According to JieMoDui, on February 6th, music education institution, Dunshan Culture acclaimed that they have finished A Round financing with the amount of tens of million CNY. Investors are Kaixing Capital and Lingfu Capital. During the press conference, Dunshan Culture also claimed that this round of financing will mainly focus on developing projects outside of Beijing and some M&As。
Among the investors, Kaixing Capital, founded February 2014, mainly focuses on culture and education companies. On September 2016, Kaixing Capital strategically invested K12 Education Institution, Aotuo Education with tens of million CNY. March 2017, Kaixing also invested tens of million CNY in Jushi Touchdown, Teenager Football Training Institution, alongside with Jiuhe Capital. Dunshan Culture will also gain a lot more inspiration and experience in future development, with these kinds of resources.
As a matter of fact, on July 2016, Dunshan Education has already gained the attention of capitals by listing on NEEQ, as it is the first music education institution being listed on NEEQ in China. (Stock No.: 838726)
Beijing Dunshan Culture and Arts Co., AKA Dunshan Culture, was founded in 1997, derived from Dunshan Artistic Training Center. According to public file, Yu TianWei, founder of Dunshan Culture, received a bachelor degree from the Capital University of Economics and Business Beijing majored in Economics. In 1994, Yu Tianwei created Dunshan Artistic Training Center with his father Yu Guoxun. During its establishment, the training center has received lots of support from scholars and professors of Central Conservatory of Music, Central Philharmonic Orchestra and Military Band of the Chinese People’s Liberation Army.
After years and years of development, Dunshan Culture has become a pluralistic company focused on music and created a complete business ecosystem. This is the crucial factor of Dunshan Culture being such an eye-catcher among the capitals. Right now, the company’s products include music education, band entertainment, and instrument development. Its derivative products include planning of art contests, music scoring, and textbook publishing.
In the aspect of entertainment, Dunshan Culture has its own orchestra, Dunshan Orchestra, consisted of musicians around the world. About instrument development, Golden Beatle, its musical instrument sub-company, has pretty good sales. In the matter of other aspects, in 2017 along, Dunshan has hosted Bo’ao Teenager International Brass Festival, National Teenager Music Festival, initiated “Music Into Classroom” program in Tongzhou, Beijing and initiated “Hundred Campuses, Hundred Bands” program in Henan and Fujian. Participants of National Teenager Music Festival has reached around 20,000 with its online list has reached 6 million.
Other than those, Dunshan Culture’s products also include “Music Into Classroom”, “3:30 Program”, extra curriculum grading, city music festival, Musical winter/summer camp, etc. Dunshan has already established offices in 18 cities including Tianjin, Shanghai, Chengdu, and Guangzhou.
Dunshan is developing standardized education toolkit, including musical instruments, education system, entertaining education tool and grading system. Dunshan has also collaborated with other music education institutions in 2018, to establish all age music conservatory.
As shown, Dunshan Culture mainly focuses its business in traditional off-line fields. During the internet era, these fields are considered to be harder to reach furthermore potential.
The fact that more and more offline music education institutions closing down proves the point. Earlier during last year, Crazy Piano, a music training service that claimed its student will learn to play piano in 1 hour, closed business. Also during September, another piano training institution, Xinkong Piano, has closed over 60 stores nationwide. Also, both institutions are in arrears with their teacher’s salaries.
“There will be more and more companies in education industry which will be listed in the market. Cultural education, compared to the others, is a more complicated field and harder to implicate online. Kaixing Capital has more interest in cultural education institution that is more practical and more intricate.” said Xie Chenguang from Kaixing Capital, while interviewed by JieMoDui. His statement, on another level, proves that the difficulties in the development of education and training industry.
But, with the government putting more effort in developing cultural education, the public pays more and more attention in younger generation’s artistic training. The future of music education is still prominent.
April 20th, 2017, 11 private music institutions have founded “The Development Alliance of Chinese Music Institution Original Music” in Sichuan Conservatory. May 2017, Shanghai Conservatory and Berklee College of Music co-founded “Shanghai Conservatory – Berklee Modern Music Conservatory”. December 1st, 2017, Department of Education released paperwork regarding college admission criteria of art students. All of these actions showed that music education is playing a stronger and stronger role in China.
Since domestic public schools don’t have good enough teacher, money and student resources in music education, private-owned institutions, like Dunshan Culture, happened to fill in the blanks.
According to public file, there were already two music institutions have gained financing. Earlier this year, Find Intelligent Piano finished A round financing in the amount of over 100 million CNY. Later on, online music training platform, VIP Instruction also announced its B round financing, invested by Tencent and Lanxing Asian Capital in the amount of hundreds of million CNY.
For music education companies, the key points of establishing their own advantages are not only a beneficial political environment but also a creative business model tailored to the company.
translated by Xie Yuming
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