Chinas largest LGBT community impacts the first share of same-sex social networking in the world

 Chinas largest LGBT community impacts the first share of same-sex social networking in the world

On June 16, 2020, Blue City brothers Holding Co., Ltd. (hereinafter referred to as Blue City brothers), the largest same-sex social software in China, formally submitted a prospectus to the U.S. Securities and Exchange Commission, intending to list on NASDAQ with BLCT as the trading code.

According to the prospectus, the tentative fundraising scale of Blue City brothers as a placeholder is US $50 million, and amtd Shangcheng group, CITIC Lyon securities, Lutong capital and tiger securities are the joint lead underwriters of this IPO.

With the Blue City brothers submitting the prospectus, the worlds first shares of same-sex social networking may have surfaced.

Blueds predecessor is the same-sex community website light blue memories, also known as light blue network, founded in 2000. At that time, the domestic Internet was just popularized, and the pale blue network was launched in the form of web pages. In terms of seniority, blued can be regarded as the forerunner of social platforms.

Looking at the development of blued, behind it is the vigorous development of the pink market.

No matter domestic or global, LGBTQ group is still a small and semi invisible group, but its scale has become increasingly large and clear. According to the data quoted by frost Sullivan in the prospectus, the global LGBTQ population is about 450 million in 2018, and it is expected to grow to 591 million in 2023.

Behind the huge rainbow crowd, there is a huge consumer market. According to frost Sullivans report, the average disposable income of LGBTQ population is higher than the average. In 2018, the global market size of LGBTQ is about $3.9 trillion, which is expected to increase to $5.4 trillion in 2023. Among them, the online market is expected to grow from US $261.5 billion to US $580.4 billion, with a compound annual growth rate of 17.3%. E-commerce, online travel agencies, online advertising and pan entertainment are all fast-growing segments.

From the perspective of operation data, blued has a strong head advantage and user stickiness. According to the disclosure, the number of monthly active users of blued is about 6 million, and the average number of Mau and dau is far more than that of domestic players of the same kind, 6 times and nearly 7 times of the second place in China respectively. In 2019, the average daily use time of blued active users is more than 60 minutes, and the average daily opening times are more than 16 times, with an average retention rate of 71.0% in the next month.

It is worth noting that although blued accounts for nearly half of overseas users, its cash flow level is still low. According to the prospectus, overseas revenue accounted for only 3.4%, 6.6% and 9.9% of the companys revenue in 2018, 2019 and the first quarter of 2020.

20 years of tortuous development, the founding team once guerrilla warfare

It all starts from the experience of Geng Le, the founder. When his peers were busy getting married and having children, Geng Le, in his twenties, found that he was different from others.

By looking up data at home and abroad, Geng Le learned that he was not a pervert who needed treatment, but the 5% of the population with different sexual orientation. So Geng Le decided to set up a website belonging to the same kind of people to share the news about LGBT at home and abroad, and let them have a place to tell stories and find friends.

Since then, Geng Le has shut himself in every day after work, maintaining the special website.

At that time, just three years after the decriminalization of homosexuality, most peoples cognition of gay group was still sick. The group is not recognized, which almost doomed to the difficulties of pale blue net.

Founder Geng Le once said in an interview that in the initial stage, the funds of light blue net were very tight, and only Geng Le could pay his own money and donations from netizens. Whats worse, the website is often reported, the server is shut down twice or three times a year, and the entrepreneurial team has to carry the server around the country guerrilla warfare.

The next year, the mobile app blued officially went online.

At the same time, the transformation towards the public welfare website gives the pale blue network a greater sense of existence, which is also an important factor for it to maintain its first mover advantage for many years. AIDS has always been an important topic in the prevention and treatment of infectious diseases, and gay men are the high-risk groups of AIDS. As early as 2008, Geng Le established light blue public welfare, began to cooperate with disease control centers around the country, popularized disease prevention and control knowledge to users of light blue network, and provided disease monitoring and treatment channels to users in need.

Seven rounds of 1 billion financing, small and beautiful is favored by capital

The pink economy in China is usually accompanied by two key figures: 70 million people and 300 billion US dollars annual consumption market. The track was once described by the industry as a banknote printing machine to be put into production.

Blued has gone through seven rounds of financing, with a financing amount of about 1 billion yuan. The capital camp behind it is huge.

According to cvsource investment data, a number of well-known institutions and companies, including Shunwei capital, CDH investment, Jiayu fund, Bertelsmann Asia Investment Fund, DCM China, Qingliu capital, Zhonglu capital, Tianyi capital, Yintai capital, Guohong Jiaxin capital, UG capital, new world development, Shanshui leisurely media investment, Hong Kong New World group, have been added.

In 2017, blued obtained strategic financing of tens of millions of Yuan invested by Shanshui leisurely media, an investment company under the new Beijing News.

According to Bloomberg in August 2019, blued may have reached a valuation of $1 billion, becoming the unicorn of the pink economy track.

Behind the favor of capital is investors confidence in blueds vertical track in LGBTQ. Xu Da, founder partner of Shunwei capital, blueds largest institutional shareholder, has publicly stated that they will continue to recognize and support blued and hope to provide more help on blueds international development.

Wei Zhe, founding partner of Jiayu fund, also said that with the C + round of financing, blued has become the worlds first and only Internet company serving LGBTQ group to complete the C + round of financing, and is in an absolute leading position in this field.

Extended reading of Li Jiaqi: there is no two-way companion function in the drop Live Room 618 mobile phone e-commerce promotion: the head brand is busy with the live broadcast, and the small and medium-sized brands have fallen behind the U.S. stock market. The closing price is not the same. Stop at Duoduo B and innovate gaojinshan cloud. The rise is over 15%. This article source: responsible editor of China Investment Network: Zhang Zutao_ NT5054