Xiong Xiaoge asked Zhang Chen rhetorically: "It's been two or three months since you joined IDG, and you have found that there is no difference between IDG and other venture capital companies, such as Sequoia?"

Zhang Chen really hasn't summarized and considered this aspect, and in his previous life, he had only heard of a few bigwig names, but he only knew that these were all engaged in venture capital, IDG and the business of intelligence dealers, and the specific differences between these venture capitalists had not been studied.

Xiong Xiaoge patiently explained: "Any company has its own style, DG rarely does medium and long-term, generally speaking, investment projects, one to three years, must be exited, will not be in love, which is very similar to McGovern's character." ”

Speaking of which, Zhang Chen suddenly remembered that IDG was the first venture capital company to invest in Teng Xun, and invested $1.1 million in Teng Xun in 99, accounting for 20% of Teng Xun's shares, but not long after, when Teng Xun received a capital injection from SoftBank and a valuation of $60 million, IDG chose to withdraw and make a profit.

Since then, this case has been repeatedly ridiculed and summarized by the investment community, and this lucrative investment behavior has been regarded by the outside world as IDG's most failed investment choice.

Xiong continued: "McGovern is engaged in media publishing and consulting services, so he is far more cautious in controlling risks than other venture capital firms. In addition, venture capital is only a very inconspicuous piece of business under IDG's capital account. ”

"What is IDG's biggest advantage? Is it funding? No. DG's advantages in data analysis and information collation business can bring a huge first-mover advantage to IDG's venture capital business, allowing IDG to intuitively judge which industry and which company is more worthy of investment from data than other VC companies, which other VCs do not have. From this point of view, IDGVC is really just a by-product of IDG's data and information business, created in order not to waste its own information advantage. ”

"Therefore, IDG generally only does seed and A round investment business, and rarely touches B and B round of investment projects, unless in Series A, this project has proven itself to have extraordinary potential and profitability. ”

At the same time, IDG rarely makes super-large investments, and more of them are small-scale investments of hundreds of thousands or even tens of thousands of dollars. ”

"If your previous investment of $23 million in Starcom was not guaranteed by ICQ's equity, but just said that IDG would invest, McGovern would definitely not agree. So in the end, your project is carried out in the form of IDG's financing and VAM to Tindersource. Now you want to bring McGovern together and invest at least $100 million in Starcom, this kind of business, nine times out of ten, Lao Mai will not agree. ”

Xiong Xiaoge is not alarmist, and in terms of McGovern's character, he would rather make less than lose a lot. This is also one of the reasons why IDG has been in China for nearly five years, but it still has no income.

For many projects, IDG chooses to withdraw before seeing the benefits.

Historically, IDG also adjusted its investment strategy around '98 and only achieved profitability in 2000. The later Internet bubble gave IDG a chance to buy the bottom, and this really took root in China.

But Zhang Chen doesn't see it that way, the above are Xiong Xiaoge's own analysis of McGovern.

Xiong Xiaoge does know McGovern very well, but it is precisely because of this understanding that Xiong Xiaoge is tied to the investment of many projects.

McGovern can be said to be Xiong Xiaoge's mentor, and his personal relationship with Xiong Xiaoge is very good. But if he is satisfied with Xiong Xiaoge's performance in Huaxia, he will not find Zhang Chen to be a partner of IDG Huaxia.

McGovern also wanted to invest in ICQ, but Sequoia got the first time. If McGovern is really like Xiong Xiaoge said, how can he be interested in ICQ's 20 million financing?

To put it bluntly, it is still Xiong Xiaoge's own demons. He thinks he knows McGovern too well and wants McGovern's approval too much. So he used part of the logic of McGovern's investment in the United States to invest in China, and it is no wonder that he does not lose money.

This also explains why when everyone was optimistic about Teng Xun, Xiong Xiaoge chose to make a profit and sold 20% of his shares in Teng Xun to MIH at a price of 60 million US dollars in two installments.

This is not a decision made by McGovern, especially when he sold 7.2% of Teng Xun's shares for the second time, Xiong Xiaoge has obtained all the control of IDG Huaxia, and this sale decision is completely Xiong Xiaoge's own decision.

In other words, Xiong Xiaoge set a frame for his investment logic, and put this frame on his head, and explained that McGovern put it on his head.

Self-limitation, this is a problem that many people have when they are subordinates.

Zhang Chen smiled: "Brother Xiong, I think it is still possible to persuade McGovern, but I need your support." As you said just now, you have been persuaded by me, so it is not impossible for us to work together to convince McGovern. After all, you are McGovern's most trusted person in China. Zhang Chen slapped Xiong Xiaoge a little on the back.

"And I'm going to make sure McGovern doesn't lose money on this investment in the form of a Tinder guarantee. If I lose, it's all mine, and with the current source of fire, McGovern should trust my ability to repay. But if I make it, I want 70% of the overall profit. ”

Xiong Xiaoge smiled bitterly: "Zack, why are you doing this." If SoftBank really wants to buy a 20% stake in Starcom for $100 million, let them do it. Whether it's the bearded ones selling 20% of their shares to SoftBank themselves, or diluting them all, you're making a lot of money. And in this way, the hole of $20 million you borrowed from McGovern will be filled in, and the capital will be successfully recovered. The rest is all earned, which is equivalent to your empty gloves white wolf in this business, why do you have to take such a big risk?"

Zhang Chen was silent for a moment, and looked at Xiong Xiaoge firmly: "Because I'm afraid that I will regret it." ”

Xiong Xiaoge was surprised: "Regret?"

Zhang Chen nodded: "Yes, I'm afraid I will regret it." This is an unprecedented time, full of miracles. Not only do I want to witness these miracles with my own eyes, but I also want to be a part of them and become the creator of them. ”

"That's why I want to be in the venture capital industry!" Zhang Chen said loudly.

"Do you believe so much that Starcom will definitely be this miracle?" Xiong Xiaoge couldn't help but ask,

Zhang Chen nodded firmly: "I believe that every one of my investees is a person who can create miracles." ”

Xiong Xiaoge was silent, and Zhang Chen's enterprising investment philosophy gave him a great shock. Although he still doesn't agree with it very much, it doesn't affect his appreciation for this kind of person.

Xiong Xiaoge's mood is very complicated now, seeing this energetic teenager, Xiong Xiaoge is also asking himself, am I really old?

After a long time, Xiong Xiaoge let out a sigh, "Okay, I'll help you persuade McGovern, but I can't guarantee whether it will work out or not." ”

Zhang Chen looked at Lange Saxony on his wrist, "McGovern should be in the east today, and his side should be past nine o'clock in the morning." ”

Xiong Xiaoge was speechless: "Contact him now?"

Zhang Chen nodded, "Without further ado, as long as he approves it, we can carry out specific operations immediately, and we can't let SoftBank seize the opportunity, you must know that Sun Zhengyi and Lu Hongliang are classmates." Last time, we just took advantage of the situation, and if we didn't move fast enough this time, it would be SoftBank's turn to take advantage of it. ”

Xiong Xiaoge was helpless: "Okay." Picking up the phone, Zhang Chen booked him the suite, he went back to his bedroom and closed the door to McGovern to dial the international call.

In about ten minutes, Xiong Xiaoge came out of the bedroom, lost his soul.

Zhang Chen hurriedly asked, "How is it?"

Xiong Xiaoge muttered incredulously: "I actually agreed, and I agreed very happily." ”

YES! Zhang Chen waved his fist.

Xiong Xiaoge calmed down and continued: "But he didn't agree to your proposal to enjoy 70% of the profits. What McGovern means is that because of the increase in ICQ's shares, DG will give you a three-year interest-free loan of $50 million, and IDG will contribute $50 million to make up $100 million. However, you do not enjoy any commission and profit share of the $50 million from IDG. ”

Zhang Chen thought about it in his heart, this is okay, his original bottom line is 50% of the profit, and according to McGovern's plan, IDG's financial statements will look much better.

The next step is to get Wu Ying and Lu Hongliang.

(End of chapter)