Runaway market network: executives flow in financing difficulties


article/hai-ning Chen

58 city listed after the market net has been constantly. AD campaign launched during the Spring Festival, CEO Yang Haochong also frequent contact with the media, the company was in the positive message to the world. Many are asking, Yang Haochong want to do? My view is: a startup, all of a sudden appeared a lot of positive voice, there are basically two kinds of circumstances, one kind is just melts the money, want to make some action to let investors think investment value; Another is to financing, so fool to release news or higher valuations investors come in.

obviously, I prefer to believe that market net belongs to the second. Public information market network completed five rounds of financing, the first round of $8 million from blue ventures; Nokia 2010 growth partnership funds and blue ventures invested $20 million; C wheel from today and sequoia capital, $70 million in 2011, in place; 2012 market network for citic and Ontario teachers’ pension funds, Macquarie two rounds of financing, total $90 million. According to the 2011 C wheel 2011 dollars to 2012, 90 million dollars to the 2013 D round the rhythm, market network is now almost have no money spent, the need for a new round of financing.

the message from other channels also verified this judgment, with VC circles, according to the market network is looking for a new round of financing, and valuation of Yang Haochong will this round of financing in the $1 billion. The valuation or even less than one third of the 58 city market value, but Yang Haochong is: 58 city is not a market network competitors, market network in the city in fact more than 58. Yang Haochong cry, unfortunately, did not win the sympathy of investors, insolent remarks but let oneself image accumulated many years of technical man on the brink of bankruptcy.

after 58 city listed, the market fell into great trouble, the trouble doesn’t come from the pressure of competition, but CEO Yang Haochong facing the media, everyone began to found that sea turtles technology Yang Haochong men’s image, won’t be as simple as previously shown, once not fetters, no release repressed and desire for dreams mixed, the outbreak was more easy. Way of doing things

but Yang Haochong had to take risks, whether to do real estate in the field of soufun, still want to beat 51 job, in the field of online recruitment for Yang Haochong will boil down to one question: money. He needs to persuade investors to pay, although it is very difficult. Five rounds of financing in the history of market network, only the second round, blue chi for the chase, but after several rounds of financing, the first round of the investor does not continue to follow up, this also means a problem, lost trust market network in the capital level. This makes Yang Haochong investment in the face of the person, we have to answer a question: why early investors and institutions did not continue to support market network?

look from the data, according to the baidu index, from the data available in January 2011 until now, the market’s search index also never reach the level 58 in the same city, even in the position of the 58 city half searches for a long time. And Alexa data also showed that the market net’s ranking and 58 city, there are four digit gap between the average daily traffic with 58 city difference is as high as tens of millions. Market net flow of total station and soufun, but soufun is vertical sites, flow value is much higher than market. Even Yang Haochong ability to channel flow into the real estate market net total station, cannot transcend soufun in the field of real estate, not to mention in the recruitment and property for the first two areas at the same time grow into industry.

in terms of team, executive vice President of public relations market dunman and director, vice President of SEO Lv Ying built successively, and grass-roots team also unrest, all of these instructions, founder of the huge pressure of competition and Yang Haochong autocratic and cronyism started to generate centrifugal force within the team.

in the adjustment of the channel management also makes the market net’s outlook is grim, it was revealed, the market network is shedding agent, development of marketing mode, but the reality is that the market there are only 4 branches, the remaining hundred cities are made by the agent is responsible for the care. Even if Yang Haochong can successfully get a new round of funding, even if the financing scale is more than enough to feed the city branch, will still face a channel integration of labor market net, the pain is not necessarily present market network can bear.

market network need financing, Yang Haochong bet on personal reputation hope to give positive information to investors, but all the signs are that the company is a departure from Yang Haochong direction of the vision, it is out of control. May be true as Yao Jinbo said, 58 city listed, essentially collapsed rivals’ growth.