Chapter 731 New Dreams are on the Market
Although Duffield is old, his thinking is very quick. He immediately caught the flaw in Xu Liang’s words and continued:
" Like Mr. Xu, you have also acknowledged this. Working days are a destabilizing factor for Oracle and PeopleSoft.
If our destabilizing factor continues to develop, it may become a disruptor and ruin Oracle's performance. All the billions of dollars have been wasted!”
“I do not deny that Workday will pose a certain threat to PeopleSoft.”
Xu Liang looked into Duffield's eyes and said very sincerely.
“Because Oracle’s acquisition this time is obviously not satisfactory. It acquired the company’s assets, but let go of its most valuable asset—talent.”
Hearing Xu Liang’s comment Regarding Oracle's acquisition, Duffield couldn't help but smile.
“Because it is a hostile acquisition, Oracle is destined to be unable to accept everything from PeopleSoft satisfactorily.
Everything that leaks out from the fingers will flow to Workday, including talents, customers, etc.”< br>
Xu Liang waved his hand.
“We no longer need to argue about the threat of this company to Oracle, what I want now is an answer.
Please tell me, how are you going to deal with Oracle’s suppression?< br>
This issue is very important and is also the basis for financing negotiations. ”
Dudefield also looked serious.
"Oracle and PeopleSoft cannot monopolize the entire market. We are negotiating with several large companies. If we win them, they will serve as a bellwether."
Duffield asked Bousry to bring a few stacks of documents. , handed it to Xu Liang, all containing some intention cooperation agreements.
Xu Liang looked through it carefully and could only say that Duffield's industry prestige was indeed high. The company had only been established for a few months and it had already pried away PeopleSoft's major customers.
No wonder Larry Ellison is so crazy. He really wants to let people's 10 billion US dollars be wasted and buy an empty shell.
However.
I like.
Despite the inner turmoil, Xu Liang remained calm on the surface.
Although he was determined to cause trouble for Ellison, every penny of his own money must generate enough value.
“This kind of relationship-based business is destined to be unsustainable in the long term. If we want to attract more small and medium-sized customers, the focus must be on the product itself.”
Xu Liang gently handed over the document Put it back on the table and said calmly.
"Yes, so we recently held a meeting with the technical backbone of the organization to discuss and prepare for a major upgrade of PeopleSoft's original human resources management software to solve the original shortcomings or defects in one fell swoop."
Duffield shrugged Said, "At that time, customers will know which company's products to choose."
The concept of cloud computing has not yet become popular, and Workday Company obviously has not thought in this direction, or called it We are already working hard in this direction without even realizing it.
Xu Liang doesn't want to go out and encourage it now, not to mention that the investment matter has not yet been written, so it is not his turn to point fingers.
A few more questions were asked, and Duffield gave the answers one by one.
"Okay, let's talk about valuation."
Duffield was delighted, this was exactly what he wanted.
"I heard from Sequoia that you plan to raise $10 million at a post-money valuation of $200 million?"
Duffield said seriously: "Yes, in a few months When the company was first founded, Bushri, Greylock, and I invested a total of US$15 million, and the company was valued at US$100 million.”
Hearing this, Xu Liang couldn’t help but smile.
The world is as dark as crows. No matter how good your words are, in the end they are still doing it for the word 'money'.
“Working Day was established in March, which is less than half a year ago, and the product has not been officially launched to the market. The valuation will not double, right?
Furthermore, Working Day’s A A round of financing, without the support of actual products, and with the participation of founders, is more similar to seed round and angel round financing, right?”
Dudufield looked calm, “Human resources software is a tens of billions of dollars. The market potential has been verified by PeopleSoft.
It is no exaggeration to say that there are currently 70 engineers in Workday, coupled with the industry experience of Bhusri and me, this can be valued. Billions of dollars.
Coupled with the current semi-finished software, I think there is no problem at all with a valuation of 200 million US dollars. ”
Xu Liang knew that no matter how harmonious the conversation with the founder was, no entrepreneur was willing to give in easily when it came to issues such as valuation and equity dilution ratio.
After pondering for a while.
“Mr. Duffield, do you know Hongmeng? "
"Of course, this is another masterpiece of Mr. Xu, a world-class Internet giant. ”
"In addition to Hongmeng, we also own China's largest food and beverage company 'Master Kong', the largest education and training institution 'New Dream', and the largest commercial real estate company 'Taihua'.
And Hanhua also owns There are dozens of Chinese companies' equity.
If Hanhua becomes a shareholder of 'Workday', we can give priority to using your human resources management software.
There are many leading companies. I believe that the demonstration effect will have a huge promotion effect on your development in China and even in Asia."
Duffield was instantly moved.
He is well aware of the influence of Hanhua and Hongmeng. If everything goes as Xu Liang said, they will not only get many big customers.
With the examples of Hanhua and Hongmeng in the future, it will be easier to promote them.
"Mr. Xu, I can make a concession and raise US$20 million at a post-money valuation of US$200 million; but the conditions you mentioned before must be solidified in the contract."
Xu Liang smiled and shook his head.
“20 million US dollars, 20% of the shares, plus the conditions I mentioned before, this is my final offer, please consider it carefully.”
After saying that, he picked up the tea on the table and tasted it slowly.
Duffield and Bushri looked at each other.
The latter said: "Mr. Xu, we need to think about it."
Putting down the tea cup, Xu Liang stood up after smiling and nodding. "Then I'll take my leave first."
——
"Mr. Xu, New Dream will be launched in Xiangjiang in three days. Mr. Teng Huaming asked you if you will attend the launch ceremony of New Dream?"
Lv Hui came over and said.
Xu Liang patted his head, "I have been so busy during this period that I forgot about it. You told him that I will attend on time."
Lu Hui nodded.
"Show me the prospectus of New Dream."
Lu Hui opened the folder and handed over a thick document.
Take it and take a look.
In the 11 months since 2004, it has generated revenue of 3.95 billion Chinese dollars and net profit of 780 million Chinese dollars.
Estimated annual revenue is 4.5 billion Chinese dollars and net profit is 1.2 billion Chinese dollars.
New Dream has total assets of 3.78 billion Chinese dollars, 1.32 billion long-term liabilities, and 470 million cash and cash equivalents.
The brokers are Merrill Lynch and CITIC.
Based on 25 times net profit, the valuation is 30 billion Chinese dollars.
The total share capital is 1 billion shares at HK$3.3 per share. 100 million shares were issued and HK$3.3 billion was raised.
The current equity structure of New Dream is IDG 3.1% and Yingke 2%.
After Ideal Education was integrated into New Dream, their holdings were basically reduced by about half.
In addition, there is still 15% in the option pool, and the remaining 79.9% of the equity is in the hands of Xu Liang.
In this listing, Yingke and IDG cashed out half of their shares, but Xu Liang had no intention of cashing out.
The foundation for the new dream has been laid, but its value is far from its peak.
Xu Liang is not short of money, so of course he will not sell his shares at this time.
In addition, New Dream, as an education group comparable to New Oriental in China, started late, but with the support of a world-class rich man, it has developed rapidly.
It is also favored by many investment institutions.
After several months of roadshows, the subscription funds exceeded HK$21.9 billion, which was 6.6 times the amount raised.
Excellent.
The next day, Xu Liang took the Kunpeng and returned to Xiangjiang.
After attending the listing ceremony of New Dream, he stayed with Qiao Yuhui and Zhang Junning for a few days, and after explaining that Xia Changsheng would continue to acquire Unocal's equity and bonds, as well as U.S. real estate subprime loans, he returned to the United States.
It took a week in total.
During this week, Duffield called him every day, and the content of the calls basically revolved around ‘working day’ investments.
After a week of pulling and pulling, both sides finally took a step back.
With a pre-money valuation of US$120 million, Hanhua Capital Mars 2 Fund invested US$25 million in Workday, accounting for 16.7% of the shares.
Sequoia Capital followed up with an investment of US$5 million, accounting for 3.3% of the shares.
Duffield originally did not want to dilute so much equity, but Xu Liang made certain concessions on the valuation, so he thought about it and agreed.
Xu Liang is generally satisfied with this result.
Of course, it’s not that he didn’t want to continue to enlarge the valuation, or, like Ali, give the voting rights represented by half of the equity to Duffield.
Exchange for more equity in the 'Working Day' company.
But although Duffield was moved, he finally refused.
They currently have sufficient funds to support the software until it is launched.
After the software is launched, if it succeeds, the valuation will skyrocket; if it fails, everything will return to zero.
Although you can get more funds in hand and try it a second time.
But Duffield has his own idea. If it really fails, he will retire completely. Anyway, he has enough money in his hands for retirement.
——
"Mr. Xu, it's a pleasure to cooperate."
"It's a pleasure to cooperate."
Xu Liang shook hands with Duffield, and the two parties formally signed a contract.
Including Sequoia Capital, of course.
A simple luncheon was held. After everyone had their meal, Xu Liang left.
But Michael Moretz followed.
After more than a week of buffering, the reporters surrounding Hanhua Capital also dispersed.
After all, the world is so big and there are so many news every day, there are new hot spots that have long surpassed Xu Liang.
Come to Hanhua Capital office.
After both parties sit down.
“I didn’t expect Mr. Xu to be so optimistic about the ‘Workday’ company.”
Looking at the man opposite with an inquiring look in his eyes.
Xu Liang didn't understand what he was thinking, so he smiled.
“It’s a rare opportunity to put eye drops on that idiot Ellison. Of course I will support it.”
He looked deeply at Xu Liang. Although Moritz believed that this was definitely not the whole reason, he did not intend to invest too much in the 'working day'.
He is not very optimistic about this company.
If Xu Liang hadn’t invested so much at once, Sequoia would have given up investing.
(End of this chapter)