"13 billion USD?"
Lin Ching-ah was a little surprised. She couldn't help but ask Li Mu, "Li Zong, we've already completed the separation. In this case, can Sequoia still give us a valuation of more than 13 billion USD?"
Li Mu nodded and said, "A large part of the valuation of more than 13 billion USD is corresponding to the current development of YY, and another part is our shares in PayPal. You must know that when we and eBay invested in PayPal together, it was originally a three-way promotion. The valuation of these two parties added up to 13 billion USD isn't that much."
As he spoke, Li Mu said calmly, "Do you know, if Makino Technology was an American company, or if YY was a product of an American company, its valuation would be even higher with the same achievements today."
Lin Ching-ah nodded slightly. "I believe that. The American capital's valuation of 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 premium as well. After the separation, the ideal Series C valuation of Makino Technology is 15 billion USD."
A valuation of 15 billion USD sounded very scary, but ever since Li Mu began planning for YY to go global, the valuation of the entire Makino Technology rose like a rocket in the capital market.
They cooperated with eBay and held shares in PayPal without spending a single cent. At the same time, PayPal's market value soared. After it was tied with eBay and PayPal, the company was more recognized by the capital market. This not only directly increased the market value of Makino Technology, but it also increased the influence of Makino Technology in the international market and increased the added value of the enterprise.
However, what really made the market value of Makino Technology skyrocket was the popularity of YY in the overseas market.
Now, throughout North America, Europe, Japan, and South Korea, YY had become a must-have office software among the high-end elites. It had great market influence and high market recognition, and its prospects were infinitely promising.
In China's stock market, based on the daily limit of 10%, if a stock can reach the daily limit of 7 times, the company's market value will almost double. In China's capital market, as long as there is enough good news, it is not uncommon for a stock to reach the daily limit of 10 times. In fact, there are quite a number of stocks that can reach the daily limit.
Based on the calculation of 10% increase in each limit limit, when the limit limit reached 30 times in a row, the market value would be 17.44 times at the beginning. It would only take 30 trading days for the market value to increase 17.44 times, which was only six weeks.
With the rapid development of YY and the shares in PayPal, Makino Technology had now made a huge breakthrough in the overseas market. Based on the current international achievements of Makino Technology, it was enough to become an international Internet company. Therefore, even if Makino Technology had been divided into several companies, the initial valuation of 13 billion USD for Makino Technology, which was mainly based on YY, was not high. The real transaction price must be above this amount.
As long as it was a product that was highly recognized by the market, it could have an unexpected premium space. Especially in an industry with a strong concept like the Internet, the premium ratio was even higher.
The premium space in the Internet industry, according to the ratio, was much more terrifying than the school district housing in Yan Jing.
An Internet company with a bright future, even if it was losing money every year, could achieve a valuation of tens of billions of USD. This was the case for Jingdong.
From 2009 to 2016, Jingdong had been losing money, and the losses were increasing. In 2009, it lost 100 million USD. In 2015, it lost nearly 10 billion USD a year, but its market value continued to grow.
If Jingdong could be like this, what about Li Mu's Makino Technology?
The ideal situation in Li Mu's mind was that Sequoia would value Makino Technology at more than 15 billion USD after the division. With this valuation, he would get 1.5 billion USD from Sequoia, and then immediately start the acceleration mode to burn all the money in two years. Before that, he would complete the listing on NASDAQ. At that time, the aircraft carrier would really be built and launched.
Lin Ching-ah was a little stunned by the 15 billion USD. After a while, she came back to her senses and asked Li Mu, "Li Zong, if the C round of financing goes through, we may have tens of billions of RMB coming in. How should we spend such a large sum of money?"
Li Mu smiled and said, "Don't worry about having nowhere to spend money. In the future, there will be too many things that we need to spend money on. Tens of billions of RMB may not be enough for us to show off."
As he spoke, 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 must invest a lot of money in research and development."
Lin Ching-ah asked, "Do we need such a large scale of research and development funds?"
Li Mu nodded and smiled indifferently. He said, "In the future, any hot research and development project may need tens or even tens of billions of RMB to support. I also hope that we can have our own operating system, our own mobile operating system, our own mobile phone, our own chips, and even our own cars, our own self-driving system. We may even want to have our own satellite network. To achieve these goals, let alone tens of billions of RMB, even USD may not be enough."
Lin Ching-ah stuck out her tongue. It was rare for her to act like a little girl. She said to Li Mu, "Among the domestic Internet companies, there are almost no other companies with a market value of more than 10 billion RMB. If we let them know that in the future, a random research and development project may need tens of billions of RMB, I'm afraid they will be dumbfounded, right? Or they can just say that you're being an alarmist. "
Li Mu smiled. "It doesn't matter if you don't understand now, as long as you understand it in the future. The Internet industry is very interesting. Sometimes, coincidentally, a project with a few million RMB investment may have a market value of a few hundred million RMB, but a project with a market value of a few hundred billion RMB has no chance of being opportunistic. It requires at least a hundred billion RMB investment to support it. A company that can't do this will find it difficult to grow to such a large scale."
Lin Ching-ah was confused, but she understood one thing. Even if Makino Technology was valued at 15 billion USD, Li Mu would definitely not be satisfied. Even to him, this might just be the initial stage.
Thinking of this, Lin Ching-ah was full of an unknown longing for 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 most of the time, she couldn't see how big this miracle was, or how big it could be. It was like in the vast universe, she could only see the planet she was on, but what Li Mu could see was a galaxy. Sometimes, he opened a small window for her through his casual words and actions, giving her the opportunity to peep at a small part of the vast universe. Even if it was only a small part, it was enough to shock her.
Unable to see how far the future was, Lin Ching-ah could only pull her focus back to the present and said with emotion, "Li Zong, Sequoia attaches so much importance to our C series financing. It seems that they no longer treat us as a local Internet company in Hua Xia."
"Of course." Li Mu agreed and said, "Even if we haven't really taken the initiative to expand the overseas market, Sequoia has at least regarded us as a quasi-multinational giant. Because of this, the financing this time is beyond the scope of Sequoia's Hua Xia Company, and it will be taken over by Sequoia's headquarters."
Lin Ching-ah said with a smile, "Then when the time comes, you must plan a few more days for your trip to the United States. By the way, you can visit our employees in the United States."
Li Mu said with a smile, "I think if I want to go, I need to plan at least ten days to half a month. At that time, I will definitely take time to visit our employees."
Lin Ching-ah asked curiously, "Li Zong, do you need to plan for such a long time when you go to the United States?"
Li Mu nodded and said, "Old Ding gave me a suggestion. He hoped that I could go to the United States at the right time to meet the senior management of Sequoia. At the same time, I can also take this opportunity to meet some of the big shots in the Internet industry in Silicon Valley and other big shots on Wall Street. I think what he said makes sense. This time, when I go to the United States, I hope to meet a few big shots in the Internet industry, learn from them, and at least get familiar with them."
Based on YY's current influence in the United States and the huge space for development, if Li Mu went to the United States to meet any big shots in the financial world or Internet industry, he would definitely be warmly received by the other party. This was not only a huge expansion of social interaction, but also an effective way to increase his personal reputation.
Ding Zhenglin had been in Sequoia for a long time and knew many of the unspoken rules in the financial circle. If a new tycoon wanted to be recognized by the whole society, he could not only meet the standards in terms of business scale and personal assets, but he also had to find a way to integrate into the circle.
It was very difficult for a tycoon who mingled in the circle on his own to become a publicly recognized tycoon, but those who mingled with tycoons every day would become tycoons in the eyes of others even if they were not tycoons.
In Li Mu's current social circle, there were no real big shots in the Internet industry or the financial industry. In front of Li Mu, the CEOs of the various Internet companies in the country were not on the same level at all. As for the overseas Internet people, Li Mu had only come into contact with Elon Musk, but his current strength was still a long way from Li Mu's. Li Mu had not officially entered the threshold of a tycoon, let alone Elon Musk.
From the perspective of capital operation, Ding Zhenglin thought that Li Mu lacked sufficient overseas exposure, and he also lacked overseas social networks. Li Mu also felt that if he wanted to be the international name card of Hua Xia's Internet industry, he must first let the overseas market recognize his identity and let him become an undisputed Internet tycoon in their eyes.
The only difference between Li Mu and Ding Zhenglin was that he felt that it was reasonable for him to go to the United States this time to meet the Internet tycoons. As for those financial tycoons on Wall Street, it was not so meaningful.
Li Mu also had a clearer understanding of himself. He knew that his ability to play with Internet products, or to play with capital based on Internet products, was fine. However, if he purely played with capital, in front of those Wall Street tycoons, he was basically the same as a primary school student. They were not on the same level at all. If he met these tycoons, he would at most become familiar with them. It was very difficult to promote and improve his business.
Moreover, Li Mu had never thought about chasing after capital. In his opinion, it was not the ability of an entrepreneur to chase after the favor of the capital. It was the ability to attract the pursuit of the capital. That was the true strength.
Therefore, for his upcoming trip to the United States, Li Mu's plan was to take the initiative to contact the Internet tycoons. As for the capital tycoons, he would try to let them take the initiative to contact him.
Among them, Li Mu was most interested in meeting the current moguls of the Internet industry.
He wanted to meet Bill Gates, who created Microsoft, Steve Jobs, who created Apple, and Larry Page, who created Google. In his eyes, these people were truly great people in the Internet industry. The companies they created were also great companies in the Internet industry. Although he did not know them, they were all lighthouses for his development and navigation in the Internet industry.
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