The valuation of Internet companies is not like that of traditional manufacturing companies, which can be evaluated in terms of fixed assets and financial statements. Pen, fun, pavilion www. biquge。 info

Especially in the early stages of venture capital.

Because Internet companies are asset-light, they can't look at PB (price-to-book ratio), most of them have no cash flow, and they can't look at PE (price-to-earnings ratio), so they can't be analyzed qualitatively.

Generally speaking, some standard concepts are used to value Internet companies.

The first is to evaluate the company's business model, then look at the company's development stage and monetization method, and finally look at quantitative indicators, such as UV (user traffic), ActiveUsers (user activity), ARPU (revenue per user) and other indicators, and the trend of these indicators.

In addition to these evaluations of the company's strategy and operation, venture capital will also look at whether the company's product form has the ultimate excellent user experience, whether the company's founders have an entrepreneurial spirit, and the company's position in the industry.

According to these standards, Lin Feng found that Fengxing Technology or My Love Music Network is actually outstanding in all aspects.

Far from what he thought he was, there was little investment value.

In terms of business model, Fengxing has opened up the charging model of digital music through collaboration with Menglong Technology, and this market will continue to grow with the growth of mobile phone users and the increase of the website music library. There's a lot of space and the patterns are clear.

Moreover, Lin Feng also has Fenghua culture, which can open up offline performances, record distribution, brokerage and other business models with Wuai Music.

From the perspective of development stage, the company has been in the early stage of development for less than a year, and this stage is also the favorite stage of venture capital like IDG that invests in early-stage projects.

Judging from the data indicators, since the website was launched, in 4 months, the number of registered users has exceeded 800,000, and the daily user views have exceeded 2 million, and the more exaggerated are the active users, with nearly 600,000 monthly active users, and the average stay time is more than 1 hour. And these data are still increasing rapidly......

Not to mention the product form, Lin Feng draws on the comments of NetEase Cloud Music, which developed maturely in the previous life, the fashionable layout design of QQ Music, the ranking list of Baidu Music, and countless details of the functional design, making the current user experience of My Love Music Network far beyond similar websites. And the musician community and cover community, which can continue to produce fresh music content, have room for imagination.

Lin Feng, Li Dong and Wang Hao form a team, which has both innovative spirit, management experience and genius technology research and development, and is also very good.

I love music is now the No. 1 music website.

……

These points are analyzed one by one. Lin Feng sighed secretly.

Guo Yihong is worthy of being a bigwig-level investor, no wonder he was optimistic about Fengxing Technology at the beginning. In contrast, although Menglong Technology has better operating data, it has many shortcomings such as relying too much on operators and many competitors.

Guo Yihong finally gave an offer of 5 million US dollars, 20% of the shares.

Lin Feng did not express his position immediately, but said that he needed to think about it.

…………

After Yihong left, Lin Feng sighed to Li Dong: "I really didn't expect that someone will take a fancy to Fengxing Technology now, and I thought Menglong was more attractive." ”

Li Dong is obviously also very happy, after all, Lin Feng gave him 10% of the shares of Fengxing Technology, and if the valuation given by IDG is used, this part of the shares is also worth 2.5 million US dollars. Not long after joining the company, I found that I had assets of more than 10 million yuan.

He was a little excited and asked, "Lin Dong, what do you think?" Do you want to accept IDG's investment? ”

Lin Feng hesitated.

In his heart, if Fengxing is just a music website, this price is not bad, but if the online game business is also placed here, he feels that the price is too low. But when the money came in, he wanted to spend it on online games.......

Tangled.

Lin Feng sighed: "After all, IDG invests in early-stage projects, and the investment amount is still small. ”

He believes that if it is SoftBank Asia, which is now making a lot of money, he will quote a price of at least more than 10 million when he hears that he wants to make a game.

shook his head and said to Li Dong: "Let's put it here first, by the way, what time are you and Xu Xinyue?" ”

He was so troublesome that he simply put the time he spent meeting with several investment institutions. Today it's IDG and Baring Asia.

Li Dong raised his hand and looked at his watch, and said, "It's about 4 o'clock, it should be there soon!"

Lin Feng got up and stretched, let out a sigh, and went out to the bathroom.

Unknowingly, I chatted with Guo Yihong for more than 2 hours, and I was really in a hurry.

After convenience, I washed my face, felt much more refreshed, and was ready to cheer up to face this "venture capital queen".

Xu Xin, the most famous "venture capital queen" in the domestic venture capital industry in the previous life, invested in NetEase at the beginning, and was famous for her investment in the start-up stage of JD.com and her unsparing support along the way, and finally JD.com went public, and she obtained a huge return of more than 160 times. Her investment list can list a long list in the Internet field, such as China Talent.com, Dianping, Ganji.com, Tudou, Vipshop, .......

It can be said that he is one of the real top bigwigs in the field of venture capital.

I didn't expect her to come.

Lin Feng really felt that at this point in time in 2002, the two companies of Menglong Technology and Fengxing Technology were much more dazzling than he had thought.

As soon as I walked to the front desk of the company, the elevator door in the corridor opened with a "ding".

Lin Feng subconsciously turned around and saw a woman in a white suit walking out of the elevator, and the face that he had seen countless times in major media in his previous life was the current executive director of Baring Private Equity Asia Investment, Xu Xin.

Lin Feng hurriedly walked to the door, smiled and stretched out his hand, "May I ask if it's Mr. Xu?" Hello and welcome, I'm Lin Feng. ”

Xu Xin didn't expect Lin Feng to greet him at the door, looking at the young man with a smile on his face, he also showed a smile on his face, and shook Lin Feng's hand gently: "Hello Mr. Lin, I'm Xu Xin, I'm too polite." ”

Lin Feng invited her to his office, and introduced the company's environment and various departments along the way.

Seeing the boss walking by with the guests, everyone looked like they were working hard, of course, the goals and assessments arranged by Li Dong for them had already made everyone very desperate.

So all the way over, Xu Xin saw the vigorous work enthusiasm of the employees in the company, and couldn't help nodding slightly.

The two walked into the office and notified Li Dong to come over, but Li Dong was stunned for a moment as soon as he came in.

After stepping forward and shaking hands with Xu Xin warmly, he said apologetically: "Mr. Xu, long time no see!" I'm sorry, I had a temporary matter to deal with just now, and I didn't go with Lin Dong to meet you! ”

Lin Feng gave him 32 likes in his heart.

This guy really reacted very quickly, and suddenly thought that Lin Feng met Xu Xin at the door.

Xu Xin and Li Dong had a relationship when they were in Hong Kong, and said with a smile: "Joe, that's too polite." ”

The three of them sat down, and Lin Feng habitually made tea.

Xu Xin was not in a hurry to speak, and silently observed the young man in front of him.

Suddenly, I felt that he was a bit like a person, Ding Sanshi of NetEase.

If you think about it, their current business has something similar. NetEase is the route of going the portal-SMS, now the game. And Lin Feng's current pattern is obviously the opposite, ready to take the path of SMS-music website.

I have to say that judging by this route, he is very smart.

At the beginning, he opened up the profit space through the SMS business, and after accumulating funds in a short period of time, he founded a music website with the ringtone business.

Different from IDG's Guo Yihong, Xu Xin didn't pay much attention to Menglong and Fengxing this time, both industries currently have congenital defects, but they are a little bit the same as Guo Yihong, he wants to contact Lin Feng, the founder.

As a young man who has just graduated for less than a year, he should be able to pull Li Dong from Goldman Sachs to be COO!

The concept of Xu Xin's investment is simply three points: find the right person, find a good category, and invest in the long term.

Especially the founders of the company.

First of all, the person must have a keen sense of smell and insight, be able to feel what others can't feel, and see what others can't see first. Judging from Lin Feng's entrepreneurial trajectory, it is obvious that he has this.

Second, strong learning ability, entrepreneurship is a long-distance race, with the development of the company will face a lot of problems, the founder must make rapid progress and learn new things, in order to always maintain control of the enterprise. This is not visible for the time being, and needs to be observed.

Third, leadership is whether you can attract cattle people to fight with you. From Li Dong's joining, Lin Feng undoubtedly has this advantage.

This is the reason why Xu Xin decided to come to meet Lin Feng after thinking about it.

After Lin Feng poured tea in a cup for the two of them.

The first thing Xu Xin said was a blockbuster: "Mr. Lin, I think the current business forms of Menglong and Fengxing do not have long-term development. I don't know what you think? ”

Lin Feng and Li Dong looked at each other in amazement.

Knowing that she said this, there must be something to say, Lin Feng smiled, and said calmly: "It seems that Mr. Xu can diagnose our pulse today, and I would like to hear it in detail." ”

"Let me say a few words briefly, if there is something wrong, Mr. Lin and JOE don't blame it."

"Menglong's business sources are mainly SMS platforms and Tuling downloads, from the perspective of SMS platforms, media resources are the core part, I believe that the competition in this area will become very fierce, it is likely that Menglong will no longer have this part of the resources, which will lead to a sharp decline in business income. Tuling download is currently limited by the functions of mobile phones, and it cannot be popularized quickly. As for the Wuai Music Network under Fengxing Company, it is indeed a very good music website, but it is overly dependent on Menglong's mobile value-added channels, and it does not have the possibility of independent development for the time being, and more importantly, Internet music users are used to being free, and I am still skeptical about the profitability of the website in the future. ”

Lin Feng nodded, what Xu Xin said was indeed a problem at this stage.

That's why he never built these two companies as core platforms for the future.

Lin Feng knew that the SP company of the mobile value-added business had only been brilliant for a few years, and he positioned Menglong Company as a cash cow at the beginning. And the popular company is just a test for him to enter the Internet industry.

Gaming, social networking, and e-commerce, these are the three core business models of the Internet in the future, and he is still in the stage of accumulating strength.

Of course, Lin Feng also knew that the reason why Xu Xin behaved differently from Guo Yihong and seemed aggressive from the beginning was just a negotiation attitude and strategy.

Lin Feng asked curiously: "Mr. Xu, since you think that these two companies do not have the ability for long-term development, why are you willing to come and talk to me?" ”

Xu Xin also smiled, and his tone returned to calm: "First of all, women's curiosity, I want to come to see what kind of character Joe is willing to give up such a generous treatment and come back from Hong Kong to help you." Secondly, I am also very interested in seeing how Mr. Lin plans to solve these problems in the next step and listen to your development plan. If there are any good opportunities, Baring Investments and I are also interested in participating in them. ”

Lin Feng was aware of this, and thought to himself secretly.

In his previous life, Xu Xin had a very good reputation in the industry, and he was also an investor who wholeheartedly helped entrepreneurs grow. Four of the entrepreneurs she has invested in have entered the top 100 of the Forbes list of the world's richest people, which shows her vision and vision.

Since in this life, I want to seize the opportunities of the times, and I can't avoid getting bigger and bigger in the future, and entering a certain level of circle, Xu Xin's entrepreneurial network is a good resource.

How much to say and how to say it?

Lin Feng thought about it for a while, and still felt that he could say something selectively.

"Well, just for Mr. Xu's special trip from Hong Kong, I should know everything and say endlessly. Then I'll talk about Menglong first, yes, at present, the main source of Menglong's income is the media SMS interactive platform with Beijing TV and radio stations, and it may be that in the second half of the year, there will be competitors when new contracts are signed, I don't deny that there is a very high possibility that we will lose these two media. But! ”

Lin Feng looked at Xu Xin, and a confident smile appeared on the corner of his mouth: "There are not only these two media in Beijing, but also ...... such as CCTV and international radio stations, there are nearly 1,000 TV stations and radio stations in the country, and Menglong has obtained the SP license of the whole network and has carried out business access in many major provinces. Moreover, here I can reveal a trade secret to you, I believe that Mr. Xu is a human being and will keep it a secret for me. One of my partners, the CTO of the company, is now looking at the CRBT business in South Korea. Combined with Wuai Music Network, you can imagine that Menglong's business line will not only have SMS. ”

"Let's talk about the popularity, this company, from a different angle, has eliminated the profits generated by the wireless channel cooperation with Menglong. We just think of it as a mere internet company, a music website. Don't Mr. Xu think that it has the two most valuable points of an Internet company? ”

Lin Feng stretched out two fingers and bent them one by one: "Traffic, users!" We have huge traffic and nearly one million registered users, with more than 600,000 monthly active users. ”

Xu Xin was completely curious by him: "Oh? In what direction? ”

Lin Feng smiled: "Game! ”

It's hard to say too much about the rest. But just by saying the word game, I believe Xu Xin should be able to understand his methods.

Xu Xin was stunned.

There is a high degree of overlap between online music and game users in China, and if the operation method is clever, it is not complicated to translate users.

There was a surprised look in his eyes, looking at the young man in front of him.

I feel more and more that he and Ding Sanshi are very similar in a certain temperament, extremely confident, similar ideas, and even the game is very similar.

"Now you're already preparing for the game business?"

"This ...... is inconvenient to disclose for the time being." Lin Feng felt that he had said enough.

Xu Xin smiled, also changed the topic, and chatted with Li Dong about whether he was used to it in China.

Her thinking is very fast, and she is also very jumpy, and she will even suddenly turn around and ask Lin Feng if she has a girlfriend, how the relationship between the two is, and so on. The delicacy and sensitivity of female investors make her always unintentionally poke out some fragmented Internet ideas from Lin Feng's mouth, and she savored them in her heart, but found that they are very reasonable, forward-looking and business logic can be through!

This man is not simple!

Xu Xin and Lin Feng communicated for more than an hour, and they had already made a judgment.

She suddenly returned to the main line of financing: "I think Mr. Lin should realize the game business through Fengxing Technology Company, right?" I wonder if Fengxing is willing to accept investment? ”

Lin Feng smiled and asked, "I don't know what kind of valuation Baring can give?" ”

Xu Xin thought about it again, and the topic jumped to the other side: "If you choose to go public, will Lin always choose Menglong Technology to go public first?" ”

Lin Feng sighed in his heart, NND, this woman is too smart, from the arrival of Li Dong, the position he held, and the business direction he just talked about, he actually guessed the short-term plan in his heart!

Nodding with a wry smile.

Xu Xin directly offered: "Baring can invest $30 million in Menglong Technology to get 30% of its shares, and invest $20 million in Fengxing Technology to get 30% of its shares."

Lin Feng was completely speechless, this was too ruthless: "Mr. Xu, we won't give such a high percentage!" In this way, if Baring Private Equity Asia is really optimistic about these two companies, Menglong can sell 10%, and Fengxing can also sell up to 10%, and we will discuss the specific amount. ”

As soon as Xu Xin entered the door, he dismissed the two companies as useless, but in the end, both companies wanted to invest.

I was really convinced, and I don't know if it was my negotiation skills or whether I was really persuaded by Lin Feng's answer. It's hard to guess what she really thinks.

She deserves to be the "Queen of Venture Capital".