New York 2006

Chapter 212: Valuation of RMB 5.5 billion, gaming company expands globally

(5500 word chapter)
Luo Ji walked into the conference room and looked at the representatives from major investment companies sitting below.

Tencent, Sequoia Capital, DST, Kaiying Huapeng, Accel Investment Fund, IDG Capital, Bill Lee, etc.

These investment companies are all top in the industry.They basically invested in Facebook or Tencent, two important partners of Holi Game Company.

They also learned about the current situation of Holi Game Company through these two partners.

"Hello everyone, I believe everyone has read our financing invitation letter. The document before you now is some internal data of the company. I believe you have read it just now. If you don't understand anything next, you can ask me. "

The representative of KPCB opened the document on the table and spoke first: "Logic, I see that the company now has two major strategies, one is the social game strategy, and the other is the mobile game strategy. Can you please introduce the mobile game in detail?"

Luo Ji said with a smile: "Our mobile games actually refer to smartphone games. Smartphones are now experiencing explosive growth. As elites in the industry, you should know the current pattern of the mobile phone industry. Smartphones are experiencing explosive growth. Step by step, it is cannibalizing traditional mobile phones.”

The representative of KPCB said: "It is indeed the case. Apple mobile phones are selling very well now. The first mobile phone HTC Dream, the Android system developed by Google, has just been launched this month, and it is also selling very well. Major traditional mobile phone manufacturers, Microsoft etc., there are rumors that it will enter the field of smartphones.”

"In the future, smartphones will definitely replace traditional mobile phones. The future belongs to smartphones!"

Luo Ji said confidently: "The first release of the Apple mobile app store and the first release of the Android app store both had the important participation of Holi."

"Smartphones are an emerging platform, and Holi Game Company has taken the lead. In recent months, the company's mobile game sales have been rising step by step, and revenue has reached a quarter of social games."

"Just like the PC, Microsoft's Xbox, and Sony's PlayStation gave birth to large game companies such as EA, Blizzard, and Ubisoft. We believe that such large companies will also be born in the field of smartphones. Therefore, we are not only social EA in the gaming industry may also become EA in the smartphone industry.”

The people from the investment company below suddenly became commotion. You looked at me, I looked at you, and then picked up the documents on the table and read them carefully.

The person from Sequoia Capital said: "Logic, what is the basis for your prediction?"

Luo Ji opened the PPT and started to draw the picture: "The shipment volume of smartphones is still increasing. In the mobile phone market in the past two years, the proportion of smartphones has gradually increased. The changes in the company's mobile game sales data all indicate that this industry is changing." Expand step by step.”

"Based on this data, by 2010, the scale of the smartphone gaming industry will reach US$60 billion."

"By then, Holi Games will become a giant in the social gaming and smartphone gaming industries."

After listening, several investment company representatives fell silent and looked carefully at the documents on the table.

Someone from Accel Investment Fund asked: "Logic, I saw that in the social gaming industry, your company occupies more than 50% of the market share. How many members does the company have now?"

"The company now has 2736 million members."

"May I ask how you did it?"

"Isn't there an article on the market that analyzes my company's business model? Have you read it?"

"I saw it, but I want to know how exactly you did it and what techniques did you use?"

Luo Ji's company is very similar to Netflix. On the surface, it doesn't require any technology. It just needs to be creative and develop popular games.

But if you really want to maintain the leading monopoly position, you really need a lot of technology.

Big data prediction, user behavior data analysis, testing in the game industry, quickly making games popular among users, cheap marketing costs, etc.

These are the moats of the company.

One step is slow, each step is slow. The strong Matthew Effect is always strong.It is not that simple for other companies to replace Holi Game Company, which has taken the lead.

Luo Ji said seriously: "This is a company secret, and only the company's senior management can know it. You only need to see that we occupy 7 of the top ten popular social games on the market, and 13 of the top [-]. You’ll understand.”

The person from Accel Investment Fund said in a bad tone: "If you don't explain how you did it, how can we be sure that your company can continue to maintain this momentum?"

Luo Ji was domineering and pointed at the door: "If you don't believe it, you can leave now."

After the confrontation between Luo Ji and Musk, they discovered that they couldn't take too kindly to these investment companies.The more awesome you are and the less you care about them, the more they want to invest.

As expected, the people from Accel Investment Fund fell silent and did not speak any more.

Luo Ji looked at everyone: "Is there anything else you want to ask?"

"Logic, what is the company's expected revenue this year?"

"The company's revenue is mainly divided into two parts, social games and mobile games. Revenue is mainly concentrated in several head games, friend buying and selling, parking space grabbing, Holi poker, Mafia Wars, spelling with friends, and Pet Association , The Sims, business simulation, this year’s estimated revenue is 3863 million.”

"Logic, where is the company's profit?"

Luo Ji said loudly: "What stupid question are you asking? Do you understand Internet entrepreneurship? If the company is profitable now, does it still need you? Do we still need financing?"

The person opposite suddenly stopped talking.

"Logic, I think the valuation of $5.5 million is too high. You have set such a high valuation for a company that is not profitable."

"If you think the valuation is too high, you can leave now. I'm here to answer your questions, not to discuss the valuation with you."

…………

The meeting came to an end unknowingly, and Yuri Milner, the boss of DST Investment Company, said with a smile.

"Logic, what are your plans for financing?"

Luo Ji said with a smile: "This financing is 5500 million, and 10% of the shares will be sold. I believe everyone already knows that I have arranged it this time. Four investors will be accepted this time. After the meeting, whoever agrees to my financing first If you ask for it, you will get the largest share of the investment.”

"The order is 5%, 2.5%, 1.5%, 1%."

Yuri Milner, the boss of DST Investment Company, heard this and said directly: "I accept all your financing requirements."

Luo Ji looked at him in surprise. This Russian was a bit unexpected. Luo Ji originally arranged for Tencent to be the sponsor, but he didn't expect that he would get in first.This person expressed his position directly in the conference room.

But it’s the same for everyone, as long as they can achieve their goals.

Luo Ji smiled and said, "Okay! 5% is yours."

When the representative of Tencent heard this, his face was filled with heartache, so he quickly expressed his position: "Tencent is also willing to accept your financing request."

"Okay, 2.5% is yours."

The people at KPCB were extremely anxious. Regardless of everyone present, they took out their mobile phones and called the company's senior executives.People from other investment companies were also in the conference room, or went outside to make calls to their senior executives.

Bill Lee looked at everyone's performance and hurriedly said: "I also agreed to all your financing requirements."

"OK, 1.5% is yours."

When the people from KPCB heard this, they hung up the phone and said on their own initiative: "Logic, I also agree to all your financing requirements."

Luo Ji looked at everyone: "Okay, Holi Game Company's Series B financing has ended. Thank you for your participation. There is a party in the company tonight, everyone can stay and participate."

Some people from other investment companies were confused, some were heartbroken, and some wanted to persuade Luo Ji.They all eagerly wanted to get on the bus.

…………

At night, people at Holi Game Company came and went, everyone toasted to celebrate, and it was full of laughter and laughter.Luo Ji took Robin with him, smiling and talking to everyone.

"Hi, Yuri, this is my girlfriend Robin." Luo Ji smiled and introduced Yuri Milner, the boss of DST Company.

"I know, I read the newspaper from the past few days. Hello, Robin."

"Hello."

Yuri Mir took the initiative to extend his hand to shake Robin's hand. This Russian is very famous and is a famous player in the Internet industry in the world.

He came from a Russian investment bank and knew many Russian oligarchs. He participated in the operation of the Russian Internet's Mail.ru, search engine Yandex and Rambler websites, and has since become famous.

Then he established DST Investment Company, which absorbed a lot of funds from Russian wealthy oligarchs, began to conquer cities and territories around the world, and invested heavily in Internet companies.

Hao, Haoheng, Luo Ji's high valuation of the company today at US$5.5 million, he didn't even blink and directly led the investment.

"Logic, do you know how I learned about your company?"

Luo Ji asked curiously, "How did you know?"

“I only learned about your company when I was in contact with Facebook some time ago.”

Luo Ji touched his chin: "Is Facebook preparing to raise funds again?"

"Yes, now Facebook is conquering the world and running out of money very quickly."

Luo Ji said in surprise: "Facebook has raised close to US$4 million in financing last year. Add in Facebook's revenue of nearly US$2 million, which is almost US$6 million. Is this almost a burnout?"

"Yes, the competition in the social networking industry is very fierce now and has reached a white-hot stage. Whoever gets more funds in the next two years is likely to win."

Luo Ji asked in confusion: "Yuri, do you think so highly of Facebook?"

"Of course, now he has surpassed Myspace and become the number one. I have no reason not to believe him from being fifth to number one. Of course, your contribution is also part of this. Your game company has attracted a large number of users for him. .You work so closely with Facebook, you should know better than me."

Luo Ji certainly knows that Facebook contributes 60% of his gaming company’s revenue.

Luo Ji took Robin with him and chatted with him for a while before ending the conversation.

"Is Yuri a Jew?" Robin asked.

"Well, Russian Jews, their characteristics are very obvious, aren't they?"

"Yeah. By the way, what is your company's valuation for this financing?"

Luo Ji said calmly: "5.5 million meters." When Robin heard this, he stepped forward and held Luo Ji's arm intimately: "My dear, you are so awesome. You can succeed in anything you do."

Luo Ji felt a softness in his arm for an instant, and a warmth could not help but rise in his heart. He brought his mouth close to Robin's ear and said, "You haven't been to my office yet. I'll take you to see it."

Robin saw Luo Ji's fiery eyes and understood instantly: "Isn't it going to be bad?"

Luo Ji smiled and said, "We are in the living room, on the sofa, and in the kitchen?"

Hearing this, Robin's eyes also showed fire, and the two came to the office.Robin immediately locked the door and took the initiative to kiss Luo Ji passionately. The two became entangled in an instant.

"Come over to the desk."

"Pout up."

…………

Yang Jian walked up to Luo Ji with a glass of wine: "Where's Robin? I saw her with you before."

A smile appeared on Luo Ji's lips: "She's feeling a little uncomfortable, so she's going to rest."

"Oh."

Yang Jian smiled and said: "I really didn't expect that this financing turned out to be so smooth!"

"That's because the pie we're painting is too big. In the future, EA for social games plus EA for smartphone games, the prospect is too tempting."

"Hahaha."

Yang Jian was in high spirits and took a sip from his wine glass.

Luo Ji praised: "The PPT was done well."

"Small idea."

Luo Ji said, "Have they got the funds in place?"

"They are afraid that their investment share will be taken away. In order to avoid long nights and dreams, their funds will be in place after the contract is signed. I really didn't expect that our company has now become a diamond that capital is chasing after."

A sentence suddenly appeared in Luo Ji's mind, and he blurted out: "Standing on the wind, even a pig can fly."

"Are you scolding yourself?"

"Haha."

Yang Jian was silent for a moment: "But what you said makes sense. We have indeed captured the two trends of social games and smartphone games. This is your credit. You are indeed a genius!"

"It's really my fault."

After Luo Ji finished speaking, he looked at CEO Yang Jian: "But you are also very good. Without your technology and hard work, the company would not have reached this point. After this financing, your founder's share rewards will also be distributed, totaling about 2.2%.”

"Thank you, Logic. By the way, the game Pet Association is developing very well now. The creative prize pool will be distributed now or now."

Luo Ji thought for a moment: "Let's do it now. Although it hasn't exceeded the sales of friends, it has occupied the top ten. This time, 1.4% of the shares will be directly distributed to reward the creative team of the Pet Association. When the time comes, remember to inform all employees of the company and inspire them. Do you know the creativity of?"

"understand!"

Luo Ji was still very willing to use money and shares to stimulate the company's employees to create.

"By the way, we raised US$5500 million this time. Remember to apply for a low-interest loan from Silicon Valley Bank. US$1.1 million should be enough for the company to burn for a long time."

Yang Jian said: "It's hard to say, global expansion is very expensive. Facebook's recent expansion in non-English-speaking countries has been very strong, and we will definitely follow up."

"It's okay. I will find a way to find someone to lend the company a loan next year."

"Who?"

"government."

Luo Ji supported many politicians and must have hoped to gain benefits.

"Uh... well."

Luo Ji looked at him seriously and said, "The task you have taken on is very heavy. After all, you are running a global Internet company. It is not that easy. I will ask the company to recruit a few Internet executives with experience in this field to assist you. You guys Don’t cause conflicts, you need to know clearly that besides me, you are the second largest individual shareholder of the company.”

Yang Jian patted his chest: "I will cooperate with them, Logic, don't worry."

Holi games have also been deployed globally before, but mainly in English-speaking countries, because the main users of American social software are in English-speaking countries.

Now that Facebook is beginning to expand globally, Holi Company must follow up on this largest customer.It is impossible for him to give up these overseas markets for nothing.

Luo Ji looked at Yang Jian and asked seriously, "What are your specific plans?"

“There are three difficulties in overseas expansion: payment channels, local laws and policies, and language.”

Luo Ji nodded in affirmation. The language of the game would require a large number of people to be localized.

Local laws and policies must be adapted step by step.

The game’s payment channels require cooperation with local payment companies, and these must be solved step by step.

It is not that easy to run a global enterprise.

Yang Jian continued: "This is my plan. I plan to set up eight branches overseas, one in the European Union, one in Japan and South Korea, one in the Chinese cultural circle except China, one in the Middle East, one in Southeast Asia, one in Africa, and one in India. One for Russia and one for China.”

Luo Ji said: "The company's branch setup is very reasonable. All large Internet companies in the United States do this now."

"Except for Russia, Japan, South Korea, and China, Facebook is in the leading position in social software in other places. We can just use Facebook's social channels. But we need to treat these four countries differently and cooperate with local social software companies. .”

Luo Ji looked around and found the representative of Tencent.

He was holding a wine glass alone and drinking gloomily.So he pointed at him and said to Yang Jian beside him.

"You should have heard about Tencent's attitude."

"I heard that as a social media monopoly in China, they are unwilling to give us operating rights and are unwilling to develop third-party interfaces."

Luo Ji said, "Then Russia, Japan and South Korea should have a similar attitude. The local social monopoly companies should also want to go it alone and be unwilling to share profits with us."

Yang Jian nodded: "I know."

Luo Ji spoke seriously: "So the next negotiation with Tencent is the top priority. The result of the negotiation is likely to become a demonstration effect."

"I know."

"I hope you invite the best negotiators. It doesn't matter if the agency fee for the game is lower, but you must get as much share as possible. Social games are in the early stages of an explosion, and it is impossible for them to give us a solution that matches the future. Game agents earn money. So, sharing is the key."

Yang Jian said: "I will, I understand. Tencent's social networking users are now three times more than Facebook's users. Japan, South Korea, and Russia are also populous countries. I will definitely pay attention to it. But..."

"But what?"

Yang Jian said: "Social software is naturally in a strong position. Our social games depend on them. We don't have much leverage in negotiations!"

Luo Ji patted Yang Jian on the shoulder: "Let's talk as much as possible and strive for as much benefit as possible for the company."

"Okay. But what about Facebook? This is our largest revenue channel. According to their current development momentum, they will inevitably become a monopolistic social software company in the future. What should we do then?"

Luo Ji smiled and said, "I'm already thinking of a solution."

Yang Jian asked curiously: "How to solve it?"

"Of course I'm entering the social field."

Yang Jian looked at Luo Ji in surprise: "The competition in the social networking industry is so fierce now, and even if you don't have more than a billion dollars to make a profit, what are you going to do?"

Luo Ji smiled and said, "I want to leave several people in the company's mobile game department, don't you know?"

Yang Jian thought for a while and said: "You plan to enter mobile social networking..."

"Shh, just know. Don't tell anyone."

"Ok."

Yang Jian nodded and agreed: "By the way, Logic, we didn't disclose Holi's last financing to the media. What are your plans this time? Aren't you going to disclose it to the media yet? People who invest in the company today seem to be unable to hide it."

Luo Ji smiled and said, "It's okay, just post it. You know my media image has been a bit bad lately. This is good public relations news."

"Jerk!"

"Hahahaha!"

The two looked at each other, smiled, and toasted in celebration.

Everyone at the company party heard their laughter and looked at them with envy on their faces.

　Thank you Jotaro's life for the 3500 coins, and thank you 23230607095316066 for the 3500 coins.

　　, thank you for the 13000 coins that Y Hao Sheng has always rewarded. Thank you for saying goodbye to Han Bai, 20170502030156021, 20181019111749796. for the 100 coins.

　　
　
(End of this chapter)