My rebirth is different

Chapter 477

For mature venture capital institutions, when they invest in a project, their general business model includes the following links: financing, research, investment, management, and exit.Among them, the business process part of the docking between venture capital and target project companies is often concentrated in the two key links of "investment and management".

Generally speaking, institutional investors have their own clear set of investment management processes: establishing project channels, screening project BPs, gradually interacting with internal projects, investment term sheets after preliminary due diligence, signing confidentiality agreements, entering the market for in-depth due diligence, Write an investment report, hold internal meetings, negotiate, and attend meetings, sign an investment agreement, change the articles of association and industrial and commercial registration, complete the share delivery, and finally make payment, and then start the subsequent stage of management value-added and project supervision.

This is a very complex and rigorous process!
Under normal circumstances, many start-up companies take the initiative to seek financing from venture capital companies!Therefore, venture capital companies are passive and take the initiative.However, there is another situation, that is, the start-up company has shown great potential, or at the same time, several venture capitalists have taken a fancy to a start-up company.

At this time, the active-passive relationship is reversed.It became a venture capitalist who took the initiative to come to the door, begging to invest in a start-up company.

Facebook, apparently, is the case.

Years ago, Hu Jingjing did not know how many times she had received phone calls and consultation letters from investment companies asking whether Facebook had any intention of accepting financing.

At that time, Yu Wenfei had asked him to refuse all of them and not to consider them.

In the eyes of major VCs, a website like Facebook is like "Tang Monk Meat"!

The trendiest direction of the Internet, after the classification of an almost forgotten Internet website-blog, it has been transformed and flourished.

Looking at the momentum, it has even become the largest sharing social networking site in the country!
It is not an exaggeration to say that the potential of this kind of website is comparable to that of Tencent QQ, and even in terms of generating income, the website has inherent advantages over chat software.

In other words, Facebook will be easier to monetize traffic than QQ.

Therefore, many VCs have long been "drooling" over Facebook, and of course SoftBank China is among them.

…………

The team led by Softbank China is naturally Xue Chunhe, and the team led by Jiaotong University Venture Capital Fund is Director Wang.

As soon as we met, Xue Chunhe held Yu Wenfei's hand tightly, and said with a smile on his face, "I heard from the old principal a long time ago that our Jiaotong University has produced an amazing student! I have always wanted to meet you, my student. But both of us are too busy, and we didn't meet for the first time until today. We need to walk around more in the future, we are all alumni, our own people!"

Director Wang next to him also smiled and said, "Both of you are the pride of Jiaotong University, and you are also very successful in your career. If you help each other in the future, you can go further."

This is the benefit of being from a prestigious school.

Among the alumni who graduated in previous years, some may have stood out and become leaders in various industries. At critical moments, if they support you, it will really save 30 years of struggle!

Of course, Yu Wenfei doesn't need anyone to support him, what he needs to consider is who he needs to support him.

"Hi brother, I've known you for a long time. Under your leadership, SoftBank China is well-known in the venture capital circle. Alibaba's 2000 million investment is indeed very discerning!" Yu Wenfei also responded, holding Xue Chunhe's hand.

Investing in Ali is Xue Chunhe's most proud thing. Although Ali is far from the Ali Empire in the future, it has already shown a momentum of excellence in the field of e-commerce.

Xue Chunhe laughed loudly, held Yu Wenfei's hand firmly again, and said, "That happened a few years ago. In the past two years, there is only one company I most want to invest in, and that is Facebook!"

After exchanging pleasantries, Yu Wenfei led everyone into the big conference room, and after they were seated, they began to get down to business.

"Mr. Xue, Director Wang, I am very glad that you are optimistic about and trust Facebook. I don't need to introduce the basic situation of Facebook. I think you already know it. Today, everyone is sitting here to reach a consensus. Facebook needs funds for further development, and you, by investing in Facebook, will reap great rewards...”

After speaking, Yu Wenfei instructed Hu Jingjing to distribute the sorted out Facebook-related data to everyone.

Although venture capital companies have done preliminary due diligence, many internal data are not so easy to collect and need to be provided by Facebook. These data are those data.

Xue Chunhe, Director Wang and the others flipped through the documents at hand and read them carefully.

Facebook has more than 8000 million registered users and more than 3000 million daily active users. These are data that can be found through third-party statistical websites.

However, such as the number of pages clicked per capita, the number of link jumps, the number of posts per capita, the number of comments and likes per capita, the number of followers per capita, etc., these are not available to third-party statistical websites.

Looking at the information at hand, Xue Chunhe strengthened his determination to invest in Facebook.

Needless to say, Director Wang, he was notified by President Li before he came that Jiaotong University Venture Capital is a follow-up investment and must be invested.But they can't pay too much money, and how many shares they can get in the end depends on the results of the negotiations between Softbank and Facebook.

Therefore, in this negotiation, he is going to just listen and not talk, and let Softbank lead the charge.

After reading it, Xue Chunhe closed the documents at hand and exclaimed in admiration: "Very beautiful data! It took half a year to achieve this level of Facebook. It is really the first time I have seen it in so many years!"

Yu Wenfei smiled faintly: "Boss Xue is over the top."

"Then, how much capital and how many shares does Mr. Fei plan to raise in this round of financing?" Xue Chunhe asked, staring at Yu Wenfei with piercing eyes.

When we started talking about business, we had to temporarily put aside the schoolmate friendship. In terms of address, the two of them also became "Mr. Xue and Mr. Fei" by coincidence.

"Let's talk about Facebook's valuation first, which is the basis." Yu Wenfei said calmly.

Xue Chunhe nodded in agreement.

"Facebook now has 500 million registered users. With reference to the recent user growth rate, the number of users will officially exceed 4000 million in half a month, or at most a month! Daily active users will exceed [-] million. In these two key Based on the data and through comparison, we believe that the value of Facebook should exceed those of Sina and Sohu.” Yu Wenfei said seriously.

The three major domestic portals, Sina, Sohu and Netease are all listed on NASDAQ, and their market value is also very clear.Then it is normal for Yu Wenfei to compare them to get the valuation of his company.

Xue Chunhe nodded, then shook his head again, and said, "Compared with Sina, Sohu, and Netease, I have no problem. But if you want to say that Facebook's market value exceeds them, I have reservations."

At the beginning of 2003, Sina's market capitalization was US$32 billion, the highest among the three major portals.

The second is Sohu's market value of 28 billion US dollars, followed closely.

The weakest is NetEase, with a market value of only US$18 billion.

According to Yu Wenfei, if it exceeds the three major portals, it means that the market value of Facebook will exceed 32 billion US dollars!

Xue Chunhe couldn't accept this.

Although all the data on Facebook are against the sky, but this is your A-round financing, is the asking price so high...

"Oh? Does Mr. Xue have any different opinions?" Yu Wenfei asked calmly.

"These three companies have been listed. Although their market value is relatively objective,... everyone understands that there is a certain amount of water in it. The market value of listed companies does not represent their actual value, which includes investors' perception of this company. The expected value of future prospects. In addition, portals are currently the most mainstream in the Internet industry and have the strongest ability to monetize traffic. In this regard, I think blogging websites cannot be compared with portals. Therefore, I agree that Facebook is qualified to compete with NetEase On par, but not more than Sohu, let alone Sina." Xue Chunhe said slowly.

He is different from Yu Wenfei in terms of concept. Xue Chunhe believes that the prospect of the portal is better, and the monetization ability of the blog is weaker than that of the portal.

At that time, for Internet companies, what investors valued was their future liquidity. They could accept short-term losses, or even long-term losses, but your company must be profitable after all.

In the Internet industry at that time, there was a very simple means of monetizing traffic, and the only way was to advertise...

Therefore, through advertising, Yahoo.com has been able to dominate the world in terms of market value for several consecutive years.

Also through advertising, Google has risen rapidly and become a new generation of Internet overlord.

Sina, Sohu, and NetEase also became the three major Internet giants in China around 2000 through advertising.

This is why when people open portals like Sina, they find that there are so many advertisements on the homepage that they can blind your eyes.

The homepage of Facebook is so simple and pleasing to the eye. It was definitely a clean stream in the Internet at that time. When other websites were just launched, they thought about how many advertising spaces they wanted.

Yu Wenfei also shook his head. Although Xue Chunhe has the ability and foresight, his vision is not far-sighted enough and the pattern is not big enough.

Obviously, Xue Chunhe was still confined in the Internet environment at that time, and could not see the future development direction of the industry.

Realization of traffic does not have to go through the traffic portal!
He said: "Mr. Xue, I have thought about how to monetize Facebook in the future. It is not convenient to disclose the specific means now, but I can guarantee one thing, that is, in the not-too-distant future, within three to five years." , Facebook’s profit will exceed these three portals, or in other words, exceed their sum!”

Xue Chunhe was dumbfounded by these words, his junior...

It's too good to blow!

(End of this chapter)