Who killed the red child venture capital differences Transition failure

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was a smash hit, eventually encounter abandoned, invasive, investment differences, restructuring fails, who is killing the red child killer



a "child", was all praise the "excellence", just a few years back, unexpectedly become hopeless "backward", so that at the age of 8 when it was abandoned.

it is "red child". From the beginning of 2004, with the DM (direct sales catalog) baby products business, it quickly jump red, then the transition to the Internet, the product line horizontal expansion to cosmetics and food and other household consumer goods are from difficult. September 25th, Suning held a press conference at the headquarters in Nanjing, announced a wholly-owned acquisition of red child $66 million.

on the day of the press conference, a noteworthy detail is that the red child’s VC shareholders no one attended. It had carried out a total of four round of private equity financing, for a total of $80 million, northern light venture capital, NEA and venture capital investment is a major triumph red child, holding more than 60% stake. Collective absence may indicate that, for them, the price of $66 million, is not a proud return.

in fact, in the two months before that, Suning will purchase rumors have been flying the red child. At that time, Li Yang will continue to receive friends phone calls and text messages, congratulations on his next will have a good return. Li Yang is one of the founders of the red child. By the end of 2008, he left the red child, and a small amount of cash, the price is several million yuan.

until now, Li Yang is still one of the largest individual shareholders of red children". But he was not told how much money he could bring to the rest of the red child. It is clear that even those with a priority liquidation of the VC, it may not be able to recover all the costs.

I am the most depressing is that if the enterprise is in my hands to do, I put the VC money squandered, and finally sold the enterprise, I can not get a penny, I am also willing to. But when I go, this business has done quite a cow, basically do the first in china. In the retail industry, you want to do a good job of the enterprise is difficult, but you have to make the enterprise more difficult (now someone did)." In mid October, in an interview with this reporter, the other side of the phone Li Yang, tone some excitement.

is not difficult to understand Li Yang’s heart unwilling". 2004, red children to catalog + network approach, began to get involved in maternal and child supplies retail, Liu Qiangdong has just registered Jingdong mall domain name, Dangdang also get the second round of financing. 2008 Li Yang left, the red child is still the same with Jingdong, Dangdang revenue scale, respectively, 1 billion, 1 billion 320 million and $760 million, was once known as the vertical e-commerce market, the three carriages".

, however, today’s red children

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