"Mr. Fei, do you know the revenue of these three major portals last year?" Xue Chunhe asked with a smile.

He thought that Yu Wenfei hadn't read the relevant financial reports at all, so he bragged casually.

"Of course, listed companies have financial reports announced every year, and among these three websites, Sina has the best profitability, with a total profit of 1.6 billion US dollars last year, Sohu about 120 million, and NetEase is a little close, only 60 million US dollars. Yu Wenfei replied casually.

"Then the sum of these three companies is 340 million US dollars! Fei said that in the next three to five years, Facebook's profit will exceed the sum of these three?"

Xue Chunhe leaned back, leaned on the back of the chair, held a ballpoint pen in his hand and turned it, looking at Yu Wenfei with a smile.

"Hehe, maybe Mr. Xue thinks that Facebook can't do it. There is really no way to verify this now, but it is also very simple to resolve this disagreement. Yu Wenfei said calmly.

"How to fix it?"

"By signing a performance VAM agreement, I can write the commitment to performance into the investment agreement!" Yu Wenfei said dryly.

............

VAM agreements, which are all too common in investment circles.

In venture capital, there will be a VAM agreement, and the entrepreneur will lead the company to the extent of the company's scale within a limited time, or how much profit to achieve, then the investment bank will give corresponding investment or additional follow-up. If the entrepreneur fails to do what he promised, then a penalty clause will be triggered, such as the company's shares being transferred to the VAM investment bank free of charge. More seriously, there will even be cases where entrepreneurs are kicked out of the company.

At the time of acquisition, the acquirer and the acquiree often enter into a VAM agreement. To take a well-known example, when China Literature Group acquired Xinli Media, a film and television media company, it signed a VAM agreement.

In terms of the agreement, China Literature Group will acquire Xinli Media at a total price of 14 billion yuan, but only 10 billion yuan will be paid in the early stage, and the remaining 4 billion yuan will depend on the performance of Xinli Media within three years of its acquisition.

If Xinli can make a profit of 300 million, 600 million, and 940 million within three years of being acquired, then China Literature Group will pay the remaining 4 billion in cash.

On the contrary, if this profit cannot be achieved, then the remaining four billion ......

No more!

Therefore, hearing Yu Wenfei say that he would sign a VAM agreement and write the performance commitment into the contract, Xue Chunhe smiled slightly and asked: "So, what does Mr. Fei think will be able to achieve in three years, and how much profit can Facebook achieve?"

The reason why I say three years is because Xue Chunhe believes that as long as Facebook continues to develop normally, it will definitely be able to successfully land on the NASDAQ within three years.

After listing, the market value of the company basically depends on these two main factors, one is the industry status of the website, and the other is the profit data!

Yu Wenfei smiled, first stretched out two fingers, and then stretched out his entire palm.

Xue Chunhe understands that two fingers mean that the number of Facebook users will exceed 200 million within three years, and the whole slap is, of course, representing an annual profit of 500 million US dollars.

He raised his eyebrows and said with a smile: "Mr. Fei is so confident in Facebook?"

200 million users, 500 million US dollars in profits, neither of these two data is easy to achieve!

In fact, in 2003, there was no website in China that could do any of these data!

If history has not changed, in August 2003, Tencent will announce that the number of QQ users will officially exceed 200 million!

As for the annual profit of 500 million US dollars, except for Shanda and NetEase, which later transformed into a game company, plus Tencent, which vigorously develops the game business, other websites will not be able to achieve it until many years later.

In other words, in a few years, everyone will find out that online games are the real Internet cash cows......

In the face of the eye-popping profits of online games, the portal's profitability by advertising is simply weak!

Of course, Xue Chunhe doesn't know where Yu Wenfei's confidence comes from, if he knows, then his achievements are not limited to the field of investment, people of his age look down on games in their hearts.

"It doesn't matter if I have confidence or not, what matters is whether I can do it or not!" Yu Wenfei said dryly.

"Well, since Mr. Fei dares to write these two performance VAM clauses into the agreement, then I recognize that Facebook's performance can be compared with Sina. Xue Chunhe was not ambiguous.

By saying this, he is admitting that Facebook's valuation can reach $3.2 billion.

In 2003, the exchange rate of the US dollar against the RMB was still about 8.3, so the market value of Sina was converted into RMB, which was 26.5 billion!

Yuwenfei invested 500 million yuan, of which 400 million was used on Facebook, and in just half a year, it skyrocketed to 26.5 billion yuan!

That's the beauty of the internet.

It's not possible to do this in any other industry.

"This is Facebook's first fundraising, so I was able to transfer only 10 percent of the shares. I don't care how SoftBank and Jiaotong University Venture Capital are distributed, you can discuss it yourself. Yu Wenfei continued.

With an estimated value of 26.5 billion, 10% is 2.65 billion!

Yu Wenfei is a little worried about whether SoftBank China and Jiaotong University Venture Capital can eat it, but the past few years have been the most prosperous time for SoftBank, and Mr. Sun, who has deep pockets, is not expected to be soft.

10% of the shares, $320 million investment......

These two numbers made Xue Chunhe's pupils shrink slightly, and his expression became cautious.

On the other side, Director Wang of Jiaotong University Venture Capital was very simple and said: "We only need a little bit of shares and contribute 32 million US dollars." ”

He is very simple, and he doesn't even have to go through cumbersome procedures, and he dares to make a decision directly.

That's because he knows that in the leadership of the school, the two principals are very supportive of Yu Wenfei, and this Facebook, in a sense, is a banner for Jiao Tong students to start a business!

Not to mention that Facebook is indeed very promising and valuable, even if it is ordinary, Jiaotong University dares to spend money to support Yuwenfei.

Xue Chunhe is not so happy over there, with an investment of nearly 300 million, this is no longer something he can make a decision here.

However, this is the first contact, and it will take a while to really reach cooperation, so I can't rush it.

Xue Chunhe said solemnly: "The amount of investment this time is huge, we need to go back and discuss it again, in addition, we also need to notify the headquarters and let the team come over there, and it is estimated that Mr. Sun will also come in person." ”

Yu Wenfei nodded, this is what it should mean.

An investment of $300 million, even if it is a deep-pocketed SoftBank, cannot be given casually.

That old man, I guess he will come over in person and meet and talk to himself.

............

When the business came to an end, Yu Wenfei took Xue Chunhe and Director Wang to visit the company.

Seeing the computer room that occupied an entire floor, as well as the huge team of nearly 2,000 people, Xue Chunhe couldn't help but shake his head and smile bitterly.

"Mr. Fei, where is your company a start-up company, even if it is a company like Sina and Sohu that has been listed for several years, there are not as many employees in the headquarters as you are. ”

Yu Wenfei smiled faintly and said meaningfully: "If you want to do a big business, you must have corresponding software and hardware matching! The goal of Facebook has never been a website like Sina Sohu. ”

The meaning of this is that even the domestic portal giants don't look at it......

Xue Chunhe couldn't help but ask, "Which company is Facebook's target?"

"Secrecy, when SoftBank becomes a shareholder, it will be understood. Yu Wenfei said with a smile.

"So what other businesses does the company do besides Facebook, such as email, portals, search engines, and so on? Xue Chunhe asked curiously.

After the Internet company reaches a certain scale, it will definitely not do only a single project, because it is a waste of user resources.

Generally, multiple related projects will be launched to tap the potential of users, and sometimes even the side business is doing more than the original main business, which is very common.

"Of course, we already have four major projects in place, and we will be online in a month or two. Yu Wenfei replied.

"What kind of business is it?, can you tell me about it?" Xue Chunhe asked curiously.

"Trade secrets, no comment. Yu Wenfei said with a smile.

Well, it's a trade secret again, Xue Chunhe is very helpless.

However, he also understands that after all, the two sides are not partners now, and there are some things that the other party naturally does not allow to tell him.

............

When meeting with Facebook's senior team, Xue Chunhe was a little dissatisfied, but he didn't say anything in person.

In private, he asked Yu Wenfei implicitly: "Is your company's management strength a little weak?" ”

This is indeed Facebook's weakness, after all, the company has been established for a short time, Yuwenfei's requirements are high after all, and the heads of some key positions are still empty.

"There are already target candidates, and I will find time to meet with candidates in the near future, and they will be in place soon. Yu Wenfei said frankly.

Of course, you have no problem, but if your subordinates have a more glamorous resume, they will also add a lot of points. These words are a reminder from the senior to the junior, haha. ”

Xue Chunhe, of course, hopes to be able to achieve this investment.

Yu Wenfei is his own apprentice, and in the business world, this relationship is usually very important.

What is a circle?

It's called a circle!

If there is no relationship between the same background of Jiaotong University, why should Yu Wenfei want SoftBank's investment, instead of contacting VCs such as Sequoia, IDG, and Tiger Fund first.

In the same way, I have to invest money anyway, why don't I help my junior get the money.

Anyway, it's the company's money spent, not your own......

Yu Wenfei gave up Tsinghua University and Peking University and chose the magic capital Jiaotong University, and the effect has begun to be revealed.

If he goes to Tsinghua University and Peking University, not to mention that the two presidents value him and introduce him to investment, it is estimated that it will be difficult for him to even start a business!