April 11th news-NetEase Cloud Music announced its accomplishment of A-round financing and the number of users has exceeded 300 million. This round amounted to 750 million Yuan was strategically input leadingly by the Radio and Television Shanghai and SMG, and jointly by Mango Culture (Shanghai) Entrepreneurship Equity Investment Fund and CICC Jiatai PE Fund. Afterwards, the value of NetEase Cloud Music would reach 8 billion Yuan.
It is understood that this round of financing will be used for NetEase Cloud Music on upgrading product experience, increasing content inputs, building healthy copyright system and establishing music upstream and downstream solutions.
As introduced by Zhu Yiwen, the capital raised in the financing will be mainly used for enhancing the user experience of the NetEase Cloud Music products, increasing investment on content, developing a healthy patent system and establishing a solution for the upstream and downstream music to provide the users with abundant resources of high quality music.
During this round of financing, NetEase Cloud Music entrusted Fortune Finance, also a NetEase company, as its exclusive financial advisor. It is the first time for NetEase to have its products open to the domestic capital market, demonstrating its increasingly open mind and long term strategy in the music industry. William Lei Ding, founder and CEO of NetEase said that the A round financing is the first step to realize a bigger dream and hope that NetEase Cloud Music can show much better performance in growth rate and quality. William Lei Ding also said that NetEase, as a solid backing, would as always support the development of NetEase Cloud Music and help it to obtain higher achievements.
It has to be noted that the investors of the A round financing of NetEase Cloud Music are very eye-catching with not only the “National Team” media giant but also top investing institutes. SMG, the leading strategic investor, is a comprehensive culture industry group with the most industry categories and largest scale in China. Its business scope covers media operation, network transport, content production and patent, internet new media, on-site performance, culture tourism and estate, culture investment and e-commerce. It not only possesses the domestically top content producing and IP development capability, but also strong ability of integrating resources and appeal in the industry.
Another strategic investor, Mango Cultural and Creative Industry Private Equity Fund, is a fund established by Mango Media under the flagship of Hunan Broadcasting System. It was founded in December, 2015. It focuses on the investment and layout of cultural and creative projects based on the large culture industry including movies, TV series, variety show, music, manga, sports and mobile internet apps.
CICC Jiatai Fund is a private equity fund solely funded by China International Finance Company Limited. CICC is the first joint-funded investment bank in China and has been involved in pan-culture and new economy.
Zhu Yiwen also said that NetEase Cloud Music will develop deeper coordination with the strategic investors in formulating strategies and expanding businesses so as to establish a music eco-chain and value-chain.
NetEase Cloud Music, launched in April, 2013, is a music product well known for its discoveries and sharing under the flagship of NetEase. Over the past four years, it showed faster growth rate than other similar products in the market. In July, 2015, its users broke 100 million and one year later, the number broke 200 million.
At the press conference held on April 11, Zhu Yiwen discloses that the users have reached 300 million. As the completion of the A round financing, the company will go into a brand new route. Zhu Yiwen highlights that although we have went into a new route, our original intention has never changed, discover and share more good music and improve the Chinese music industry through the internet.
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