Chapter 249 Backstabbing
Xiong Xiaoge has been working as a venture capital investor for so many years, but what kind of entrepreneur has he never seen?
There are people who engage in corruption to make money, people who are addicted to food, and people whose ambitions are as high as the sky and whose appetites are as deep as the ocean.
Qin Shaoyan has high ability and a better appetite.
But this $360 million really left Xiong Xiaoge speechless. He really likes to increase the valuation, but can you wait until we get on the bus before raising the valuation?
What's the use of just bragging to us here? With such a high valuation, other venture capital must be introduced in the next round of financing to share the risk.
What do other investors think of this valuation? They will definitely not recognize it.
No one recognizes it, so what’s the point of having a higher valuation?
Zheng Nan was silent for a moment and said, "Mr. Qin, you have just started your business and you don't know much about the valuation of Internet projects."
"Each project valuation has its own corresponding value. Methods, such as looking at the market, looking at data, looking at revenue, looking at future expectations..."
"No matter how good the Kuaibo.com project is, its current valuation cannot reach US$360 million. Your valuation is inflated."
Qin Shaoyan pondered for two seconds, "First of all, let us Let’s define what an artificially high valuation is.”
“A project or a company’s assets do not match its value. This is called an artificially high valuation.”
“First of all, Qvod. The US$360 million value of the website is not what I call it, but the recognition of outstanding foreign peers.”
“Secondly, the video website is a new concept and new track in the Internet industry, and Qvod.com. It is also the first video website in China. The valuation standard should be higher than the market value. Its potential and future expectations are also the highest. ”
"Finally, Internet companies are emerging industries, which are completely different from traditional industries, and we cannot use the old valuation methods to constrain new industries."
"Old people use old methods, newcomers use new methods, use old methods It won’t work to restrain newcomers.”
“You are stifling market innovation and hindering the progress of Internet companies.”
“I don’t think Qvod’s valuation is inflated at all. , it’s just that the valuation is on the high side.”
Xiong Xiaoge couldn’t stand it anymore, “What does it mean to use old valuation methods to constrain new industries?”
"I've been doing venture capital for so many years, but I still don't understand valuation like you do, right?"
Qin Shaoyan said sincerely: "That's not a good idea."
Xiong Xiaoge laughed angrily, It has been ten years since Yinghaiwei, the first domestic Internet company, was founded in 1995. There are hundreds of Internet companies in China, and there are as many investment cases as there are.
Since IDG invested in Tencent in 1999, Internet companies such as Baidu and Sohu have participated in the investment.
Now a young man who has been starting an Internet business for a year and a half actually says that Xiong Xiaoge does not understand Internet valuation, which is really contrary to Tiangang.
Xiong Xiaoge stared at Qin Shaoyan and said coldly: "Then I have to ask Mr. Qin, how should the Internet be valued?"
At this time, Qin Shaoyan finally relaxed and just chatted like this.
The next step is to get into my rhythm. Didn’t you say that my valuation is too high? Let me compile it for you... and talk about this Internet valuation.
In fact, Qin Shaoyan doesn't know much about valuation methods. He can only hear about Berkus, summation of risk factors, scorecard valuation, and comparable transaction methods.
However, as an emerging thing, the Internet did not have any applicable valuation standards at the beginning. After fierce competition in the market, some valuation standards gradually emerged.
Looking at the current Internet industry, in the wild entrepreneurial period, it is hard to say how much a website is worth.
One is to look at various user data, and the other is to look at profitability and future market expectations.
How did the Internet bubble come about before? The concepts of Internet companies were blown to the sky one after another, and the valuations were blown higher and higher. All the hype was based on data.
To this day, looking at data is still a common method.
If there is no profitability and just looking at the data, then the valuation will be very false, but investors cannot say that the data is not valuable.
What does the Internet look at if it doesn’t look at data?
How to value data is more difficult.
“Mr. Xiong’s words are serious. Let’s discuss it together and learn from each other.” Qin Shaoyan pondered for two seconds, “This Internet industry seems to be the same industry, but the business of some websites is very different. The two industries are the same.”
“For example, Penguin and Alibaba, one is engaged in instant messaging software and the other is engaged in online e-commerce.”
“The valuations of these two companies. The method must be different, right?”
Xiong Xiaoge glanced at Qin Shaoyan and said nothing, but his expression became obviously serious. He wanted to hear what Qin Shaoyan had to say.
"I have bought some Penguin stocks before and have done some research on Penguin." Qin Shaoyan said confidently, "I think Penguin's current valuation is obviously low."
"First of all, the value of an Internet company depends on its number of users, node distance, liquidity and monopoly premium."
"According to Metcalfe's law, the value of an Internet company is proportional to the square of the number of users. The greater the number of users, the greater the value of the enterprise.”
“The value of the network is not only related to the number of nodes, but also to the distance between network nodes. The distance between network nodes is determined by technological progress and infrastructure construction. It is determined by exogenous factors and endogenous factors such as network content and business model.”
"The Internet is open, but not equal. An important feature of the Internet is that the winner takes all."
"In the field of instant messaging and chatting, Penguin is the dominant player, but no one considers it when it comes to valuation. The monopoly premium is a very low-level mistake.”
“Everyone is focusing on its liquidity and attaches too much importance to the Internet’s liquidity, which leads to the realization that liquidity is one of the valuations. The factor seems to be overweighted."
Xiong Xiaoge was very surprised, "Monopoly premium?"
"Yes, it is monopoly premium," Qin Shaoyan said seriously, "There is only one instant messaging software on the market. Coupled with the huge user base, as long as we find a way to monetize it, its value will definitely double.”
Xiong Xiaoge nodded thoughtfully. He had always been optimistic about Penguin's potential, but it was a pity that he gave up halfway.
“The same principle can prove the value of Qvod.com.” Qin Shaoyan changed the subject, “As an emerging track on the Internet, the value of video websites also needs new evaluation standards.”
"The data of our website has been growing rapidly, especially the monthly active users, and the user stickiness of our website is also quite good. These can be calculated as the future expected value of Qvod."
"Once If we find a suitable method of monetization, there is no doubt about the company’s profitability. Everything is ready and we just need the east wind.”
“According to Mecalf’s Law and the monopoly position of China’s No. 1 video website, the valuation is certain. Is a certain high level reasonable? ”
"Right, Mr. Zheng?"
Zheng Nan couldn't handle this.
I said your valuation is artificially high, but you first define what valuation is artificially high.
Finally, tell me that high valuation does not mean falsely high valuation.
Then he used monopoly premium and Mecalfe's Law to prove to me that the overvaluation is reasonable.
Zheng Nan didn't know whether it was reasonable or not, but he was speechless at this time.
Qin Shaoyan took advantage of the victory and continued: "The valuation of Qvod.com is first related to industry factors. Generally speaking, the higher the industry ceiling and the faster the market size growth, the higher the valuation multiple. Usually Take the recent financing valuation data of companies in the same industry as a reference. "Qvod.com's target is YouTube, and YouTube's valuation is more than one billion US dollars."
"Secondly, the valuation. Value is often positively related to the company's growth expectations. The stronger the company's growth expectations, the higher the valuation multiple."
"Finally, valuation is also affected by factors such as market supply and demand. Valuation is a question of inquiry. There is no calculation formula for the price result, and there is no right or wrong answer. It ultimately depends on the negotiation results between the two parties. ”
"The current situation is that YouTube has given an acquisition price, and using this acquisition price as a basis to discuss the valuation of Qvod.com, is there anything wrong with this?"
Xiong Xiaoge sighed and said, "What you said That’s right. I hope that when other venture capital investors come to raise funds, your words can convince them.” He stood up and walked towards the door.
Zheng Nan also said: "Mr. Xiong and I have the same opinion. If other venture capital can accept this valuation, then we at Sequoia will invest in it even if we are willing to throw in the towel."
Then he also stood up and made a gesture to leave.
Xu Xin was a little confused and looked at these two people in surprise. Let’s not talk anymore
“Wait, everyone, please stay.” Qin Shaoyan said immediately, “I still have something to say. "Say."
Xiong Xiaoge stood at the door and turned to look at Qin Shaoyan, and said teasingly: "You have three chances."
Qin Shaoyan pondered for a moment and said: "Mr. Xiong, there are no outsiders here. Everyone here is a shareholder of Qvod.com, so let me tell you my truth.”
"I did not set the price of US$360 million."
Xiong Xiaoge said impatiently, "There is one last sentence."
Qin Shaoyan said particularly sincerely: "Actually, I didn't I have never thought about selling Kuaibo.com."
Xiong Xiaoge looked at Qin Shaoyan speechlessly, "Mr. Qin, which of the words you said is true?"
He is now? I don't have any trust in Qin Shaoyan. This guy is a liar. He just said that he wanted to tell the truth to his own people. Listen to the truth in his mouth.
Qin Shaoyan was stunned, "What I said is true."
At this moment, the office door was suddenly pushed open, and Zhang Pingyi barged in with a solemn face.
"Mr. Qin, something happened." Zhang Mingyi was about to open his mouth, but he looked at Xiong Xiaoge and the other three people in the office and closed his mouth again.
Qin Shaoyan was a little surprised, "If you have anything to say, just tell me, there are no outsiders here."
Zhang Pingyi hesitated for a moment, and said with some embarrassment: "David Banks is going to lead People go.”
"Let's go?! Where are we going?" Qin Shaoyan was startled, "Why should we go if we haven't paid yet?"
"He just answered a phone call and said that the negotiation was to be cancelled." Zhang Mingyi was very helpless. Said, "The acquisition plan has been suspended."
What the hell? !
Qin Shaoyan was stunned for a moment, then became angry.
What is this?
What the hell is David Banks doing?
It was clearly agreed before that the quotation would be US$240 million, but when I opened my mouth here, a quote of US$360 million came out.
He went directly to Qin Shaoyan. Faced with the questioning of Xiong Xiaoge and others, he finally managed to fool him.
But now that the price has been raised, you say you don’t want to buy it.
I'm still here giving lessons to Baba, and then you stab me in the back.
I am the majority shareholder of YouTube, and I haven’t even asked you to withdraw, but you’ve actually left me here and run away.
Who are you the mole sent by?
At this time, Xiong Xiaoge was also a little confused. He looked at Qin Shaoyan and then at Zhang Pingyi, and said with a stern face: "Qin Shaoyan, what kind of plane are you doing?"
Qin Shaoyan frowned. "Don't mess up yet, wait until I ask what's going on."
"Mr. Xiong, you guys go next door to have a rest first."
Zhang Minyi quickly took Xiong Xiaoge, Zheng Nan, and Xu Xin out of the office.
Qin Shaoyan directly picked up the phone and sent a text message to Edward, "Bring David Banks to the office immediately."
Edward soon brought the person over, I entered the office and closed the door.
Qin Shaoyan looked at David Banks sitting on the sofa without saying a word, staring at him coldly.
David Banks felt a little awkward, "Mr. Qin, can I have a cup of coffee?"
Qin Shaoyan suddenly asked: "Why canceled the acquisition negotiations?!"
David Banks hesitated for a moment, "This is the intention of the company's shareholders."
"Am I not the company's largest shareholder? "A shareholder?" Qin Shaoyan laughed angrily, "Which shareholder is it?"
"It's a representative of Microsoft," David Banks said directly, "They called me directly and asked me to cancel. This negotiation. "
"The person sitting in front of you is YouTube's largest shareholder, who owns 51% of the company's shares." Qin Shaoyan emphasized again, "No one can cancel this negotiation without my consent. ”
"Even if the company's shareholder meeting votes, I have the final say."
David Banks was silent for a moment, "BOSS, I am just a worker, and I am also in a dilemma."
>Qin Shaoyan frowned, "I'll tell Davis personally."
"BOSS." David Banks suddenly said, "The representative of Microsoft is not Davis Hansen. Sir."
Qin Shaoyan was really stunned, "Who is it if it's not Davis?"
"It's Steve Bowman."
"Who is that?" Qin Shaoyan asked with some confusion, "When did the Microsoft representative change? Why didn't anyone notify me?"
< br>David Banks also said very helplessly: "I don't know, this is the notification I received."
Qin Shaoyan immediately realized that there must be a problem that he didn't understand, This problem caused the acquisition to not proceed.
“You guys should go out first.” Qin Shaoyan calmed down and said, “David, take your people back to the hotel to rest first, and don’t leave the capital for the time being. I’ll communicate with Microsoft and Sequoia.”< br>
"OK." David Banks nodded, "If you have the result, please call me and let me know, BOSS."
After Edward led the people out, he closed the office door again. .
Qin Shaoyan picked up his cell phone and tried to call Davis, but found that he couldn't get through.
So he called Taylor at Sequoia directly.
Tyler's call was quickly answered, and he complained a little: "Buy it, I'm already going to rest, and I have to answer your call so late."
"Sorry, I have something urgent." Qin Shaoyan said casually, "Taylor, it's about YouTube."
Tyler suddenly laughed, "Which one are you referring to, Yahoo is going to acquire YouTube, or YouTube Want to acquire China's video website."
"Huh?" Qin Shaoyan was a little surprised, "You know everything."
"Of course, I learned about these things soon." He said with some satisfaction, "I also know that this is all your work."
"I want to say that your plan is indeed excellent and great."
Qin Shaoyan continued to ask, "Then do you support me?"
"Of course I do." Taylor said, "But the matter of YouTube acquiring the Chinese video website."
"I Not optimistic about it.”
(End of this chapter)