The popularity of Pinduoduo even caught other e-commerce websites off guard.

The traffic and revenue of major e-commerce websites have fallen wildly.

"Pinduoduo is too scary, and it has achieved viral fission through ICQ and Facebook!!"

"This new type of group buying model is so crazy that even my relatives and friends have sent me links on ICQ and Facebook!"

"Pinduoduo's products are very cheap, our e-commerce website is not competitive with it, and many consumers would rather go to Pinduoduo to shop!"

“……”

The senior management of an e-commerce company sighed one by one, frowned, and felt a great sense of crisis.

The e-commerce industry is becoming more and more volatile, and the emergence of a new business model will take away the market share of traditional e-commerce to a certain extent, resulting in the bankruptcy of many e-commerce websites......

Pinduoduo's social e-commerce model, they can't be emulated, after all, ICQ and Facebook will not give support.

However, the e-commerce group purchase model is worth learning from.

As a result, many e-commerce companies held meetings nervously and launched group buying projects.

Investment companies have also seen a new outlet, and they have become active and willing to invest in group buying websites!

The "Battle of a Thousand Regiments" seems to be about to kick off......

At this time, in addition to investing in Pinduoduo, Taobao and Amazon also launched their own "Taobao Group Buy" and "Amazon Group Buy" respectively to enter the market and get a piece of the pie.

The group buying market is huge, and it's better to eat it yourself than to give it to others.

With the traffic of Taobao and Amazon, except for Pinduoduo's unique social e-commerce model, other group buying sites are basically difficult to be its opponents.

Perhaps differentiated competition can barely allow some e-commerce companies to survive.

……

On May 5, 2004, an investor meeting was held in Shanghai.

Well-known investment companies Goldman Sachs, Sequoia, IDG, Hillhouse Capital, Shenzhen Capital ...... All of them sent representatives to attend the investor meeting and prepare to look for good investment projects here.

From 9:30 a.m., the investor meeting began.

Many startup founders come here with their own startup financing proposals to seek funding.

Each founder has five minutes to introduce their company and products.

"Dear investors, hello, I am Xu Maodong, the founder of Wowotuan, and the products and projects I bring today are the group buying website Wowotuan developed by our company!"

Xu Maodong, the founder of Wowotuan, knew that time was precious, so he focused on the development plan of Wowotuan.

"If Wowotuan wants to develop and grow, my solution is to burn money, launch group purchase coupons online, and then poach people, establish offline channels in many cities across the country, contact merchants, and promote community group buying ......"

Xu Maodong talked eloquently, very confident, and showed that he was very good at burning money.

After listening to his words, the representatives of the investors present felt that it was very reasonable, and couldn't help but nod their heads secretly in approval.

Engaging in group buying e-commerce will not burn money, do we investors still dare to invest?

Companies that don't dare to burn money will definitely fail in the end.

Therefore, many investors are very interested in Wowotuan and express their willingness to invest in it.

"Mr. Xu, your company's Wowotuan, we Sequoia Capital are very interested, and we are willing to invest 10 million US dollars, obtain 20% of the shares, and the post-investment valuation is 50 million US dollars, what do you think?" Shen Nanpeng, president of Sequoia Capital, asked with a smile.

"I am honored that Sequoia Capital is willing to invest in Wowotuan, but Mr. Shen's offer is too low, and I think the future potential of Wowotuan is huge, and the valuation should be higher. In addition, we plan to raise at least $20 million this time, otherwise it will be difficult for us to gain an advantage in this group buying war! Xu Maodong replied.

Shen Nanpeng shook his head and said: "The website has only been online for a while, and the data is average, if it weren't for the fact that group buying is now in the wind, we Sequoia Capital would not have given you a valuation of $50 million!" ”

"Wowotuan has a first-mover advantage over other e-commerce sites, at least in this regard, it has surpassed many sites. Moreover, our company's employees are all recruited from Alibaba, Taobao and Amazon, with strong technical development capabilities and rich management experience. We are a mature e-commerce team, and we can definitely have a place in the group buying war! If we can get strong support from investors, I believe that Wowotuan will definitely be able to become one of the overlords of group buying!! Xu Maodong said very confidently.

Other investors couldn't help but be more and more excited when they heard this.

The investment principle of many investment companies is to look at people, to see whether the company's management is strong, if the company's management is not good, then they basically will not consider investment; If the management is very powerful, then even if you don't have any products, even if you have only one idea, a PPT, the investment company is willing to gamble.

Xu Maodong himself has a certain amount of financial resources and connections, and at the beginning of the development of Wowotuan, he has poached many powerful characters, which is the most important point for investors.

In the e-commerce group buying war, the means of each other are similar, depending on the execution and management ability of the management.

Soon, a number of companies expressed their willingness to raise the valuation of Wowotuan.

In the end, Wowotuan successfully obtained 20 million US dollars, sold 25% of the shares, and the post-investment valuation was 80 million US dollars.

Xu Maodong immediately went to the next room with the staff to sign the investment agreement.

Then it's the other startups' turn.

"Hello investors, I am the founder of Manza.com......"

"Hello investors, I am the founder of Dianping.com......"

"Hello investors, I am the founder of Lashou.com......"

“……”

I met with representatives of more than a dozen companies in a row, and three of them were group buying websites.

Generally speaking, many investment companies are willing to invest in the entire track.

Even if one of them succeeds, it can make a lot of money!

As a result, at investor meetings, group buying websites have basically received investment.

In fact, the companies that can come to the investor meeting have all passed the strict review before, and each company has good qualifications. Not just any startup can come to an investor meeting.

Investors' time is also precious, and they will not waste it on some unreliable projects for no reason.

……

In less than a month, hundreds of group buying websites have appeared in China one after another.

In Zhao Ye's opinion, this number is actually nothing, after all, in the previous life, it was said that more than 6,000 companies participated in the group buying war, which was called horror.

Now it's just pediatrics.

Zhao Ye is actually not afraid of competition at all, and the advantage he occupies on his side is too strong.

Technology, capital, channels and other aspects, other companies can't compare.

Moreover, the era of mobile Internet is about to be ushered in, and at that time, the companies under their names are the first batch of companies to embrace the mobile Internet.

"The crazier the group buying war, the better!"

"It can make the group buying market more mature and make the cake bigger!"

"Get consumers used to shopping online!"

The reason why China's Internet developed so fast in the previous life was due to nine major battles: the 2011 Thousand Regiment War, the 2012 E-commerce War, the 2013 Online Travel War, the 2014 Online Car-hailing War, the 2015 Food Delivery War, the 2017 Bike-sharing War, the 2018 New Retail Money Burning War, the 2019 "Ten Billion Subsidy" War in the Sinking Market, and the 2021 Short Video War.

In Zhao Ye's opinion, after the war, he was making wedding dresses for himself, so he was happy to see these wars of spending money on subsidies!

(End of chapter)