power balance band Switch - Ten Tragic Case II VC

the introduction of venture capital, the company should seek to be listed, then build a modern corporate management and governance structure of enterprises is a priority. But Cai standards in the efforts to establish modern enterprise system touches the interests of other shareholders Panyu Hai, management, has a large number of older employees to leave. The company also has from McDonald's, KFC and other restaurant companies attracted a total of about 20 senior and middle management, the company accounted for the majority of positions are basically the total grant level authorized by Choi, Panyu Hai apparently mere figurehead.
its unique model and the corresponding pace of development is sought after by investors crazy.

2003 年 7 months, born in 1981, high fuel journalism graduate from Tsinghua University, after a period of time in the work of financial journalists; October 2004, made of high fuel business e-commerce site, a B 2C and access to the Far East Holding Group Chairman Jiang Xipei 100 million angel investment, but ultimately failed. February 2005, high fuel and Tsinghua students with Dundee in the combined venture company, was founded MySee.com, Jiang Xipei an additional 100 million investment. In early 2006, Mysee access to institutions such as the northern lights and the Cerberus investment total of $ 2,000,000. October 2006, Mysee issued a statement, saying high fuel for personal health reasons, resign from all MySee related duties.
different and investors buy, the customer does not buy ITAT's account. ITAT a phonetic form of many so-called eye, and the remote location of idle property is rarely visited. However, in order to meet investors and investment banks in the survey, ITAT the staff dressed as customers, to create ITAT 2007 sales expected to reach 4.2 billion, but according to insiders said, the real sales are less than even 10 billion.
Liu Qian
VC lesson: Each investment projects, are their children, gave birth to him, is obliged to take care of him
like magic, the Internet is a place where you can witness the miracle. Although the history of the Internet in China is very short, but little miracles and myths are many,power balance bracelet, and Zheng Lizhong decibels Network and its founder is undoubtedly the most representative of these myths one. Him from a humble working class into a computer city of Chongqing and the IT industry's first How he took to the altar by the grassroots, from the idol as a prisoner and why it?
Speaking dB net, not many people know; but to talk about
founder of the Yan and Huang Zhao Songqing

Shenzhen was the first generation of Liu Zhongqing IDGVC of ITAT is very respected, even as angel investors into the ITAT. November 2006, by the former founder of eLong - Justin for the establishment of the Blue Ridge China to invest 50 million U.S. dollars investment in ITAT, the first 25 million dollars. In fact, before this, contact ITAT's investors flocked to SAIF, Lenovo, Fortune Venture Capital, Oriental Fortune are all seen ITAT this project, Blue Mountain Capital and Private Equity ITAT incident became the star of the market. Subsequently, the more investors to throw Hydrangea, March 2007, ITAT complete the second round of financing, in addition to Blue Ridge China, the investors also Morgan Stanley and Citadel Investment Group Ltd., Three are funded 30,000,000, 30,000,000 and 10,000,000 dollars, and later, Merrill Lynch (Asia Pacific) Limited has also entered ITAT. ITAT established only four years, its valuation to be expanded to hundreds of billions more, indeed, staggering.

dB net

Kungfu Catering
Case Features: grass-roots entrepreneurs with successful entrepreneurs
case characteristics: the entrepreneur took to the altar by the roots, and then as a prisoner of the entrepreneurial roller coaster
VC lesson: is the bubble to burst is always, no one can guarantee that they are not the last to defend the crown
to sort out In 1994, Cai compliance and friends in Dongguan Changan Town, Panyu Hai opened a Kungfu is very simple ownership structure, 50% Panyu Hai, Cai and his wife, Pan Minfeng standards (Pan Yuhai the sister) each accounted for 25%. September 2006, Cai compliance and Pan Minfeng divorce, Pan Minfeng gave up his 25% stake in exchange for custody of their children, so Panyu Hai Cai compliance with both the equity has thus become 50:50.
VC lesson: Do not believe the concept, especially in China
Case features: allow for the four major international investment bank with public service and private enterprise
business reasons to get involved is not known, but increasingly frail dB net is an indisputable fact. We always at a loss, but no new investment in place. There is speculation, Zheng Lizhong only video chat with dB net income to improve the situation of the financial statements to dB net a better price.
in the successful second round of financing, media Yanhuang false start to begin the national expansion and acquisition of a number of local outdoor media companies, even at the cost several times more than the price of competitors to grab resources. The end of 2007, Yanhuang the media in the country a total of 36 cities screen LCD 32800. 2008 financial crisis, investors began to demand to be investment companies cutting through the winter, but the media Yanhuang $ 40,000,000 in financing the rapid expansion of money has been consumed in an empty enclosure.
entrepreneur lesson: do not ever brother, only permanent interests
with the same name as the company, in August 2009, Pan Guoliang as
Subsequently, 163,888 had been chasing a number of VC's, October 2004, IDG VC investment to $ 2,000,000 net decibel (It is reported that the final investment is not fully in place), accounting for 20%. IDG is also investments in Chongqing, the first personal website. By 2006, the site reached 12 million registered users, 163,888 have access to the Internet area of ​​many honors. In the same year, 163,888 received 600 Alcatel VC million investment, accounting for 12% stake. Zheng Lizhong has guest CCTV
Case Features: investors and entrepreneurs in the civil strife

VC lesson: ownership structure is reasonable is an important basis for judging the project is good or bad
Board of Directors under the Articles of Association
Although there is no contradiction between the management of the final result, A bomb detonated our common interests.

shareholders with a relatively small number of shareholders of cooperation. In the We'll see.
dB in trouble on the network operators, in addition to intense market competition, business model is not clear, the founder of immature and imperfect team has a very important reason. According to Zheng Lizhong made early contact with an After the financing, Zheng Lizhong also trying to appoint professional managers, but were unsuccessful. One of them was working on Sohu, but less than two months to leave, he later told the media about the .
VC lesson: to vote to get the money, or send people to look at would be easier to control something

not buy another account of the Hong Kong Stock Exchange. ITAT by the four most famous investment banks - Goldman Sachs, Merrill Lynch, Deutsche Bank and Morgan Stanley as underwriters from the Hong Kong-listed, but in March 2008, ITAT listed on the Stock Exchange of Hong Kong has not adopted the hearing the Stock Exchange for the ITAT in its business model concerns the sustainability. Subsequently, the Hong Kong Stock Exchange received an anonymous letter about the ITAT to report the existence of inflated sales figures and other improper accounting practices. Goldman Sachs, Merrill Lynch announced the termination of the subsequent cooperation with the ITAT. This triggered a massive earthquake ITAT: layoffs, closed shop, wage arrears, payment default and a series of questions to be dug, this time, the listing of ITAT and its investors, the basic is just wishful thinking. With the August 2009, Shandong Ruyi Group to give up M & A negotiations with ITAT, ITAT last resort did not happen.
Case Features: entrepreneurs civil unrest - the same can not be a total pain Gan
If PPG is a new creation, the clothing trade patterns on the Internet, then created under the ITAT is another online clothing trade patterns. Their models are different, but there are many similarities: both are doing the clothing trade, is business model innovation, created the famous brand both have access to VC / PE in the mad chase and get huge investments are to die ... ... difficult to see.
few years ago, the outdoor media industry over-investment, resulting in too many bubbles, even the industry leader and with reference to target - Focus Media, the market value has been seriously diminished. The China Health Media, you can say she is still alive, you can also think she was dead.
media and investors have bet against the agreement between, leading to poor performance after the failure of gambling, she wanted to reduce the stake in the company, but she refused to implement the agreement. October 2008, the media investor and Zhao Songqing Yanhuang started a mutual impeachment farce. This time, the formal financial crisis, the greatest impact on the domestic economy when the Yanhuang internal and external media, leading to a sharp decline in revenue, staff from a peak of thousands of people to become reduced to dozens of people.
2003 年 6 months working in the city of Chongqing, the Zheng Lizhong Shiqiaopu computer, and friends together to create a 163,888 websites, which means Site at this time only three or four people, they rented a small computer house near the city, food, housing, office all together. They then recorded a song software development K8, 163,power balance band,888 network gradually become China's leading artists to gather. Xiang Xiang, Yang Chen Gang, the network singers in the successful launch of their website,
McDonald's, KFC popular in China, Chinese food chain has been angry, and constantly was out to challenge the Western fast food. From a dozen years ago,
2009, the Zheng Lizhong arrested for operating ######## video chat service was arrested in January 2010, the case to trial, Zheng Lizhong, pleaded guilty in court.
video site Mysee
venture investment in China probably the most successful cases typically non-July 2005 in the U.S. Nasdaq-listed Focus Media is none other than the one hand, from the creation to the listed company for only 2 and a half years, through several After the round of investment, so that dozens of pours earned; Secondly, Focus Media launched a national outdoor media, business, investment, mergers and acquisitions boom, which led to aviation fuel media, Chinese overseas listed companies such as the media at the same time, also for many investors, entrepreneurs get stuck - China Health Media (
China Health Media
2007 year Thus, the financing, the name.
MySee burn too quickly, dozens of people, burned more than 100 million per month, the office light fitting to have spent more than 100 million, to spend a lot of money to buy video content. 8 months, 200 million U.S. dollars in investment funds, exhausted. In addition, as founder and president, high fuel still can not afford to lose the essence of their media people. He always implied the media exaggerated, financing $ 2,000,000 $ 10,000,000 into the financing. According to investors, said he is always most concerned about their reputation and image of his speech everywhere to promote wealth creation success, but the market only for myself, not for the company doing market. In the eyes of investors, high fuel money to get investors to package yourself, and even other uses, it is not used to company to do business.
money burned, there is no improvement in performance, high fuel forced out of his own creation,power balance, but no right to speak Mysee.
ITAT in the case, is a typical From the founders, investors, investment banks, we all know the problems in the business model, ITAT and operation problems, but we were feeling the hope of drawing more people to save themselves, constantly driving up company valuations out of thin air, with this huge bubble blown until the Hong Kong Stock Exchange said something very simple, and very true words: Otherwise, do not know the ITAT and his investors will set the number of investors take hard-earned money.
Zheng Lizhong, vice
Mysee is the first P2P live video for R & D company, is a live video, on-demand, interactive entertainment, wireless value-added services in one of the broadband video entertainment services platform. The company has combined the major portal for domestic and foreign telecom operators in more than 50 major events were webcast.

ITAT
entrepreneurs learned: do more practical things and less to virtual
db network has ceased operations, founder Zheng Lizhong, is a prisoner. This incident too, would like to re-emergence is almost impossible. This outcome, but we can not help asking: investor dB net is completely let go? They do not monitor the founder of it? Ms. Zheng Lizhong, 48 organizations, divided in three shifts to do ########ographic performances, some investors do not know it? Investors have been hailed as China will decibels network MySpace, saying Facebook can not afford to buy in China dB net. Looking back now, more ironic that these brave words.
2007 年 6 months, the site enabled a new name and new domain name: db network (fenbei.com), but the dB net profit model has not been a fundamental change, relying on membership fees to sell space and be difficult to continue to make a profit , ad network has become the main source of income dB.

entrepreneurs learned: who will pay what, the key is to make money
2004, the Yanhuang media creation; September 2006, China Health Media SAIF received $ 5,000,000 in the first round of venture capital; October 2007, Yanhuang media access to the second round of $ 35,000,000 investment, investment institutions including Orchid Asia (Orchid Asia), Renaissance Capital (CRCI), Investor Growth Capital (Investor AB), HSBC Direct Investment (HSBC); 2008 年 1 month, Focus Media announced that it would China Health Media Investment $ 5,000,000 in cash, and will also cover China's 31 cities all hospitals and drug stores in the health care network, the transfer of ownership to Yanhuang Media, Focus Media received 20% of the shares Yanhuang media.
2008 年 3 months, the company CFO Li Xiaodong resigned in January under his successor has left Zhang, Yi Li, also vice president, left; May or so, vice president of Shen Ye, Xia Haitao, director of human resources and other office; June The company COO Cao Liming, Li Xin, director of film left. In addition to management turnover, the company also has sales turnover or dismissal of the backbone. These led directly to the profitability of the company even more serious crisis. Focus Media Yanhuang the media found a problem with profitability and stable management team, after the media stopped and investment cooperation Yanhuang.
entrepreneurs learned: Gentlemen love fortune, in a proper way
It is reported that high fuel Mysee left shortly after the network has created a paparazzi. Is worthy to note is that the high fuel have failed to give the B2C e-commerce and is in full swing now, investors are very sought after; And with indirectly ku6 network of overseas listed video sites have gradually found a way to profit and capital out of the channel.


entrepreneur lessons: wise use to being on the road, but will be wise or wrong

but the next thing is that all investors can not think of.
real skills, high level board of directors must vote on the appointment and removal, and confirmation of more than half of shareholders to take effect. Obviously, Cai standards obtained the support of two venture investors, accounting for three-fifths of the seats on the board, largely determine the company's important decisions.
2004 年 9 月, ITAT members of the first store opened in Shenzhen, after the overproduction and can not afford the mall, . From early 2007 to May 2008, ITAT stores expanded from 240 to more than more than 780. ITAT known speed shop in the world, is China's largest apparel department store chain.

to Mysee fame is not a Angel, did not seriously look at high fuel to the length of his three-page project proposal, the main high burning eyes on his investment in the talent. Second, venture capital and the northern lights is the famous founder of Cerberus - Feng is the founder of NetScreen, Min Zhu is the founder of WebEx, the companies have billions of dollars to the price of being acquired. These successful entrepreneurs unanimously approved the investment of high fuel, naturally appeals to the imagination.
ITAT