1/ Bilibili is a Chinese internet company that few people outside China have heard of, but that boasts a *$45 billion* market cap.

Bilibili is basically a mishmash of YouTube, Twitch, Patreon, & Netflix, and it provides some interesting lessons for US internet companies

2/ Bilibili has 202 million monthly active users (putting it not far behind Snapchat) who are averaging an incredible 75 minutes of daily engagement.

For reference, Instagram and TikTok users average 53 minutes and 52 minutes, respectively.

3/ Bilibili is a hub for interest-based communities.

It originated as a place for anime enthusiasts, but has since expanded to music, dance, science, film, fashion, etc. Bilibili is built on a trifecta that captures the future of internet companies: UGC, commerce, & community.

4/ What's unique about Bilibili is that it builds *friction* into community.

In order to join a community, users must pass a 100-question test. A sample question to join the Game of Thrones community, from @lillianmli: “Which of the following is not part of the Faith of Seven?”

5/ I've watched all 8 seasons and there's 0% chance I could answer that question

Building in friction ensures that communities are comprised of only superfans. This means that engagement and retention are best-in-class—about 85% of users retain after 12 months.

6/ Like other Chinese internet companies, Bilibili's revenue is relatively diversified.

While YouTube relies on ads & Netflix relies on subscriptions, Bilibili stitches together e-commerce + ads + gaming + premium memberships + tipping.

7/ Bilibili's defining feature is bullet commentary.

Bullet commentary lets user comments appear overlaid on content, time-stamped to the place in the video when the user had that reaction. It lets you experience content as part of an engaged, like-minded community.

8/ Last week, Bilibili celebrated the anniversary of its hit game "Princess Connect! Re: Dive" by lighting up Shanghai's skyline with 1,500 drones (!)

It was an innovative, stunning form of advertising.

9/ Bilibili's 1,500 drones even formed a QR code to let viewers download the game.

It was a little dystopian—the sky basically became a billboard—but it captured how Bilibili is positioning itself for digital native Gen Zs.

10/ Bilibili is the confluence of a few trends we're seeing in consumer internet:

- Business model shifts away from ads
- An emphasis on community
- Better ways to interact with content

For more, check out @lillianmli & Bilibili's investor pres here: https://ir.bilibili.com/static-files/8899f4e3-6854-4949-99ea-071daf2ca7db

11/ I'm starting to see "Bilibili for the West" become a more common descriptor of startups.

We'll see more and more elements of Bilibili's playbook applied to consumer internet startups in the West.