5/28 TBC Insider Digest
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Insider Digest 5/28/21: China vs. US Enterprise Software, NetEase Music IPO, SheIn is at $46Bn
Housekeeping: We’re experimenting with sending out the email digest on different days to see if that impacts open rates! Also apologies that I continue to have family and personal medical matters this week, but aim to get back on our regular Friday meetups soon!
For those who are new, feel free to join our WhatsApp group if you want real time communications with the rest of the community! It’s pretty low volume and always on topic!
Chinese vs US Enterprise Software Opportunity
I’ve been looking at enterprise software companies in China and felt that one analysis helped articulate what I am seeing in the market. I’ve summarized it and added my comments, but effectively, “mission critical” (think: security) software servicing specific verticals tend to do better than generic management software, whereas the opposite seems to be true in the US. This piece goes a bit into why and also details which verticals are especially attractive.
SheIn, Cross Border Ultra Fast Fashion at $46Bn Valuation
So much is being written about Shein lately because it is rumored to be going for an IPO. It’s also apparently just raised money at triple the valuation of a year earlier, although the company is too secretive for us to really know for sure. I’ve included some of the most relevant facts about the company and will be adding to the thread as I learn more. But I personally think the importance of the “ultra fast turnaround” (5-7 days) is a bit exaggerated … as I’ve said before, this is the norm in China these days. I do think the company’s primary advantage is in its high ROI on marketing and sheer number of SKUs, but I’ll be talking to others in the industry to check …
Well, William Ding is obsessed with music, we know that. (Perhaps even more so than Jack Ma, because William has actually released music, versus just do covers of others’ songs.) Anyway, his second spinoff (the first being Youdao) has just filed for an IPO on the HKEX. Unfortunately, I can’t see anything really worth noting about this company, even though thanks to antitrust, it finally has more direct partnerships with the record labels than before. Other than that, almost half of its business is livestreaming. Anyone else have an opinion?
Other Posts from the Community:
Wesley is interested in knowing more about Corporate Venture Capital Landscape Resources?
Anton and Michael had a lot more comments to add on this old thread on Semiconductors and whether or not there is de-Americanization of supply chains by non-Chinese firms. Have an opinion? Please weigh in here!
Welcome to our new members:
Things You Might Have Missed from the WhatsApp chat:
Throwback Threads
JD Logistics just listed and raised $3.2Bn. I wrote about it a while ago, would love to hear from any of you who studied up on the company! I think of it as a smart way for JD to play the capital markets but not particularly exciting as an investment, what are you thinking?
BossZhipin also filed. I wrote on it very recently. It’s probably one of my favorite companies recently because it is actually innovative. For those who are product folk, I added some comments today on the insights that went into the product as told by previous employees.
One Last Thing …
We did just finally launch the RSS feed of our livecast! This is different from our regular podcast in that these are live conversations I’m recording, and you’re welcome to join! There’s quite a bit of backlog to edit and upload, but please subscribe if you’re interested in hearing from industry folks firsthand!
That’s it! Please check the forums for amazing contributions from our members and join the WhatsApp group!
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