They have consistently refused to agree.
It seems like they want to follow the same path as miHoYo.
It's about constantly making games and then reinvesting the profits into the development of new games.
Red Fox is the company that Zheng Li had previously intervened in. With the start-up capital and game engine provided by Zheng Li, it has become a leading company in the domestic VR game industry.
"The Wings of Breaking the Law" has won unanimous praise both at home and abroad.
Meanwhile, their unique Cthulhu art style is even more popular abroad.
Pony seemed to remember something: "Isn't the founder of Red Fox Entertainment an employee of Tencent? I remember you mentioning it before."
Ren Yu nodded and said, "That's right, most of their initial team members were Tencent employees."
Pony: "Let's talk about it again. We can give the other party the greatest autonomy."
While Pony was discussing VR investment with Ren Yu, Young was also talking about it with Zhang Lei.
"Zheng Li still has the courage to realize that the timing of licensing brain-computer interface VR technology to external parties is just right."
They've spent three years building their brand, and then opened up lower-level patented technologies to the public; they've managed the timing very well.
Young was full of praise for Zheng Li. He had always admired Zheng Li and considered him one of the most outstanding entrepreneurs in China in recent years, even to the point of not being considered one of them.
Zhang Lei also had his own understanding of Zheng Li.
For any investor in China involved in the technology sector, Sci-Tech Biotechnology is an unavoidable case study.
Zhang Lei shook his head and said, "This kind of thing shouldn't be something Zheng Li planned."
This was most likely negotiated by senior executives of Kechuang Biotechnology; Zheng Li simply made the final decision.
“That’s still impressive. What managers are supposed to do is make decisions,” Young explained.
Zhang Lei nodded and said, "That's true, we'll be busy from now on."
We are about to witness another major battle between manufacturers, just like we did in the smartphone industry.
First came the hardware vendor wars, then the software vendor wars.
Young asked, "What type of company are you planning to invest in this time?"
Zhang Lei suddenly sighed:
"To put it bluntly, investing in VR application companies is no different from investing in mobile internet companies."
Essentially, both are internet businesses, just in different areas.
Internet businesses benefit from both business model advantages and algorithmic advantages. If you enter the market early, the cost of acquiring new customers in this sector is almost zero.
The earlier you start on a new track, the more customers you can develop.
If an algorithm is more powerful than its competitors, it can retain users.
Ultimately, the companies that benefit from both successful business models and superior algorithms will take all.
ByteDance is a prime example; even when targeting different sectors, it continues to erode the user base in other niche markets.
In the mobile internet sector, the duration of short videos is more than two times, nearly three times, that of online videos.
In today's era of big data, big data and algorithms help the elite class "understand" the preferences of every individual at the bottom, "discover" the needs of these groups that they themselves are unaware of, and create products that are most suitable for them.
Pinduoduo is the best product of algorithm dividends, harvesting elites and charging lower-level users.
Young clapped his hands: "The analysis is very accurate. So choosing the right company is very important, and first-mover advantage is very important, but sometimes the algorithmic advantages of a company can make up for the disadvantage of being a latecomer to a large extent."
"Or it could be to gain a first-mover advantage."
As for investing in every company in a particular sector, even if the ultimate winner goes public, it's not a bad deal.
This approach is relatively common in the biomedical field, but it has been almost impossible in the internet industry in recent years.
Because when a company enters Series C or later funding rounds, it becomes a situation where the company chooses the investors, not the other way around.
A company will not allow its capital to be invested in its direct competitors at the same time.
For example, in the battle between Mobike and ofo, Mobike would absolutely not accept investors betting on both sides.
Even during the fierce competition in the mobile transportation market, the capital behind Didi and Kuaidi Dache could not bet on both sides.
Instead, it was the investors who forcibly brokered the merger between Kuaidi and Didi.
Zhang Lei asked, "Do you plan to invest in hardware manufacturers in this round?"
Like the smartphone wars, which gave rise to companies like Nubia, Meizu, and Smartisan.
Would you choose to invest in similar companies?
Young replied without hesitation, "No."
Hardware doesn't offer any business model advantages, and the benefits from algorithms are minimal.
Hardware products compete on cost-effectiveness, design capabilities that ensure smooth and user-friendly functionality, distribution channels that deliver products to consumers, and marketing skills that get consumers to spend money.
It is difficult for a startup to possess all of these capabilities at the same time.
In the era of mobile internet, the reason why people chose to invest in these mobile phone brands was because they were novel products on the market at the time.
At the same time, the collapse of Nokia's mobile phone business and the failure of Microsoft made us realize that this was a completely new field where everyone had a chance.
However, this is not the case in the VR field.
Let's not even talk about companies like Kechuang Future, which have already been ahead of the curve for three years.
In the VR field alone, it is actually very similar to the mobile internet, and the supply chain is already very mature.
When supply chains mature, it becomes very difficult for new startups to succeed.
Zhang Lei added, "I think so too."
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