If everyone is reborn, who will work for capital?

Chapter 177 The Ascension of Arctic Capital

Kik's early release really caught Gengzhi completely off guard.

He then realized that the flapping of his wings, like a butterfly, had begun to influence the rhythm across the ocean.

Kik is an instant messaging tool created by a team led by Ted Livingston and Christopher Best, students at the University of Waterloo in Canada.

Livingston interned at BlackBerry, and his product ideas for Kik stemmed from that internship experience—or rather, he drew inspiration from some of the ideas in BlackBerry Messenger.

During his internship at BlackBerry, he felt that BBM's limitation—being limited to BlackBerry phones—was too restrictive. Wouldn't it be great if there were a cross-platform instant messaging tool that could run on both iPhones and Android phones?

Since receiving angel investment from Arctic Capital, this team has been incredibly motivated, ramping up their R&D efforts and launching the product at the end of August, more than a month ahead of schedule.

Kik's core positioning is clear: a cross-platform free SMS messaging tool that works on multiple systems including Android, iOS, and Blackberry. Livingston has declared that he will use it to "crush traditional SMS".

Kik's most striking innovation is its registration method, which doesn't require linking a phone number; users can register using only their username and email address. This greatly protects user privacy and won over a large number of young people in North America as soon as it launched.

What's even more outrageous is its growth rate.

In just 10 days since its launch, it has already amassed nearly 100 million registered users, demonstrating its explosive growth potential. Moreover, the number of users is increasing at a visible rate, showing signs of sweeping across North America.

Without any marketing or promotion, relying solely on word of mouth, it's a miracle.

In its previous life, Kik became incredibly popular, but within a month, BlackBerry removed it from its app store for commercial infringement and filed a patent lawsuit, causing Kik to lose a large number of users in a short period of time.

This time, at Geng Zhi's behest, Arctic Capital's support for Kik goes beyond just financial assistance.

Arctic Capital provided Kik with significant assistance in legal aid, patent licensing, and product channel development, truly fulfilling its promise of providing comprehensive, supportive investment. This earned the great trust of Livingston and his team.

Geng Zhi was naturally happy that Kik, which he had invested in, had become a hit. But at the same time, he also had a slight worry.

At this time, MIUI from Dami Technology has only been online for a short time, and it has received rave reviews in the geek community. Its momentum is incredibly strong, and it has even been called the "ceiling of Android UI".

Arctic Capital is already a shareholder of Dami Technology. Geng Zhi heard from Li Dongping that Lei Jun has been so excited lately that he can't sleep and spends all day interacting with users on forums.

It's uncertain whether Li Dongping, who knows Kik inside and out, would kindly recommend Lei Jun to create a domestic version of Kik.

MiTalk.

If Dami Technology launches MiTalk now, will it alert Tencent and prompt Tencent to enter the market early and fully commit to the instant messaging track?

If this happens, will the battle between Tencent and Weibo end sooner? Where will the 3Q War go?

Any variable can affect one's strategic layout.

dong dong dong——!

Just as Geng Zhi was frowning and seriously pondering a solution to the problem, there was a knock on the office door.

"Please come in." Geng Zhi pulled himself out of his thoughts and leaned back in his chair.

As soon as the door opened, product manager Ma Tongtong rushed in, phone in hand, eyes bright.

"Boss, boss! Big discovery! While I was routinely digging into new products in the North American market, I unearthed a gem—an instant messaging app called Kik. It's only been online for 9 days, and its user base is reportedly approaching 100 million!"

She leaned closer to the desk and handed her phone to Geng Zhi: "Boss, look, we have all the features they have, and we also have features they don't, like group chat, voice messages, typing mode, and PC synchronization!"

Geng Zhi glanced at her phone, calmly raising an eyebrow: "Oh? So what do you think this means?"

"This proves that we've chosen the right path for WeChat!" Ma Tongtong exclaimed excitedly. "Kik has validated the market demand for mobile IM, and our product is even more powerful than theirs! This proves that our judgment was absolutely correct."

"Okay. Spend more time these days keeping an eye on the activities of major domestic internet companies and see if they're copying Kik," Geng Zhi said.

"Roger!" Ma Tongtong replied enthusiastically, but then she thought for a moment and asked doubtfully, "Boss, you don't seem surprised at all? Did you already know about Kik?"

A smile played on Geng Zhi's lips: "Your boss told me before Kik went live."

"Oh—I see, that explains it!" Ma Tongtong exclaimed in sudden realization.

"By the way, has the first version of the PC version of WeChat been submitted for testing yet?" Geng Zhi asked.

"We've already started testing in batches! Haitang and the others have finished testing the first batch of features, and there aren't any major problems. The latest batch of features will be submitted tonight, and if all goes well, it can be officially launched the day after tomorrow."

"So fast?" Geng Zhi was slightly surprised and raised an eyebrow.

"Yes, since Liao Jun took over General Manager Lü's work, his efficiency has indeed increased significantly, and he's avoided a lot of detours," Ma Tongtong exclaimed. "Liao Jun's joining is truly a blessing for our company!"

Liao Jun's joining is also a misfortune for Penguin — Geng Zhi muttered to himself, a slight smile playing on his lips.

"Okay, Tongtong." Gengzhi sat up straight. "Once the PC version goes live, have Shu Beibei immediately start promoting it to B2B companies. Begin by promoting it to small and medium-sized companies in Shanghai. Gather feedback from B2B users and see what can be improved."

Ma Tongtong was stunned for a moment, her face full of confusion: "Huh? Boss, didn't we agree that we'd use the PC version as an internal tool first, and then release it to the market in October? Why is it suddenly being moved up?"

"The market situation has changed, we can't wait any longer." Geng Zhi shook his head. "Kik is already a hit, and major domestic companies will definitely follow suit. If we launch it a day earlier, we can seize the mindset of being number one in the industry sooner, so that others don't get the first move and we won't have time to cry later."

"Got it, got it!" Ma Tongtong immediately understood and nodded. "I'll go tell Beibei right away and have her prepare the promotion plan!"

Kik became a sensation in North America, and Arctic Capital also benefited from it. This investment firm, which was established less than a year ago, became a hot commodity in the investment world overnight.

Li Dongping, an investor who has invested in companies such as Micro-Ju, Dami Technology, and Kik, has gone from being relatively unknown to becoming a star investor in the investment circle.

The first is micro-aggregation.

When WeJoy was first established, Li Dongping of Arctic Capital recognized its potential and, together with Zhu Xiaohu of GSR Ventures, invested in WeJoy's Series A round.

Relying on its strong ground promotion capabilities, offline event organization capabilities, and financial resources, Weiju, established for just over four months and led by Li Haipeng, has been conquering lower-tier cities like an autumn wind sweeping away fallen leaves.

Although in terms of absolute user numbers, Weiju, with only 450 million users, is less than Momo with 650 million users and Renren with 600 million users.

.

However, in terms of daily active users, Weiju has far surpassed Renren.com, whose reputation is mediocre, and firmly occupies the second position in the industry.

Moreover, in terms of revenue, Weiju's daily revenue has exceeded 20 yuan, and it has been profitable for two consecutive months, far surpassing all competitors and firmly establishing itself as the industry leader.

The fiercer the competition, the hotter the sector, and the higher the valuation.

Currently, WeJoy is in Series B funding negotiations. With the continuous push from Momo and Renren, WeJoy's valuation has been inflated to as high as $1.5 million, reaching 60% of Momo's valuation.

In its Series B funding round, Zhu Xiaohu made a significant investment, with Jinshajiang Venture Capital leading the round with a $1500 million investment, while Arctic Capital only made a symbolic $100 million follow-on investment.

Meanwhile, those institutions that missed out on Mingfan Technology's Series B funding round, such as Qiming Venture Partners, KPCB, and IDG, all flocked to it, scrambling for investment shares in Weiju. In the end, Weiju's total funding amount soared to $3000 million, making it a veritable capital feast.

Secondly, there's Dami Technology.

After its release, MIUI engaged in in-depth interactions with tech enthusiasts through forums, and its UI design quickly gained popularity among enthusiasts both domestically and internationally.

On the XDA forum, the MIUI section of Dami Technology has become one of the most popular sections, with thousands of discussions every day. Overseas users have even created their own English language packs.

Moreover, its rapid iteration speed of one version per week far surpasses that of major mobile phone manufacturers, greatly increasing its reputation in the geek community. User requests can be implemented the following week, a pace unprecedented in the mobile phone industry.

The rapid success of MIUI demonstrates the exceptional execution capabilities of Lei Jun's team and dispels investors' doubts about the capabilities of the MIUI team, thereby increasing their confidence in the "triathlon" model of [software + hardware + internet services].

This indirectly confirms Arctic Capital's unique vision, and Li Dongping's reputation has grown even stronger.

Led by Arctic Capital, Dami Technology quickly began negotiations for its Series A financing round to prepare funds for its full-scale foray into hardware manufacturing of mobile phones.

Besides Arctic Capital, Morningside Venture Capital, IDG Capital, and Qiming Venture Partners have also entered the fray, all hoping to ride the wave of Dami Technology's popularity.

Finally, Kik's breakout performance propelled Li Dongping to legendary status, with some media even giving him the title of "Midas Touch," saying that he hits every single one of his shots and his eye for talent is astonishing.

Of course, Li Dongping wasn't arrogant; he knew that all of this was thanks to the mastermind behind it all.

Not only are the media and entrepreneurs praising Li Dongping, but other investors also regard him as a "trendsetter" and even start following suit.

Arctic Capital will spend several times more effort researching any project they have invested in or are considering, for fear of missing out on the next Kik or Dami Technology.

This wave of bandwagon effect unexpectedly brought Ele.me into the spotlight of the investment community. The food delivery sector, which previously received little attention, has now become incredibly popular.

If we're talking about who has the most complicated feelings in the investment world, it's definitely Zhu Xiaohu of Jinshajiang Venture Capital.

On the one hand, he was regretting not heeding Li Dongping's advice and not investing in Dami Technology. On the other hand, he was also feeling uneasy because Arctic Capital only invested $100 million in MicroGather's Series B funding round.

Beijing, Olympic Park Tennis Center.

Zhu Xiaohu, who had just finished a tennis match, was sitting in the rest area wiping away sweat.

Kong Min, who was standing nearby, couldn't help but lean over and hand him a bottle of mineral water. Then, with a puzzled look, she asked, "President Zhu, Weiju is developing so well, so many investors are scrambling to get into the Series B round. Why did Arctic Capital only invest 100% this time?"

Ten thousand US dollars? That's too little, it's not like them at all.

Zhu Xiaohu took the water bottle, unscrewed the cap, took a sip, and said in a deliberately calm tone, "Li Dongping told me that they want to save funds to invest in several other higher-quality projects, and they don't have the extra energy to invest more in Weiju for the time being."

Zhu Xiaohu said this, but he himself didn't know whether what Li Dongping said was true or just an excuse.

Kong Min pondered for a moment and guessed, "President Zhu, the 'better projects' that President Li mentioned should include Lei Jun's Dami Technology, right? Should our Jinshajiang Venture Capital also invest in it? Maybe we can catch the last train."

Zhu Xiaohu sighed helplessly, his face full of regret: "It's too late. We've already missed the best opportunity. Dami Technology is on a roll right now, and Lei Jun isn't going to take just anyone's money. Even if we wanted to invest, they might not be interested."

He paused, then continued, "If we missed it, we missed it. Let's focus on Ele.me next. We can't miss it again this time."

"Yes, Mr. Zhu," Kong Min replied readily.

Meanwhile, in the Yingu Building in Zhongguancun, at the office of Dami Technology Company.

Lin Bin, Li Wanqiang, Huang Jiangji, Liu De, and other founders are having a heated discussion about the priority of MIUI's next iteration.

With a loud bang!

Lei Jun returned from outside carrying two Golden Pillow durians and suddenly pushed the door open from the outside.

Lin Bin, Li Wanqiang, and the others were startled and looked up at Lei Jun, who was usually calm but seemed to have gone crazy.

Seeing Lei Jun's smiling face, Li Wanqiang hurriedly asked happily, "Mr. Lei, has our Series A financing been finalized?"

"Not yet, not yet." Lei Jun waved his hand hastily, putting the durian on the table. "We've only just started negotiating, how can it be so fast! Morningside has made an offer, IDG is still evaluating, and Qiming is also doing the math."

His smile didn't fade; in fact, it became even brighter.

"Then... Mr. Lei, why are you so happy?..." Huang Jiangji asked impatiently, equally puzzled.

"Meeting, all of you come to the office, I have an important announcement to make!" Lei Jun didn't explain much, he just called the partners to the conference room for a meeting.

Once everyone had arrived, Lei Jun excitedly pulled out his Meizu M8 phone and showed them an app: "Everyone, this is KikMessenger, the North American version. Have any of you been paying attention to it lately?"

Lin Bin, Li Wanqiang, and the others glanced at it and shook their heads repeatedly.

"This is an incredibly useful software. It's only been online for 10 days, and it already has nearly 100 million users," Lei Jun continued excitedly. "Come on, everyone, try it out!"

As Lei Jun spoke, he handed the phone to Li Wanqiang on his left: "Li, you try it out first, then pass it on to the others to try."

Li Wanqiang, Lin Bin, Liu De, and others tried it out one by one before handing the phone back to Lei Jun.

Lei Jun, as if afraid the group wouldn't know, continued explaining as they tried it out: "This is a free, cross-platform, cross-carrier instant messaging tool based on your phone's address book, it can—"

"Mr. Lei, this software looks so-so, the functions are quite simple, compared to QQ, it's still weak, right?" Liu De, who was in charge of industrial design, was puzzled. He didn't understand why Lei Jun was so excited about such a simple product.

"Old Liu, what you see is only the surface. Kik is a software specifically designed for mobile devices, and it's exclusive to 3G smartphones!" Lei Jun waved his hand again.

He tapped the table and continued excitedly, "Everyone, our chance has come! A once-in-a-lifetime opportunity!"

"Mr. Lei, you mean, we should also make an app similar to Kik?" Li Wanqiang was the first to react.

"That's right! That's right!" Lei Jun's voice rose in pitch. "QQ is the market leader, but QQ is mainly focused on PCs."

"On mobile devices, there isn't a single product that truly dominates the market."

"Momo is currently the dominant player in mobile social networking, but its stranger-based nature means that no matter how much it develops, it can never replace QQ's position."

"The current success of MIUI fully demonstrates that the software component of our [three-pronged approach] has achieved a significant milestone. We'll start manufacturing the phone hardware soon; what we lack now is internet service, and Kik has provided us with that direction!"

Upon hearing this, Lin Bin, Li Wanqiang, and the others began to ponder.

"Everyone, if our Dami Technology wants to become a truly great internet company, not just a hardware company, we need a very powerful, national-level application. Now the opportunity has arrived!" Lei Jun urged.

Lin Bin understood Lei Jun's idea.

Back when he and Lei Jun were the only partners, and shortly after Momo emerged, Lei Jun had considered imitating Momo and creating a social networking product for strangers. However, he ultimately abandoned the idea because he worried that Mingfan Technology's reputation was too great, its first-mover advantage too obvious, and the window of opportunity had already closed.

Now a new opportunity has arrived, and Lei Jun could be the first imitator in China, giving him a first-mover advantage. He doesn't want to miss it.

"Mr. Lei, I understand what you mean—" Lin Bin slowly began, "But communication tools are the foundation of Tencent. We haven't even released our own phones yet, and we're already going head-to-head with Tencent. Isn't that like throwing an egg against a rock—"

"Lin Bin, you're absolutely right!" Lei Jun nodded firmly. "Whether we succeed or fail depends on Tencent."

"The essence of this battle is to gamble on the timing with Tencent. Tencent is currently fighting with 360 and Weibo, which is our best opportunity to launch a surprise attack."

Lei Jun walked up to the whiteboard, wiped it clean, and wrote down the words "[MiTalk]".

On his way back, Lei Jun received a call from director Li Dongping, who informed him of Kik's explosive popularity and asked him to decide whether to create a domestic version of Kik.

Upon hearing this news, Lei Jun quickly found a way to download Kik and started trying it out.

The more he experienced it, the more excited he became. He immediately decided that DaMi Technology had to replicate Kik, and he even had a name for the software: [MiTalk].

Lei Jun then wrote two more numbers, 50% and 10%, on the whiteboard before continuing, "If it takes Penguin a year to react, then our MiTalk has a 50% chance of winning! If Penguin's reaction time is shortened to two or three months, then our MiTalk's chance of winning may be less than 10%."

Lei Jun said something against his conscience.

In fact, his inner thought was that if the response time of Tencent were shortened to only two or three months, he believed that MiTalk's chance of winning might only be 1%.

Even with exaggerated figures, Lei Jun's proposal was still opposed by Liu De and Dr. Zhou Guangping, who had just joined the team.

Zhou Guangping, in particular, even showed a hint of displeasure.

"Mr. Lei, before I came here, you said we should [focus, strive for excellence, build a good reputation, and be fast], but we're about to launch a mobile phone project, and now we're also going to make MiTalk. Isn't that a conflict? How can we still be focused?" Zhou Guangping questioned.

"Dr. Zhou, there's no conflict, these two things don't conflict at all!" Lei Jun patiently explained, "The three pillars need MiTalk, and now is the best window of opportunity!"

"Dr. Zhou, what you're worried about is that once Tencent makes a move, we'll ultimately fail, right?" Lei Jun looked at Zhou Guangping. "Is that right?"

Zhou Guangping remained silent for a moment, then nodded.

"Dr. Zhou, let's give it a try. This is purely software, so it won't cost anything to try. We can have Huang Jiangji lead the team to develop it quickly without affecting the phone's hardware development."

Upon hearing this, Zhou Guangping felt that there was some truth to it, so he remained silent.

"Everyone, this is the perfect opportunity for us to disrupt QQ. This is a market opportunity worth hundreds of billions of dollars!"

"Everyone, this is a golden opportunity, a once-in-a-lifetime chance. If you catch the right wave, even a pig can fly, let alone us, who are no pigs!"

"Moreover, we have a major advantage: Kik is invested in by Mr. Li Dongping, so we have a major information advantage."

After nearly an hour of Lei Jun's frantic brainwashing, the team finally reached a consensus:

Led by Huang Jiangji, the development director from Microsoft Engineering Institute who had previously been in charge of instant messaging business, the team immediately launched the development of the Android version of MiTalk, aiming to overturn QQ before Tencent could!

Dami Technology's MiTalk project has been launched, and Mingfan Technology's project has also made a major breakthrough.