Although Ding Zhenglin came from Sequoia, his view on analyzing the problem is very objective.

For the Internet industry, Sequoia is indeed too awesome.

Not to mention anything else, among the investment companies, the number of successful listed companies has exceeded 200, which is a great ability in the venture capital field.

If a venture capital company successfully invests in a company, it can be said that the venture capital company has a very accurate vision or is relatively strong, but if it invests in hundreds of companies and most of them are very successful, it must be because its own strength is extremely strong.

First of all, if your strength is slightly inferior, how can you invest in hundreds of companies around the world?

Secondly, half of the hundreds of companies can successfully go public, but don’t think that the other half of the investment has failed. On the contrary, most of the other half of the investment have successfully made money and got rid of it.

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, if you invest in a company with 10 million in the A round, you have 20% of the shares and a valuation of 50 million. By the time the company's round B or C round financing, Sequoia has already valued the company to 500 million. Although the shares in the company have been diluted for one or two rounds, they can retain at least tens of percentage points. At this time, if Sequoia is not optimistic about the prospects of the company and wants to get off, they can directly take advantage of their priority cash-out rights in the A round financing contract and get rid of tens of millions. Perhaps the company had already died before the next round of financing, and all venture capital funds that failed to withdraw in time were wasted, but Sequoia used its own short-term operations to cash out in time and leave, making tens of millions of profits from this company.

So if you measure the success of a project by making money, then this way, Sequoia's success rate will be even higher. Half of the companies it invests in can go public, and most of the other half are profitable, and the overall success rate is extremely high.

This extremely high success rate cannot be supported by luck and vision, but depends entirely on strength.

As a practitioner who has been struggling on the Internet for many years, Li Mu has been familiar with Sequoia's reputation for so many years, and even has some personal experiences.

In his previous life, a company he worked for was invested in round A and round B by Sequoia. Finally, Sequoia came forward and packaged the company and sold it to a central enterprise group at a high price. After Sequoia successfully cashed out, she patted her butt and left. Li Mu's boss also cashed out, leaving only their old employees. Li Mu did not want to resign, but unexpectedly, after being incorporated by a central enterprise, the central enterprise sent a boss who didn't understand the Internet at all to take charge. Every day, he proposed various brainless ideas. The orders changed every day so that Li Mu could only quit his job. He did not get a penny of compensation when he left.

To a certain extent, Li Mu is considered a person who has been cheated by Sequoia indirectly, but the more he does this, the more he knows the awesomeness of this company and can definitely make money from capital, so Li Mu also tends to take Sequoia's money in his heart.

However, tendency is just a mental intention. Although Sequoia is awesome, Li Mu still needs to combine the strength of many venture capital institutions to give Muye Technology's quotations and specific contract terms.

In Li Mu's view, investing in Muye Technology must meet several prerequisites for any capital, including Sequoia: First, no interference in the business operations of enterprises in any form; second, no investment in Muye Technology's direct competitors in the industry in any form; again, no cashing out before successfully listing.

So, Li Mu said to Ding Zhenglin: "You can choose to have an appointment with Sequoia to discuss, and at the same time, a few other overseas venture capital institutions will say hello to them. Anyone who recognizes that Muye Technology's market value is higher than 10 billion yuan can sit down and talk. If you don't agree, you won't even have to meet."

In Li Mu's opinion, Muye Technology has such powerful resources and its basic market is simply outrageous, and in the Chinese Internet industry, its advantages are even more obvious. If such a good market does not even recognize the valuation of 10 billion yuan, then there is no need to meet such capital.

Ding Zhenglin nodded and said with a smile: "I am most familiar with capital relations. I know all the more well-known venture capital institutions. I can directly find the key person in charge. I will follow up on this matter and report it to you immediately if there is a result."

"OK." Li Mu nodded slightly: "You are responsible for spreading information to the capital industry. If you meet the conditions, please ask me 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 at the level of 10 billion, what is our approximate financing scale?"

Li Mu said: "My plan is to sell 10% of the existing shareholders as a proportionate share, so the financing scale is definitely more than one billion yuan."

Kong Lingyu asked subconsciously: "What do we need so much money to do?"

As soon as these words were spoken, everyone else looked at Li Mu.

Yes, what do we need money?

The current team of Muye Technology is large and the operating costs are not low. However, because YY's value-added service is very good, and the money-making tool of Happy Farm, which is a powerful tool for attracting money, is very healthy, and without capital in it, everyone can operate this big business very well. So at this time, Li Mu wants to raise funds, so what is the key to ask for money?

Seeing so many people staring at him, Li Mu smiled slightly and said two words: "Burn."

“Burn?”

"Yes, burn it!"

Li Mu said firmly: "The financing scale of more than one billion yuan will be burned in one year. As for where it is burned, my temporary idea is: globalization accounts for at least 50%, new business development and expansion accounts for 30%, and R&D team accounts for 20%.

Everyone understands the saying "globalization accounts for at least 50%".

Li Mu's globalization concept is the same as the previous battle against Tencent to seize the foundation. The main purpose is to avoid its edge and secretly cross Chen Cang. As for how YY can achieve the goal of globalization, Li Mu has long set a core strategy and used social games as a killer weapon, first absorbing users in the overseas market, and subtly allowing users to accumulate and develop their own connections within the social games carrier.

The English version of Happy Farm Town-Of-Paradise (Paradise Town), has been developed now, and the next step is how to bring this game to overseas markets.

When Kong Lingyu heard that Li Mu would take out at least half of the funds in the Series C financing to globalize, he couldn't help but ask him: "Boss, since so much funds have been deployed, will our next globalization strategy also need to make certain adjustments?"

Li Mu shook his head: "It's better to use Happy Farm to open up the situation. If you have too much money, you can invest in promotion and operation."

As he said that, Li Mu introduced in detail: "Promotion is the fastest way to burn money. If you have more money, you can invest more online and offline advertising in overseas markets. This is the most direct promotion method; as for operations, everyone can think divergently at that time, how to use a certain cost to achieve a much higher effect than the cost."

"For example: After our Happy Farm is listed in the overseas market, it can continuously conduct player competitions in the overseas market, allowing users to desperately develop their towns, and win the best comprehensive points within the specified time. The winner can get tens of thousands of dollars in cash rewards. Such a competition will be rounded every week;"

"For example, we can carry out some special tasks and activities based on Western culture, such as: Halloween pumpkin planting mission, Thanksgiving turkey raising mission, Christmas tree planting mission. Each special task has a specific competition reward, which can be a car, a family trip, or a cash or other reward. In short, if you have money in your hands, as long as the money is effective, we can spend it without any scruples."

When Kong Lingyu heard this, he was secretly shocked. Li Mu's confidence in Happy Farm is really too strong. In this way, most of the funds will actually be spent on the Happy Farm game. Can it really be stable?

At this time, Li Mu said again: "By the way, there is another thing. I have been wondering whether Happy Farm can release a client? In the future, the architecture of our game will become larger and larger, with more elements, and various tasks and plots will become more and more abundant. If flash is still used as a carrier, it will become more and more troublesome in the future. Repeated loading of materials will also make our server bandwidth requests more and more serious. Instead of doing this, we might as well make it terminally. In this way, not only can the overall precision of the game be improved higher, but the speed of the game and the pressure on bandwidth can also be reduced a lot."

Happy Farm is a real web game, that is, page games. To put it bluntly, the local game does not require any software or materials to be installed. All materials are requested to the server online to load. If the same computer is often used, the cache can solve some problems. However, every time the user changes a computer, he needs to reload the necessary pictures, sounds and special effects materials. As the game materials continue to improve, the test of bandwidth is getting bigger and bigger.

However, if the game is used as a terminal game, the biggest advantage is that a considerable part of the materials can be installed locally through the installation package. If it is also a copy, when the web game user enters this copy, all the elements in the copy must be loaded online before the game starts. However, when the user enters the copy, most of the materials are called directly locally, and the demand for bandwidth is reduced a lot. If the game content is updated, the client only needs to complete a routine update and install the updated material locally to solve the problem at one time, which is extremely convenient.

Moreover, since web 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 PC games, not to mention those very awesome large games.

Thanks to the repeated revisions of Happy Farm, the addition of industry, maps, friend transactions and a large number of task systems, it has long been no longer the most basic Happy Farm, which can only steal vegetables. It is now approaching a networked and upgraded version of "Rain Story".

Because of this, the current game content, connotation and playability of Happy Farm are very high, which is enough to support it from a web game to an PC game. Moreover, since Happy Farm is a Q-version cartoon game as a whole, its requirements for pictures, sounds and special effects will not be as high as those of large games. Even on the premise of ensuring the exquisite picture, the demand will be much lower than that of ordinary games. After the terminal game is transformed, the volume and performance requirements of the entire client are also relatively low in the PC game.

Although the use of terminal games will increase the cost of users, Li Mu is very clear that only the future development space of terminal games, Happy Farm, or Paradise Town can achieve a qualitative breakthrough.

...
Chapter completed!