Xunyou: Online Games Run-up "Gold Absorber" Received 100 Million Yuan Venture Capital (VC 262)

In just 4 years, the company founded by the 26-year-old young man Yuan Xu, through its self-developed network accelerator (that is, a client software that provides acceleration services for online games), made 20 million people its paying users.

As the CEO of Sichuan Xunyou Network Technology Co., Ltd. (hereinafter referred to as Xunyou), Yuan Xu said that in fact Xunyou's profit model is very simple: players first download this accelerator software, and then use it for a period of free trial, and then use it for a monthly fee . Although Yuan Xu refused to disclose the specific profit amount, he admitted that this figure in 2009 was already in the tens of millions.

With the trend of online game accelerators becoming more and more the “gold sucker” of Xunyou, venture capital institutions began to throw “olive branches” to them. On April 16, Xunyou reached an agreement with four major investors such as Zhixin Capital, Yingchuang Power, Dachen Ventures, and Asian Business Emerging Funds to raise 100 million yuan, with an initial payment of 40 million yuan. Regarding the financing chased by venture capital investors, Yuan Xu laughed, saying that in fact we have always been "financed". The money in place will mainly be used to further promote the upgrading of online game acceleration technology and shorten the development cycle.

Buy "road" and build "bridge"

Kai-fu Lee once said, "The common characteristic of great entrepreneurs is that they are obsessed with their products, not interested, not understanding, but obsessed."

This is evident in Yuan Xu. Out of obsession with online chat rooms in junior high school, Yuan Xu integrated the text mud and other games into the chat room at the time. Netizens needed to pay to play, which gave him the first bucket of gold in life at the age of 14 yuan. In high school, Yuan Xu, who is obsessed with online games, also obtained a second barrel of gold of 1 million yuan by forming an online game battle platform.

When he was still obsessed with online games in college, he dreamed of making his own online game, so he resolutely dropped out of Peking University and returned to Sichuan to start a company with several partners who were also obsessed with online games. But after three months of hard work, forced by lack of team experience and lack of resources, after intense discussion and analysis, the idea of ​​developing online games was finally abandoned.

However, Yuan Xu and his partners did not want to leave this industry, so they focused on the services of this industry. At that time, Yuan Xu first thought of the acceleration of online games. "I have operated online games in the earliest time, and then I have also worked in an Internet data center. I understand the reasons for these two things and the needs of users." He also found that: slow Internet speed is the most complained online game problem by players, and this is precisely a problem that online game operators cannot solve. So, he and the team began to focus on the development of online game accelerators.

After more than two years of research and development, Xunyou has finally developed an online game acceleration software that can effectively solve the problems of high delays, login difficulties, and frequent dropouts encountered by netizens in online games. Although this is very complicated in terms of technical implementation, Yuan Xu usually tells an example to let everyone understand that the Internet is similar to the road network, and it is also a complicated mesh structure, just like driving from Chengdu to Guangzhou, you can pass Wuhan, Changsha, and You can pass through Chongqing and Guiyang. If a certain section of expressway becomes congested due to too much traffic, the time spent on the road will increase greatly. Similarly, if the operator's inter-provincial exports are congested, as reflected in the game, serious card and packet loss will occur. What Xunyou does is: buy high-quality bandwidth from different operators. When a certain period of Internet congestion occurs, you can use the background path algorithm to choose different paths for users, or even lines of different operators to bypass congested roads. , So as to ensure that players can play smoothly.

As for how to cooperate with telecom operators? "Our relationship is very simple, mainly to buy the bandwidth of telecommunications, mobile, and China Unicom. This investment will cost tens of millions of yuan a year. If the operator builds the road, then the rapid travel is the viaduct, There is no conflict with the highway. "Yuan Xu said that many people confuse accelerated services with plug-ins and gateway agents, thinking that Xunyou is a company that survives between operators such as telecommunications and Netcom, but in fact it is not the case. Xunyou is laying on The second layer network on the basic Internet (they call it "Virtual Transport Private Network"). Because this network is leading in accelerating interactive traffic, it can simplify and optimize the information transmission process, so that online game data can Drive smoothly on your own transmission road.

Bundle with operator

Individual players using Xunyou ’s accelerated service need to pay a fee of 20 yuan / month, which is Xunyou ’s current main source of income; in addition, Xunyou will also discuss with the operator a mutually agreed Proportionately divide. Yuan Xu said, "We are service providers. The joint operation with game operators is mutually beneficial. Players need to get a good game experience, and game operators also need such service products to enhance added value."

In March 2009, Jinshan took the initiative to invite Xunyou and domestic and foreign well-known acceleration service providers to participate in the accelerated service test of the online version of "Jianxia Qingyuan 3". After a two-month test, Xunyou finally won and signed an agreement with Jinshan in June of that year. The direct Xunyou product was integrated into the online version of the game client of "Jian Xia Qing Yuan San". Users can choose when they log in to the game. Whether to use it and enjoy a long free period.

"Xunyou is the first value-added service software that is deeply bundled with online games, including the opening of user passes and the sharing of billing systems. It is a pioneering cooperation." Yuan Xu said that in addition to acceleration, players can also quickly log in through the software Game official website, download game client and online game peripheral utility tools, purchase game point cards, etc., and check and kill viruses through the cooperation module with 360 security guards. In addition, Xunyou has also carried out preliminary cooperation with game operators such as Shanda, Jiucheng, Perfect Time and Space, mainly to recommend the download position of Xunyou accelerator in the official website of these well-known online games, and Xunyou does not need to pay for this. It means that Xunyou did free promotion.

Although he has always been committed to in-depth cooperation with game operators, Yuan Xu, who is well versed in the psychology of Internet users' needs, has always insisted on the principle of not harming the user's experience. For example, on the homepage of Xunyou, Yuan Xu insisted on the freshness of the page, and did not make rough advertisements in pop-ups. In this regard, Yuan Xu said: "Now many people want to put a flag on our head (advertisement), and the client keeps having companies come to us to cooperate with advertisements, but I refused because we ca n’t It has a tendency to force our users to choose content. This is not our value, so we will not do it. "Looking at him, although it may receive tens of millions of advertising revenue in a year, such advertising is very It is easy to affect the user experience, which is contrary to the values ​​of Xunyou.

Realizing that the network acceleration market segment is still a blue ocean, well-known companies such as Jinshan have poured into this market. However, Yuan Xu believes that the acceleration of online games in this market is actually limited, and increased competition will shorten the saturation time of this market. Therefore, how should Xunyou maintain high growth next? Besides speeding up, what else can Xunyou do in the future? These are issues that Yuan Xu needs to consider.

Investment Story

Xiong Wei, Investment Director of Shenzhen Dachen Venture Capital Co., Ltd. believes that the rapid development of the online game market, but the construction of basic network facilities can not meet the needs of the rapid growth of Internet applications, this is a contradiction. This contradiction will continue to exist, so the potential of online games to accelerate the market is great. However, the acceleration of online games also requires cost support, and the need for a good user experience determines the inevitable charging model. At present, it seems that the online game players' recognition of the payment model makes Xunyou's business model and profit model clear and simple. This is where Xunyou's long-term investment value lies. In addition, online game acceleration is a typical Internet business, and the continuous strengthening of first-mover advantage and the expansion of new services are the problems that Xunyou needs to solve.

Third eye

Analyst Yu Yi of Analysys International believes that online game acceleration service is a new role in the online game industry chain. The value of Xunyou is to improve the player experience very well. Its application is a common demand rather than a one-off, so its market prospects It is relatively clear. But it should be reminded that the things created by Xunyou are replaceable. The difference between the speed requirements of online game products and the actual level of basic telecommunications services makes Xunyou's products have the value of paying. When this difference does not exist, the existence of Xunyou is very dangerous. In addition, the capital strength of many domestic game operators is very strong. Once the technology or services are mastered by them, the challenges facing Xunyou are also huge.

The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting. For more information, please click download to view all articles.
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