Based on these six criteria, they invested in Zhubajie, which is valued at 10 billion yuan.

Why is "white-collar women aged 18-35" not a good positioning? In their eyes, what are the three core capabilities of entrepreneurs? Why do some people always miss out on high-conversion marketing scenarios? Heima Ge believes that these major criteria are worth thinking about for every founder. Is your project a valuable early-stage project in their eyes?

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Early stage investment needs to evaluate what kind of innovative projects will be successful. If you, the Black Horse members, want to invest with Yitian Angel, the most critical question is this. What is innovation? In fact, there are two markets: one is the traditional market, that is, your product has been verified by market demand; the other is the innovative market, your product has not been verified by market demand. When no one in the world is using your product, we have to make an investment. At this time, there will be three risks: one is that no one wants your product, two is that you cannot find users for your product, and three is that your product cannot continue to make profits. We mainly analyze whether these three risks exist.

In recent years, we have invested in more than 70 projects, including Zhubajie and Qihoo.com. Two of these 70 companies went bankrupt, and the remaining 70 or so companies all got the next round. This ratio is very high.

We mainly focus on the following points:

The first is the user and user value. That is to say, your product is for people to use. If you come to me for money, you have to tell me who you are using it for and what problems it solves. Because there is no universal product that is applicable to all human beings, you must have a clear user positioning. If you can't tell who your users are, or if you say it vaguely, such as 18-35 year old white-collar women, you will definitely fail. And I want to feel that this user has a gathering place, not scattered all over the world.

The second is the market size and trends. The market size is huge, and we have made a series of investments in areas such as food, clothing, housing and transportation. As for trends, we also made some arrangements for cross-border e-commerce, Internet finance, enterprise services, etc. several years in advance.

The third is the leader and team. We divide all entrepreneurs into four levels: technical, product, operation and entrepreneur. Everyone knows that entrepreneurs have three major abilities: setting strategies, leading teams and organizing resources. These are the three most important core abilities of entrepreneurs. How do I judge the size of these three abilities? I will consider the aspects of physical condition, ability, attitude, personality, quality and mind.

The first three are necessary conditions. We will not invest if any one is missing. In other words, the product must be valuable, the investor and team must be reliable, and the market size must be large enough.

The fourth is the business model. The business model is a method of acquiring users. Several dimensions are important: one is low cost, the second is high efficiency, and you need to describe a marketing scenario for me. For example, once I took a high-speed train. When I just got on the high-speed train, someone was selling power banks, but in fact, it was easy to sell out if you pushed them to sell at two or three o'clock in the evening, so you need to describe a marketing scenario with a high conversion rate. Third, you need to describe the gathering place. For example, we invested in an airport parking project. Because all people who booked air tickets would go to the airport, this project was entered from Ctrip.com, and he did sign the contract. This gathering place was captured very accurately. The fourth is a one-sentence advertisement. If you can't summarize it in one sentence, and you still say something about the top ten functions and eight highlights, it's absolutely unreliable. The fifth is the model, including agency, advertising, word of mouth, virus, and viscosity model. Regarding word of mouth, no one will recommend a useless product to his friends.

The fifth is the business model. First, is the business model reasonable and easy to be accepted by users? Second, is the model simple? Third, the growth pattern of the profit curve. Many companies with a high-tech name actually have a very traditional profit model. They mainly examine two linear curves: one is profit linearity, and the other is cost increase. In other words, the more money you make, the greater the cost. However, we hope that the cost is linear and the profit curve is compound growth.

Sixth, relative competition. In the early days, we made a value judgment. First, there were no big names in the industry. If there were companies in the industry that had received round B investment, our angel investment would definitely not enter. At the same time, if there was round B investment entering the industry, it was no longer an innovative project for us, and there was no innovation premium, because it had been verified by millions or hundreds of millions of users before it received round B. Of course, you also have to consider what competitive threshold you can create in the future? When we invested in Zhubajie, we thought it could create a threshold because it was a platform. In fact, it only lifted this strategy last year, saying that I want to be the best, because only the best has the platform effect. What is the conclusion? The conclusion is that we have the potential to become the best in the vertical field.

***To sum up, I think the entrepreneur must first find a problem that needs to be solved, and then create a product for his precise user group. This product must have a large market scale. He also finds a way to develop users. More and more users use his products, and eventually he finds a way to make money. He eliminates all competitors and becomes famous. This is what we understand as the six standards for early-stage investment.