How should the cultural industry be invested in the next decade? Investment institutions decrypt investment logic for you

After entering the capital winter last year, all kinds of funds have not been exported, and few industries can be invested. In this case, the prosperity of the cultural industry is very enviable. After the new year, a large number of capital poured into pan entertainment investment at the beginning of this year, pushing up the asset price in the industry. How should the cultural industry be invested in the next decade

original title: the logic of cultural industry investment in the cold winter of capital

< strong > Introduction: < / strong > after entering the cold winter of capital last year, all kinds of funds were not exported, and few industries could be invested. In this case, the prosperity of the cultural industry is very enviable. After the end of the new year at the beginning of this year, a large number of capital poured into pan entertainment investment, pushing up the asset price in the industry, Many previously unknown rotten projects have been promoted to the sky. Under this background, the "not chasing the wind" that yunqi team adhered to in the past has become extremely difficult. It is more and more difficult to look for value depressions in the cultural industry, and the rapid changes and dizziness of the industrial pattern in the past two years made us confused for a time, so we simply stopped to think about it. Until recently, we thought we had almost figured it out. Today, let's start with the previous internal sharing

from the beginning of 2015, yunqi capital (then called the new generation venture capital fund) began to invest abroad. Now it has invested in more than 20 early cultural and creative projects, covering these fields in the following pictures. One of the core investment logic and portfolio is called "content-based marketing tools". This concept was first proposed by yunqi capital. We hope that in text, pictures, video, audio, games Among the six media of live broadcast, we are looking for projects that can rely on content to form traffic in the short term and serve different brand businesses or other content with marketing services or advertising or e-commerce as the main profit model. In the medium and long term, its content has a certain extensibility of world outlook, IP attribute and cross media narrative ability

in other words, it means that either your content is helping others sell things or helping yourself sell things, and others are looking for gold in the tide of entrepreneurship. We hope to invest in teams that sell mineral water, jeans, and shovel, because in the context of mass entrepreneurship and entrepreneurship, a considerable proportion of the money of all start-ups will be spent on marketing promotion and media communication (including internal marketing planning and public relations), We hope that regardless of the success or failure of other entrepreneurial projects, the projects we invest in can survive in the process of serving others. Entrepreneurship should return to the nature of business, and enterprise profitability is the first

of course, another advantage of such a portfolio is that once several projects are invested, different contents can cooperate with each other to convert traffic

Image Source: yunqi capital

as for other investment strategies and directions, it is our strategic layout. Theoretically, any subdivision field may form a broader portfolio, and in principle, we hope to cover all fields of the big cultural industry. These are the ways of thinking we adopted when investing last year.

but...

when we combed the industrial changes of the big cultural industry in the past decade, we found that in the above picture The conceptual investment strategy of can only be regarded as a small skill, and can not support the emergence of large-scale enterprises. The emerging concepts not only deceive entrepreneurs, but also investors themselves. "I have heard a lot of truth, but I still can't invest a portfolio through the industrial cycle". Yunqi capital resolutely abandoned the concept and did industrial research for about half a year, The following cultural industry logic is obtained:

Image Source: yunqi capital

from which we can see that the real so-called" Pan entertainment "has actually missed the best investment time point, and the most likely investment opportunities in the next five years are actually in the fields of tourism, live entertainment, traditional culture, sports, design driven, media restructuring and so on (we will discuss each sub field with a separate topic later) Of course, this so-called investment logic is not only for venture capital or angel investment. Investment strategies, stages and tools in different segments are quite different

take tourism as an example. In this era, investing in online tourism OTAs and the like is definitely out of the question. Investing is investing in scenic spot assets. Three years ago, due to the introduction of eight regulations, the tourist flow of scenic spots fell sharply. Many scenic spots were sold at low prices at that time, and the asset prices of various scenic spots have soared rapidly since this year, but this strategy is completely ineffective for general venture capital, because the volume of general venture capital funds is completely unsupported, However, the resource capacity of general venture capital funds is also difficult to be trusted by local governments. If you want to participate in such opportunities, you need to launch industrial funds, mobilize the credit endorsement of local governments, cooperate with low-cost leveraged funds, and even carry out structural innovation in combination with PPP and other models. Even if the assets are taken down, you need to have an operation team and ability. There are very few cases like IDG investing in gubeishui town, However, from the perspective of examining industrial opportunities, we can't ignore that as a small volume of venture capital funds, they can fully cooperate with large industrial funds and tourism groups to find collaborative projects with explosive points. With the rapid rise of passenger flow in major scenic spots, rivers are full, and there may not be leaders in some sub sectors. The same is true of other industries

from another perspective, the investment in the cultural industry in the next decade should focus on five aspects: docking consumption upgrading, offline experience economy, revitalization of traditional culture, mining of sedimentary assets, and horizontal resource flow. In addition to the investment value of cultural products themselves, cross-border grafting of the cultural industry as a tool to other industries can bring the greatest industrial Imagination:

Image Source: yunqi capital

1. Docking consumption upgrading: including the clothing industry connected with online celebrity brokerage, leisure food connected with we media, AR connected catering, design grafting electronic products, etc.

2. Offline experience economy: including the regression line of various subdivisions of the cultural industry

3. Revitalization of traditional culture: including time-honored brands, intangible cultural heritage, etc.

4. Mining of precipitated assets: mainly refers to those within the state-owned cultural media system Opportunities for resource assets to be revitalized through market-oriented means

5. Horizontal resource flows: including cross domain and cross market flows of capital, cross-border and cross-eastern and Western flows of talents, cross-border flows of information and technology, etc.

a number of investment portfolios can be developed independently from each perspective

based on the above thinking and after a period of investment action and market verification, we think it is time to share with you again. In the later period, we will confirm our above conclusions through various cases and interviews. We also welcome friends in various fields to come out and challenge. We will also publish the debate process with clear and insightful logic from time to time for your review

once again reaffirm the working philosophy of our yunqi capital team - "bring rationality to the cultural industry and culture to the rational industry!"

< strong > this article was written by bu he, founding partner of yunqi capital < / strong >

editor: vian