Tiger Sniff will launch a series of reports on “Unicorn Struggling to Survive” recently, focusing on a number of highly valued companies (using unicorns) Standard theory, that is, the status quo of survival within 10 years of entrepreneurship and valuation of more than 1 billion US dollars.

This is the first in the series, and it is also an overview-“This year’s popular “lame beast””.

Works of Tiger Sniffing Mobile Information Group

Author | Hu Zhanjia

Title map | Visual China

The story of Wework’s appraisal is staged at Youke Workshop.

On July 7, according to Deal street Asia, the domestic joint office operator Youke Factory has been acquired by Narisdaq-listed company Orisun Acquisition Corp, a wholly-owned subsidiary of Ucommune International. Regarding the news, Youke Workshop replied to Tiger Sniff that it “no comment”.

It is understood that Orisun Acquisition Corp is a shell company incorporated in Delaware, USA. According to the terms of the merger agreement, after the transaction is completed, Ucommune International will become a listed company on the Nasdaq Exchange, and Youke Factory will also use this to achieve a curve listing.

This is probably the best way you can find for you at present.

It is worth noting that after the merger is completed, Youke Factory is expected to be worth about 769 million US dollars, which is only a quarter of its estimated pre-IPO valuation of about 3 billion US dollars.

As early as December 2019, someone once calculated an account for Youke Factory, “In 2018, the cash and cash equivalents of Youke Factory were 275 million yuan. As of September 30, 2019, this The data is 167 million yuan. Based on the net cash outflow of operating activities in the first nine months of 2019, the net cash outflow of Youke Factory will be about half a year later.Burned out. “That is to say, the book cash of Youke Factory can be maintained up to June 2020.

Sure enough, this account is accurate.

This unicorn has attracted more than 40 luxury investment groups such as Sequoia Capital China Fund, Zhenge Fund, Gefei Assets, Yirun Investment, CIC Hanfu, and Innovation Workshop since its birth. Mode problems, profit dilemma, epidemic situation and other reasons have to go home before the IPO.

In fact, from the failure of the listing of Wework on the other side of the ocean in August 2019, the capital market has begun to re-examine the companies that focus on the new business concept of “space as a service” and continue to burn money without profit.

Morgan Stanley once issued a report saying that the failure of Wework’s listing marked the end of an era. “The days of providing generous funds for Internet companies that are not profitable are over.” The market has grown vigilant about the business model of “seemingly promising but not profitable”.

Not alone, the unicorns collectively ushered in the moment of disenchantment. The once-flirting “Flying God Beast” gradually turned into a “lame beast” with difficult survival. From the new forces of car manufacturing, to AI unicorns, from shared travel giants, to online education of players…

Of course, there are also real unicorn giants who continue to pull their feet.

Byte Beat is dominated by Douyin and TikTok, and it continues to reap huge global users and revenues without any fatigue; it is also today (July 8) news that Ant Technology will be listed in Hong Kong as early as this year , The valuation is not less than 200 billion US dollars.

The era of capital blindfolded revelry, mass creation of gods and “beasts” is going away. Under the multiple squeezes of the cold winter, epidemic situation and trade war, investors began to be more cautious in their shots. When the market gradually returned to rationality, a new round In the contest, who will be eliminated quickly? Who can finally stay?

The five years of capital: outbreak, cold and retreat

Five years ago, carrying the concept of a double innovation boom, the venture capital market opened a period of irrational prosperity. A large amount of hot money poured into the venture capital market around 2015, and the new fund was set up in a blowout state.

According to CVSource’s vote data, the number of newly established funds ushered in a sharp increase in 2015, with an increase of up to 116%. According to the songThe “2015 China PE/VC Industry White Paper” jointly released by Fiji Assets and China Investment Information shows that in 2015, my country’s private equity market investment and financing data reached a record high.

In the fundraising market, a total of 1,314 private equity funds were raised in the year, an increase of 141% year-on-year; the amount raised reached US$117.7 billion, an increase of 46% year-on-year. In the investment market, a total of 2123 projects were invested in 2015, with an investment scale of 82.1 billion US dollars, up 29% and 52% year-on-year.

In 2015, the growth rate of newly established funds reached the highest point

“Capital is like a hormone, and it has quickly matured many companies.” Qingsong Fund VP Meng Deyang said in an interview with Tiger Sniff.

In Meng Deyang’s memory, it was easy to raise money at that time. When the project was still an idea, an organization brought money to the door to find someone. “It is no exaggeration to say that even if one person is willing to pay, your company may become a unicorn.”

What kind of qualities can companies attract capital attention? The insiders contacted by Tiger Sniff gave the following elements:

The market has a large market space, which can accommodate tens of billions or even hundreds of billions of market value;

has unlimited growth potential;

a team with a luxurious background;

There are enough competitors on the track;

Head players have begun to emerge at home and abroad;

One ​​line of star VC endorses it;

……

Innovative shared bikes with a main model, attracting more than 1 billion gold in three months, and finally becoming a scuffle and contest between capitals; unmanned shelves, similar plots are staged again, and are even more crazy; Online education, the speed of burning money is staggering.

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Capital and Unicorn Concentration Industry in the Past Five Years (Tiger Sniffing Mapping | Data Source: Enterprise Checking)

It can be found that from 2015 to 2020, five years, capital-intensive investment in finance, Internet education, artificial intelligence, automobile travel and other fields, in 2018 to 2019, after multiple rounds of financing and the passage of time, one-sided The number of beasts has reached its peak in the past five years.

In terms of industry distribution, the automobile travel industry represented by Didi, Xiaopeng Automobile and Weilai Automobile (Huge market size), (technology-driven) represented by Horizon, Shangtang and Contempt, etc., and Internet education industry represented by ape counseling, VIPKID, etc.< span class="text-remarks" label="Remarks"> (anti-cycle), the fast entertainment, vibrato, betta, etc. mainly in the entertainment industry (Occupy user time) These industries have become the racetrack for capital to chase with their different characteristics.

When a company is suddenly popular or a track suddenly becomes crowded