Three core keywords of the industry Internet: one industry, multiple links, deep connections
Editor’s note: This article is from WeChat public account “Sorghum Capital” (ID: CygnusEquity), author Jin Ming, managing partner of Gaochun Capital; authorized to publish.
The entire Chinese investment circle is paying more and more attention to To B’s investment, in addition to the hot corporate service model in the US market (represented by SaaS), the industry Internet with strong trading attributes (including goods and services) Especially optimistic about capital. What is exciting is that the trading and revenue scale of the head industry Internet platform has been very impressive, and it may be possible for batch enterprises to move toward IPO in the next 2-3 years.
Sorghum is fortunate to go ahead. Since 2016, it has continued to communicate with industry Internet leaders in various fields, to accompany entrepreneurs to grow together, and to explore the mystery of industrial Internet success. Many friends are asking, what is the industrial Internet? How to evaluate the quality of an industry Internet company? In this regard, our understanding is:
The way the “consumer internet” creates value is usually to achieve breadth of connections in one part of multiple industries. Take e-commerce as an example. It is a link in a number of industries, from sellers to buyers. . The typical feature of the “Industrial Internet” is to achieve deep connections in multiple links in a vertical industry. There are three core keywords: one industry, multiple links, and deep connections.
This development path is a batch of entrepreneurs who have tried and wronged. The first batch of entrepreneurs who have entered the industry Internet, some of them adopt the consumption Internet style of inertia, covering only one link of the industry, and making large GMV through subsidies. This is a typical “consumer Internet” model to do “industry Internet”, because it is too thin, and it is difficult to survive when it is squeezed up and down.
After these years of development, more and more industrial Internet entrepreneurs have begun to build connections in multiple links, doing deeper and deeper, and the profit margins acquired in the industry chain are getting bigger and bigger, even beginning. Affect and reshape the entire industry chain.
The above-mentioned model characteristics of the Internet have determined that Internet giants do not have an absolute competitive advantage in this field, because deep and heavy play is inseparable from deep industry understanding and resources, and is inseparable from BD and ground. Pushing such dirty work. Moreover, many head industries