When HTC suffered a cumulative loss of 18.9 billion Taiwan dollars in 2015, VR seemed to be the only life-saving straw for HTC, a company with a market capitalization of more than US$30 billion. In April 2016, the company announced the launch of its Vive X Accelerator program for global VR startup teams. It plans to invest over US$100 million in fund support. In June, the company announced the split-up of its Vive business to establish a wholly-owned subsidiary, uniting 28 companies. The world's top venture capital company, set up a virtual reality venture capital alliance (VRVCA), the scale of funds will reach 10 billion US dollars. In March 2017, the mobile phone manufacturing facility in Shanghai was sold and more resources were devoted to VR. This series of measures proves the importance of VR in the future and explains the current situation where VR companies are burning money.
Starve to death or be killed
At the moment when a lot of money is being spent on training the market, countless VR companies have fallen behind due to the fact that they are falling out. Starvation or self-destruction is just two ways of falling. The latter is the acceleration of the former. The shortcomings in funds, technology, and talents will greatly restrict the development of the company. When a problem occurs in one part, the company may close down. Let's use the illustrations of the two companies to illustrate a problem and how VR startups should survive.
Vreado already existed when Fackbook had not acquired Oculus. They used $2 million in financing to get 700,000 users, but ultimately they failed to escape the fate of bankruptcy. On November 22, 2016, this well-known video platform in the field of VR video officially announced the suspension of service, and the myth of Vrideo's creation came to an abrupt end. In addition to being shocked, it is more of a doubt. To know that only 200 million US dollars financing has already done a surprising amount of 700,000 installations. This is equivalent to 200 million installations of a mobile phone APP. In addition, Vrideo is one of the most popular VR video applications on the three platforms.
In the domestic VR video platform led by Dachang, Youku potatoes, iQIYI, LeTV, Sohu such large platforms have entered the big manufacturers are not bad money. However, from the perspective of saving money and the strategic goals that you want to achieve, you can take a peek at one or the Other: Youku potatoes want to spend 10 billion and practice the "VR plan." Iqiyi wants to reach 10 million users in a year. LeTV is about to spend 30 billion yuan, hopes to reach 100 million fans and 10,000 CP; Sohu wants to save 1.6 billion and wants to have over 50 VR producers, over 1,000 videos and 30 million users within a year. After listening to these, what do you think?
Huang Guangwei, CTO of Vrideo, said: As the company spends, the costs are rising as the company grows. We can only collapse if we have no money. Vrideo is proud that dared to claim that he has served 1 million users and said that he hasn't blushed enough to have a few VR video platforms. Under such conditions, he can show such achievements. I am afraid there are no more than ever before. The current environment is VR lacking users and less content. It is unrealistic to want to maintain the operation of the platform by selling advertisements and paying fees. After all, iQiyi is in a continuous state of losing money. If the Vrideo situation is placed in the country, a one-hour 2K video will be distributed to 700,000 users every day, and the cost of light will be 300,000 yuan. Vrideo and EnvelopVR have similar problems, although they have made some achievements, but on a platform that requires users, the market is still very small, they have not found a suitable business model, and blood flow has not been taken into account without taking into account operating costs. Nature fell. This Xiaobian would like to see the artillery. I feel that Mr. Huang may not know Mr. Jabbs. If PPT is doing well, Vrideo can live longer.
Compared to bloodshed Vrideo, the example of the perfect fantasy bankruptcy is more like a suicide case. Perfect fantasy is a manufacturer of panoramic cameras. Early intervention time, technology has advantages, it is very smooth to get Intel's million dollar angel round of financing. As the only invited VR manufacturer at the Microsoft Global Innovation Technology Exchange Conference. And quickly obtained a million A round of financing, the team from the initial period of six people to more than 100 people. The office has also moved to a 700-square-foot office building in Shenzhen. But this glory is only a few short months. One month ago, the bankruptcy of the capital chain broke, and even the bad reputation of being closed down and the founder running away.
According to the data compiled by Xiao Bian, there are three answers, but it is certainly not the rhythm of death.
1, management confusion
An effective management mechanism is the cornerstone of a stable operation of the company. It is crucial for a startup company. But Zhao Bo, the founder of the perfect illusion, moved the whole family into the company, allowing the dancing girlfriend to manage the market. The work can be discussed without mention of a group of servants. Let's manage financial affairs and change three financial accounts in two months. The VP recruited from 360 seems to be even more irresponsible: The Square Dance Aunt sells high-end cameras, and even sets an annual sales of 6 billion. There are even more technical big cattle, holding senior executives' wages, just hiding in the dark houses to play games. It does not matter if the goal is not achieved. However, the backbone of the working team has fallen from the ruling, and it will be the end of the walk. Taken for granted, these rashes were exposed by "former employees." Can not help but make Xiaobian very emotionally, if the brain is not wrong, this is the performance of the art gallant people! Just want to take advantage of their neck to see, in the end they can hold up for a few minutes. But in the end it still plays.
2, technical iteration delay
As an emerging industry, VR experiences rapid changes in the market and technology every day, and the use of technical barriers in the perfect illusion of early intervention has captured a good position in the industry. However, because of the confusion in the management model, it led to a series of erroneous decisions on commercial considerations. When the company is considering the users, the brand positioning is not clear and has been tangled in the B-side or C-side, which delayed the fighter. Since the development of panoramic cameras, Nikon, Ricoh, and Samsung have become foreign companies. There are companies in the country that have seen technology, visual technology, and plans, and have also entered the panoramic camera industry. Traditional camera industries like Nikon, Samsung, etc. cut into panoramic cameras, and their advantages in technology accumulation are even more pronounced. Four to six cameras are used, parameters are adjusted more accurately and performance is better. Although the perfect illusion occupied the first-mover advantage, but the follow-up product iteration did not keep up with the trend of the times, the new Eyesir S still remain in the two camera stage. A company that started with technology has lost its technology. I am afraid that it should be conceived.
3, blindly optimistic about financing
In February 2016, Perfectland released an announcement: Since it wants to cooperate with the integrity of the production chain, it moved from Beijing to Shenzhen. Immediately after the number of personnel increased to more than 100, the office also expanded to 700 square meters, and the cost was quite high. At that time the small partner was shocked, perhaps this company is not bad money! What is called the integrity of the production chain? Apple in the United States, but basically mobile phones are produced in China. This is taking into account the cost issue. What is the basis for this perfect vision? This is itself a technology-driven company. Therefore, most of the staff are technicians whose cost is very high. The labor cost is more than 100 million. In addition, there are rental costs for the company's premises and so on. However, there was not much money left to spend on product production. Although the order volume was large, the production started when no order payment was received, and delivery was delayed. This is not a small loss. In this case, blindly thinking that there was no problem with the B round of financing, there was a problem.
From the second half of 2016, layoffs, bankruptcies, and wage arrears have been shrouded in the entire VR industry. This may be just the beginning. Just like the emerging VR industry, controlling costs and increasing revenues and reducing expenses for startup teams is a criterion that must be achieved. At the same time, expansion does not result in a matching productivity. This is a common problem in many startup teams. When spending is spent blindly after financing, the key technology accumulation is left on the side. This is very dangerous. A technology-centric company must not lose its R&D advantage in technology. Once competitors take the initiative, brand competitiveness will soon decline.
In the context of controlling costs, the establishment of a team with technical barriers can be said to be the foundation of a startup company. And recognize the market and find the right positioning. It determines the future direction of the company and the right to control the market. Judging from the failure of the above companies, there are such deficiencies. Perfect fantasy has not kept up with the pace of the market at the professional level, and the consumer market is extremely immature. Insta360 and Ricoh brands have occupied the market. Under such a difficult situation, they must find a breakthrough. Therefore, in the early stages, a startup company must find its own advantages and focus on one area to avoid repeating the same mistakes.
Wenzhou Hesheng Electronic Co., Ltd. , https://www.heshengelec.com