The Development of Renn.Inc

Contents

Executive Summary 3

1.1 Brief Introduction 3

1.2 RENREN Purpose and Main Products 3

1.2 Business model 4

Industry Trend 5

2.1 SNS Presence 5

Company analysis 5

3.1 Recent Development 5

3.2 SWOT analysis 6

RENREN’s Initial Public Offering 7

4.1 Overview of IPO 7

4.2Advantages and Disadvantages of being listed 7

4.3 Performance of RENREN after IPO 8

Financial Ratio analysis 9

5.1 Profitability ratio 9

5.2Liquidity Ratios 11

VC Analysis 12

Conclusion 13

RENN.Inc

Executive Summary

1.1 Brief Introduction

RENREN. Inc. is a company that owns its SNS under real-name registration system, in which users could communicate with each other, share video and music, self-create, and play online game and group purchase. The main platform of RENREN is the RENREN Network (literally "Everyone's Website"), initially known as the Xiaonei Network (literally "on-campus network") which was founded by Joseph Chen in 2005. Other websites included are RENREN Games (online games center), BSNS(business social network sites), Nuomi (social commerce sites) and web 56 (video-sharing website). [1] In August 2009, Xiaonei officially changed its name to RENREN, as well as its domain to www.renren.com.

In April 2011, RENREN. Inc. filed with the SEC to raise $584 million in a US IPO, offering RENREN stock on the New York Stock Exchange， and it intended its IPO valuation is approximately $4.3 billion, NYSE: RENN. The company reported 2010 revenue of $76 million USD.

1.2 RENREN Purpose and Main Products

RENREN redefine the social network sites aiming creating strong relationship by using real-name registration. The function of RENREN.com is networking service with flexible customize features, thus users could create their personal page like personal profile and could add their favorite applications. As the key information of RENREN platform is to make one’s identity effective is college, high school, middle school and hometown, users could meet their schoolmates, fellows in same