so true in VR, and investment institutions to invest. On the whole it is quite hot.
But every VC investment in this direction not only a company, it will want to at least put up 3-5, to do the layout. Of course does not mean that each of these VC-4 companies, all startups can get investment, but the reality is that 200 companies will concentrate on these pioneering companies of the top 100 companies, is a common vote for a startup VC.
Each wave of the Internet, including Internet and mobile Internet PC, including hand, Internet banking, are generally the primary market heat, reheat in the secondary market. VR is the secondary market instead first heat and led the market investment, it is actually very reasonable. As far as public companies, equity investments was not their first choice’s first choice is to make acquisitions or hatching of listed companies, such as his tender, or I am holding or characteristically shares, next to mergers and acquisitions. But listed companies in mature industries, began a massive revenues into the industry. But VR is a bit too hot, daily stock prices and major shareholders to cash, forming a pattern. Therefore, secondary market earlier this year a fire at the end of last year.
And recent secondary market policies, on the primary market, households with incomes of more than 30 million of this year the subject is very limited secondary market markets at the investment level is relatively rational. So active firms in the secondary markets, like light media is holding several Alpha continued to layouts, storm that really wants to do vote in VR VR continues. But as big companies that just want to be with VR stained before, now largely not involved.
Specifically, in October to December last year, if a VR is a public company investment start-ups, and the enterprise’s core technology, or business model has characteristics that its share price will rise; but if listed companies invest a startup now, unless it’s the company’s income is very high, or very strong, otherwise it will hardly have any stock price fluctuations. So most of the market value of listed companies lost eye; management opportunities. Listed company relative calm, this will affect the level of market investments. So level, some markets were also relatively calm.
There, in just a year’s time, bets the Yuan will become the mainstream of VC investments as a whole, throughout the present investment deal case, 90% case is the Renminbi transactions. Dollar funds fell out of favour, almost all entrepreneurs do not dollars. From the investment stage, current VR, AR investors heads are mainly cast an angel round, then characteristically have cast a round, very few will vote for b round. VR in business circles in the country as a whole, really got the b-round project is not more than 10. Valued at more than 100 million of the project, can cast the Fund number–rational analysis, your company’s valuation of 100 million, you must have at least 3 million profit this year, give you about 30 times the PE is more reasonable. But no matter what your business, want to do 3 million profit this year is difficult. So the more rational capital is perfectly normal.
Capital investment and the circle is worth considering
From the specific perspective of the type of investment, investment can be divided into financial and industrial investment, and you can see it in some online news, but a wheel or A+ wheel, most capital can really deal. Assuming a round valued at 100 million, IDG, longitude and hope you have a better chance of such a financial investment in the next 2 years 1 billion valuation of the company.
So, in fact, about 70% a round of projects is capital investment because the capital to do industrial layout, different from pure financial investment ideas. For example, I am a real estate company, I want VR project is to make strategic transformation; I am a line of entertainment, then I vote for an experience brand to consolidate resources to me. So if you really want to deal, the capital is relatively easy to deal. Victorias Secret iPad Mini
Industrial capital are generally complementary investments. What is the complementary investment? For example, I am a games company, is hard to get a game that makes me, I’ll vote for hardware and platform, so I have a complementary ecological. And often many game company may not be can voted to most top of hardware, so you see, actually they does not necessarily can voted to Oculus, but may will voted domestic well-known of some hardware, like in the hand tour voted 3Glass, Kay British network voted big friends, including Palm interest voted of several project also are is platform company; and similar millet, Le depending on, and big friends of hardware manufacturers is will voted some game content. Of course, hardware manufacturers may also vote for technology companies, it could have followed for a long time, a large number of engineers to examine the find themselves do not invest; includes some game companies themselves game content, but they’ll see game companies, particularly high levels.
While the capital requirements for financial returns are not high. First of all, its required rate of return is not so high. Other financial institutions may need six months after you round the money valuations more than doubled three times, short term without the pressure of industrial capital, business cooperation is OK; capital is long, with no clear introduction of, and conducive to the long-term development of the company. So if from the deal perspective, capital is a more pragmatic choice, high valuations, money fast, and butt of real resources.
Again, for VR gaming investment, now everyone recognized community investment. As our Grand capital and external financial investors, compared to gaming circles, in the investment on the level and quality of cases there is a large gap. Now many outside of purely financial investors, or people will dig up some game industry and will want to come with VR game circle of people to vote, rather than invest in independent VR games. If you’re a VR gaming teams, possible priority is also the circle of investors. Bosses, such as previous company game special game people, or people who worked for years as a game company. His understanding of the game more broad connections, butt resource capability.
In addition, I know of some well-known investors, they in the VR game’s Special Fund, or the clear intention of distribution of game content, such as storm and pine Bluegrass with a few teams, four points behind and some investors also voted, bull games gaming community will cooperate with some funds back and forth. So they had platform resources, investors are more professional, but does cast some VR games team, was an opportunity for us.
End tour, more if the team hosts, UE4 popular
Besides investments in gaming circles. Vote in VR games, a sting is mentioned, we all hope to achieve a certain amount of hardware and platform level, a more stable your investment; and now this wave in VR, investors are more willing to vote ends tour with the background of online games team, and reluctant pitcher swim team. Because VR is an important experience of the game, host team of game development experience is more reliable. Real close deals, and cent is a host-side game team to get investment, just individual Gear VR platforms such as online product of the tour team will be invested.
Judging from the engine, there is a separate engine development experience, more popular or UE4 development team. As for the Unity of the team, and I know of getting not many. Because we think that the VR game so heavy pictures and experience, is the prospect of UE4 team put up better.
Iteration of VR technology is very fast now, I see a lot of new technology, including the reduction of delays in VR technology, wireless transmission technology, including AR some of the core technologies to address broadcast bandwidth on VR technology, we have seen a lot of good Demo, so speed of iteration may be faster than everyone expected. For developers, this is a sign of good.
Capital position summary: it isn’t too late to start
Now in terms of the amount of the share of each distribution platform, like the best game on the storm, only about 100,000 a month into. We have music, clear line actually store data, they were first to open the store head for people and development platforms, and finally came up to the CP, so this amount is relatively small. If you do the VR game, now wanted to feed into a team more difficult, so it is up to the investor’s money.
Personal point of view, if you can get Pre-A round this year, more than 10 million of investment, you basically the team and project stability. Because many of the items remain in the angel round. As far as I know, it can get the VR games team of more than 10 million investment, domestic should not be more than 10.
Recently I feel is quite obvious, level in the fast promotion of Chinese VR,AR team, a good number of ranks of the founders into VR,AR. Last year we saw a lot less entrepreneurial experience, skill level is not very high team doing VR business. But recently some good BP, mostly in the big Internet company executives, or of many entrepreneurial experience, or is a graduate of prestigious colleges genius-level entrepreneurs. China VR industry entrepreneur level only a year to ascend to higher levels. Victorias Secret iPad
We have done so many cases, and also did some analysis. At present we are relatively bullish channel has several: the recommendation of a friend, his mining, there are just some of the activities from the side, the show went. Now VR industry RoadShow and other industries, has been downgraded to a speech contest, participating in the Roadshow project is basically poor quality projects. This indicates that businesses are entering a normal stage of development–a growing number of entrepreneurs to emerge, are more concerned about the various funds, valuations are generally reasonable, characteristically slightly higher valuation of the project, about such a situation.
Overall, the VR gaming entrepreneur, enter too early last year, high probability for the next year, the Red Sea, so if you can quickly gather good teams this year, making several excellent products, and through the platform of data to verify the strength of your team, as soon as possible an investor’s money is still have a chance.