Red Children And Martha Marceau Or Financing Difficulties: Venture Capital Accelerated Game

Seriously locked up VC? Chuan suning.com intends to take the red child, is currently auditing accounts.

Suning.com has recently released the wind to buy some e-commerce companies to scale up as soon as possible.

As soon as this news came out, suning.com and red children immediately came to discuss mergers and acquisitions.

Martha Marceau is also in the sequence of Suning's merger.

Although Xu Peixin, the current CEO, denied that he was seeking sale, he said that a round of financing would be completed within the month of the red child.

But there was no wind and no waves, and all sorts of doubtful points about "red children losing money and seriously locking up VC" began to ferment.

Marceau and CEO Sun Hong were more ambiguous, indicating that they were more inclined to accept the financing of VC enterprises. However, they did not respond positively to the acceptance of Suning's investment fund.

According to an insider who does not want to be named, suning.com has made new progress in its acquisition of red children.

"Suning.com's financial personnel have been stationed in the red child for nearly a month, and the cooperation between the two sides is in the audit and accounting stage. Once the specific quotation is calculated, it should be officially announced."

Xu Peixin, the red child's current CEO, argues that "red children will complete a new round of 20 million financing in the month, and investors are still the former Aurora, NEA and triumphant venture three VC."

As early as in 2010, Xu Peixin once declared that the red child would complete the fourth round of financing and introduce a new investor.

But today, the list of V C that has been injected into red children has not changed, and IPO is not mentioned at all.

"Continuous investment is actually the helpless action of Aurora Borealis, NEA and triumphant venture capital."

Red child, a senior executive who left the office, revealed that the red children had been looking for financing or selling, and had approached the Tiger Fund and Wan Da group. However, investors were not satisfied with the figures such as the red child's loss and user size, and finally failed to reach an agreement.

Or for the same reason, suning.com executive vice president Li Bin also denied the purchase of a red child.

At the same time, the industry is widely known for its high-end apparel brands.

It is also in the sequence of Suning's acquisition.

Coincidentally, both the red children and Masa Marceau have investors behind the northern lights.

A few days ago, Jiang Haotian, managing director of Aurora ventures, said at a forum that e-commerce is a serious disaster in the field of T MT (telecommunications, media and Technology).

Industry analysts believe that the aurora borealis is not satisfied with the investment of the two vertical electricity providers, and may seek to sell the project cash.

Accelerated capital game

The will of capital is highlighted. It is reported that most of the management positions of red children are held by people recommended by VC or VC, and have actually become direct managed companies by venture capital.

"The follow-up financing agreement of China's electricity supplier companies is actually dominated by venture capitalists.

Early V C wants to quit at a premium, and many PE organizations want to take advantage of the current downturn.

The industry insiders say that the capital circle now has doubts about vertical B2C, and thinks that there are several disadvantages in this industry.

First, gross margin is low, competition is very cruel; the two is not accurate marketing, can only rely on a large number of ads to buy traffic, marketing costs are too high; three as a vertical category, the rate of repeat purchase is very low.

"This situation has also led to red children not want to sell, you can find people to pick up the plate."

Ma Xiao, a business analyst, told reporters in Nandu that the amount of capital available to the entire electricity supplier industry is fixed. If the red children negotiate successfully, they will eat part of the cake.

In addition to Tiger Fund, suning.com and other institutions, Huaping fund is also looking for the next investment target in the field of electricity supplier.

The way of operation is quite similar to its investment in Shenzhou renting. It has been involved in advance before the IPO is launched, and has provided a set of valuation and financing schemes according to "successful listing" and "failing to go public".

"It also shows the different investment logic of investors in the one or two tier market."

Feng Po, an analyst at ChinaVenture group, said that the valuation of the two tier market is more about the overall performance of the current stock market in the capital market, and that the investors who hold the short-term speculation strategy account for a higher proportion.

And the judgment of PE institutions to enterprises is more based on the fundamentals of enterprises, such as team, business mode, and the future growth prospects of the market, which is more in line with the investment logic of the primary market.

Industry perspective

Analysys International analyst Chen Shousong

At present, the venture capital market is sluggish, so red children have to turn to mergers and acquisitions to get financial support.

Electricity supplier observer Lu Zhenwang

The gross profit of red children's core products, such as foreign milk powder and diapers, has been declining. In recent years, it has even become a super low margin product. If it is unable to promote other high margin products, it is inevitable that the profits of red children will decline. At the same time, several founders have left their jobs, and the current operation and management is controlled by venture capital investors. More importantly, the pformation of red children from direct mail (DM) to B2F (family based trading mode) is not successful.