Chapter 1031 Talking About $17 Billion

Before the meeting, Li Mu met with representatives of two Silicon Valley venture capital institutions in the office that Lin Qingya prepared for him. However, during the meeting with these two venture capitalists, Li Mu did not talk about financing matters. Too in-depth, in the limited time, most of the time is to fight with the representatives of the two companies www..lā

Li Mu doesn't doubt that most of the Silicon Valley VCs can get more than one billion dollars, and he doesn't doubt that most of the Silicon Valley VCs will be willing to invest in Muye Technology, but now he is picking partners, and Muye Technology's C round of financing brings in The capital of the company is very important, and the money alone is far from being a partner of Muye Technology in the next strategic stage.

After chatting with the representatives of the two companies for too long, the representatives of the two companies couldn't hold back and tried to ask Li Mu for the business plan of the C-round financing of Muye Technology.

A normal business plan will not only state the company's current development scale, business progress, revenue, core team resumes, but also the valuation of the company's financing intentions. Getting a business plan is equivalent to getting Li Mu. The target price for this financing.

However, Li Mu didn't prepare a business plan for Muye Technology's C-round financing at all.

In other words, Li Mu doesn't have a target price that can be written on paper at all. His target valuation is more than 20 billion US dollars, but this valuation still needs to be supported by several major follow-up actions, otherwise he will take it now. If you set this target price, it will startle all VCs, and the premium ratio is too high, which will make the market think that it is over-inflated.

Therefore, Li Mu, under the questioning of the representatives of the two companies, roughly gave an entry condition, namely: the ideal valuation of Muye Technology is more than 17 billion US dollars, and the guaranteed minimum valuation of 17 billion US dollars is approved first. After that, let's sit down and talk in depth.

Talking about US$17 billion, this unbelievable asking price really scared the representatives of these two companies. Muye Technology has indeed made great progress in the recent period, but after all, Muye Technology has completed the split and is now booming. "Paradise Town has been separated from Muye Technology on the books, so the running water of "Paradise Town cannot be directly used to calculate the valuation of Muye Technology, even if it is necessary to calculate the "Paradise Town's value" in Muye Technology's valuation That part of the additional influence is absolutely impossible to have such a high premium space.

The market currently gives Muye Technology a relatively calm valuation, which is probably between $15 and $16 billion. The reason for the floating space of one billion dollars is not to say that the valuation of $16 billion is also relatively Calm, but because the $16 billion valuation requires yy to make a breakthrough in the recent business.

If yy can have greater development in the near future, or paypal can have a greater breakthrough, then the capital side will give a certain increase in the valuation of Muye Technology accordingly. There is a billion-dollar upward space. In the United States, where the Internet bubble has just burst. , enough to see how optimistic these VCs are on Muye Technology.

But as soon as Li Mu opened his mouth, he raised the entry ticket threshold to the level of 17 billion US dollars, scaring the other party hard enough.

Capital is prudent at all times. Behind every seemingly large-scale investment, one does not know how many investigations and discussions that go deep into the bone marrow of companies and industries. Investors must not only measure the current scale and revenue of the company, but also In-depth analysis of the company's next development space, the most important thing is that they must estimate and control risks. Even if they know that the probability of Muye Technology's success is not small, everyone is worried that the company will take a detour in the decision-making process, and more worried about the industry. Suddenly cold.

The Internet industry sells concepts.

One company after another with high market value, a large part of the market value is supported by concepts. If there is another tragic burst of the Internet bubble, then the capital in the market will no longer pay for the concept, and these high market value Internet companies will inevitably collapse. , even Makino Technology is not immune.

When the 20-minute meeting time came, the representatives of the two companies left with deep shock. The threshold of 17 billion US dollars, they need to report back to the company as soon as possible to see how the top management decides.

After sending off two groups of people one after another, Li Mu took a short rest in the office. At 10:25, Lin Qingya knocked on the door of the office and said, "Mr. Li, the people from Sequoia are here."

Li Mu nodded: "Please come in."

Under the guidance of Lin Qingya, he walked across the corridor to the door of Li Mu's office. The battle-hardened man had played an important role in numerous large and small investments, and he was very comfortable with these meetings and negotiations, but even he himself Unexpectedly, at this moment, his heart was a little nervous.

There are many people in Silicon Valley who can achieve a market value of more than 10 billion US dollars, but Huaxia people and Huaxia Internet companies have never reached such a height, not to mention that they can do it at the age of 20. One step person, no matter what race or country, he has never seen one, and right in front of the door, there is such a legendary young man sitting, so he can't help but be nervous, because of his subconscious. I feel that I will witness a history.

Lin Qingya pushed open the door of the office, brought her in, and said to Li Mu, "Mr. Li, this is the vice president of Sequoia Capital."

After speaking, Lin Qingya said to him again in English: "mrhanks, this is Mr. Li Mu, our CEO of Muye Technology."

Li Mu stood up from the desk, walked out, smiled and said in English, "Nice to meet you mrhanks."

After speaking, he walked to his side, Li Mu stretched out his hand and shook him, and responded politely: "Mr. Li, I have long admired your name in the United States and have been looking forward to meeting you. Thank you for your busy schedule today. time out."

Li Mu smiled slightly and said, "Mr. Hanks doesn't have to be so polite. The purpose of our meeting is to have the opportunity to develop together, so I can't say thank you."

He nodded and smiled: "Mr. Li is right, common development is the core concept we pursue together."

Li Mu invited him to sit down in the reception area, and then said, "Mr. Hanks, I should have taken the time to visit in person, but I'm new here and I haven't had time to deal with many things, please forgive me."

Knowing that Chinese people like to speak politely, but I didn't expect it to be so polite, and hurriedly said: "Mr. Li came to Silicon Valley for the first time. Sequoia has been established in Silicon Valley for many years, and it is considered as half a host. Naturally, I want to take the initiative to come to the door. I originally wanted to invite you yesterday. For dinner, although Silicon Valley is a high-tech industry, there are several very good specialty restaurants near Stanford University, one of which is known as the best roast pork ribs in the state. If you are interested, we You can make an appointment to try it.”

Li Mu nodded and smiled: "Okay, if you have time, let's go and try it together."

After speaking, Li Mu sighed softly and said, "But the past few days may be quite busy. Muye Technology has just started in the United States. It takes a lot of time and energy to build a team, operate a product, and develop a market, so eating Please forgive me if the matter can be delayed for a while."

Seeing that Li Mu took the initiative to talk about work, he smiled quietly, and immediately followed Li Mu's words to open a formal topic: "Mr. Li, the performance of Muye Technology in the American market has impressed the entire Silicon Valley. With the strength of Muye Technology, I I believe that there will be a day when it will become the world's top Internet company, everything is just a matter of time."

After saying this, I paid attention to Li Mu's expression, and seeing Li Mu's smile, he continued: "Mr. Li, it is very important for any company to expand its territory. The time spent is inversely proportional to the money spent. The more money spent, the shorter the time required, and vice versa. Our Sequoia Capital's development philosophy is to help all enterprises and better exchange money for money The shorter the time, the shorter the development time, the greater the development space of the enterprise.”

Li Mu said with a smile: "That's natural. Sequoia's reputation is praised by countless companies in the industry. You have helped many Internet start-ups grow rapidly and made great contributions to the development of the Internet industry."

Said: "Contribution can't be talked about, everyone is getting what they need, we don't have an actual project operation team, and because of this, we can only look for potential projects and teams everywhere, invest in them, and make them better. development, and at the same time bring us a better return on capital.”

Said, looked at Li Mu, and said seriously: "Mr. Li, Sequoia has always been very concerned about your Muye Technology and Taobao. We also know that you have been looking for suitable partners for Muye Technology's C-round financing. As the Internet industry A veteran venture capital firm, I very much hope to be your partner in the capital field of these two companies, and please believe that Sequoia can bring you not only strong financial support, but also the endless resources of the U.S. capital market. , even when you plan to go public in the U.S. in the future, Sequoia can provide you and your business with strong support.”

Li Mu nodded earnestly and said with a smile, "I believe everything you said, and Muye Technology is indeed preparing for the C-round financing. I am also looking forward to establishing cooperation with your company."

Hearing this, his expression relaxed a bit, and he smiled: "Since this is the case, then I think we can have a deeper discussion on this issue. I wonder if Muye Technology has prepared a business plan for the C round of financing?"

Li Mu shook his head and said indifferently: "We haven't prepared a business plan. I believe you are very aware of many of Muye Technology's situation. In order to save time and improve communication efficiency, we need to discuss with you first. parties to determine a consensus.”

He hurriedly said, "Please speak."

Li Mu said: "For Muye Technology's C-round financing, the company's valuation must be more than 17 billion US dollars. If you agree with this, then we will arrange for a more in-depth discussion; if you do not agree with this, then this With the aim of saving time for both parties, there is no need to continue discussions on this issue."