Xiao-yang he dry experience: OneAPM how to fix three investment

(word/WeiQing)

2014 years ago, in China’s IT circles xiao-yang he and blue ocean XunTong almost not many people know, at that time, he has started the company almost 5 years, the company didn’t fire up, but also did not die, for the development.

can from early last year, xiao-yang he as the transformation of company product OneAPM frequently mentioned by the media and developers, little also not, of course, the capital market. From January 2014 to complete A round of funding, in September the same year won the partners China and became capital of joint investment of RMB 70 million B round of funding, in March 2015, OneAPM completed 165 million yuan again C round of financing. In the public reporting, OneAPM in nearly a year of time completed the three rounds of financing.

however, this is just the formal disclosure of company history, little imagine, if you count the product competition winning and friends strongly stake, OneAPM is done among the four rounds of financing in a year. In the midst of this, xiao-yang he’s team also experienced a difficult start, radical expansion, such as financing is a skip time of danger.

on May 16, xiao-yang he’s hunting cloud network entrepreneurship courses, to share the OneAPM efficient financing experience and dry, and answer the focus of the audience present.

why real share the following text transcript, the cloud network hunting, part did simplify processing, subheadings for hunting cloud.

industry characteristics of

The first:

power law/exponential growth

2: now the era characteristics of

1, the outbreak of the mobile Internet, mobile intelligent terminal more than 2 billion units;

2, cloud computing, computing resources all over the world.

3, economic globalization, users all over the world.

4. API economy, call each other between applications.

the above four driving the demand for APM industry.

the third: the company can be the cause of the rapid financing

1, the environment

financing by reason of age/policy easier. In addition, business don’t ignore the external environment and the constantly changing world, when the direction of entrepreneurship in conformity with the trend, financing is easy, otherwise it will be difficult.

2, enterprise services

in 2015 known as the Chinese enterprise service of the first year of business. The APM field competition is intense, seventy percent to 80 ipos are enterprise services. China is a piece of virgin land, serious shortage. Prospects the APM field in China is huge, you will find that the financing is easier, because you don’t have a rival, is it also a monopoly business, growth speed and the space is very large.

— — — — — — — – gorgeous line — — — — — — — —

if the above share is warming up, real dry cargo to the below.

oneAPM finance history

1, friends, family, angel rounds of financing

at first, the company established from 2008 until August 2013 there has been no get financing. Early unimportant, but small companies, in a supplementary role can survive, only without the development space.

in August 2013, decided to do a SaaS platform, then made a round of funding, angel is only more than 140 ten thousand yuan, at that time was money. And the 2 b market still wasn’t be recognized, so I was looking for a friend, or family, and even people mouth say “money to fool”.

I think at that time everyone around you is likely to be an angel. Chen had done sales team partners talk about friends to go to karaoke bars financing, introduced after the other did not respond, but the edge sing little sister said “otherwise I pitch point?” Chen asked: “little sister, how much money do you have?” “More than one hundred”, this is very surprising. Of course, was not for her investment.

2, speak principles as an analogy for A round of funding

since then, I realized that must speed up, begin to hire programmers in large Numbers. In the BBS posts, who immediately A wheel is in place, we now do is tall APM, how promising and how the fire in silicon valley, the sky’s the limit, the result has kept overnight programmer to me, it was the second day of warp/weft investment managers find growth.

identity on the Internet is proficient in fabric of APM is completely don’t understand, I talk with him for four hours, and didn’t fully understand. He may be with the questions back to the fabric, it is said that hot debate, divide into two parties.

in October, when growth brought a connoisseur to chat, to feel the market space. And found that the us in addition to the established companies are doing, there is a new company to do, now that the new companies coming in, that proved a stick. Told investors VC to analogy, then, the story in A way, speak principles as an analogy, A similar companies in the United States finance development report for warp/weft sign financing agreement, in January 2014, is A round of the us.

3, is extremely complex and it is puzzling the extra funding round

because the story too strange dog blood, in simple terms, is to take after A round of funding, then have A plan in February 2014 – march B round, April C round of financing. Intel contact after given $10 million, $100 million valuation, the reason is that given OneAPM is collect, store and analyze data, consume huge amounts of CPU. Unlike financial investors, Intel consider more to do with the its strategic synergy.

but in the midst of this negotiation we attended an entrepreneurship competition, not seriously, puzzling won the grand prize of one million yuan, a point at the cost of transfer of shares. And, at that time, Chen friend anyway investment, even if only to a point, then, is a point out again. So to speak, caught in the middle, so much out of this round of financing.

original Intel ready to sign the agreement in May, because between them of these things, it’s time for August, come back to find Intel also is impossible, just like fall in love, miss it. Due to high valuation of the Intel gives the mass hiring, follow-up financing not fix, simply because the company is in danger.

4, the urgent B round

this time, become a capital for emergencies, or closed. To make become capital to once again out of the seriously. At this point, the 2 b wave began to rise, so get the favour of capital.

as capital is only a evergreen type fund in China, similar to warren buffett’s Berkshire hathaway, does not require you to have to sell a certain point in time, otherwise the company would have failed. General funds have different period, if be the period of seven years, the first three years is to put the money out, after four years continued to cast, prevent stake diluted, expires to give money back, how much money to the partner. Attention to throw your money is early or late, of course, more famous funds do not need to worry about this thing.

5, smooth C

later in the well up, began to change in form, such as constructed at pin, completed more than $2500 in financing, 2 b project began to someone, OneAPM overnight to be cognitive, march to complete C round of financing, became a capital of 165 million yuan.

6 D round story is, how do?

hope to get D rounds before the end of the year. However, warp/weft advised me to tell a story.

What is the meaning of

a story? In the United States, want to get certificates, must be a good student. China is with the students who want to progress awards, not afraid you can’t do, the fear you have no story, no action. When you tell the story of $1 billion in A round, full run of the process, may be found adjacent to the new field, to achieve it, so that you can then tell the story of A $10 billion B, C.

6 years to do a lot of American company, our own are unexpectedly a year time to finish. 16000 corporate clients, SDK covering 16000 terminals, the collected event information is 2 billion, is four times the size of the twitter.

we OneAPM is not a good student, but from the bottom to the bottom ten stories, more practical and reference significance. Because you cannot learn the successful experience of good students, for example Momo/cheetah, 2 c in China, grass-roots entrepreneurs is hard to rebuild billions of dollars in the company, at the same time, the 2 b of billions of dollars are unlikely to happen again in our company.

look at the 2 c and 2 b, 6:4, systematically in China. So, the only 2 b industry opportunities exist in China. As we know, the Internet is to make does not appear to appear, not disappeared to disappear. If we can seize the opportunity, can grow to become a $100 billion, or even more value. Specifically, in the field of 2 b, go to the United States in the listed companies which look not to understand, which is interesting, to draw lessons from to come over, VC will look good.

question-and-answer session:

audience: enterprise market is not transparent, future state will specify the state-owned enterprises?

xiao-yang he: football, for one, has the foreign aid, with the national team. To dominate the market, now is not the planned economy. CPU, the operating system may be related to the depth of the country, but there are so many areas not relevant, now this time, the circle of the parts of the country is very little.

exit (come in because human low cost) in foreign company, first, because China’s revenue is negligible, and low cost may not be as before. So, foreign companies retreat, more is the weight of its own interests analysis.

audience, how to want to go to the point to entrepreneurship, observe what information sources in the U.S. market?

xiao-yang he: enterprise service basic it is unpopular, 2 b is as intuitive as it 2 c. Choose the cause of the APM product solves a demand, if using a mobile phone APP, let developers better management experience, the test results.

information sources, such as techcrunch, etc., however, not every day, have a look not to understand, the depth of the research.

audience: O2O I do, will provide other services?

xiao-yang he: now provide services, let the program run in accordance with your idea, let your phone App, application flow, without any mistakes. OneAPM now basically provides two kinds of service, it is the user experience management, response time, error rate. Second, if appear problem, help you judge the backend application where there is a problem, which one line of code has a problem.

we future not only to reduce the cost, finally can raise more revenue. Favorite function, do not like what function, what function with the more and more, the App after the update, what is the user’s response, for how long. Finally is data analysis platform to help promote business.

and we now offer the service, the function of the basic B round before the Internet vendors need to basic it is free of charge.

audience: entrepreneurs looking for financing, VC money, enterprise strategy, consider what factors?

xiao-yang he: unless absolutely, don’t look for business investment, unless very well. VC for money, and decision making simple, partner mechanism, discussed later in the day there will be results. However, the enterprise needs to the boss. Now, ground of VC in China, is a former entrepreneurs looking for VC, VC environment is now looking for a project.

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