Start earning money as the girl next door

Chapter 331 Why must I invest in you?

"You can continue to talk about your biggest advantage! Why it must be successful, why must it be you!?" Xiong Xiaoge thought seriously, "After all, I can't apply the successful cases of Silicon Valley, I can only learn more , can you make up your mind to invest!”

“The biggest advantage of Wenwen Service Network is that most of the areas where we develop belong to the real new blue ocean. For a long, long time, a few years in the Internet market is already a long time, and we will not encounter competitors!

The reason why we will not encounter opponents is that there are too many other opportunities and temptations on the Internet. What we do is hard work, and we are destined not to be targeted by most people for the time being.

Most Internet people find it too difficult even for e-commerce, let alone our O2O model!

Roughly speaking, 90% of domestic Internet companies and venture capital institutions only take root in a few cities, if they only do online business.

For example, you can make a search, a portal, or a game.It is possible to do instant messaging!

These pure online traffic businesses, I call them, are ungrounded gods. They do not need to be combined with the economic model of countless toiling people offline to make profits purely online!

Theoretically, profits are maximized and costs are minimized... But everyone wants to sit in an office, so there are too many people doing office-based business, and competition will become increasingly fierce, which is not so easy to do.

With these office-based fairy jobs in the Internet field, most of them have been done by others!

Generally speaking, after the previous easy job was robbed by others.Only then will there be excess capital and entrepreneurs flocking to the hard-working market that was looked down upon in the past!

At that time, most of the people who came again did not get any bonuses, but they had to pay a higher cost to enter. Most of them had not yet entered the arena and entered the official competition, because it was too difficult and they quit the competition early!

Investor Quote - Don’t go where there are crowds of people!

why!

In the stock market, where there are many people, there is a bubble, and the stock price is expensive. No matter how good the business is, if you go there, you will take over!

In the field of Internet entrepreneurship, where there are many people, there may be a hundred or a thousand companies doing the same business as you. You have to fight your way out of the mountain of corpses and make sure you are a survivor in order to make money!

Therefore, you have to avoid crowded places, mainly because the winning rate is too low!

There are people in Silicon Valley who are doing C2C e-commerce, but there are not many in China. The reason is also because the threshold for e-commerce is actually higher than other Internet models.For example, what portals, games, searches, etc. should be higher.

Generally speaking, Taobao must rely on express logistics and infrastructure construction invested heavily by flower growers, which will become faster and faster in the future. In the future, express delivery time will gradually be shortened from more than ten days to a few days.

But...compared to Taobao, I am in a more difficult mode!

Because, what I do is to prepare the meal in half an hour to an hour and deliver it to your table! 】

Taobao's threshold has eliminated most Internet companies.They can't do what Taobao can do. If they can't do better, even if they imitate Taobao, they are destined to fail!

Taobao cannot do what our Wenwen Service Network does. Our moat is higher than Taobao.Its efficiency is to deliver it to the customer in a few days. My products have to be calculated in hours. Delivery within one hour is the efficiency I can achieve.

It’s not just domestic Internet peers who can’t do it now.Just go to Yingjiang, search all over the world, and find it everywhere, but no one can do it!

This is the greatest value of investing in our Wenwen Service Network!I can do it, others can't, and it's a business that customers need and the market is extremely huge!

We are not repeating what others have done. We are not the flower gardener's version of Google, the flower gardener's version of Amazon, the flower gardener's version of ICQ, the flower gardener's version of Yahoo... We are Wenwen Service Network!

Once we succeed, we will not only be a market for flower growers. After the market for flower growers reaches its peak, we will gradually replicate it city by city all over the world!

In a sense, giving money to those who copy other people's business models should not be the pursuit of venture capital!

Well-established venture capital should invest in businesses like mine that no one else in the world is doing, so I will do it!This is the investment you, the famous venture capital boss, should make!

Baidu is successful, you just invested in a business with good returns.However, such an investment cannot be said to be great!

If Wenwen Service Network succeeds, it is a very great career.For example, Old Xiong, if you retire in the future, your grandson will ask you, Grandpa, have you been doing venture capital all your life and have you invested in those amazing projects?

If you talk about Sohu, Yahoo, Baidu, Google... then your little grandson will think that doing venture capital is an investment that copies other people's work. If others do it, and you invest in companies that copy the business model, this How embarrassing! "

Before meeting Xiong Xiaoge, Zhao Han actually rehearsed it countless times in his mind.

Xiong Xiaoge, the eccentric among the flower grower venture capitalists, started to engage in venture capital in the early 90s.

Since the early days of the Internet industry, Huazhuangjia has invested cautiously and achieved a good rate of return.

Xiong Xiaoge’s investment method is to invest in small amounts by casting a net. Since you are brave enough, you dare to invest in many projects!

I am timid and timid, mainly because... after I make a little profit, for example, several times, ten times, a hundred times, I start to withdraw.

For example, in the early case of Tencent, IDG invested more than ten times and then ran away. Later, I regretted it.

Then, I got a little bolder, and Baidu made hundreds of times its investment and started to stop when it was good.In fact, it is still too cautious.

It's almost outrageous to be doing venture capital based on the profit ratio of the secondary market!

This profit margin is relatively large for stocks listed on the secondary market.However, from the early stage of enterprise development, the growth space of a good enterprise is often thousands or tens of thousands of times.

In this general direction, if you pick a bunch of sesame seeds and miss the real big watermelon, it will be a strategic mistake.

In essence, although IDG has made a lot of money, if Tencent's shares are not sold, it will make more than IDG doing hundreds of venture capital projects in the future.

In essence, the reason why Xiong Xiaoge mentioned more and more BAT later was that he made some mistakes in all three.

Ali's mistake was that he simply didn't shoot.

Tencent’s mistake was to make more than 1000 million US dollars and then run away, missing the opportunity of 1000 billion US dollars in returns.

Baidu's mistake was that it made hundreds of millions of dollars and then ran away, missing the opportunity of tens of billions of dollars later.

All in all, Xiong Xiaoge is not a god, he is just a veteran venture capitalist.

The more he participates in the development of the Flower Gardener Internet, the more Xiong Xiaoge regrets his mistakes in some big investment opportunities.

Making some small sesame seeds doesn't make much sense. If you really want to hug a big watermelon, it will be much more difficult than a lifetime of hard work.

Therefore, Xiong Xiaoge wants to invest in great projects more and more. The market prospects must be large and participation must be early!

The more big opportunities he misses, the more the old bear will swear - next time, he must catch the big watermelon and don't easily sell the melon seedlings at a low price before the watermelon grows.

Chapter 332 Valuation: $3000 million

"How much do you value Wenwen Service Network?" Xiong Xiaoge said.

"If you ask me one year from now, I will say a valuation of US$1 million. If you ask me two years from now, I will probably say a valuation of US$5 million. If you ask me three years from now, I will say a valuation of US$3 million." It’s worth US$20 billion. Five years later, if you ask me, I might answer US$100 billion. Ten years later, I might answer US$500 billion...” Zhao Han casually gave a valuation that he thought was not too outrageous. .

This means that under the premise of smooth development.

Suddenly, Xiong Xiaoge was amused: "How optimistic are you based on your expectations?"

"First of all, Mr. Xiong, you see, it is driven by multiple growth! One growth is its own active promotion, and the value brought by the continuous growth of user scale is increasing day by day. The second growth is that the growth of the total number of Zhonghuajia Internet users brings its users The upper limit will always be raised. The third growth is the growth of domestic GDP. Now a user spends 7 yuan a day. In the future, it is not impossible for a user to contribute an average of more than 20 yuan to [-] yuan."

Zhao Han said, “This business model is essentially the dividend of the popularization of Internet technology, the dividend of economic growth and the multiple dividends brought by urbanization!

Mr. Xiong, you have received a salary of 20 yuan a month before. You should have seen that the salary of family members who grow flowers ranges from 20 yuan to dozens of yuan, to 100 yuan, to 400 yuan.

From the 80s to 2005, income has grown 20 times in 20 years.The current economic growth has not yet reached the world's per capita level, and the growth rate has not slowed down at all. The size of the flower grower market in the future can be said to be unfathomable!

Mr. Xiong, you are a venture capital investor. You should have noticed that the success rate of flower growers’ Internet venture capital is much higher than that of Yingjiang’s venture capital!

The success rate of Yingjiang's venture capital funds may have dropped to the point where only one out of a hundred investments can succeed.

What is the reason? Yingjiang's economic stock is large, but its growth rate is not fast. Taking inflation into account, per capita is almost stagnant. If you went to study in Yingjiang in the 80s, the actual disposable income of the middle class of Yingjiang people at that time was not as high as it is now. The change?There is almost no big difference, considering purchasing power, it is even lower than before!

Therefore, Yingjiang’s venture capital cannot benefit from the rapid growth in per capita income!

The excess returns from Eagle Sauce investment can only be promising if you try your luck to buy some big opportunities such as Microsoft and Google. Most of the investments will be lost!

Another excess return is the excess returns brought about by the Fed's monetary policy of printing money, supplying funds at a low flow to the capital market, and inflating bubbles. However, the excess returns brought about by low interest rates and easing cannot be sustained once a bubble is encountered. That is extremely tragic!

For example, during the previous Internet economic bubble, [-]% of Internet companies listed on Nasdaq went bankrupt and were delisted!

Needless to say, the tragedy of those entrepreneurial projects that have not been listed on the market has been severe. It can be said that in just a few years, the number of Internet companies in Yingjiang has decreased by more than 95%, and less than one-twentieth can survive.

During the most severe Internet winter period for flower growers, almost none of the major Chinese concept stock Internet companies that had been listed on Nasdaq did not fall. On the contrary, the profits of the industry increased even in the cold winter. The reason is... …The income of flower gardeners is increasing, and the number of Internet users who grow flowers is increasing rapidly!

This kind of growth rate will lead to the fact that investment in the Internet of flower growers is actually easier than that of Eagle Sauce!Especially... after betting on the wrong target, the error tolerance rate is higher than that of Yingjiang!

Yingjiang Venture Capital throws out a hundred darts and you get one. If you throw out 1 darts and get 1000, you can get a thousand times the big guy. Invest it yourself to avoid those who lose money and make no money!

For florist venture capital, mainstream venture capital, such as Lao Xiong, if your company invests, at least [-]% to [-]% of the companies will be listed, and more than half of them will make you money and find your next company.

When it comes to doing venture capital in China, the questions are actually too simple. It’s so easy to get good grades for such a simple question!

So, let me give you a real valuation now, a valuation of US$3000 million. What do you think? "

At this moment, Xiong Xiaoge thought about it and couldn't help but feel a little moved. The main reason was that Zhao Han didn't follow the rules.

What other people draw is the valuation and market value of Yingjiang.I'll benchmark this, and you'll give me a valuation!

The problem with Zhao Han's company is...it can't find the valuation or market value of its Yingjiang peers!

Then, we cannot apply the previous venture capital standards, that is, how much Yingjiang's company is worth, and then give a discounted price valuation to the flower grower company.

And Zhao Han directly abandoned this valuation system and created a new version of the world-changing PPT.

Xiong Xiaoge also personally experienced ordering food. After the actual experience, he was more moved than the ordinary PPT, so he said: "If the valuation is US$3000 million, I will invest US$600 million and occupy 20% of the equity!"

"Okay!" Zhao Han said, "By the way, Mr. Xiong, I don't want to have the structure of the British Offshore Islands to be listed on the Nasdaq in Eagle Sauce. Wenwen Service Network I want to be listed in Hong Kong, you What do you think?"

"Oh, it's up to you!" Xiong Xiaoge nodded.

Foreign capital directly invests in Internet companies in order to facilitate listing and exit, so it is usually through overseas listing and exit, and Nasdaq usually has the most.

The listing of Tencent on the Hong Kong Stock Exchange is also an option.

Essentially, the reason why there are listing location requirements is that many venture capital institutions are in the form of funds, but they have a relatively long closing period.

A lot of money may not belong to the venture capital institutions themselves, but from various customer funds that subscribe for fund shares.Therefore, there are liquidity requirements, so choose as much as possible, with better liquidity, and it is easier to sell stocks after listing and cope with customer redemptions in the market.

Venture capital is actually a very small and unpopular alternative investment among mainstream investments. The scale of funds in the industry is actually much smaller than imagined.

The main reason is that venture capital investors do not dare to allocate large amounts of funds to venture capital assets.

Therefore, basically after venture capital makes money, it usually reserves cash to deal with redemptions, rather than making unlimited large-scale investments all the time.

Including IDG, in addition to its own capital investment, a large part of it is actually invested by customers, and partners invest in fund shares.

In a sense, Xiong Xiaoge and others are equivalent to fund managers of alternative assets. However, the fund products they manage are more niche venture capital funds.

It’s really a loss of money. In fact, it’s also a loss of customers’ money.

Partners like IDG Capital and Xiong Xiaoge mainly help clients manage their finances.

Chapter 333: $600 million in venture capital funds received

On January 2005, 1, Xiong Xiaoge, on behalf of IDG Capital, officially invested US$6 million in Wenwen Service Network and obtained 600% of the equity.

A few days later, the payment arrived.The company also made changes to its industrial and commercial registration.

The shareholders of Wenwen Service Network were changed to Wenwen Jingjing Technology Company with 73% equity, IDG Capital with 20% equity, Han Xiaodong with 5% equity, and Li Mo with 2% equity.

"Boss, my equity is worth 60 US dollars, which is 500 million yuan?" Li Mo said in a fuss.

"Calm down, calm down! This is just a valuation. Do you understand the valuation? It is not listed and cannot be cashed out! It has not yet made a stable profit. It needs to continue to invest in development and it is impossible to pay dividends!" Han Xiaodong said very calmly, but his hand was Trembling.

He is obviously a worker, a low-level code farmer, and a cow horse, but how can he really become a member of the entrepreneurial team, and he also owns 5% of the equity, and the company's valuation is as high as 3000 million US dollars.After calculation, his personal equity is worth US$150 million!

Han Xiaodong took a breath of cold air.

The entrepreneurial PPTs of small teams he had seen in the past were really insignificant compared to the PPTs of boss Zhao Han.

Top boss Xiong Xiaoge also has to pay for his boss’s PPT.

If it were Zhao Han, he would be disdainful. A big boss like Xiong Xiaoge is essentially from the financial industry. He spends his clients' money to invest, and if he succeeds, he can enjoy the profits and get a large share of the profits.

If the investment fails, all customers will bear the losses together. The most he can say is that his performance is so miserable that he can only take dead wages and no profit sharing.

Because practitioners in the venture capital industry can get rich quickly, competition is fierce.You need to have past investment performance and a big shot persona. Otherwise, you won’t be able to raise funds. If your clients don’t let you manage their money, how can you make money?

In the early days, Xiong Xiaoge was cautious, fearing that if he did not do well, his customers would redeem his money and his career would be over.

Over time, with the development of the domestic Internet industry, investment has also achieved some results, it has become famous, and its courage has gradually grown.Therefore, we directly gave Wenwen Service Network an investment of US$600 million!

……

Xiong Xiaoge stayed in the county for a week, during which time local officials from the county visited almost constantly.

The boss is aloof and has only a few polite words towards local officials.When it comes to soliciting investment, I simply refuse it, because, except for Zhao Han's PPT, which is interesting, there are really no other projects worth investing in in the county.

During this period, he lived in Jiangcheng County for a few days. It was not that he liked Jiangcheng County, but that he kept changing places and testing the Wenwen Service Network.Doing your own research is more reliable than simply using PPT!

The conclusion is... Wenwen Service Network is awesome. Zhao Han is a practical person. Who knows, he really has the ability to change the world!

After all... Xiong Xiaoge is someone who has been personally received by top bosses in the country, and often goes to the capital for meetings, so he can talk to the top leaders.

Well, in the early days, because there were not many venture capital institutions in Yingjiang, IDG also enjoyed top-notch treatment in China.

After 05, when venture capital institutions sprung up to enter the flower gardening industry, the status of IDG in the industry actually declined sharply.