Chapter 237 Venture Capital Changes
When Qvod was first established, its valuation was US$12 million, and it raised US$2 million from four venture capital firms.
This number is not much, and can even be said to be a very low estimate.
With Qin Shaoyan’s reputation and YouTube’s reputation at the forefront, it is easy to raise the valuation to 20 to 30 million US dollars.
When Xiong Xiaoge heard this valuation, he was a little confused in his heart.
This quote is not quite like Qin Shaoyan's style. In the past, he used to take advantage of opportunities to kill venture capital investors.
Xiong Xiaoge didn’t feel relieved until the two parties negotiated the details and signed.
Unexpectedly, it has only been a month, and Qin Shaoyan proposed to raise funds again.
Xiong Xiaoge didn’t dislike Qin Shaoyan for being too money-burning. Qin Shaoyan spent much more than this on the campus network project.
However, the speed of spending money was beyond Xiong Xiaoge’s expectation. The website was established less than a month ago and was in its infancy, so the first financing money was gone.
More importantly, Qin Shaoyan proposed to start a second round of financing.
To focus on this, Qin Shaoyan is about to start the second round of financing again!
Every time he raises money, Qin Shaoyan will set a valuation that will make venture capital investors jump.
Xiong Xiaoge suddenly understood that the last time the valuation was so low, it was not because Qin Shaoyan had corrected it, but because he was making a nest.
Let us in first, and then kill us, right?
Xiong Xiaoge said with a straight face, "Tell me clearly why Qvod.com wants to enter the film and television industry?"
"Of course it is to make money." Qin Shaoyan said confidently, "Now Kuaibo.com is purely burning Money is used to provide services to users, and the money is burned very quickly.”
“And there will soon be competition in the video website field. In the continuous competition, which website’s capital flow will be tested. The one who can persist longer will be the winner."
"If I were an ordinary entrepreneur, I could just keep raising money and burning venture capital money, regardless of other things, and then build the website. It doesn’t matter how far I can go.”
“But I can’t do this.” Qin Shaoyan looked at Xiong Xiaoge and said very sincerely, “Mr. Xiong, I have to be responsible to you investors.”
"I can't just burn money, I have to find a business model that can help Qvod."
"The ultimate goal of starting a business is to make money, and burning money is just a means."
>"As an entrepreneur, you can't just burn money without thinking about how to make money."
Xiong Xiaoge was stunned when he heard this, and felt that Qin Shaoyan's words were so damn reasonable.
Since he entered the Internet industry, how does the person in charge of the projects he has invested compare with Qin Shaoyan?
I don’t know how to make money from the project. I only think about how to attract investment to make the website bigger.
The next question is "The business model is being explored.", and the next question is the cliché of "advertising charges and membership charges".
Some people have never thought about how the website will make money. If you don’t know how to make money, why start a business?
In comparison, Qin Shaoyan's consciousness is simply top-notch.
Although he often paints pictures, talks nonsense, and shouts about valuations at every turn, what he always thinks about is how to make money for investors.
Qin Shaoyan's words are full of emotional value!
Don’t worry about how much money Qin Shaoyan made for venture capital, but the emotional value feedback was particularly sufficient.
As soon as he talked about making money, Xiong Xiaoge immediately became energetic and said, "Please tell me carefully about making money."
"According to the traditional Internet thinking, advertising is generally introduced after the website becomes bigger. "Qin Shaoyan said seriously, "But video websites are different from other websites."
"In addition to page floating windows, there is also advertising placement before the video is played."
“But this model that forces users to watch ads first and then watch content greatly affects the user experience.”
“It is mandatory to watch ads just like TV programs, so why not watch TV?”
Xiong Xiaoge thought for a moment and said nothing. There is indeed nothing new in the business model of advertising.
Besides, it has only been a month since Qvod.com was launched, and now it is about to be advertised, which looks too ugly.
Qin Shaoyan continued: "Of course, we have also considered the membership charging model."
“But the membership model has a premise, that is, we can provide users with enough service content.”
“The content of Qvod.com is not particularly attractive, and our services are not enough to support us. "Charge."
Xiong Xiaoge nodded, "It's too early to consider advertising and membership. Qvod has not yet developed to that size."
"So we. We must start from other places, develop new ideas, and break down ideological barriers." Qin Shaoyan said while smoothing out his thoughts, "We must first figure out what the core of a video website is."
"What is the core of a video website? Be content-oriented and continue to provide users with more updated and higher-quality content, which will create stickiness for users and improve user retention rates and daily activity data. ”
"So what is the content of the video website?"
"The domestic environment is different from that in the United States. In the United States, YouTube mainly produces and shares video content by users themselves. At the same time, some people will continue to upload high-quality TV programs for users. Appreciate it.”
“There is a lack of objective conditions for users to produce high-quality content on their own, so the main content of video websites is film and television dramas and variety shows.”
“Whether it is domestic or foreign, it is domestically produced. From Hong Kong, Taiwan, Japan, Korea, Europe and the United States, the video playback volume of film and television variety show content is the highest.”
“When I purchased the copyrights of film and television dramas, I thought about it, why don’t we just buy it. What about producing it yourself? ”
Qin Shaoyan said seriously: "Judging from the development prospects of the Internet, video websites will become the third largest platform after movies and TV series within ten years."
"Each video website is a TV station. Therefore, on the one hand, you can outsource programs, and on the other hand, you can also invest in self-made programs. "
"In this way, you can not only customize film and television programs that meet the characteristics of the website, but also sell them to TV stations for profit, and also reduce procurement costs. "
Xiong Xiaoge frowned, "The film and television industry market is not big now, and Qvod.com is an outsider involved. It will be difficult to implement your plan."
"There are difficulties that can be overcome. "As long as you work hard, you can achieve results." Qin Shaoyan said firmly, "The film and television industry will also develop. Only by entering the industry early and planning early can you reap greater benefits."
Xiong Xiaoge continued to ask: "What are you going to do?"
"First invest in a few dramas to test the waters." Qin Shaoyan said, "I have already found headhunters to find knowledgeable candidates, and then plan to set up a film and television company . ”
“Sign up with a few more stars, try to support them, and customize a few dramas.”
“Whether the stars are popular or the drama is popular, discuss them online. If the popularity is high, it will also play a role in publicity for Qvod.”
Xiong Xiaoge thought for a moment, “Let’s try it first.”
"How much do you plan to raise in the second round?"
Qin Shaoyan pondered for a moment, "Twenty-four million US dollars, releasing 20% of the shares."
"Poof!" Xiong Xiaoge said The tea leaves spurted out.
Not only the IDG venture capitalists were dumbfounded, but even Zhang Pingyi was shocked. Good guy, Mr. Qin’s appetite is getting bigger and bigger.
"Qin Shaoyan!" Xiong Xiaoge put the teacup on the table hard and looked at him angrily.
“Do you really think that our venture capital money came from strong winds?”
“Twenty-four million US dollars, how can you have the nerve to open your mouth?”
Qin Shaoyan asked with a calm face, "What am I sorry for? All I asked are reasonable demands."
"Reasonable demands?!" Xiong Xiaoge said angrily, "Listen to me , is this human language? ”
"It has only been a month since Qvod.com opened, and its valuation has increased from US$12 million to US$120 million, a full tenfold increase!"
"Come on, come on, you follow Let me tell you, how come your Qvod Network is worth 120 million US dollars?”
Qin Shaoyan took out a license from the folder and pushed it in front of Xiong Xiaoge.
“What is this?” Xiong Xiaoge glanced at it with a frown, and then his expression was startled.
"License for Information Network Dissemination of Audiovisual Programs"
There are not only a few lines of words on the license, but also a bright red official seal. The issuing authority is the State Administration of Radio, Film and Television.
Xiong Xiaoge glanced at Qin Shaoyan in surprise, "Where did this thing come from?"
As he spoke, Xiong Xiaoge carefully looked at the details of the license and looked at the sun Staring at the official seal.
Xiong Xiaoge looked at it for a few times and was still uneasy, so he subconsciously stretched out his fingers and rubbed them.
“Stop rubbing it, it’s true.” Qin Shaoyan said in a dumbfounded voice, “I wouldn’t lie to you with a fake one.”
Xiong Xiaoge snorted coldly and asked: "Where did you get this thing from?"
Qin Shaoyan leaned into Xiong Xiaoge's ear and whispered: "I sold all the places for the next few international college summer camps. ”
“Sold it all?” Xiong Xiaoge shook the license in his hand in shock, “Just exchanged it for this one?”< br>
"That's not the case." Qin Shaoyan said, taking another permit and placing it in front of Xiong Xiaoge.
"Radio and Television Program Production and Operation License" Xiong Xiaoge frowned and looked at it for a few times, "These two licenses are not worth 120 million US dollars."
"This program production and operation license may not be worth it." Qin Shaoyan said with a smile, "but the information network broadcast audio-visual program license is very valuable."
"This thing is only issued to units under the radio and television system. The license you are holding is the first for an Internet company.”
Xiong Xiaoge was very surprised. The value of this first license for an Internet company is still very high, especially before the introduction of Internet regulatory policies.
With this license, you can avoid a lot of trouble when competing with other video websites, and in some aspects it can even become a weapon.
“This is not enough.” Xiong Xiaoge shook his head, “Your offer is too outrageous, the valuation has increased tenfold.”
"Even if I agree, several other venture capital investors will not agree."
Qin Shaoyan smiled, "Then let me tell you another insider information, and ask Mr. Xiong to keep it confidential. "
Xiong Xiaoge turned to look at his assistants and waved his hands, "You guys go out first."
Zhou Dao agreed, got up and walked out with the others.
Only Qin Shaoyan, Xiong Xiaoge and Zhang Minyi were left in the conference room.
Xiong Xiaoge snorted coldly, "Tell me what inside information is worth 120 million US dollars."
"Google is already contacting me." Qin Shaoyan said slowly, "They want The asking price for acquiring YouTube is US$800 million, and the payment method is cash and stocks. "How much?" Xiong Xiaoge was shocked, "US$800 million!" , 800 million US dollars." Qin Shaoyan added, "But this is not the final offer. I told them that I was still considering it, and they offered to add more."
"It was someone from Google who took the initiative to contact me. You?" Xiong Xiaoge looked incredulous, "They just want to buy YouTube?"
"They are very optimistic about YouTube's development potential and think it is a website worth investing in." Qin Shaoyan said with a smile.
Xiong Xiaoge frowned, "What did you think about it?"
"I don't think it's time yet." Qin Shaoyan said confidently, "I plan to talk about it in a few months. "
"And I will offer two billion US dollars."
Xiong Xiaoge smiled again. Qin Shaoyan's style of asking for high prices still treats everyone at home and abroad equally.
"You're selling a video website to Google for two billion?" Xiong Xiaoge said with a hint of ridicule, "I think you're crazy because you want to get rich."
"There are so many people at Google who don't want to open a business. I can accept your condition."
"How can you be sure that Google will not accept it?" Qin Shaoyan looked at Xiong Xiaoge with a smile, "What if they agree?"
"No? Maybe." Xiong Xiaoge was about to refute Qin Shaoyan, but suddenly paused and waved his hand, "Let's put YouTube aside for now. It has nothing to do with what we are talking about."
"How could it not matter?" Qin Shaoyan said dissatisfiedly, "The domestic Internet has always looked at the direction of the United States."
"If YouTube really sells for a sky-high price, it will definitely stimulate domestic entrepreneurs. I don't know how many competitors will follow suit."
"Then again, YouTube can sell for two billion U.S. dollars. So how much is Kuaibo.com worth as a benchmark? "
"You are talking nonsense!" Xiong Xiaoge said angrily, "Let’s not talk about whether YouTube is worth that much. What is the value of Kuaibo.com and YouTube? The two things cannot be confused."
"Mr. Xiong, it's boring if you say that," Qin Shaoyan said dissatisfied, "Then I'll just sell Qvod.com, and everyone can make a profit. "
Xiong Xiaoge said sarcastically: "Who can you sell your website to? Let's see who will buy your website?"
"If you want to sell it, you can sell it." Qin Shaoyan said lightly, "I will go to the United States after the year and ask YouTube to buy Qvod. They will definitely be interested."
"..." Xiong Xiaoge said directly Shocked, "Qin Shaoyan, do you have fun playing like this?"
"You don't want to invest money to develop Qvod.com, so just break up. If this continues, it will be painful for everyone." Qin Shaoyan sneered. He said, "I sold Kuaibo.com to be responsible to investors, so that you don't have to accuse me of cheating venture capital investors." It was a very good deal.”
“What a deal!” Xiong Xiaoge was angry, “Didn’t you just say 120 million? Why did you sell it for 20 million?”< br>
Gee, the face of venture capital has changed so quickly.
(End of this chapter)