Therefore, Gong Sheng could not make the decision on his own and needed Xie Qian to decide whether to invest again.
Xie Qian had just finished reading the information sent by Yan Yuchuan these two days, and had not yet replied to Yan Yuchuan, when Wen Ying suddenly said that she wanted to invest in related areas. What a coincidence!
"The project has good prospects, but profitability... Honestly, I don't understand when they'll be profitable. But profitability isn't necessarily necessary for internet companies. Their model is to burn money over and over again. Investors will win if they can finally make it to a successful IPO!"
Xie Qian’s words made Wen Ying dazed.
"Wait, what did you say Yan Yuchuan and the others were doing?"
"We promote local small and medium-sized enterprises. Large enterprises can advertise directly on portals and search engines, but small and medium-sized enterprises don't have the same strength as large enterprises, yet they do need promotion. Yan Yuchuan's team believes this area is still untapped. They want to serve as a bridge between small and medium-sized enterprises and consumers, bringing their products to consumers while providing them with tangible discounts... Yan Yuchuan's team calls this model 'group buying.'"
The so-called small and medium-sized enterprises are more accurately referred to as businesses.
Xie Qian carefully reviewed the information provided by Yan Yuchuan's team. Restaurants, cake shops, florists, and laundries—these businesses are closely tied to people's lives. A standard meal in a restaurant would cost 100 yuan, but if Yan Yuchuan and his team could offer a 15% discount through a "group buying" promotion, few consumers would be able to resist.
The restaurant will not suffer any loss in this process.
From 100 yuan to 85 yuan, it seems that the profit is reduced by 15 yuan, but after promotion, the original 10 tables of guests can be increased to 20 tables... No, even if it increases to 15 tables, the profit that was lost will have been made up long ago.
The merchants doing the promotion will not suffer any loss, and the consumers will not suffer any loss. Of course, the only one who will suffer any loss is Yan Yuchuan's team who built this platform.
Maintaining the platform and promoting merchants both cost money!
As long as you are in the Internet industry, no product can be separated from "users". Making products is about competing for users.
Total registered users, daily active users, future target users, every piece of data is crucial!
No matter how bad a product is, it can attract investment as long as there are enough users.
Of course, if the product continues to be poor and there is no improvement, the current users will be snatched away by similar competing products.
Xie Qian gave Wen Ying a very detailed introduction. He told her everything that was mentioned in the information Yan Yuchuan provided. He also had to explain to Wen Ying the risks hidden behind the bright prospects that were not mentioned in the information Yan Yuchuan provided.
"This isn't like real estate speculation, or even stock speculation. Whether prices go up or down, the house is yours and you have residential properties. The same is true for stock speculation. As long as you don't use too much leverage, a stock price drop won't necessarily wipe out your money. But their internet startup is either a huge profit or a complete loss. After all, there are so many companies that fail mid-sentence!"
I really don’t know what’s wrong with Xie Qian’s brain.
Why are there such big differences between people?
Wen Ying has been feeling numb since Xie Qian mentioned the "group purchase discount".
This is even earlier than the founding of the "certain group" that Wen Ying remembered! !
Yan Yuchuan and his team entered this field so early, if they succeeded... Wen Ying was trying hard to recall what the market value of "a certain group" was in 2019, but she couldn't remember.
However, I remember that in 2018, a certain group just went public and its market value was close to HK$400 billion.
Not to mention becoming a major shareholder of a certain group. The major shareholders are originally led by other Internet giants. The group burned money and raised funds in many rounds before it was able to go public and make a profit.
Wen Ying is not greedy. Even if she only holds 1% of the shares when a company like a certain group goes public, that would be 4 billion Hong Kong dollars!
An investment of 40 million needs to be turned into 4 billion in 10 years. It cannot be achieved by speculating in real estate or stocks. You have to invest in a super unicorn company like a certain group!
If Xie Qian had said the person working on this project was called "Wang X," Wen Ying would have rushed to become an angel investor without hesitation. Unfortunately, Yan Yuchuan's team not only didn't have the "Mr. Wang" Wen Ying remembered, but there wasn't even a single person with the surname Wang. Wen Ying was immediately hesitant—should she take the risk and become the one making history, or hold onto her coins and wait to participate in history?
When Xie Qian saw that Wen Ying didn't speak for a long time, he was not unhappy, but secretly happy.
Why does he like to smell cherry blossoms?
In addition to Wen Ying's unique qualities and the irreplaceable beautiful memories they have together, it is also because Wen Ying is always cautious before making major decisions.
This is the biggest hit between the hamster and him!
"Don't rush to make a decision. I plan to take some time to visit Yan Yuchuan and his colleagues' office. If you are interested in investing, you can come with me."
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