Chapter 226 Grassroots Culture
“Kuaishou GIF is almost dead, how dare you ask for so much money?”

When Cheng Yixiao heard Yang Xiao's ruthless words, he was stunned on the spot. His face was a little stiff and not very good-looking.

He originally thought that he had shown enough sincerity.

You know, in just half a year, the number of their Kuaishou GIF customers has increased by hundreds of thousands.

The original angel investor, Morningside Capital, only valued the company at 20 million and invested million, only holding a % stake.

Now their founding team is selling 10% of their shares to Yang Xiao at the original price, also because they are impressed by the resources in Yang Xiao's hands.

Unexpectedly, on the first day of meeting, I was belittled by the other party.

The implication of his words is that he is not optimistic about Kuaishou.

Then why bother investing?

Of course, the real intention of investors is simply to invest less money and get a larger stake.

Although Cheng Yixiao was a little unhappy in his heart, he did not show it on his face.

Instead, he said without changing his expression:
"Haha, Mr. Yang, you are so ridiculous. Our Kuaishou GIF just broke through the 300,000 user mark last month. The development momentum is at its peak. Why do you say that it is a matter of life and death?"

This is not a small number of users.

But in Yang Xiao's eyes, it was nothing.

Yang Xiao just laughed:
"You previously had an explosive growth in users through Weibo. The current user growth should have stagnated, right?"

Cheng Yixiao's expression changed slightly, and he was shocked. He didn't know how Yang Xiao knew about their current predicament.

It is indeed as Yang Xiao said. Not long ago, through the use and sharing of top Weibo influencers such as He Jiong, a large number of Kuaishou GIF animations were widely circulated on Weibo, setting off a wave of GIF battles.

But this kind of heat was just like a gust of wind. The freshness it brought to netizens at the time quickly cooled down.

User stickiness is also insufficient.

After all, the current Kuaishou GIF is just a tool for generating GIF animations!
Yang Xiao’s WiFi Master Key and Kuaiya are also tools.

But there is a gap between the two!

Users are almost inseparable from Yang Xiao’s two products!

Kuaishou GIF is like two pieces of toilet paper. After trying it a few times, the novelty wears off and it’s over.

Because users' mobile phone memory is generally insufficient at this stage, they almost uninstall a software as soon as they get tired of it, freeing up the phone's memory for storing videos or other games.

Not only has user growth stagnated, but even old users are leaving.

And, there are already other imitators competing with them!

The main reason is that the technology of this GIF animation is too simple and there is no core barrier at all. It is not too easy to make a similar software!
We are all in the starting stage, who is afraid of who?

Yang Xiao knows that there is a reason why the user growth of Kuaishou GIF has stagnated.

This is because Weibo unilaterally cut off its cooperation with Kuaishou.

Having discovered users' demand for GIF animations, Weibo can set up an entrance to create images within its own product.

Why do you need it to be fast?

Kuaishou’s situation can be said to be surrounded by enemies on all sides!
Even the initial two million in financing has almost been spent.

I can’t hold on any longer!

And their entrepreneurial team only has four people.

Now they are still living miserably in a cramped house.

This is the current situation of Kuaishou GIF!
Cheng Yixiao is a programmer by profession and is not good at speaking.

Morningside Capital, which invested in him, has introduced him to several waves of investors, but because Cheng Yixiao is not good at making big promises, he has never received any new investment.

For example, the famous IDG Capital was the only institution willing to invest in the Kuaishou project at that time.

But in the end, it was killed internally.

They barely make ends meet relying on the advertising fees from the software.

This time, we also heard that "Qingsong Internet Technology Company" has investment intentions in their Kuaishou GIF.

Only then did Cheng Yixiao rush from Yanjing to Shenzhen in a hurry.

Of course, it’s not entirely a lack of funds.

There are actually quite a few investors who simply invest money without thinking.

But investing is actually a two-way choice.

What Cheng Yixiao is considering is whether there can be relevant resource sharing and strategic cooperation, and whether he will be satisfied with the investment talents that can bring benefits to Kuaishou GIF.

When faced with Yang Xiao's question, even though he was right, he did not dare to show his weakness and immediately replied:

"How could that be? Our Kuaishou GIF has a high rating in the software market, and users have responded very well. The growth momentum remains unabated."

Yang Xiao knew that in this situation facing investors, anyone would be stubborn.

He no longer said anything that would embarrass him.

It just raises a key question:

"Okay, I'll believe what you said, but can you tell me what the future development direction of Kuaishou GIF is? Will it still be positioned as a GIF generation tool?"

"This……"

Cheng Yixiao smiled stiffly, then choked.

This question really stumped him.

Direction of development?

I don’t know!

Transformation?

Where to turn?
Cheng Yixiao often couldn't sleep and his head became bald, but he still couldn't figure out why.

Of course he knows that Kuaishou, as a GIF image generation tool, will not go far.

Now we are just crossing the river by feeling the stones.

But as the first GIF animation software at present, it can only be like other Internet companies. As the current number one in the industry, it must be one step ahead and strive to be the first at every step.

If you want to stay ahead, you must keep developing, raising funds, and attracting users.

As for when to die, it is not something he should consider.

But does Yang Xiao want this same old answer?

As an investor, Yang Xiao will not give up investing if he doesn't get a satisfactory answer, right?

After pondering for a while, Cheng Yixiao couldn't think of a better answer.

In the end, he tried hard to describe the current status of Kuaishou GIF among similar tools on the market in an attempt to convince Yang Xiao.

“If, as you said, homogeneity becomes more serious in the future, coupled with your positioning, tool apps will always find it difficult to monetize traffic, and users will not easily pay for using tools. By then, advertisers will have better and wider channels for advertising, and may not necessarily consider your product. By then, your Kuaishou GIF will be eliminated sooner or later.”

After listening to this, Yang Xiao just smiled, and Cheng Yixiao's expression became even uglier.

In his opinion, it seemed that Yang Xiao did not have much intention of investing.

Although Cheng Yixiao's name was somewhat interesting, he really couldn't laugh at the moment, and even felt a little annoyed.

"Boss Yang, if you want to teach me how to make products and run a company, I'd be happy to learn."

If you don’t want to invest, then don’t invest. Do you have any need, a young boy like you, to tease me?

Although what Yang Xiao said made sense, it was not what he should consider now!
Starting a business is like crossing a river by feeling the stones. Now he only needs to consider user growth and not fall behind in the industry. That's all.

Cheng Yixiao was in a bad mood and just wanted to go all out. His tone was a bit bad and his words were full of ridicule.

Yang Xiao didn't care and said with a smile:
"Mr. Cheng, why are you so anxious? I didn't say I won't invest. How about this? I'm willing to invest two million and give me 25% of the shares. How about that? Of course, our two companies can also carry out corresponding traffic promotion, and these can be written into the contract terms."

Cheng Yixiao's mood was like a roller coaster. When he heard that Yang Xiao was willing to invest two million yuan and even had future cooperation between the two parties, his face immediately turned from worry to joy.

Just hearing Yang Xiaoshi's huge offer of 25% equity made him fall into deep thought.

To be honest, what Yang Xiao asked for was not too much, but it was not a small amount either!

It even exceeded his expectations for this visit.

He wanted to say no.

At this time, the five fingers of Yang Xiao's right hand tapped lightly on the tea table as if playing the piano.

Cheng Yixiao looked at his jumping fingers, feeling a little uneasy.

Seeing that he didn't reply for a long time, Yang Xiao's patience also reached its end:
"What do you think, Mr. Cheng?"

"No, this is too much shares. We can't afford two million for the time being."

"That one million? Still give me 25%."

"Haha, Mr. Yang, you are joking."

However, Yang Xiao knew that since Cheng Yixiao did not refuse immediately, it meant that there was room for negotiation on the matter.

If the offer is increased to 300 million, the other party will definitely agree to it.

However, Yang Xiao no longer dares to treat money as he did before, just because he is rich and powerful.

Several of its products are waiting to burn money.

If Kuaishou was not going to be the first short video stock in the future, he would not have invested money so casually.

"How about this? I'll let my artists help you promote your image and allow you to put your portrait on the APP page. Then I'll give you a discount on the advertising fee. How do you think?"

Hearing this condition,

"Okay, then it's settled."

This additional condition was exactly what Cheng Yixiao wanted.

How can a small company like theirs easily invite celebrities to endorse its products?
I don’t have the money to hire the big names.

Small brands have no effect.

He knew very well before he came that the most popular artists under Yang Xiao all took the young age route.

They are all the target users of their Kuaishou GIF!
After the investment details are agreed upon, the subsequent contract signing will be entrusted to a dedicated person.

Yang Xiao started chatting with Cheng Yixiao again:
“However, Mr. Cheng, I still want to make a suggestion for the future transformation of Kuaishou GIF.”

"I'm all ears." Cheng Yixiao's attitude was completely different from before. Out of respect for Yang Xiao, he even took out a notebook from his bag and planned to write it down in a serious manner.

"It's not something I'd write down specifically. It's just my personal opinion."

"No, no, Mr. Yang, you are a senior in the Internet industry. You should always learn from the most accomplished people wherever you go."

Cheng Yixiao rarely flatters people, and he doesn't even know how to flatter people.

This set of manners and rhetoric was taught to him by another person in the previous team.

He used to be dismissive, but now he has learned it quite well.

Now, this scene is very stiff and awkward.

But in Yang Xiao's eyes, it's really funny!
Yang Xiao was trying to hold back his smile both on his face and in his heart, mainly because it felt really good to be the godfather of this late-stage Internet tycoon!

"Mr. Cheng, let me ask you a question. Do you know the positioning of your products and what kind of customers you are targeting?"

"Of course it's the young people of today, and it's all the young netizens."

Yang Xiao shook his head: "Wrong."

"wrong?"

"You are dealing with a group of people who just want to have fun, you know? Most people who use animated images do it for fun and humor! To be honest, many normal people simply don't like your product and think it's vulgar. Don't you see this problem?"

"Um……"

Cheng Yixiao nodded, thinking that what Yang Xiao said made sense.

He actually knew all of this, but this was their drawback, and he was trying to find a solution, but to no avail.

"What is your suggestion, Mr. Yang?"

“GIFs can be transformed into a sharing community in the future. Note that it is a community that needs to add social commentary features and even allow users to create freely. It is not just a practical tool. In my opinion, GIF production is just a small and insignificant function that comes with it.”

Yang Xiao didn't mention any short videos to Cheng Yixiao.

It’s too early to say this now!
There are still several years before 4G network appears!
That was the time when short video software began to develop.

Let Cheng Yixiao explore this road on his own.

Cheng Yixiao was stunned by what he said and sincerely felt that Yang Xiao's suggestion was a good idea.

Only in this way can we increase user stickiness.

Just what he wanted!

But Cheng Yixiao just did not comment on this suggestion.

Transformation means drastic measures, and he cannot make up his mind for the time being, so he can only take it slow.

"Mr. Yang, I really learned a lot this time. I will think about your suggestions carefully when I get back. At least your understanding of the user group is really accurate."

"Well, Mr. Cheng, don't worry. I don't like to interfere with any decision-making of the founder. I said before that it's just my personal opinion. I'll just laugh it off."

"Mr. Yang, you are too modest."

Cheng Yixiao couldn't help but want to hear about the subsequent plans for the transformation, so he asked: "If we transform Kuaishou into an APP for user communities, how can we retain users?"

"Haha, we only need to retain a certain type of people, such as this group of people who like to have fun, or losers. Tieba has a loser culture, and Kuaishou can also create a community culture that belongs to you all? For example... grass-roots culture?"

Cheng Yixiao was shocked when he heard this.

The young man in front of him was so amazing. He could clear up the clouds and see the light with just a few words. He couldn't help but admire how he had achieved so much at such a young age.

"Boss Yang, if you make one yourself, it will definitely be a hit."

"Well, that's what I was thinking. When you're really dying because you can't make GIFs on Kuaishou, I'll do it myself."

"Uh……"

Cheng Yixiao laughed dryly and muttered in his heart: "I'm just kidding, Mr. Yang."

After Yang Xiao made a joke, he stopped teasing the balding middle-aged man who was about thirty-five or thirty-six years old and started chatting again.

Later, Kuaishou took the path of grassroots culture.

Yang Xiao just gave a hint in advance, whether it will be effective or not depends on fate.

To put it bluntly, grassroots culture is actually loser culture.

Junzi’s Xiaomi is the person who has thoroughly understood the Diaosi culture.

But what makes him smart is that he just does it instead of talking.

Because saying it would be equivalent to hurting the users' feelings.

Once, a female executive in Xiaomi said at an offline forum, "He who wins the diaosi wins the world."

It caused an uproar on the Internet.

He resigned within a few days.

Yang Xiao even planned to guide Cheng Yixiao to move towards grassroots culture as soon as the era of short video competition came.

Even if it's vulgar! Even if it's borderline!
Do whatever brings the most traffic!
It’s important to get the upper hand!
Because this is the future development path of Kuaishou. Everyone is crossing the river by feeling the stones. It is inevitable!

Yang Xiao and Cheng Yixiao were talking animatedly.

I didn't notice at all that two figures flashed by behind the screen of the booth.

It was Luo Zhengbin and Yu Hai!

Luo Zhengbin felt that the name sounded familiar. At a glance, he saw Yang Xiao talking to a middle-aged man.

The latter was taking notes and listening very attentively.

Judging from his appearance, Yang Xiao looks more like a teacher.

Yu Hai found a booth and asked curiously:

"Lao Luo, what are you looking at? Is there anyone you know?"

"I saw Xiao Yang, right there."

"Oh?"

Yu Hai looked in the direction Luo Zhengbin's eyes indicated.

But from the angle they sat down, they could only see Cheng Yixiao's figure.

Yu Hai was also a little surprised to learn that the person sitting opposite Cheng Yixiao was Yang Xiao.

"What is this Xiao Yang doing in these places? Do young people like to drink tea too?"

They say they go for tea, but places like teahouses are really just for discussing business matters. They are also places for middle-aged men like them to reminisce about their youth, recall the past, and brag.

Luo Zhengbin shook his head and said, "They seem to be discussing something."

"Haha, Yaoyao just mentioned that Xiao Yang was going to invest in some company, could it be this one? This man doesn't look like a boss."

"It's hard to say. You can't judge a person by his appearance."

Luo Zhengbin never makes random assumptions about others.

In the eyes of old hands like them who have seen all kinds of people, although Cheng Yixiao does not look like a boss, the seriousness on his face cannot deceive others.

However, since they couldn't get any confirmation, they had to give up and started drinking tea and chatting.

"Xiao Yang, I don't think you've been cheated."

"Although it was Xiao Yang who was talking, this possibility cannot be ruled out."

"Is it possible that he is lying?"

"..."

Luo Zhengbin did not answer, but he added in his heart that it was possible.

Because Cheng Yixiao looked like a believer who had been brainwashed, and his eyes were too serious.

He kept nodding his head! He looked more and more silly, like the kind of person who became stupid because of studying in class when he was a child.

Waited about half an hour.

Yang Xiao left his seat first, and it seemed that the discussion was over.

Leaving Cheng Yixiao where he was, he packed up his things and booked a flight back to Yanjing in the evening on his mobile phone, while also digesting what he had talked about with Yang Xiao today.

The one-hour conversation really brought him a lot of benefits, and he also obtained investment and cooperation. It can be said that this trip to Shenzhen was completely worthwhile.

Suddenly, a middle-aged man in his forties sat in front of Cheng Yixiao.

"Hello, brother, nice to meet you. My name is Yu Hai, and this is my business card."

Cheng Yixiao took it and took a look.

[General Manager of Shenzhen xx Building Materials Co., Ltd.: Yu Hai]

Cheng Yixiao didn't take it seriously and thought, is he here to sell building materials?
Too bad I'm not a local.

However, out of politeness, he gave Yu Hai a business card in return, and then perfunctorily promoted Kuaishou GIF.

"My friend, you've found the wrong person to sell to. I work for an Internet company and I'm not from Shenzhen. Does your company want to advertise? Our software platform has the strength to do so. You're welcome to contact me, but I have to go to the airport now to catch a flight."

After saying that, Cheng Yixiao got up and left without any reluctance.

Yu Hai stood there in a daze, holding the business card. After a while, he slowly walked back to Luo Zhengbin's seat.

"Lao Luo, they seem to be really discussing business. Have you heard of this company called Kuaishou GIF?"

Luo Zhengbin shook his head. He had never heard of such a thing.

But I was still wondering in my mind, what Yang Xiao said before about the investment company, was it true?
He took the business card and took a look at it. It seemed to be an Internet company.

This Xiao Yang is really not an ordinary person.

I was planning to share this with my wife Liu Xiaolan, but then the phone rang.

"Husband... do you know? Yang Xiao..."

"Yang Xiao? Wait, I just saw him."

"Ok?"

"Yaoyao said he was going to invest in some company, it seemed to be true..."

　A long chapter of 5400 words. I did my best, my family members.

　　
　
(End of this chapter)