The widely watched travel recording and sharing app 'On the Road' has been online for just over a year since October 2011, with its user base reaching 3 million. It has long outpaced similar products, yet the public knows little about the information behind the product. Recently, 'On the Road' disclosed its financing details to the media for the first time. It is understood that in February 2012, 'On the Road' received several million RMB in angel funding from a well-known domestic angel investor. Subsequently, its Series A financing had already completed the relevant agreements as early as July 2012, with all funds arriving shortly thereafter. The Series A investor of 'On the Road' was Redpoint Ventures, with financing amounting to several million US dollars. Although the exact amount has not been made public, according to the reporter’s investigation, 'On the Road' rented two office spaces in Beijing’s China Central Place and Shanghai’s Caohejing area in late July, clearly showing that the successful Series A financing gave 'On the Road' enough confidence to build its nest and attract talent in two of China’s most developed internet cities right at the start of its venture.
What intrigued the reporters the most, however, was why 'On the Road' kept its successful financing under wraps for half a year? As is known, 2012 was the freezing point for mobile internet investment and financing in China. Teams that successfully secured funding during this period all received high attention from the industry, yet 'On the Road' chose a low-key approach. 'On the Road' CEO Chen Wei explained: Entrepreneurship is not easy, and he didn’t want the team to be overly affected or distracted by external attention, but rather to focus all their energy on product development and user experience.
But according to analysis by senior figures in the investment and financing circle, 'On the Road' may very well have deliberately delayed the release of its financing information from a strategic perspective. Since the launch of the 'On the Road' app, several imitators and followers have emerged in China. Although these products lag far behind 'On the Road' in terms of user experience and scale, seeking financing has been urgent for their survival. Therefore, if 'On the Road' had announced its Series A financing too early, it might have drawn the attention of some investment funds to other travel recording apps, which could have inadvertently accelerated the rise of 'On the Road’s' potential competitors. Now, the user base of the 'On the Road' app is already comparable to the total user numbers of all second-tier travel recording apps, and it is indeed time to end its 'covert' phase.
The Series A investor of 'On the Road', Redpoint Ventures, is a veteran dollar-denominated investment fund in the industry, with over 100 years of operational, industrial, and technology investment experience. It specializes in investing in innovative companies with the potential to lead and transform industries. The fund was founded by Brentwood Venture Capital and Institutional Venture Partners (IVP), both of which are national-level venture capital firms. It manages a total of $4 billion in funds and has invested in nearly 200 leading companies, including Myspace, Path, and Gogobot. After entering the Chinese market, it participated in the early investment of Qihoo 360, as well as approximately 20 innovative enterprises such as Miaozhen and Domob.
As for the next steps for 'On the Road', CEO Chen Wei only said three words—'On the Road'.