Children’s fashion short video project "The Cherry Is Here"

Since this year，Zuo Yu successively invested in the children’s fashion short video team “Cherry is Coming” in the vertical field，And "Fantasy Forest", a leader in the magic industry whose main business is magic performances and magic IP creation。The two seem to belong to different fields，But in Han Ze’s view，The investment logic is actually the same - "Here Comes the Cherry" and "Fantasy Forest" both fall under the category of "service consumption"，The leading company in the vertical field，Has strong content production capabilities、Integration of online and offline resources、Team with content and business integration capabilities。

No matter what the content is，The final exit and destination are consumption。And from a macro perspective，The service industry accounts for an increasing share of GDP，We are eating、Live、The cost above the row will be migrated to the service upgrade，In the past it was because everyone had no food、Live、Platform for solutions，Are you hungry now、Didi、These Ctrip platforms appear，Everyone will definitely enjoy more types of services in the future，Requires some manual involvement and resource combination，Give consumers a better experience。

We all grasp the pace of investment based on the overall logic of "service consumption"。Frankly speaking, we have accumulated more experience in tourism before，There are also many projects，We must plan around the main track。While expanding tourism investment in the first half of last year，We are also expanding into sports、Recreation and Education，In fact, we are progressing in these tracks together。

"Three Sounds":Under this logic, what parts is Zuo Yu most concerned about?

Han Ze: Summed up in one sentence: Pay attention to the new generation、New consumption and new value。

The new value must be generated under the new consumption model based on the "new needs" of the new generation，So it also has an unprecedented sense of experience。With the rise of new consumption，A new value system is being shaped，The business model based on the new value system is more open on the one hand，On the one hand, be more self-conscious；Link everything on one hand，On the other hand, efficiency is important；Both vertical and cross-border，More professional and more interesting，Present a diverse and rich state。

"Three Sounds":Specifically speaking, this segment of the entertainment field，As a young fund，How do you enter and determine the direction of the main attack？

Han Ze:Now in the entire cultural tourism consumption circuit，We have more than 2000 targets，Their information is structured，Includes background of founding team、Business Model、Main products、Sales channel、Operation level、Revenue in the past two years、Growth、Competitive Landscape、Financing status, etc.，It is a very systematic set of analysis。This work is done every day，We will code the companies in each track into our corresponding ecological map，Gradually replenish the shape of our entire ecological map。

This makes our investment logic to screen in a networked industry，Instead of grabbing the explosive point at a single point。After this comprehensive study based on the industrial chain and supply and demand relationship，We found many regular things，These are the key elements that help us discover where the opportunities are in the industry。

"Three Sounds":Is there any particularly typical case to share with us?

Han Ze:Fantasy Forest is a company that particularly conforms to Zuoyu’s investment logic。As just mentioned，Zuo Yu has always paid attention to the explosive opportunities in subdivided fields，First，In terms of vertical content, The Jungle Book is the well-deserved NO.1 on the Chinese magic track.1，We would think that he is more similar to Happy Mahua，The Jungle Book itself has its own content，2B、2C’s performance magic training and magic prop production，Future performances will also form a series of influential magic performing arts IP。And the magic SKU is extremely rich，And suitable for all ages，There may be parent-child magic、Magic for families，There will also be special sessions for couples, etc.，His audience is larger than Happy Twist。Happy Twist has landed on the New Third Board and is applying for transfer，We feel that the development space of Fantasy Forest must be no less than that of Happy Twist。

The currently released "Who Am I" is already a complete magic drama。And we don’t just look at it from the perspective of pursuing IP，As mentioned before，IP is just a link，The most important thing is the commercialization and operation level，We see that The Jungle Book has the ability to mass produce 2B and 2C entertainment products，And has very strong commercialization capabilities。Offline entertainment is very popular this year，About more than 300 music festivals，Some of the top projects of these companies have very strong liquidity，The Fantasy Jungle is a typical representative of offline entertainment，High net profit，Very beautiful in early stage companies。

One more important thing is，Offline entertainment companies like The Jungle Book，Look in this direction and find out，It is indeed suitable for linkage and matching with some layouts of our industrial funds。The Jungle Book itself also values ​​the resources and help we can provide at this point。This is also the advantage of having industrial funds，I will elaborate next。

Also，We are on the entertainment track，I will definitely vote for a project that may have explosive growth，I will also vote for The Jungle Book and play it steadily、High growth team。People like Liang Ming started doing magic in college，Later founded the Beijing University Magic Alliance，Do it step by step，Twelve years to sharpen a sword，That’s why the Jungle Book became what it is today。You can see his focus and persistence，From early operations to cash flow generation，He was involved in the whole process，And in the most difficult times, you can use your own money to try every means to keep the project alive，This is the outstanding entrepreneur we are looking for who is fully committed and has experience and resources。

Of course we also visit frequently、Continue to let the Jungle Book know our strengths，has contributed to this win-win investment。And Zuoyu has been doing a lot in post-investment services，Include PR、Finance、Legal affairs sorting, etc. will provide help to our team。The name "Zuo Yu" also illustrates this point。

"Three Sounds":The characteristic of Zuoyu is that it has strong industrial funds as its backing，This asset-heavy industrial fund，What is the significance of venture capital funds that focus on investment and light assets？Will your investment projects match it as much as possible？

Hanze: first，Make it clear that industrial funds do not participate in VC project investment，But there are many ways of interaction between industrial funds and VC funds。First, for example, industrial funds can participate in some destinations、Scenic Area Project，Scenic spot resources can connect projects invested by VC funds with some offline scenarios，Just like the Jungle Book and the destination、Theme Park、Scenic Area Cooperation，Formation of a new type of tourism performing arts；In addition, many destinations can introduce new content according to local conditions during the project planning stage，Suitable VC projects can be given priority。

This is also what many entrepreneurs value，Including some of our current reserve projects in entertainment，When communicating，The other party said that we value your industrial fund background，Because you have many offline scenes that can carry our IP。

But overall,Industrial funds are the icing on the cake for VC projects、Do things that add value。This logic must be corrected，First of all, we don’t fit in for the sake of fit，Whether the VC project will be linked with industrial funds is not a necessary condition for our investment。Even without linkage，If it is a high-quality, high-growth project，Head project belonging to the niche field，We will still vote。Maybe there is no linkage at this stage，But he grew up，For example, two or three years later，We found out that he is very powerful，Already have offline operation experience，We will do the matching at that time。Some high-quality offline projects，Like The Jungle Book，We will definitely use the resources of the industrial fund to help the project grow，We will not say that there must be a linkage before investing。

"Three Sounds":Head content in the investment segment，What kind of crowd are captured？What is the value of this group of people？

Han Ze: In fact, it covers a lot of relatively professional audiences through vertical segmentation，For example, previous folk songs and current electronic music, etc.，Find this circle through content like this，This group of people tends to have higher stickiness than users of pan-content consumption platforms。Especially if you do offline content，You will find that offline itself is a traffic entrance。Compare now with online，The cost of acquiring customers through offline channels is not that high，And if the experience is good, the stickiness will be very strong。

After seizing this circle through the offline entrance，Can do many other things。For example, maybe users of music festivals will also be users of other lifestyle products in the future，For example, users at music festivals may participate in music-themed outbound trips，etc.。

"Three Sounds":For entrepreneurs，What abilities and qualities do you value most？

Han Ze: First of all, we believe that investing in projects means investing in people，An entrepreneur’s sunshine、front、The basic quality of being fully committed to entrepreneurship is what we must require；Secondly，We prefer entrepreneurs who bring their own resources，This means that he has more experience and accumulation in this field。Xiao Jing, the founder of Here Comes Cherry, was born in the radio and television system，Knows both how to create content and how to sell，Liang Ming of the Fantasy Forest also said it clearly above，A professional and tenacious entrepreneur。

"Three Sounds":Comparing the entrepreneurial differences between China and the United States，In an area with a relatively mature business society，Industry innovation is often driven by good technology、Creativity、Promoted by products，But our current content entrepreneurship ecosystem, especially the offline ecosystem，It seems that there is a bit too much emphasis on monetization and business models，On the contrary, the polishing of products and services is not enough，Many transitional products have appeared。How Zuo Yu views this phenomenon？

Han Ze:This has a premise，The huge difference between China and the US market，It’s not just the venture capital environment that is different，But the entire social form、The entire consumption structure is also different，So look backWhy many Chinese companies do not have technical barriers in the early stage、The business model is simple but successful，Because there is a huge market and consumer demand behind it，Simple and direct business model is easier to succeed。

This is also a stage that must be passed，It is this environment that gives entrepreneurs opportunities。And we have a huge consumer market，From insufficient supply to gradually abundant product (service) categories，Once consumer products are abundant，People have the ability to discern，After the consumption gradient is formed，You will find existing companies based on mass consumption，Another leader in consumer segmentation，In this process, the development of technology is gradually improved。