“On the relatively low-frequency track of medical care, each company can only occupy its own piece of island in the sea and move toward the business that it envisions. Path evolution.”
Text| Fan Xinhai Ruojing
Edit| Yang Zhongxu
September 10, Doctor Chunyu officially disclosed the news of the 100 million yuan-level E round of financing that Sogou led the investment, and Huaxin and Huajin Fund followed the investment. But in fact, the lead investor of this financing was finalized in December last year.
In August 2019, when Wang Yuxiao took over the title of CEO of Dr. Chunyu, the money in the company’s account was only enough for 5 months. The E round of investment by Sogou and its co-investors gave Dr. Chunyu the possibility to continue to fulfill his original intention and mission. Dr. Chunyu wants to change medical treatment,”to illuminate the world that is not illuminated by traditional medical street lights” (Zhang Rui).
Founded in 2011, Dr. Chunyu, like many companies established during that period, aimed to disrupt the industry with mobile Internet technology. Over the past nine years, industries such as catering, travel, and finance have been subverted by the mobile Internet, and massive giants such as Meituan, Didi, and Ant Financial have emerged.
In the medical industry, Dr. Chun Yu, who is on the road of subversion, once made a big progress and won multiple rounds of financing. In 2015, the VIE structure was dismantled to prepare for domestic Listed. But later, it experienced many difficulties such as the suspension of the new board, the death of the founder, and the drift of the company’s strategy.
The bigger setback lies in the fact that the medical industry seems to be difficult to subvert in a short time course. In the eyes of investors interviewed by Caijing who work for Northern Light Venture Capital, Sequoia China and other institutions, the mode of light consultation is simply not established.
Nine years later, the Internet medical industry seems to have just begun. Internet medical companies represented by WeDoctor, Dingxiangyuan, Doctor Chunyu, and Good Doctor Online all seem to have similar businesses. Online consultation, Internet hospitals, medical e-commerce, health science and other businesses have become almost every enterprise’s business. Standard. But in essence, they have their own priorities, and each of them is evolving toward the business path they envisioned under the guidance of the”gene” when they were born.
For Dr. Chunyu, the genes at its birth have already destined its direction:deeply connect doctors and patients, and build the largest patient-centered air hospital in China .
Under the guidance of this”sacred” goal, Dr. Chun Yu once missed a lot. Chunyu once drove the track in many sub-fields of Internet medical care, such as health science popularization, medical beauty, etc., but it has lost the opportunity to develop in these vertical fields. Aunt’s assistant and Chunyu pedometer have become common plug-ins that are folded on the current Chunyu Doctor APP.
The new crown epidemic that occurred earlier this year has given the Internet medical industry a huge opportunity. Take Dr. Chun Yu as an example. The core data performance is that it has achieved breakeven in the past eight consecutive months.”For so many years, I have finally seen a little bit of light after I walked to the present,” Wang Yuxiao sighed.
After winning the spring rain after financing, I began to recruit troops, prepare to move to a new office, and start more business attempts. What is being done recently is to incubate an insurance subsidiary, cooperate with Qianhai Reinsurance, use the medical data deposited on the Chunyu platform to develop medical insurance, and explore ways from consultation to hospitals, medicine, chronic disease management and new health insurance. Integrated medical and health services.
Yesterday, Wang Yuxiao accepted an exclusive interview with Caijing in Beijing Haidian 768 Pioneer Park.
Crisis and financing
The money in the company’s account is only enough for 5 months
Finance:What is the magnitude of this round of financing? What will Chunyu focus on after financing?
Wang Yuxiao: With funds exceeding 100 million yuan, we define it as strategic financing. In fact, in 2015, Zhang Rui proposed the”Pentagram” model based on his practice and ideas in the process of creating Chunyu, including doctors, patients, hospitals, medical equipment, and insurance. This is a complete architecture, and innovations can be made in how and how to connect in the middle.
In the”Pentacle”, our earliest and most mature core competency is the doctor-patient connection, and the online doctor-patient consultation is the industry We have worked hardest here. Next, we must re-illuminate medicine and chronic disease management, so this round of our co-investors are funds and companies with medical backgrounds. But our method is not simply from medicine to medicine, but to light up both medicine and insurance at the same time.
Finance:How to facilitate these two rounds of financing? Why did investors choose Chunyu at this time?
Wang Yuxiao: After I took over the Spring Rain last August, one of the most important tasks was financing. I have visited many investors, including Wang Xiaochuan (CEO of Sogou). When I visited Xiaochuan for the first time, I remembered what he said at the beginning:Dr. Chun Yu is a banner of mobile medicine, and he respects Chun Yu very much. I had a deep chat with Xiaochuan in October last year. This time it may be that the two sides have reached agreement on the underlying values. At the end, he said that he was very happy that I took over Chunyu and felt that the founding feelings of this company were back.
Finance:How long was the money in the Chunyu account at that time?
Wang Yuxiao: In less than half a year, financing pressure is still very high. After the in-depth discussion in October, we went to Sogou and their team for several rounds of exchanges, and felt that the two sides have many common ideas in business, and they hit it off. Later, Sogou’s investment team entered the market to see the fundamentals of Chunyu, and soon decided to invest. They judged that the value of Chunyu was underestimated by the market.
The money arrived in January this year (the industrial and commercial change was completed in March), which gave us great courage and allowed us to let go and do large-scale operations during the epidemic. During the epidemic, the number of consultations during the peak days of the spring rain increased by 10 times, and the traffic increased sharply. Starting from January this year, Chunyu has broken even for 8 consecutive months. This is the first time in 9 years that it has achieved no loss or even a slight surplus for 8 consecutive months.
After that, many funds took the initiative to contact Chunyu, and after seeing the company’s fundamentals turn positive and new business layouts are beginning to take shape, they followed up with investors Huaxin and Huajin Fund quickly followed up with the investment. They are affiliated with Tasly Capital and have deep industry experience in the pharmaceutical industry. They have provided a lot of insights in helping Chunyu design how to open up the pharmaceutical link of the Pentagram.
Finance:Chunyu has a relatively large number of shareholders, and there are also many natural-person shareholders. Will the decentralized shareholding affect decision-making and management?
Wang Yuxiao: To be honest, it will have a little impact, such as convening meetings, financing for industrial and commercial changes, etc., you need to communicate with everyone one by one. Affect efficiency. But the good thing is that Chunyu’s shareholders are very supportive of the company and can finally reach an agreement.
After all, not every company has experienced the things that our company has experienced. If you are eager for quick success, these shareholders may have already left, but in fact many of them have been In accompany and help Chun Yu.
Question and persistence
“I don’t like the word light consultation”
Finance:Can the current income be more specific? What is the income level and structure?
Wang Yuxiao: The income has reached 100 million, and the income from online consultation accounted for 76%; we have a very core data, the repurchase rate Very high, with an annual repurchase rate of 86%, which has been such a high retention in recent years. In addition, nearly 50%of the consultations on Chunyu’s entire platform come from APP; the other half come from open platforms, including more than 600 companies such as Taikang Insurance and Huawei Mobile, as well as consultation services provided by some search engine platforms. Wait, the service providers behind are all Dr. Chun Yu.
Digital marketing services provided to pharmaceutical companies account for less than 20%. Part of the income comes from the Chunyu Health Station, which provides residents with blood oxygen, blood pressure, blood sugar, fundus screening and other tests in the community, as well as daily health consultation and a terminal of Lutong, which is a health goalkeeper at the door of ordinary people. Communities with Chunyu Health Station basically began to assist the property in public health and epidemic prevention publicity from the first day of the outbreak, and organized the community to perform blood oxygen concentration screening and body temperature screening.
Finance:Online consultation has become a standard feature of Internet medical/pharmaceutical companies. What are the differences in Chunyu’s play?
Wang Yuxiao: In terms of corporate genes, Chunyu is very different from other leading mobile medical companies in that our founder is Internet background. Internet thinking always puts user needs in the first place, and all product designs will be developed around user needs. This has been deeply written into the genes of Chunyu.
Second, we must be a light model, emphasizing online connections, Internet-based solutions and big data capabilities. When an online consultation product is made mature and stable enough and cost-effective enough, it can be glued to many products and eventually reach patients.
Why does Chunyu insist on the low price strategy? On the one hand, it is because the spirit of the Internet is inclusive; on the other hand, only the price is low enough to bond other products. For example, for a service package of health commercial insurance, if one consultation costs 50 yuan, and it includes 12 services a year, the cost is not enough.
On the Chunyu platform, there are major experts and directors who charge hundreds of yuan for a single consultation, but the main force is a large number of waist doctors, who are 30 years old- 45-year-old attending and deputy chief physician. At present, the overall unit price for customers is about ten yuan. It is precisely because of the low price that patients dare to ask. This is also the reason why the original data of the Chunyu platform is particularly large and the long tail data is abundant. We have a lot of long-tail data, and some diseases with very low incidence may find answers from doctors and patients with the same disease on Chunyu.
Finance:In fact, many people in the industry question the mode of”medical consultation”, what do you think?
Wang Yuxiao:I haven’t always liked the term “light consultation”. In fact, we are more accustomed to using “online consultation” because the users of Chunyu ask The problem is not trivial. Many of the questions are about severe illness. In particular, there are some people seeking second diagnosis and treatment opinions online. For example, a user in Xi’an, his father found a lung problem, the local hospital doctor judged it was lung cancer, and his son put the film on the Chunyu platform. There were 4 Experts gave their judgments and opinions. Three of them considered lung nodules, and finally verified that they were indeed not lung cancer.
So, when it comes to light consultation, it will give people an illusion:they are all asking about small problems such as colds and fevers, but this is not the case. The problem of Chunyu Cover all subjects. The reason why it gave everyone a very light feeling in the early days, more importantly, described its price and the way of consultation.
Finance:What is the approximate ratio of the doctor’s share? When various platforms are competing for doctors, how to provide doctor operation services?
Wang Yuxiao:Many platforms get a score of four or six. We are probably scored two to eight. This is one of the reasons why many doctors are willing to grow with the Chunyu platform . For any consultation platform, doctors are willing to stay, the most basic thing is to answer questions and make money. Chunyu will encourage those young and middle-aged doctors who are working hard and constantly improving their medical skills and give them a flow preference.
Online consultation has become standard in this industry, but each company does it differently. Chun Yu will not interfere too much with the content of the doctor’s reply, and more retain the original characteristics and differences of each doctor. Through the questions and data precipitated by the original ecological consultation, you can see the evolution of the doctor’s treatment plan in the same medical field this year and last year. It can be said that Chunyu’s consultation is a real mirror image of the continuous improvement of medical standards in real hospital scenes, and it is alive. We will also train doctors with big doctors and small doctors, and share high-quality consultation cases. Doctors will read them and have academic discussions.
In the doctor’s response process, there will be smart tools in our system that combine the consultation scene and keyword recognition, and automatically pop up warm reminders to increase the service temperature; There are popular science entries related to disease types, examinations, and medicines, so that patients can understand their condition clearly.
Data and closed loop
“The connection between Spring Rain and Insurance will be of great value”
Finance:You just mentioned that the new round of financing will be used to explore the business of medicine and medical insurance. Why do you choose to do medical services after consultation? ?
Wang Yuxiao: During a relatively long period of exploration, we feel that it is a holistic behavior for doctors and patients. There is only consultation without follow-up As for the solution, they are not satisfied with the patients. Many patients hope to have a closed-loop service, and the integrity and fluency of this closed-loop is also very important.
Finance:There is another payment issue in the closed loop.
Wang Yuxiao: Right. There are roughly three payment methods at present, social insurance, commercial insurance and self-pay. In the past 9 years, all payment methods on the Chunyu platform have been self-funded, and all online consultations have been paid for by themselves. And now we want to connect the end point of insurance. The connection between Chunyu platform and insurance will have a huge value, which no one in the market has seen.
Wang Yuxiao:Most people think that we are all Internet platforms. If you want to connect with insurance, it is equivalent to selling insurance to customers. Wouldn’t the platform be realized? But in our insurance strategic layout, we still take user needs as the first starting point. After processing the precious and non-interfering data of consultations and prescriptions we have accumulated over 9 years of consultations, we will explore and develop medical insurance products that are not yet on the market but are very much needed by the majority of patients.
Finance:I heard you talk about it last year, there will be big moves in the health insurance business.
Wang Yuxiao: Right. We have incubated a very good insurance subsidiary and cooperated with Qianhai Reinsurance Company to launch a very special health insurance product. For example, the Beijing medical insurance outpatient service threshold is 1,800 yuan. For many young people, they can’t spend more than 1,800 yuan a year on medical treatment, so they need to pay for themselves. This health insurance is aimed at outpatient clinics for minor illnesses, providing users with 12 free online consultations per year, with a drug premium of up to 5,000 yuan, and the drugs are delivered within 1 hour.
Why no one from so many health insurance companies can make such an all-online outpatient insurance product? Why are most medical insurance in the market losing money? One fundamental reason is that insurance companies don’t know where to get the daily data of these minor illnesses and disasters, so they can’t figure out how much insurance products should be sold for.
Finance:Chunyu participated in the design and development of this product?
Wang Yuxiao: Well, deep participation. The data of consultations we have accumulated over the past 9 years is the fundamental basis for the actuarial calculation of this health insurance product. In the industry, the path for insurance companies to obtain medical data is to cooperate with hospitals and medical insurance bureaus. In the case of hospitals, many of the data received in hospitals are distorted due to various motivations, such as the benefits of using medicines to support doctors. When insurance companies use the data generated off-chain to design products, the price of the product will definitely be high.
For the Chunyu platform, our data can naturally support the birth of a medical insurance product. The transformation from data to innovative health insurance products is a very important step for us. This product includes consultation and medical services, which is equivalent to providing solutions for users.
Finance:In the industry, the most important asset now is indeed data.
Wang Yuxiao: In fact, in 2013, Chunyu had already started data cleaning and structuring. We and the Chinese Academy of Sciences jointly built a health big data experiment room. Therefore, Chunyu has a data foundation and genes, and this is an important step in the transformation of new health insurance products.
The sea and the island
“Mobile medicine is still in a very early stage”
Finance:What are the significant changes in the external environment facing Chunyu and the past?
Wang Yuxiao: This epidemic is like an accelerator and an amplifier for Internet healthcare. The epidemic has made each family more aware of their core strengths, and Chunyu’s online consultation capabilities have passed the test in the epidemic. Some companies are recruiting doctors while doing consultations during the epidemic, but Chunyu’s doctors are sufficient, and there are unlimited free clinics around the world.
At the same time, it is an accelerator, and the country has intensively introduced policies to encourage Internet medical treatment. Accelerators will bring benefits, and at the same time, the requirements for each company will be higher. It will test whether companies can seize the opportunity to expand their advantages and develop new business lines. In addition, they will allow more competitors to enter the industry. In the future, the market will be further enlarged, and the pressure on each company will also increase.
Finance:Many people in the market now feel that Chunyu has fallen behind among the same type of companies. Which echelon do you think Chunyu is currently in?
Wang Yuxiao: The entire mobile medical system seems to be nearly 10 years old, but the entire market is still in a very early stage. Now no company dares to say that his family is the only one. Everyone is just a small part of the market, each with its own advantages and specialties. For the grand mobile medical industry, I don’t think it makes any sense to talk about the echelon concept, and even everyone’s business models are different. How to compare? From the perspective of the development path, some rely on the advantages of the group to raise their income, some rely on selling medicines to increase their income, and some empower hospitals. The essence of each is different.
In the relatively high frequency track of the Internet industry, it is true that only Top-level companies can survive, such as Meituan, Didi, and so on. But on the relatively low frequency track of medical care, each company can only occupy its own piece of island in the sea and evolve toward the business path it envisions. Win-win cooperation and complementary advantages can have a greater future.
Finance:Chunyu can be said to be a”second entrepreneurship”?
Wang Yuxiao: You can say so. Before 2016, Dr. Chun Yu had a rapid rise. In 2016, he was hit hard by the black swan. In the past few years, he fluctuated in the trough, but now it seems to be climbing upwards. Don’t think we stand up when we get the financing, comrades still need to work hard. We crawled hard in the past, but now we crawl on our knees. I hope that one day the spring rain can stand up again and return to the top.
Finance:Has Chunyu missed too many opportunities for the path that Chunyu chose? If you can make a small and beautiful vertical platform in medical care, you are already alive and well.
Wang Yuxiao: It is indeed easier to do verticals. The path Zhang Rui chose is indeed too difficult. If I start my own business, I think I will build a small and beautiful platform. When you focus on one area, you can make money soon. Sometimes I also sigh that Zhang Rui’s dreams and ambitions are too great. He wanted to be a disruptive platform when he came up. This road requires too much effort.
Finance:Then why persist?
Wang Yuxiao: I have worked in China’s aerospace industry before and came across this famous saying, “We did not do this because it is simple , But because it is difficult” (from a speech given by President Kennedy to mobilize the moon landing). In the medical field, we are doing such a very difficult thing. There is a similar spirit that supports our exploration in the medical field. Someone has to do this, right?
(The author is a researcher of Caijing)