Note: The founder of the flange game, Gan Lai, chose to jump from the 22nd floor on August 7. On the same day, Li Hua, the founder of Gu'an Tianxia & Security, also left the world. The hardships, the lack of willingness, the difficulty of starting a business, and the entrepreneurs in the game industry are even more difficult. Why is there such a situation in game startups? There are four reasons for this: the monopoly of the giants; the closure of the game version approval channel; the collapse of the double-creative bubble; financing difficulties. The industry also said that more game companies will close down in the second half of the year.
This switched public number & ldquo; China Entrepreneur Magazine & rdquo; (ID: iceo-com-cn), Author: Zhou Fu Rong, editor: Maji Ying.
At the age of 33, he started his business three times and jumped down from the 22nd floor and fell rapidly.
Gan Lai chose to leave the world in this way. No one expected that he would end his life when the company had obtained multiple rounds of financing.
“ Thank you. I will be well in heaven. ” Gan Lai's last circle of friends, stopped on August 7th.
On the day of the death of Gan Lai, another entrepreneur, Gu An Tianxia & Security Cow founder Li Hua also left the world. According to public information, Li Hua established Gu'an in 2007, focusing on information security and IT risk management.
After Gan Lai and Li Hua left, many entrepreneurs lamented that the industry was hard, and later people should not choose entrepreneurship easily. The last time everyone lamented, it happened on January 25 this year. At that time, the former entrepreneurial idol Mao Yu left the last sentence in the circle of friends: “Well, I love you not to regret, but also to respect the end of the story. ” Then choose to die.
Bitter and unwilling future
“ I can't believe this is true. "The news of Gan Lai's death is that the reaction of his friends, colleagues, alumni and investors is equally shocking. Gan Lai gave them the unanimous impression that they are cheerful and optimistic.
Friends in the circle sent a circle of friends and Weibo said: “ Friends who work together, so cheerful people suddenly left. ”“Going to Shenzhen many times are Ganlai reception, warm and responsible. ”“Before I sat in the United States in the United States, all the way to laughter, the impression is a very humorous and energetic person. ”
After graduating from the Computer Science Department of Huazhong University of Science and Technology, the 80th is the president of the student union. In the game business circle, he has many friends and his popularity is also very good. He loves playing Texas Hold'em with his friends, and playing games is always all in. What a friend sees from this move is that he is optimistic and dares to fight.
Therefore, friends in the circle like to call him A-Gump, like A-Gump in the movie Forrest Gump, simple, optimistic, and positive. Gan Lai did not seem to have revealed his pressure too much with his friends. In the photos that flowed out on the Internet, Gan Lai smiled brightly and could not see the pressure and anxiety of entrepreneurship.
And some media said that he had just married and his wife was pregnant. He seems to have no reason to choose to leave.
However, only close friends know the pressure and hardship of this entrepreneur. A Huake alumnus and a company executive in the game industry said in the alumni group: “Don’t be a family member and would not understand Agan’s pain. Therefore, entrepreneurship is really a life of nine deaths. It is very difficult for a person to get down, and the spirit, the will, the cognition, and the physical body are full of suffering. There are 2~3 reliable partners who have a chance to go long. ”
Gan Lai worked in Tencent and was the first operation manager of Tencent's self-study battle online games & mdash; — "God of God".
And he is not willing to do this, eager to one day be able to fight his own piece of heaven and earth. Entrepreneurs who know Ganlai issued a document saying that Gan Lai is a particularly intelligent person.
In October 2014, Ganlai Ventures established Shenzhen Flange Interactive Technology Co., Ltd. (hereinafter referred to as Flange Game). In April 2016, he successively established Shenzhen Noble Internet Investment Enterprise and Shenzhen Laixiu Internet Technology Co., Ltd.
Among the 3 companies, he is a legal representative of 2 of them.
According to the company, Français is a game developer specializing in iOS and Android dual-platform mobile game development and overseas distribution. The core members of the team are from Tencent, Jinshan, Gameloft, Activision Blizzard, etc., "Call of Duty Online", "Anti-War", "The Gunfire Alliance" and so on are its online games.
In August 2015, a post on the subject of the Gunfire Alliance internal test, there are 5 comments below, three of which were issued by product developers. Visible, there are few followers; and from the developer's message, you can see the full pressure.
“Open the first internal test today, so nervous. ”
“A lot of bugs, optimization problems, Alexander. ”
“The research and development of closed doors, I think it will be out of touch with the players, it will waste a lot of time on unimportant work. On the contrary, seeing people early, being sprayed badly, but I think it will let us focus on the real pain points of the players, let us focus our work more. ”
Gan Lai had high hopes for the game. However, this did not prevent the "gun fire alliance" from going to failure. No one noticed that Gan Lai’s hopes and fighting spirit may be slowly decreasing.
In May 2017, Shenzhen Flang Interactive Technology Co., Ltd. 7 After the equity change, the legal representative changed from Gan Lai to Tan Mingli. At present, Tan Mingli holds 73.66% of the shares, Shenzhen Yixing Investment Partnership owns 19.5% of the company, and Chengdu Nibiru Technology Co., Ltd. holds 6.84% of the shares.
In February of this year, the company entered the clearing mode. Gan Lai is no longer in the ranks of Français game shareholders. The reasons for the change in shareholding and liquidation have not been announced.
The Flange game has received 4 investments. Among them, Zhongqinglongtu participated in the A round investment, and Tap4Fun participated in the B round investment. In November 2017, Flange Games received a C-round investment from Shanghai Yanxiang Enterprise Management Consulting Co., Ltd. This is also the latest investment in the field of game entrepreneurship.
In fact, the entire game industry is facing bleak data. According to the data provided by the research organization Gamma Data, in the first half of this year, the sales growth rate of China's game market was only 5.2%, and in the first half of 2015~2017, the sales growth rate of the game market was as high as 21.9%, 30.1% and 26.7 respectively. %.
The game industry is difficult to start a business
“The gaming industry has never been easier. (Previously) the emergence of a wave of financing opportunities in a wave, prompting many people to embark on the road of gaming and entrepreneurship. "China's partner and blockchain game investor Chen Hao of BitGuild, a multinational blockchain company, told China Entrepreneur.
According to Chen Hao, four reasons have made entrepreneurs in the game industry more difficult.
From the perspective of the big environment, the giant companies in the industry firmly occupy the market and the monopoly is more and more concentrated.
Under the dual advantages of capital efficiency and information efficiency, the dominant party of the flow far outweighs the previous industry monopoly level. Some of the advantages of giant companies have accumulated to the extent that quantitative changes cause qualitative changes, and small companies are unable to compete. For ordinary entrepreneurs, if you can't reconsider the environment, you will inevitably hit the wall frequently, and it will be inevitable.
From a small environment point of view, with the policy adjustment of the relevant departments, the game version approval channel was temporarily closed, and the head company such as Tencent could not get the version number, and the small company would have no chance.
From an industry perspective, it is now entering the period of the double-breaking bubble. “This is a natural decline in the wave of falling back”.
At the capital level, financing difficulties, there is basically no new financing news released in the game field this year. The last time the friends of Flange Games got the investment three years ago, on March 9, 2015, St. Yao Interactive received the angel round investment. Since then, in addition to the Flange game, the entrepreneurs in this industry have basically no one to get financing.
The capital dilemma constrains the performance of new games and even makes some games not as expected. Not only that, Chen Hao said that the second and third tier companies of the year, including some well-known game listed companies, may have only one last breath.
The game startup company's own return capital cycle is long, and the hematopoietic function is still unpredictable. Chen Hao believes that Gan Lai is doing e-sports products. The capital return period of e-sports products is very long, and it is necessary to form good user barriers. In this ecological environment, it will gradually work to form a good return.
Chen Hao calculated the account for the reporter. The investment cycle of such products is generally one to one and a half years. That is to say, it can produce two to 30 million months of running water, and the recycling cost may take half a year. A similar game startup company has a monthly flow of 10 million, only 1.5 million can get the hand, deducting the team maintenance fee of hundreds of thousands, and actually getting up to 1 million a month. The company has invested 15 million yuan before, in order to recover the cost, we must ensure a stable monthly flow, and insist on 15 months to return.
In this long process, it is easy to be copied by the giants with traffic advantages and quickly destroyed.
Even if you cross the marsh, the issue is a problem. Zhao Jian, CEO of hourglass technology, said that the cost of a single product is generally more than 5.5 million, and the cost is between 1000 and 15 million. It is a boutique game, and there are only a handful of issuing companies in China that can produce such products. Often the better the product is, the more no one dares to send it. “First, you need copyright to withdraw funds, you need the other party to understand your product, and there will be no high-level changes. You will find that if you do the best, it is very difficult to find a company to sign your product. ”
How to survive
In the past few years, there have been many people who have started to make games and start businesses from big companies such as Tencent and NetEase, and there are very few real successes.
“Those who can make entrepreneurial choices, some people are naturally restless, some are agitated, and some are encountering a double wave, want to try. I didn't expect my mentality to go back after the changes in the environment. It will be painful at this time. & rdquo; Chen Hao said.
Surviving, it is inevitable to survive in the cracks of the giant. Recently, a former Tencent employee named Xu Zhenhua was sentenced to Tencent for 19.4 million yuan for violating the non-competition clause. The sky-high compensation also set the highest non-competition penalty for such cases.
How to survive in a tough situation?
Zhao Jian said that game entrepreneurs need to hold a group to warm up. “For example, in exchange for heating, I now need products to be distributed in Southeast Asia, Taiwan, and North America. It needs to be bound all the year round, but what is the trust of this kind of binding? Only the exchange-heating of blood thicker than water is possible. “And,” “Preservative heating is the preferred strategy for channel companies to permanently lock down CP product sources. ”
Of course, this is hard to happen between a bunch of people who want to survive. The premise is that your company must be excellent.
Chen Hao believes that entrepreneurs should be mentally prepared. Don't fight capital with the giants, spend less, make small and beautiful products, and serve a small number of users.
“If you have the opportunity to get the investment, you can make a good commercial product. There is basically no chance to succeed in business. & rdquo; Chen Hao said, "more than half of the game companies will close down in the second half. ”