According to a report recently released by the Zero2IPO Research Center of the market research organization, from January to May this year, China’s mobile Internet industry investment collectives are “cold,†regardless of the number of investment cases, the total amount of investment, or the amount of single investment. Both are much lower than the same period last year.
Last year, the mobile Internet became the new darling of the capital market because of the rapid spread of smartphones and tablet computers. Why did it experience "changes in the ice and the fire?" in just a few months?
On the one hand, this is a natural choice for capital to enter the "cooling period." If last year's capital frenzy came from optimistic expectations for emerging industries, venture capital institutions have begun to examine mobile internet products more sensibly and cautiously over time. Some mobile clients can only talk about the number of users and traffic. The business model is not clear, the user's viscosity is not high, and the profit model is also lacking: front-end and in-app charges? Mobile phone users have not yet formed such a spending habit; rely on advertising revenue? Limited by the development level of traffic and mobile advertising platforms, the current mobile advertising's liquidity is much lower than traditional internet advertising.
On the other hand, the traditional Internet giants have become more and more interested in the mobile Internet market and quickly transplanted their products and services to the mobile Internet. Recently, Internet companies have become involved in mobile phone manufacturing, which is a manifestation of this passion. The Matthew effect of “stronger and stronger†also plays a role in the mobile Internet. The investment direction of the capital market has always been small and medium-sized developers. However, it is now difficult for them to break through the “surrounding†of large-scale enterprises with the external applications developed by themselves.
In fact, the entry of capital is not the only criterion for measuring the “cold and hot†of the industry. From the point of view of the development of mobile Internet, in terms of hardware, shipments of smartphones and tablets are still high, products are more diversified in terms of price and functionality, and the entry of more users makes the market an objective for application services. Demand is also “increaseableâ€; in terms of supporting the environment, the improvement of the application store and the breakthrough of the payment system also provide developers with a broader space.
Therefore, for the small and medium-sized developers, the most important thing is to improve their internal strength and use the innovative applications as soon as possible to enter the scope of large companies that have not yet been involved: On the one hand, the ability to combine online and offline resources involves different positions. On the other hand, there are still huge gaps in the mobile social networking applications based on different segments of people in different areas. These may become the breakthrough direction for future small and medium-sized developers. The sense of smell of capital is always sensitive. They are still struggling to find mobile internet applications that can truly break through the homogenous competition and have an operational business model.
For emerging industries, "lack of capital" and "bubble" are equally dangerous. From this point of view, capital is no longer one of them, and developers can more rationally consider the future and carry out product planning on the future of China's mobile Internet market. The development is not necessarily a good thing.
Last year, the mobile Internet became the new darling of the capital market because of the rapid spread of smartphones and tablet computers. Why did it experience "changes in the ice and the fire?" in just a few months?
On the one hand, this is a natural choice for capital to enter the "cooling period." If last year's capital frenzy came from optimistic expectations for emerging industries, venture capital institutions have begun to examine mobile internet products more sensibly and cautiously over time. Some mobile clients can only talk about the number of users and traffic. The business model is not clear, the user's viscosity is not high, and the profit model is also lacking: front-end and in-app charges? Mobile phone users have not yet formed such a spending habit; rely on advertising revenue? Limited by the development level of traffic and mobile advertising platforms, the current mobile advertising's liquidity is much lower than traditional internet advertising.
On the other hand, the traditional Internet giants have become more and more interested in the mobile Internet market and quickly transplanted their products and services to the mobile Internet. Recently, Internet companies have become involved in mobile phone manufacturing, which is a manifestation of this passion. The Matthew effect of “stronger and stronger†also plays a role in the mobile Internet. The investment direction of the capital market has always been small and medium-sized developers. However, it is now difficult for them to break through the “surrounding†of large-scale enterprises with the external applications developed by themselves.
In fact, the entry of capital is not the only criterion for measuring the “cold and hot†of the industry. From the point of view of the development of mobile Internet, in terms of hardware, shipments of smartphones and tablets are still high, products are more diversified in terms of price and functionality, and the entry of more users makes the market an objective for application services. Demand is also “increaseableâ€; in terms of supporting the environment, the improvement of the application store and the breakthrough of the payment system also provide developers with a broader space.
Therefore, for the small and medium-sized developers, the most important thing is to improve their internal strength and use the innovative applications as soon as possible to enter the scope of large companies that have not yet been involved: On the one hand, the ability to combine online and offline resources involves different positions. On the other hand, there are still huge gaps in the mobile social networking applications based on different segments of people in different areas. These may become the breakthrough direction for future small and medium-sized developers. The sense of smell of capital is always sensitive. They are still struggling to find mobile internet applications that can truly break through the homogenous competition and have an operational business model.
For emerging industries, "lack of capital" and "bubble" are equally dangerous. From this point of view, capital is no longer one of them, and developers can more rationally consider the future and carry out product planning on the future of China's mobile Internet market. The development is not necessarily a good thing.
Shenzhen Powercom Electronics Co., Ltd. , https://www.expowercome.com