Chapter 1032

Seventeen billion dollars. Let 's talk.

Li Mu's expression is indifferent Eric.Hanks I couldn't speak for a long time.

Before he came, the CEO explained the base card price of Sequoia, which is 16.5 billion US dollars.

The so-called base card price is the highest limit for Sequoia to participate in bidding.

Although the CEO didn't make it clear what to do if the price required by animal husbandry technology is higher than the base price of Sequoia, according to the normal process, once the base price of Sequoia is set, the result is nothing more than two kinds: if it can be negotiated in this price range, Sequoia will enter; if it exceeds this price, Sequoia will retreat, which has hardly happened for so many years The third possibility.

Like other venture capital, Sequoia has to calculate the potential profit space and capital risk for every investment. For a large investment like the C round of Makino technology, it will go out more than one billion dollars in cash at one go, so it is necessary to repeatedly evaluate the risk. After all, Sequoia's money is not the common asset of all board members and subordinate fund investors.

In this case, even if Sequoia believes that Muye technology is likely to reach $170 billion in assets in the next few years, it is also necessary to measure the risks behind it reasonably. It is not allowed for an enterprise to make a rash decision and leave behind potential risks because of its current development.

For venture capital, when they lead or invest alone, they will try to reduce the actual valuation. On the one hand, it is to reduce capital investment, and on the other hand, it is also to get rid of the market better in the future.

When it comes to the valuation of 100 million yuan, when it comes to the valuation of 500 million yuan, it's a common way for venture capitalists to make money. But if they don't grasp the premium when they take the offer, and let other investment banks think that their price is too high when they take the offer, it's hard to sell the high premium when they take it out in the future.

Eric.Hanks After a lot of thinking, Li Mu saw that his expression was strange, and he guessed that his price might scare him. Before him, he had scared two representatives of venture capital companies, so Li Mu didn't care at all. He smiled and said: "Mr. Hanks doesn't need to be too tangled. There is an old saying in China that" business is not a matter of benevolence and righteousness. " Said that even if we failed to reach cooperation because of the price negotiation, we are still friends. "

Eric.Hanks "Mr. Li, frankly speaking, we have made a very in-depth objective assessment on the situation of Muye technology. The valuation of US $17 billion is indeed too high. If we finance according to this valuation, I'm afraid we can accept very little capital."

"Mr Hanks, I want to correct the mistake you just said," said Li Mu with a calm expression and confidence

Eric.Hanks Brow a pick, looking at Li Mu waiting for his next.

Li Mu said with a smile, "I don't want a valuation of $17 billion. I want to start from $17 billion. You can understand that this is a starting price."

Eric.Hanks At the moment, I feel Li Mu's strong self-confidence. In his opinion, Li Mu's tone when he said this sentence is not so simple as self-confidence, or even some arrogance.

Sequoia has been in the field of Internet for so many years, and knows Internet enterprises well. It's no exaggeration to say that Sequoia is the godfather of Internet industry. With these deposits, the assessment of an Internet enterprise made by Sequoia can be almost as good as ten in September, that is to say, if Sequoia takes 16.5 billion US dollars as the base price of Makino technology, Then most of the enterprises in this industry will not give a higher price than this. Li Muyi started to talk with us $17 billion, which in his opinion is really arrogant.

Li Mu can see, Eric.Hanks There has been a little anger and dissatisfaction between the eyebrows. It seems that his words have made him have some micro words in his heart, but Li Mu didn't care. He continued to smile and said: "Mr. Hanks, Chinese people like a kind of jade called jadeite. The price of good jadeite is amazing, even if it's just an jadeite ring, it may be worth too much Tens of millions of RMB, but if the quality is not good, hundreds of RMB can also be bought. Because the price range of jadeite is very large, a gambling stone mode has emerged in the industry. Gambling stone is very interesting. I think it has a lot in common with the investment industry. If you are interested, I can tell you something. "

Eric.Hanks Stretch out a hand: "please say."

"Emerald is a special kind of ore. interestingly, when it is mined, it is basically wrapped in a layer of weathered outer skin. The value of the emerald in it is geometric. No one can see it without cutting it. So, sometimes, a big basketball stone can be worth more than 100 million yuan, sometimes it's worthless, so the seller of the ore is He does not cut the ore completely, but let the buyer buy it back and cut it by himself. "

Eric.Hanks Listen to some into the win, a curious face waiting for Li Mu's next.

Li Mu went on to say, "some sellers trade pure raw stones. Whether there is jadeite in this stone or not, and how well some words turn out, basically depends on the buyer's own judgment and luck. Generally speaking, the average price of this stone is relatively low, because the buyer has to bear all the risks.""There are also sellers, when trading raw stones, they will cut the surface of the raw stones a little shallowly to make the jade in it show a little color. The jargon is" open the skylight ". After the skylight is opened, if the quality of the exposed part is very high, then the price of this stone will also soar. Because with such a little color exposed by the skylight, the buyer will judge more and less It's a little less risky; "

" some raw stones open a skylight, some raw stones even open three or five or more skylights, but in contrast, the more skylights open, the better the exposed parts become, the higher the price of raw stones; "

" however, even more skylights open, there is a great risk, because skylights only open on the surface, no one knows what's more inside What's the texture of many jade? Many jade skylights look very good, but after cutting them in, they found that they are worthless except for the part of skylights. Moreover, many jade merchants deliberately falsify the part of skylights to be of high quality. In this way, when buyers buy them back and cut them, they will fight with each other immediately It's even ruined. "

"On the contrary, it is the same. Sometimes the cut part looks bad, but it is found after buying it back and cutting it completely. The internal quality is excellent. In this way, the return on investment will be surprisingly high."

Speaking of this, Li Mu looks at it Eric.Hanks "You see, how similar gambling stones are to investment. It's angel investment that dares to buy complete raw stones. If an enterprise has developed for a certain period of time, and the outside world has a certain understanding, then this kind of enterprise is equivalent to opening a skylight. The longer it develops, the more projects it handles, the more skylights it opens. Once the enterprise goes on After the market and everything have been completely disclosed to the securities market, it is equivalent to the jadeite that has been processed and sold in the market. All the jadeite is clearly priced and the old and the young are not deceived. "

Eric.Hanks He smiled and smacked his lips and said, "although I didn't hear it very clearly, it sounds really interesting."

Li Mu nodded and said, "in the gambling industry, even if there are more skylights, there are also mysterious opportunities that experts can't see through. Buyers can't see through all, so they can't feel that their judgment is exactly equal to the actual value of the whole jade."

Eric.Hanks Hearing that Li Mu is saying that Sequoia can't see through the interior of the jade of Muye technology, he can't help laughing: "Mr. Li, if according to your opinion, what's the actual value of a jade, the buyer doesn't know, and the seller doesn't know either."

"Of course, the seller and the buyer don't know, they can only rely on their own judgment," Li said with a smile

Eric.Hanks Shrugged his shoulders, spread out his hands and said: "since both rely on judgment, there must be deviation between both sides. The most important thing is that we can reach a consensus before. If we can't reach a consensus, even if the jade is no better, we can't reach a deal."

Li Mu laughs and claps his hands and says, "that's what I want to express. If the buyer and the seller can't reach a consensus on the value of jade, then there's no way to reach a deal. It doesn't matter if they don't reach a consensus. You can go back first. After I open a skylight myself, you can come over and have a look. Then you can use your expert's eyes to open a new skylight If we can't reach a consensus, it doesn't matter. I can open another one or two until you or other venture capitalists are willing to reach a consensus with me! "

Eric.Hanks I thought Li Mu wanted to satirize Sequoia for being illiterate, but I didn't expect Li Mu said that he would open another skylight on his own initiative. What does that mean? He said that he knew how to open a skylight for jade, but he didn't know how to operate it.

Although I didn't understand the specific metaphor, but Eric.Hanks Still, I heard Li Mu's uncompromising arrogance. Li Mu's meaning is very clear. We must make VCs willing to reach a consensus with him. The subtext is: only VCs bow to him, and he will never bow to the wind.

Eric.Hanks Li Mu's youth and arrogance are a little disgusting in his heart. At the same time, he also knows that he must have lost today. Li Mu killed the $17 billion offer. He can't make him reduce the offer, so he can only go back to recover his life.

If the CEO and the board of directors are willing to change their mind and accept the offer, the two sides will continue to talk. If not, Sequoia will rise from the negotiation table and the project will be suspended indefinitely for Sequoia.

In that case, unless Li Mu changes his mind after bumping around, and then reduces the valuation in exchange for Sequoia to continue to sit back and discuss.

And Eric.Hanks The one who is determined to change his mind must be Li Mu!