Chapter 10 Investment
Ford Brooke came back three days later, with a smile on his face. This guy may think that he has the pearl of wisdom and has further support from Sequoia Capital, so he is confident that this financing negotiation will be very successful!
Reach out and don't hit the smiling person, let him laugh for a while.
The bullets still have to fly, and they hurt people in the end.
Henry and Bosak invited Ford Brooke into the conference room, poured him a cup of coffee, and then talked to him about a lot of nonsense, and didn't talk about financing anyway. Whoever is in a hurry will have the upper hand when negotiating this kind of thing.
But Ford Brooke is not a fuel-efficient lamp, he is too patient, his eloquence is really good, and he talks endlessly.
Henry was speechless in the end.
Senior talents, senior talents.
Ford Brooke hasn't been defeated yet, but his own side can't! Bossak is still highly skilled, and where is he proficient in these twists and turns in the negotiation? Although Henry had reminded her before, Ford Brooke talked about it and led him to the financing side by sentence, and finally Bossak was recruited.
At this time, Henry said to Ford Brooke straight to the point: "Financing is okay, but if it is the same as last time, then forget it!"
Ford Brooke smiled and said, "Don't worry, our conditions this time will definitely satisfy you!"
Ford Brooke then came up with another proposal, which was much the same as the previous one, but with some changes in the amount of financing and the percentage of shares it shared.
This time, Sequoia Capital bid $40 million, but asked for a 33.3% stake in Cisco! But the point is, Henry is not an ordinary person, he is a traverser, he clearly knows how awesome Cisco will be in the future, do you say this price is tangled?
Mr. and Mrs. Bossak were excited, and they were very excited, and the amount of investment was so different from the last time! However, their excitement was useless. Whether Cisco finances or not depends on Henry, who is the controlling shareholder.
Ford Brooke was drinking coffee with a confident smile on his face!
"Honestly, Cisco isn't short of money. Henry said in a flat tone, "If it were another venture capital firm, we probably wouldn't have talked to him." What I value is something other than capital, the various resources that Sequoia Capital has. So, we won't agree to sell you so many shares!!"
Ford Brooke was stunned and looked at Henry with surprise, but his young and immature face had a sense of maturity that was extremely inappropriate for his age, and his bright little eyes were bright and exuding astonishing wisdom. Ford Brooke was so surprised by Henry's words that he couldn't help but sit upright, and then looked at Henry seriously. At the same time, he is also more determined and optimistic about the future of Cisco!
Investment is a science, investing in a company, the most important thing is people, is the team. In the same computer company, why investors are optimistic about Apple is because there is Steve Jobs as the leader, because there is an excellent Apple team! Only with good leadership, a good team can be innovative, have vitality, and make investors make money!!
Undoubtedly, Henry was a qualified leader in the eyes of Ford Brooke!
"And how many shares are you going to sell?" said Ford Brooke, who had decided that he would buy Cisco's shares!
Henry thought for a moment and said, "Up to 10% upfront." However, I can promise you that Sequoia Capital has the right to a second priority funding!"
Ford Brooke agreed without even thinking about it: "That's fine!"
"Well, in that case, let's talk about how much you Sequoia Capital can invest in 10%!" Henry said.
"Ten million dollars!! Ford Brooke shouted.
Henry shook his head: "Ten million can only account for 5%. ”
"This can't be, Cisco isn't worth that much right now!!" Ford Brooke immediately exclaimed.
"Cisco isn't really worth that much right now, but the potential is endless. You must know that since the establishment of the National Science Foundation network, Cisco's performance has been rising, perhaps several times after half a year. I think you should also know about this situation, otherwise you would not be in a hurry to invest in Cisco. Mr. Brooke, if you don't want to, we can talk again in six months. Henry took a sip of coffee and said lazily, "But in half a year, it may not be the price it is today......
When Ford Brooke heard Henry say this, his smile froze, and his face couldn't help showing hesitation, and there was a vague sense of anxiety.
He can't afford to wait, the Internet era is changing with each passing day, who knows what Cisco will become in half a year. When the time comes, Henry will ask for a sky-high price, will Sequoia Capital buy it or not?
Tangled!! very tangled!!
Ford Brooke was momentarily embarrassed, and sat down in his chair and thought for a while, but Henry and Bossak did not disturb him, but waited quietly.
At this moment, Ford Brooke suddenly raised his head and said, "I need to make a call!"
"Please!"
Ford Brooke went to make a phone call, and Henry winked at Bossak to indicate that he had a win. Bossak saw Henry's ingenuity and admired him. But how did he know that "Hindsight" is N times more powerful than the real Tung, and Henry, as a traverser, "Hindsight" is a !! every day
So, in Bossak's eyes, Henry is awesome. But in fact, he is not so good, maybe after a few years, after a period of growth and training, he may be so good, and now he is still hanging up!
No nonsense, Ford Brooke has already returned from the call!
He came back with a wry smile on his face, and a wry smile with a hint of joy in it. Henry knew that his asking price, Sequoia Capital probably agreed. Ford Brooke walked up to Henry and stretched out his hand, "You little guy is the toughest kid I've ever seen!! well, if you win, the company agreed to your request and decided to contribute $20 million and only hold 10% of Cisco!
"No problem!hehe, nice cooperation!" Henry smiled and held out his hand to shake him.
"Hehe, happy cooperation!"
Sequoia Capital invested $20 million and only got 10% of Cisco's shares, which is quite bold. However, this is also to be expected. Cisco is now dealing with a monopoly position in the market, so what kind of business is best to do? What can it be other than a monopoly? Sequoia Capital can naturally realize this, so it does not hesitate to buy Cisco's shares at a high price. Speaking of which, I have to thank Microsoft, Microsoft's IPO this year, its stock soared, and Sequoia Capital, which is legendary on the NASDAQ!! may also be stimulated, trying to seek the same potential stocks as Microsoft. Clearly, Cisco is one of their targets.
And according to their intelligence analysis, as computers become more and more popular, the development of future networks will become more and more important, and the importance of Cisco will become more and more prominent. For such a company that will play a pivotal role in the future, if Sequoia Capital does not eat this cake, it is simply inconsistent with their unconscionable capitalist style!
Three days later, Cisco signed an investment agreement with Sequoia Capital. On that day, Cisco had $20 million more on its books. The shares of Henry and Bossak were reduced accordingly. The final shareholding ratio of Cisco shareholders is 67.5% by Henry, 22.5% by the Bossacks, and 10% by Sequoia Capital.
In line with the idea of making a fortune in silence, the content of the agreement has not been released to any media. Taking advantage of Cisco's current monopoly on the market, Sequoia Capital immediately launched a series of close cooperation after investing in Cisco!
First, in terms of enterprise management, Sequoia Capital has very rich experience and plays a very important role in the optimization of the entire internal management of Cisco. At the same time, Sequoia Capital helped Cisco tap many outstanding talents from large companies, and one of them surprised Henry. In his previous life, Cisco really developed into a giant in the hands of John Chambers! In just three years, the US magazine "Business Week" named him one of the world's top 25 senior corporate presidents!
John Chambers holds a Bachelor of Business Administration, a Bachelor of Laws, and an MBA in Finance and Management.
Henry couldn't help but be overjoyed by the fact that he had appointed him as a senior executive in Global Operations to make major decisions for the company! If it weren't for the fact that Bossak is now in the position of CEO and John Chambers has just arrived at Cisco, he would not be convincing because he is not qualified enough. Otherwise, Henry will directly appoint Chambers as the company's CEO and control the overall situation!
The addition of John Chambers made Henry more confident in Cisco! He is the chairman of the company, and he usually does not care about anything, and Bosak can be said to be a great expert in terms of technology, but in terms of management, it is also average. Henry was in the way of Bossak's face, and it was difficult to explicitly ask him to step down from the position of CEO, but now that John Chambers was assisted, Henry was at ease. When John Chambers came to prominence, Henry suggested that he step down as CEO and become the company's CTO!
Second, Cisco leverages Sequoia Capital's channel resources and connections to launch a strong campaign in the global market.
Third, due to the abundance of funds, Cisco immediately expanded its scale and bared its fangs to embark on a path of no return for mergers and acquisitions!!
Henry and others first bought a 10,000-square-meter piece of land on the outskirts of San Jose and began to build a new factory and recruit workers for training. Subsequently, the headquarters was relocated to an office building on the bustling floor of San Jose. Then we recruited a lot of technical talents, improved and innovated the router, and began to work on the second generation of products, so that Cisco has always been at the forefront of technology!
After the cooperation between the company and Sequoia Capital, Henry was also busy for a while. Crossing does not mean that he is invincible, any change may have a butterfly effect, and Henry understands this, so while he manages the company, he is still studying hard, studying books on business administration and finance. The so-called close to Zhu is red and close to ink is black, and the environment is really easy to change a person.
Henry works with a group of great gods and learns a lot every day!
As Cisco has grown step by step, a lot of media has begun to pay attention to this company.
"On June 1, 1986, the world's first network of 10,000 routers was born. The network is based on the ARPANET with many well-known universities in the United States, the US Department of Defense, the National Aeronautics and Space Administration as the core, and many companies as nodes, a total of more than 40,000 computers!
As soon as the news was released, the industry was shocked!!
40,000 computers can communicate with each other, what is this concept?!! is simply a small Internet!!
"The New York Times," "Los Angeles Times," "Washington Post," and other newspapers of all sizes reported on the incident, and the major broadcast media in the United States called the incident of epoch-making significance!! and many companies joined the network soon after the report! Cisco's development suddenly advanced by leaps and bounds. Moreover, the U.S. Congress has also made a decision to hand over the National Science Foundation network to some companies in the United States to operate, so as to make the network develop faster!
These companies are all very powerful large companies in the United States, such as IBM, MCI, ...... And what they will do in the future is like what telecommunications is doing! The backbone network is the backbone, and countless computers must be connected to the backbone network in order to access the Internet! Because all network data will circulate in the backbone network, and if they do not join this backbone network, they will not be able to communicate!
Cisco wants to join, but without this strength, it can only cry out in vain!