Huachuang Capital Chu Yizhen: The Internet celebrity economy is not yet mature, and live broadcast content will be narrowed in the future

Since 2014, we have systematically worked in the field of cultural and creative innovation, and have so far invested in nearly ten projects, including ONE, Linglong Salon, March Records, etc.

The first project Huachuang invested in the cultural and creative field is called Life in Seven Acts, which is probably similar to the model of the Japanese Four Seasons Theater Company and is the Angel Wheel in 2012. Since 2014, we have systematically worked in the field of cultural and creative innovation, and have invested in nearly ten projects, including ONE and Linglong Salon? December records and so on.

In my opinion, anyone that uses content to attract attention can be called cultural creation. This year, whether in terms of resources, funds, or attention, China Entrepreneurship will spend more time and energy on cultural creativity. Currently, we have a dedicated team focusing on the field of cultural creativity.

The industrial content of cultural creativity is very clear, nothing more than: production, conversion, and sales. This is a very obvious industrial link, and we make arrangements at various points in this link.

We have no limit on the investment amount. Huachuang is a mid-to-early fund, but it has also invested in projects worth more than 100 million yuan. On March 31, we just released the third phase of Huachuang-IDG's Angel Fund, so the order of Huachuang-IDG's investment is different from that of general funds. As an angel fund, we also invest in projects worth about US$20 million.

Chu Yizhen, a partner of Huachuang Capital

, must have commercial capabilities to start a business. Simply put

, no matter which stage of investment, people are still the most important. Specifically, what kind of people do I look forward to?

First of all, this person should be a businessman. To put it more accurately, the ability of the company's senior management team is the ability of a businessman's combination. The founder can be artistic, but there must be someone with strong commercial capabilities in the core team.

Second, he has a strong desire for business and a strong motivation to change his destiny. The way to change his destiny and gain wealth is by creating business value for people he is familiar with, convenience and speed, or solving other problems.

Third, be very smart and willing to learn, and willing to put your body down softly. In addition, you should have a long-distance running mentality. I have seen many excellent entrepreneurs. The data is good at first, but they often can't run after Round C.

The team in the cultural industry should be the one who understands business best in culture and the one who understands culture best in business. Teams must be both artistic and commercial. Simply put, good artists are matched with good agents.

Only this kind of mixed team can come

out. When you start investing, you will often invest in teams and people that are very similar to you, but in the future you will find that the world is not like this. My own experience is that often when I first come into contact with teams and people who don't make me feel comfortable, they actually allow me to have the best benefits on the project.

Why is this happening? First, investment and entrepreneurship are the same. The ability to think independently is very important, and if you follow others, you are doomed. Second, good entrepreneurs are harmonious but different. It is an ideal state for each to give full play to the advantages of its own knowledge structure. Entrepreneurs blindly merge together.

In short, I prefer entrepreneurs who have their own independent thinking ability, perfect personality charm, and very strong inner power.

Every year, I look at 1000 projects and invest in the 10 most important projects come from circles.

I personally look at about 1000 projects a year. The "watching" here means that after reading the PPT, I asked him to come to the office to have a chat. My domestic flying mileage a year is about 150,000 kilometers. I think you need to reach this amount to feel it.

For a not-too-complicated project, I can usually make sure whether I want to invest in it until the third time I meet. Usually, the first time I listen to the entrepreneur and don't ask questions. Before that, I would look at his business plan. When I met, I would listen to him talk about the project and see his on-the-spot reaction, including looking at his eyes and giving him some stress tests. So the first time was to listen to him explain the project and himself.

If it feels right and the project itself is not complicated, I usually make an appointment to meet for a second time within a week. I will ask him my questions. Of course, I have some thoughts on these questions and see if he can answer them to my satisfaction. Satisfaction here does not mean making me happy, but whether I am commercially mature.

The second meeting is about two weeks ago. If we decide to vote, there will be a third meeting, which is a meeting with the team.

I personally summarized the three channels that I obtained projects in the market. The first is introduced to us by the founder of the project we have invested in. The second type is the network I have established myself. There are also FA channels such as Ether, Small Dining Table, and Huaxing Alpha.

Email doesn't really catch my attention. This was really a shortcoming, and I missed out on a good project because of it. But on the other hand, if I read all email items with the attitude of not being missed, there will be problems.

My personal favorite, or the most important source of projects, is circles. I will make a large number of friends in the Internet industry and the cultural and creative industries. Projects generated in my circle will have a relatively rapid impact on me and allow me to make some judgments and analyses.

The Internet celebrity economy is not yet mature, and live broadcast content will be narrowed in the future

. Recently, live broadcasts have been very popular. Many people also believe that this is a huge outlet. In my opinion, to invest in cultural and creativity in China, we must have a deep understanding of the cultural and creative management system. I think live broadcasts are good, but there are several aspects to consider in live broadcasts.

First, there is a lot of live broadcast content, which means that the quality will decline. How can I ensure that I can always see what I want to watch? Second, in the future, live streaming is likely to be a means rather than a platform. In the future, the live broadcast content may still be narrow and not popular. Third, pan-popular live broadcasts will definitely have some interference and influence on the regulatory system.

From an investment perspective, live broadcasting is more of a performance of capabilities. For example, e-sports live broadcasts have a lot of space. But pure live broadcasts of beautiful women are not very interesting.

In the same way, Internet celebrities will also be a means in the future, not a product. Why do people like Internet celebrities? Because decentralization. In the era of national entertainment, everyone suddenly discovered that I could become famous by doing this online, and then I could make money after becoming famous. This is very in line with people's mentality and psychology. But there is one thing to note: how many Internet celebrities can continue to receive attention now? Rapid establishment means that Internet celebrities receive less attention, so they will be consumed quickly. Since they are consumed quickly, I don't think it is a good business model. A good business model is one that is consumed repeatedly, and the depth of consumption is deepened repeatedly.

This is a simple logic. The faster something grows, the faster it will be consumed. Because of rapid growth and few selling points, he is just very beautiful or has a good voice. You can consume him for two weeks. After consuming him, you don't want to consume anymore. But if he is a complex actor, such as Wu Xiubo, handsome, gentle, with acting skills, and stories, you can consume him for 30 years.

Various models of cultural creativity can sometimes be deconstructed using the concept of e-commerce. One of the indicators is repurchase. Acquiring new users is very tiring, and it is very, very important to let users consume, buy, and read here repeatedly. Therefore, constantly abandoning users or being abandoned by users is a very uncost-effective way to do business. Continuously increasing the depth and breadth of user purchases is the way to do business.

I have stayed in AVEX in Japan for nearly 6 years, and I came into contact with the second element very early. Today's young people need a sustenance, and this sustenance often requires more in-depth participation. This participation is to build the spirit. The construction process of our original film and television works is often negligent, that is, you buy a ticket to watch it, but your participation is not strong.

The reason why many young people like the second dimension now is because of their sense of participation and they build their souls. I think the second element is a kind of spirit and an internal logic. It is not necessarily something like cosplay. The core is a sense of deep participation.

Cultural and creative investment must be patient and use industrial means to avoid risks

. Cultural and creative industry is an industry that must not be anxious. Don't watch movies. Local tyrants go in, 20 million yuan go in, and 200 million yuan go out. This is a matter that destroys the industry and is a rapid consumption. Therefore, we must be patient when investing in the cultural and creative industry. The money I spend on books every year should be nearly 100,000 yuan. I watch all the movies on the market, whether I like it or not. I watch all the TV dramas and online dramas that are on the market with stars. Although I think some plays have average quality and content, I still use fragmented time to finish watching them. These are homework.

It is actually difficult to invest in a cultural and creative company with a market value of 20 billion yuan. For example, Huayi Brothers is about 40 billion yuan today. How many Huayi companies are there in China? So I find it very difficult to invest in a cultural and creative enterprise worth 100 billion yuan, but a cultural and creative enterprise worth 34 billion yuan is actually not that difficult. Therefore, it is my personal habit to invest more and invest steadily in the cultural and creative field.

The cultural and creative industry is very popular now, and everyone seems to be competing for projects, but I think that as a VC investor, you should be like a sniper and find a project with potential, not a hot one.

Cultural creativity is something that doesn't have a good outlet. The main risk point is people. Because people can't guarantee that they are in good shape every day, such as Mike Jordan and Stephen Curry, they don't hit every shot. In the cultural and creative industry, because it often takes three months, half a year, or even two years to produce a work, the changes in his status during this period are very scary.

This is the biggest risk point for cultural and creative investment. The way to avoid risks is industrialization, using various means of industrialization to reduce risks. We analyzed the production process and creative methods of American dramas and found that Americans are very strong in this regard. Of course, for China, this requires a process.

Editor: yvonne