Chapter 842 How to Spend Money
Although Ding Zhenglin came from Sequoia, his point of view in analyzing problems is very objective.
For the Internet industry, Sequoia is indeed too powerful.
If nothing else, the number of companies that he has successfully listed has exceeded 200 in the investment companies alone.
If a venture capital company invests in a company successfully, it can be said that the venture capital company has a very accurate vision or relatively strong strength, but if it invests in hundreds of companies, most of them are very successful, it must be because of itself strength is extremely strong.
First of all, if the strength is slightly inferior, how can you invest in hundreds of companies around the world?
Secondly, half of the hundreds of companies can be successfully listed, but don’t think that the other half of the investment will fail. On the contrary, in the other half of the investment, most of the Sequoia have successfully made money, Retired all over.
Sequoia is not only good at playing long-term in the capital field, but also good at short-term in the capital field, for example: invest 10 million in a company's A round, accounting for 20% of the shares, with a valuation of 50 million, and wait until the company's B round or C round of financing At the time, Sequoia had already achieved a valuation of 500 million for the company. Although the shares in its hands had undergone one or two rounds of dilution, it could still retain at least a dozen percentage points. If the company's prospects are not good, and if you want to get out of the car, you can rely on their right to cash out in the A-round financing contract and directly get tens of millions of dollars and get out. Maybe this company is dead before the next round of financing. All the venture capital funds that could be withdrawn in time were wasted, but Sequoia made tens of millions of profits from this company through its own short-term operations, timely cash out, and withdrawal.
Therefore, if the success of a project is measured by making money, Sequoia has a higher success rate. Half of the companies he invests in can go public, and most of the other half are making money. The overall success rate is extremely high.
This extremely high success rate is not supported by luck and vision, but entirely by strength.
As a practitioner who has been working on the Internet for many years, Li Mu has heard of Sequoia's name for so many years, and even has some personal experience.
In his last life, a company he used to work for was invested in rounds A and B by Sequoia. In the end, it was Sequoia who came forward, packaged the company, and sold it to a central enterprise group at a high price. After Sequoia successfully cashed out, he patted his ass. After he left, Li Mu's boss also cashed out, leaving them old employees. Li Mu didn't want to resign, but what he didn't expect was that after being incorporated by the central enterprise, the central enterprise sent a boss who didn't understand the Internet at all. Sitting in town, every day he came up with all kinds of brain-dead ideas in a whimsical way. The change of day and night forced Li Mu to resign voluntarily. When he left, he didn't even get a penny of compensation.
To a certain extent, Li Mu is someone who has been indirectly tricked by Sequoia, but the more so, the more he knows the strengths of this company, and he can definitely spend the capital, so Li Mu also tends to Take Sequoia's money.
However, the inclination is just a mental intention. Although Sequoia is awesome, Li Mu still needs to combine the strengths of several venture capital institutions, the quotations for Muye Technology and the specific contract terms.
In Li Mu's view, any capital, including Sequoia, must agree to several preconditions for investing in Muye Technology: firstly, it must not interfere with the operation of the enterprise in any form; secondly, it must not invest in Muye Technology's direct competitors in the industry in any form; , which cannot be cashed out before the successful listing.
So, Li Mu said to Ding Zhenglin: "You can ask Sequoia to talk, and at the same time, ask a few other overseas venture capital institutions to say hello to them. Anyone who recognizes that the market value of Muye Technology is higher than 10 billion yuan will be welcomed by everyone. You can sit down and talk, if you don’t approve, you don’t even need to meet.”
In Li Mu's view, Muye Technology has such a powerful resource at the moment, and the fundamentals are simply outrageous, and in the Chinese Internet industry, its advantages are even more obvious. Such a good disk,
If you don't even recognize the 10 billion valuation, then there is really no need for such capital to meet.
Ding Zhenglin nodded and said with a smile: "I am most familiar with capital relations, and I know well-known venture capital institutions. I can directly find the key person in charge. I will follow up on this matter, and I will follow up with you as soon as there is a result. report."
"Ok." Li Mu nodded slightly: "You are responsible for disseminating news to the capital industry. If you meet the conditions, find me an appointment for an interview."
Seeing that Li Mu was ready to meet with the capital, Kong Lingyu couldn't help but ask, "Boss, if our valuation is in the tens of billions, what is our financing scale?"
Li Mu said: "My plan is to sell 10% of the existing shareholders as a whole, so the financing scale must be more than one billion yuan."
Kong Lingyu asked subconsciously, "What do we need so much money for?"
As soon as these words came out, everyone else looked at Li Mu.
Yeah, what do we need money for?
The current team of Muye Technology is very large, and the operating cost is not low. However, due to the excellent value-added services of yy, and the money-absorbing tool of Happy Farm, combined with the income of the yy game hall, the overall cash flow is very healthy. With the capital coming in, everyone can run this big business very well, so at this time Li Mu wants to raise money, what is the key to what he needs the money for?
Seeing so many people staring at him, Li Mu smiled slightly and said two words: "Burn it."
"Burn?"
"Yes, burn it!"
Li Mu said decisively: "The financing scale of more than one billion yuan will be burned within a year. As for where to burn, my tentative idea is: globalization accounts for at least 50%, new business research and development and expansion account for 30%. The R&D team accounts for 20%.”
The phrase "globalization accounts for at least 50%", everyone understands in their hearts.
Li Mu's concept of globalization, like the previous battle against Tengxun, is mainly aimed at avoiding its edge and secretly crossing Chencang. As for how yy can achieve the goal of globalization, Li Mu has already set the core strategy. The game is the killer, first attract users in overseas markets, and in the carrier of social games, subtly allow users to accumulate and develop their own contacts.
The English version of Happy Farm's town-of-paradise has now been developed, and the next step is how to bring this game to overseas markets.
When Kong Lingyu heard that Li Mu was going to spend at least half of the C-round financing for globalization, he couldn't help but ask him: "Boss, since so much capital has been deployed, should we also do certain things in our next globalization strategy? adjustment?"
Li Mu shook his head: "It's better to use Happy Farm to open up the situation. If you have more money, you can use it to invest in promotion and operation."
After speaking, Li Mu introduced in detail: "Promotion is the fastest way to burn money. If you have more money, you can put more online and offline advertisements in overseas markets. This is the most direct way of promotion; As for operations, when the time comes, everyone can think about how to use a certain cost to achieve an effect far higher than the cost.”
"For example: after our Happy Farm is listed in overseas markets, we can continue to engage in player competitions in overseas markets, allowing users to develop their own towns desperately. $10,000 in cash prizes, such competitions run weekly;"
"For another example, we can do some special tasks and activities according to Western culture, such as: Halloween pumpkin planting task, Thanksgiving turkey raising task, Christmas tree planting task, each special task has specific competition rewards, you can It can be a car, it can be a family trip, it can be a cash or other reward, in a word, if you have money in hand, as long as the money is spent effectively, we can spend it without any scruples.”
When Kong Lingyu heard this, his heart was stunned. Li Mu's confidence in Happy Farm was really too strong. In this case, most of the funds still have to be spent on the game Happy Farm. Can it really be kept safe?
At this time, Li Mu said again: "By the way, there is one more thing, I have been thinking, can Happy Farm have a client? In the future, the structure of our game will become larger and larger, and there will be more and more elements. Various tasks and plots are becoming more and more abundant. If flash is used as the carrier, it will become more and more troublesome in the future, and the repeated loading of materials will also become more and more serious for our server bandwidth requirements. In this way, not only the overall fineness of the game can be improved, but the speed of the game and the pressure on bandwidth can also be greatly reduced.”
Today's Happy Farm is a real page game, that is, a page game. To put it bluntly, a page game means that there is no need to install any software and materials locally, and all materials are all uploaded online to the server. If you often use the same computer , Cache can solve some problems, but users need to reload the necessary picture, sound and special effects materials every time they change a computer. With the continuous improvement of game materials, this test of bandwidth is getting bigger and bigger.
However, if the game is turned into a game, the biggest advantage is that a considerable part of the material can be installed locally through the installation package. If it is also a copy, when the page game user enters this copy, all the elements in the copy are basically the same. The game can only be started after online loading. However, when users of the client game enter the copy, most of the materials are directly called locally, which reduces the demand for bandwidth. If the game content is updated, the client only needs to complete a routine update. The updated material can be installed locally to solve the problem at one time, which is extremely convenient.
Moreover, because page games are limited by bandwidth, cache and memory, it is difficult to achieve refinement. If you want to be more refined, it is much worse than most end games, not to mention those very powerful large-scale games.
Due to the multiple revisions, the addition of industries, maps, friend transactions and a large number of task systems, Happy Farm is no longer the most basic happy farm that can only steal vegetables. It is now close to a networked , Upgrade the expanded version of "Ranch Story".
Because of this, the current game content, connotation and playability of Happy Farm is great enough to support it from a page game to a terminal game. Moreover, since Happy Farm is a q-version cartoon game of cultivation type, it is The requirements for picture, sound, and special effects will not be as high as those of large-scale games, and even on the premise of ensuring exquisite pictures, the requirements will be much lower than that of ordinary games. The end game is also relatively low.
Although the endgame will increase the user's cost of use, Li Mu is very clear that only the future development space of the endgame, Happy Farm, or Paradise Town can achieve a qualitative breakthrough.
...
ps: The second update will be delivered. It seems that we have to fight until two o'clock tonight, but since I promised, I will honor it even later! ! ! Continue to ask for monthly tickets! ! !