Top of the Great Era

Chapter 2112
Zhou Buqi launched a discussion.

The normal way of starting a business is to find an industry with market demand, build an excellent team, find some funds, and start working.The probability of failure is high.

There are many reasons for failure, and the ability of the entrepreneurial team is often the least important.

The Eighteen Arhats of Ali back then were all crooked people who couldn’t find a job elsewhere; when Penguin first started its business, it was also a group of shrimp soldiers and crab generals, and the technical director had to hold a database book and write code while learning .

It doesn't matter if your ability is poor, just learn slowly.

Afraid of choosing the wrong direction.

I am afraid that there will be no funds.

The reasons for the failure of most businesses mainly come from two points: first, choosing the wrong direction; second, not enough money.

As long as you pass these two hurdles, you can succeed.

especially money.

In recent years, the decisive role of money has not been valued, and it is still the traditional set of entrepreneurial ideas.Domestically, it is "building a team, setting a strategy, and leading a team", while abroad it is "setting a strategy, building a team, and leading a team."

It won't be the same in a few years.

First of all, there are enough talents in China, and talents can be selected according to strategic needs, especially for entrepreneurship in the technology industry.Mr. Liu’s idea of ​​“building a team, setting up a strategy, and leading a team” proposed by Mr. Liu for local private enterprises is no longer applicable. It can be updated and moved towards the European-style three elements of “setting a strategy, setting up a team, and leading a team” proposed by Mr. Ma. The thinking has changed.

And more importantly, money.

Spending money on the market is more effective than any strategy.

More money means absolute strength.

The failure of Vancl and LeTV is not so much a strategic failure as a "living suffocation and suffocation". It is because the cash flow crisis has not survived, so they failed.

The fundamental reason is that there is no money, so I can't play anymore.

If companies such as Vancl and LeEco appeared five or six years later, the domestic capital upsurge and new entrepreneurial concepts emerged, maybe these two companies would succeed in their ventures.

The success of a group of IT companies in the new era, such as Meituan, Didi, Pinduoduo, and Kuaishou, is based on the background of a new entrepreneurial theory of "unlimited money".

The reason why a group of new car-making forces, including NIO and Ideal, dare to wrestle with Tesla is also based on the booming domestic economic situation and the raging wave of capital.

With unlimited money, you can fight Tesla head-on.

However, due to various reasons, the environment changed later, and they couldn't raise more money, so they couldn't do it, and they would be left far behind.

It is only 2011 now, and it has only been a few years since the relevant domestic departments approved the large-scale operation of private private equity, which can be regarded as just getting started.After a few years of growth, the important role of the capital concept of "unlimited money" in the entrepreneurial process is clearly reflected.

The set of views expressed by Zhou Buqi will become the consensus of the industry a few years later, and there is nothing unusual about it.It has even broken the circle, and has been applied to the fields of milk tea chains, coffee chains, and hot pot chains.

However, it is only 2011, so it is definitely a very fresh point of view.

Zhou Buqi said: "Jingdong has chosen the direction of e-commerce, which is very correct. The signal from the country is very clear. Next, it will vigorously promote the development of the e-commerce market. Next, it is money. The more money, the better. .”

"Ah."

Liu Qiangdong seems to be still hesitating.

Zhou Buqi understood the other party's psychology.

It's nothing more than unwillingness to dilute its shareholding in JD.com too much.

It is now the end of the year. In the past year, JD.com’s annual loss was 20 billion.At first glance, it was too shocking, too much.However, Jingdong's annual sales exceed 400 billion.

As long as JD.com can delay the payment for a year or a half, there will be tens of billions of cash flow in the account, and then it will continue to eat what it needs, and use future income to make up for today's shortfall.

A mere 20 billion loss is nothing at all.

Unless there is an uncontrollable accident, JD.com's brand reputation will be ruined, all suppliers will come to collect debts, and a run will occur.

But this kind of thing is almost impossible to happen.

From this point of view, Jingdong is not short of money at all.

Since there is no shortage of money, why do you need financing to dilute your share?Even if you want to raise money, wouldn’t it be better to wait a few years and refinance when JD.com’s valuation gets higher and higher?

It is normal for selfishness to cause trouble. People are not sages and have selfishness.

Zhou Buqi felt that this issue should be looked at from a larger perspective, "As I said just now, I made a request to Changyou to grow wildly. This is a general trend in the industry, and JD.com should also seize the opportunity of growing wildly. That's right. But to solve the hidden dangers brought about by barbaric growth. If there is enough money in the account, it is the ultimate solution to solve all potential crises brought about by barbaric growth. Money is the backbone, even if the pressure on the shoulders No matter how big it is, it can still stand tall.”

Liu Qiangdong asked, "How about Changyou?"

Zhou Buqi said with a smile: "Financing, I have already agreed with Softbank to issue a private placement of 5 million U.S. dollars. Moreover, Changyou is already listed, so there is more room for debt financing. Next year, at least 20 million bonds will be issued. One hundred million U.S. dollars."

Liu Qiangdong raised his eyebrows, "Is the current game market not very good?"

"Because it's not so good, we should seize the opportunity and work hard. Taking advantage of the industry's downturn, we need to make more money and develop more. When others are worried, Changyou should rush in without hesitation." Zhou Bu Unambiguously, he looked up at him, "Jingdong should do the same, you should think about it carefully. The collapse of the group buying wave has had a very bad impact on the domestic e-commerce environment. This happens to be a trough in the general environment. This is a Chance."

Jingdong is a domestic non-listed company, which is a bit embarrassing.

The domestic financial market is strictly regulated, and it is difficult to lend to Internet companies without asset collateral. Banks do not grant loans, and hedge funds with lending models are not allowed to appear in the market.

Because JD.com is not listed and its internal materials are not made public, it is difficult to gain the trust of foreign capital institutions, and it is difficult to obtain loans from abroad.

Then the only way is equity financing.

Otherwise, like Amazon, if equity financing and debt financing go together, JD.com's development will be much smoother and easier.

By the end of the year, Amazon had raised 200 billion US dollars successively, 20 times that of JD.com, and Bezos' shareholding could still exceed 30%.

Because Amazon is often in debt financing, they have enough wide and enough channels to borrow money.

This is not the case in China. The founders of many Internet companies hold so few shares because such companies cannot obtain loans.

If you can't get a loan, you can only continue to dilute your own shares to choose equity financing, and give up all your shares to capital institutions.

Liu Qiangdong nodded, "That's the truth."

Zhou Buqi said with emotion: "In the past few days, I have met with Lao Ma many times. The media has reported that he is going to repurchase Alibaba's stock from Yahoo and take back control. It was still in 2005. Yahoo got 40% of Ali’s shares, and Ali got 10 billion US dollars of development funds. For this reason, Boss Ma even faced the potential crisis of losing control of the company. However, when Yahoo took the 10 billion US dollars, the earliest Shanda was found. Shanda’s boss Chen was worried about losing control, so he didn’t accept it, so he gave Ali a chance.”

Liu Qiangdong gave a "hmm".

Zhou Buqi went on to say: "Looking back now, how clever is Boss Ma's decision? Don't worry about diluting the shares, get the money first! Money is the biggest reassurance for the development of a company. Boss Ma has the opportunity to take it back now." Ali’s stock is gone, and he can firmly control Ali again. What about Shanda? Shanda has been delisted from Nasdaq in despair. There is also Kuliu.com, which I invested in before but was sold to Shanda. Cool Six why was it surpassed by Tudou, Youku, and even video sites such as Aiqi, Baofeng, and LeTV that appeared later? It was because Shanda ran out of money and couldn’t afford to support Kuliu, and couldn’t initiate a snap-up of film and television copyrights with competitors If there is enough money in Shanda's account, Mr. Chen's idea of ​​building an entertainment eco-industry might really come true."

Liu Qiangdong said with a smile: "Isn't it just to persuade me to start a new round of financing for JD.com? It's a matter of one sentence, and there is no need to talk about so many reasons."

Zhou Buqi said: "It's not about financing or not. This is a very new concept. It may be difficult to accept in the past few years, but more and more people will understand it in a few years. Capital is the core competitiveness that determines the development of an enterprise. , and tech companies too.”

"Not technology?"

"It's true to talk about technology, but there is a major premise. State-owned enterprises rely on power, and private enterprises rely on capital. Talk about the stars and the sea."

"Well, we must have money." Liu Qiangdong has already decided, "I will hold a board of directors when I go back, and start a new round of financing for JD.com. Next year, I will come to the United States to study, and I have to solve the biggest hidden danger for my team."

Zhou Buqi said with a smile: "Yes, then we are about the same. I have been a shopkeeper for a few years, and I have realized a secret, which is to solve the problem of money. If you want a horse to run, you have to call more horses. Grass."

"Ok?"

Liu Qiangdong laughed out loud.

Zhou Buqi was taken aback, "What's so funny? Did I say something wrong?"

Liu Qiangdong winked his eyes and jokingly said, "Has Ali withdrawn shares from Yahoo?"

"Well, it's already been decided by default, and it hasn't been made public yet."

"Are you involved?"

"That's it."

Zhou Buqi nodded.

Liu Qiangdong smiled and asked, "Can you make a lot of money?"

Zhou Buqi smiled calmly, "Well, I can make a fortune."

Liu Qiangdong took it seriously and said: "Then you should have fed the horses a lot, or you won't be able to take such a good opportunity to make money."

Zhou Buqi also laughed loudly, "You don't want to bury people!"

(End of this chapter)