"Talk about $13 billion?"
Lin Qingya was a little surprised and couldn't help but ask Li Mu: "Mr. Li, we have completed the split now. Under this situation, can Sequoia still give us a valuation of more than US$13 billion?"
Li Mu nodded and said: "A large part of the valuation of more than 13 billion US dollars corresponds to the current development of YY, and part of it is our shares in PayPal. You must know that when we invested in PayPal together with eBay, we were originally a The great benefits promoted by the three parties, the two parties combined, the valuation of US$13 billion is not much.”
As he spoke, Li Mu said calmly: "You know, if Makino Technology was an American company, or YY was a product of an American company, then with the same achievements today, its valuation would be even higher."
Lin Qingya nodded slightly: "I believe this. The valuation premium of American capital for local Internet companies is at least 20% higher than that of overseas companies."
Li Mu smiled and said: "What we want now is for Sequoia to give us this part of the premium. After the split, the ideal Series C valuation of Makino Technology is US$15 billion."
A valuation of US$15 billion sounds scary, but since Li Mu began planning YY’s globalization, the valuation of the entire Makino Technology has risen as fast as a rocket in the capital market.
It cost no money to cooperate with eBay and jointly hold shares in PayPal. At the same time, PayPal's market value increased sharply. After it was bundled with eBay and PayPal, the company was even more recognized by the capital market. This in itself not only brought great benefits to Makino Technology The direct increase in market value also enhances Makino Technology's influence in the international market and adds higher added value to the company.
However, what really caused the market value of Makino Technology to skyrocket was the popularity of YY in overseas markets.
Now, throughout North America, Europe, Japan and South Korea, among high-end elites, YY has become a must-have office software. It has great market influence, high market recognition, and unlimited prospects.
In the Chinese stock market, according to the 10% daily limit limit, if a stock reaches the daily limit 7 times in a row, the company's market value will almost double. However, in China's local capital market, as long as there is enough good news, it can raise dozens of stocks in a row. It’s not like there are no stocks that hit the daily limit, and there are even a few.
Calculated based on the 10% increase of each daily limit board on the current basis, when the daily limit board reaches 30 consecutive times, the market value will be 17.44 times the initial value, and it only takes 30 trading days to complete the 17.44 times increase in market value, which is just a mere 30 trading days. 6 weeks.
With the rapid development of YY and PayPal's shares, Makino Technology has now made huge breakthroughs in overseas markets. With Makino Technology's current international achievements, it is enough to become an international first-tier Internet company. Therefore, even though Makino Technology has been split into There are many companies, but Makino Technology, mainly YY, is not too high to start with a valuation of US$13 billion. The real transaction price must be above this amount.
As long as it is a product that is highly recognized by the market, it can have unexpected premium space. Especially in an industry with a strong concept like the Internet, the premium ratio is even more astonishingly high.
The premium space in the Internet industry, calculated in proportion, is much more terrifying than the school district housing in Yanjing.
An Internet company with broad prospects may achieve a valuation of tens of billions of dollars even if it loses money every year, as is the case with JD.com.
From 2009 to 2016, JD.com has been losing money, and the losses are getting bigger and bigger. In 2009, it lost 100 million for the whole year. By 2015, it lost nearly 10 billion a year, but its market value continued to grow.
JD.com can do this, let alone Li Mu’s Makino Technology.
The ideal situation in Li Mu's mind right now is for Sequoia to value the post-split Makino Technology at more than US$15 billion, get US$1.5 billion from Sequoia at this valuation, and then immediately start the afterburner mode to turn this company into a business within two years. All the money will be burned, and the listing on Nasdaq will be completed before it is burned. By then, the aircraft carrier will be completed and launched.
Lin Qingya was stunned by the 15 billion US dollars. She came back to her senses after a moment and asked Li Mu: "Mr. Li, if the C round of financing is negotiated, we may have tens of billions of RMB in funds. Such a large amount of money, How to spend it?"
Li Mu smiled and said: "Don't worry about not having anywhere to spend money. There will be too many links that require us to spend money in various aspects in the future, and tens of billions of yuan may not be enough for us."
Speaking, Li Mu added: "The goal of Makino Technology is not to become an Internet company with a high market value, but to become a great Internet company. I hope that the technology we develop in the future can change the world, so to achieve this goal, We have to invest a lot of money in research and development.”
Lin Qingya said: "Do R&D funds need to be of such a large scale?"
Li Mu nodded, smiled calmly, and said: "Perhaps any hot research and development project in the future may require tens or even tens of billions of funds to support. I also hope that we can have our own operating system, our own mobile operating system, Have your own mobile phone, your own chips, even your own car, your own autonomous driving system, and you may even want to have your own satellite network. To achieve these goals, let alone tens of billions of RMB, even US dollars may not be real. It’s enough.”
Lin Qingya stuck out her tongue, looking like a little girl, and said to Li Mu: "Besides us, there are almost no other domestic Internet companies with a market value of more than 10 billion. If we let them know, we can do anything in the Internet in the future. Research and development of a large project may require tens of billions of dollars, so they will probably be stunned, right? Or just say that you are being alarmist."
Li Mu smiled and said: "It doesn't matter if you don't understand it now, as long as you can understand it in the future. The Internet industry is very interesting. Sometimes by coincidence, a project with millions of investments may have a market value of several hundred million, but a project with a market value of hundreds of billions There is no possibility of opportunism, and at least hundreds of billions of investments are needed to support this. Companies that cannot do this will find it difficult to grow to such a large scale."
Lin Qingya listened in confusion, but she understood one thing. Even if Makino Technology received a valuation of US$15 billion, Li Mu would definitely not be satisfied. Even for him, this might be just an early stage.
Thinking of this, Lin Qingya was full of longing for the unknown about the future of Makino Technology. She suddenly felt that even she didn't know what scale Makino Technology could develop to.
She felt that she was in the middle of this miracle, but often she couldn't see how big this miracle was, or how big it could be. It was like the vast universe, and all she could see was the planet she was on, but What Li Mu can see is a galaxy. Sometimes he opens a small window for himself in his words and deeds, giving himself the opportunity to peek into a small part of the vast universe. Even a small part is enough. Let yourself be shocked by it.
Unable to see how far the future is, Lin Qingya could only bring her focus back to the present and sighed: "Mr. Li, Sequoia attaches so much importance to our Series C financing. It seems that they no longer regard us as a family. China’s local Internet companies have taken a look at it.”
"Of course." Li Mu agreed: "Even if we haven't really taken the initiative to expand overseas markets, Sequoia has at least regarded us as a quasi-transnational giant. Because of this, this financing has exceeded Sequoia Huaxia. The functional coverage of the company must be taken over by Sequoia headquarters.”
Lin Qingya smiled and said: "Then you must plan a few extra days for your trip to the United States. By the way, I would like to express my condolences to our employees in the United States."
Li Mu smiled and said: "I think if I want to go, I will have to plan at least ten days and a month and a half. Then I will definitely take time to express condolences to our employees."
Lin Qingya asked curiously: "Mr. Li, you have to plan such a long time to go to the United States?"
Li Mu nodded and said: "Old Ding gave me a suggestion. I hope that I can go to the United States to meet the senior executives of Sequoia at the right time. At the same time, I can also take this opportunity to meet some Internet tycoons in Silicon Valley and Wall Street. I think what he said makes sense. When I go to the United States this time, I hope to meet a few big guys in the Internet industry to learn from them, pay my respects to the dock, and at least get to know each other first."
Judging from YY's current influence and huge development space in the United States, if Li Mu goes to the United States to meet any financial tycoon or Internet tycoon, he will definitely receive warm hospitality from the other party. This is not only a huge development in social networking, but also An effective way to enhance personal visibility.
Ding Zhenglin has been at Sequoia for a long time and knows many hidden rules in the financial circle. If a new tycoon wants to be recognized by the whole society, he must not only meet the standards in terms of business scale and personal assets, but also find ways to integrate into the circle.
It is difficult for a tycoon who works in his own circle to become a recognized tycoon, but those who hang out with tycoons every day become tycoons in the eyes of others even if they are not tycoons.
In Li Mu's current social circle, there are no real Internet and financial tycoons. The CEOs of various domestic Internet companies are not in the same weight class as Li Mu. As for overseas Internet people, Li Mu has also come into contact with Elon Musk. , but his current strength is far behind his own. He has not yet officially entered the threshold of a tycoon, let alone him.
From the perspective of capital operation, Ding Zhenglin believes that Li Mu lacks sufficient overseas exposure and overseas social connections. Li Mu also feels that if he wants to be an international business card in China's Internet industry, he must first let overseas markets recognize him. identity, making yourself an undisputed Internet tycoon in their eyes.
The only difference between Li Mu and Ding Zhenglin is that he feels that it is natural for him to go to the United States this time to meet Internet tycoons. As for the financial giants on Wall Street, it is not that meaningful.
Li Mu also has a clear understanding of himself. He knows that his ability to play with Internet products or play with capital based on Internet products is okay, but if he is purely playing with capital, in front of those Wall Street giants, he is basically the same as a primary school student and is not of the same weight at all. At the top level, when you meet these giants, you will be familiar with them at most. It is very difficult to really promote and improve your business.
Moreover, Li Mu has never thought about chasing capital. In his view, an entrepreneur's true strength is not how much capital he can chase. How much capital he can attract is the real strength.
Therefore, Li Mu’s plan for his upcoming trip to the United States is to proactively contact Internet tycoons. As for capital giants, he should try to let them proactively contact him.
Among them, what Li Mu is most interested in is meeting the current Internet industry tycoon.
He wanted to meet Bill Gates, who created Microsoft, Jobs, who created Apple, and Larry Page, who created Google. In his eyes, these people are all truly honorable in the Internet industry. Great people on the Internet, the companies they create are also great companies in the Internet industry. Although I have never met them, they are all beacons for my development and navigation in the Internet industry.
…
PS: May Day is coming soon, I wish everyone a happy holiday, and also ask for a guaranteed monthly ticket.
(End of chapter)