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\"Tencent investment under consumption downgrade and its enlightenment to us\"
Whose pocket did the money go to?
Recently, I read an article that aims to reduce the blind pursuit of famous brands, escape from the consumption trap set by the commercial society, and return to the essential needs of life, reduce consumption as much as possible while focusing on health, save money, invest prudently, and live a financially free life early. Financial freedom here, of course, is based on trying to spend as little as possible.
In a sense, this is a form of consumption downgrade, but your philosophy has chosen to downgrade rather than live passively.
Many people have studied hard since childhood and left their hometown to live independently. The only way they can see now is to go to work safely, pay the mortgage and support their families. Freedom is when a tramp can buy bread. Freedom is when ordinary people have cars and houses.
Money, especially from smart people, will eventually go to good VC/PE and focus on good companies. In 2019, a large number of start-ups failed because they could not raise enough money. On the other hand, star companies in various industries received huge financing of hundreds of millions or even billions of dollars.
Look ahead at the market
It is worth mentioning that tencent is undoubtedly the most involved among the 10 largest financing deals in the first half of 2019. Tencent President liu chiping Martin tencent investing congress held in January this year, said "over the past decade, we invested about 700 companies, there is 63 in the 700 companies are listed company and has 122 market value or worth more than $1 billion of the unicorn, and holding more than 5% of the total market value added up to more than $500 billion."
Investment is becoming tencent's most important background, and even a regular means of fighting for the future.
The basic logic of tencent's investment is to hand over everything except social communications and content to partners. Tencent doesn't go for control, or even a big shareholder, but invests in a small percentage of its shares.
Tencent attitude is clear: only for symbiosis, do not have. Tencent a year's investment amount does not lose the array of front-line funds plate, from seed to pre-ipo or even listed companies, all offensive.
Tencent also invests 20 or 30 funds with the identity of LP, the name of these funds is not strange, even famous. They are sequoia, yunfeng, citic fund, matrix China, morningside, innovation works, banyan capital, jinshajiang venture capital, zhongding venture capital, etc.
This means that even if a company does not receive an investment from tencent, it is indirectly related to tencent if it becomes a recipient of any of these funds.
Engine analyst Crystal says Martin's likely investment philosophy is to look ahead and see how big the final market is, and then invest. But there are some areas where it may not be possible to see its impact early (because the market is built after the product is made). Zhang yiming may be the first to do products, and then make the market. One from front to back, one from back, each with its own pros and cons. From the current stage, if tencent loses a piece of investment, may not see income at this stage, but the impact may be unimaginable. So tencent is both looking at emerging and promising areas and investing in them.
The winner-takes-all situation, to some extent, will cause disgust or exclusion of other players. Tencent's will is widely accepted, and when people in the investment department stay in their offices, companies keep coming to talk. When two rival companies in an industry are looking for strategic investments, the preference for tencent tends to prevail over the front-runners because it means a better chance of winning and a stronger endorsement. One voice even thinks that tencent's investment in who means who is the industry leader, because "tencent can influence everything."
It's not natural. It's not perfectly safe
Tencent investments is facing stiff competition. Under the Internet fundamentals of confrontation between alibaba and tencent, the direct conflict between the two sides from business lines has already extended to the competition for high-quality "agents". Station tencent still chooses ali, retail enterprise never was like this at the moment so perplexity.
If detailed, tencent does not invest in and miss the number of projects is not small. Tencent investment has experienced failure in the field of e-commerce, and ultimately strategic support for jd will not lose the game. Due to the wrong judgment of short video, douyin quickly rose. In a specific social environment, the total number of users is constant, which means the total amount of time users can consume is basically constant. Douyin kills weibo, let alone tencent short video.
Engine investment theory
"The challenge is to generate new ideas as quickly as we generate cash." -- warren buffett.
The capital winter is exaggerated, but the investment community is slowing down as consumption is downgraded and purchasing power is reduced, project valuations are lowered and competitors are reduced.
The slowdown in investment is partly a good thing. On the one hand, this kind of adjustment is good for the whole industry. In the process of high-speed or even rapid development, certain problems have been accumulated. On the other hand, with limited resources, resources tend to be concentrated in the head.
A survey of tencent along the way to learn the investment road, can find an obvious investment law "wide net, multi-station". Engine investment has its own rules of ABCDE, but also constantly absorb the strengths of each, in each stage to do what should be done. Information acquisition, thinking, accumulation and natural progression are a coherent line. We are not forced to grow.
Looking for unsaturation, some things are saturated, some things are not saturated, some are sunrise industries and some are the last days of the world. Our investment direction in 2019-2020 will still focus on technology and Internet industry, with the focus on blockchain industry. We seek to build connections with people from all walks of life. We also look at the development of each industry with an all-embracing attitude. Every new thing will have its own development path.