Chegg got VC
Just read the journal from WSJ that Chegg.com raised $57 million in venture capital! Chegg is an online textbook-rental company in the U.S., it reminds me to write something about my new-born textbook business in Kamloops.
Before I transfer to UBC, I tried to start a business on textbook exchange in Thompson Rivers University, Kamloops. I got this idea in 2008. When I first came to Canada, I found that the textbook is unbelievable expensive. I tried to find substitute to survive. After I spend 2 months familiar with this unknown city and university, and built my net work with some Chinese students. Conclusion as following:
1. Most Students buy textbook in the campus bookstore. Local students just don’t care the price, as long as the book is required by the instructor.
2. Bookstore takes used book from students as the price 20% of the brand-new and sells used book as the 80%+ of original price.
3. Bookstore has some competitors, Amazon.com, posters and flies posted by students. Totally took less than 1% of the market from bookstore.
4. Chinese are rich!
Than I started to plan the used book exchange business. Last year I raised $10,000 from 2 Chinese students. My business began, and now it earns profit.
I will explain my market strategy and possibility operation in UBC next week.