To reiterate a point, Pinduoduo is a company that takes efficiency to the extreme, not only in management but also in the use of capital.

Running a business is like driving a car; not only are you driving, but your competitors are also driving. During the period of rapid economic growth, everyone competed to see who could drive faster, without even considering fuel consumption. As long as you drove fast enough to reach the next gas station before your competitors, you could fill up and continue driving forward.

What is the fuel? For a business, the fuel is VC/PE capital. The funds provided by institutions like Vision Knight Capital are the "fuel."

In the era of incremental economy, fuel was abundant and cheap. Everyone was racing for speed, wanting to reach the next gas station quickly, refuel, and maintain their lead. They could even drain all the fuel at the station, leaving none for their competitors.

Entering the era of stock economy, fuel has become scarce and expensive. "Fuel" is capital. Expensive capital means lower corporate valuations. We once invested in a company with a valuation of 6 billion yuan. It subsequently raised 300 million yuan, diluting equity by only 5%. The founder thought it was cheap and believed equity could be diluted by another 5% to raise another 300 million yuan, or even more in the future. However, if a company is only valued at 1 billion yuan, you cannot do this, because raising 300 million yuan would dilute equity by 30%. After three rounds of such financing, the founder's share in the company might be gone.

When the era of abundant and cheap fuel ends, driving can no longer be just about speed; it must also be about fuel efficiency. With the same tank of fuel, the car with lower fuel consumption can drive further. Of course, while maintaining low fuel consumption, you must also try to drive faster than others, which tests your driving skills and the car's performance. If you can also find a shortcut to save fuel, you will be even more ahead, reaching the finish line faster than others. — "Efficiency is King"

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