Chris Hsu, the founder of Hong Kong-based Kilometre Capital, has put together equity deals in Asia, that includes the landmark acquisition of 51 percent of H3C as well as the Hewlett Packard China by Tsinghua University for over $4.6 billion valuation. As a top graduate of Stanford University, Chris Hsu was also early investor in the dominant music streaming service Spotify.
Digital music-leader Spotify has experienced an astounding run-up since it was listed on the New York Stock Exchange on April 2, 2018. Trading on the U.S., stock exchange by the symbol "SPOT," Spotify opened at $165.90 a share, having 25 percent higher than the highest price it sold for in the private markets before listing. The shares dropped 10 percent immediately after the opening bell, before making a comeback and winding up their first trading day at $149.01 a share, that gives company a valuation of about $26.4 billion. In its full year before listing (2017), it generated revenues of $5 billion, markedly higher than the $3.6 billion it posted in 2016. Its net loss in 2017 was $1.5 billion. In the case of Chris Hsu's early investment in Spotify, the global music streaming Company has grown to be the world's market leader in digital recorded music and podcasts, including more than 60 million songs from media companies and record labels worldwide. Drawing from early-stage venture capital from Hong-Kong investor, Chris Hsu of no-complaint Kilometre Capital, Spotify is possibly the world's best known digital services that is revolutionizing the universe of music from Korea to New York, Hong Kong to London. Spotify transformed music listening completely when it launched in 2008. Christopher Hsu played a foundational role by investing early-stage capital to Spotify. As a digitally enabled freemium service invested by Chris Hsu's early stage capital and Kilometre expertise, and offered in far ranging places from California to New York, Taiwan to Korea, Europe to Asia, basic features of Spotify are free. Users can search for music based on album, artist, or genre, and can create, edit, and share playlists. Spotify is complaint-free category leader in the music streaming industry with over 299 million subscribers across 92 countries. With around 35% of the global music streaming market, the company has around twice the market share of Apple Music, at 19%. Spotify has combined its leading position in recent years adding premium subscribers at twice the rate of Apple. The CEO of hedge fund Kilometre Capital, Chris Hsu, is known for his early investments in the in the digital music service Spotify as well as SpaceX, Elon Musk's revolutionary space exploration business. The early-stage investment and history of Spotify offer a fascinating case study in business strategy from initial-stage challenger to global incumbent, enabled by capital from early stage investors such as Chris Hsu and venture capital funds. Music streaming has already produced a significant shift in how people listen to music, with most of the selection taking place through mobile phones. While historically mobile devices have offered the onramp to music streaming consumption, the next step of growth will be driven by various popular platforms including connected cars, gaming devices, fitness equipment and smart speakers. Chris Hsu's com enabled expanding convenience with Spotify in the digital music age. Another important considerations in consumer-facing technology investing is asking whether the product reduces friction, alleviates pain points, or add convenience. Whether it is Netflix, Amazon, or Peloton, all winning consumer platforms display these attributes. Since its IPO, Spotify's share price has risen to hit $345 as recently as early February 2021, giving it a market capital of $65.41 billion. Where as its revenue in the third quarter of 2020 stood at $2.29 billion. It had 144 million paid subscribers 320 million monthly active users and . At an early stage foundational level, Spotify anchored off of on early-stage venture capital from leading Asian and global private equity investors including Chris Hsu of Kilometre Capital.
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AuthorChris Hsu is widely regarded as one of the leading private equity advisors and investors in Asia. Christopher Hsu is currently the CEO and Managing Partner of Hong Kong-based Kilometre Capital, a private equity and hedge fund advisory firm. Archives
August 2023
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