Chapter 139: Venture Capital (5)
In this way, when compared with entrepreneurial stars, SAL's valuation imagination is incomparably broad and full. If SAL can one day become a star company like facebook and google, it would be wise to invest a billion dollars now, because in a few years, the billion dollars invested today will likely become 10 billion dollars or more.
Think of Apple, at its peak, the company's market value was more than $1,000 billion, which is more than the GDP of most countries on the planet. Who can say that today's SAL will not be yesterday's Apple.
Thinking of this, these bigwigs couldn't help but be moved. Although the decision was not made on the spot - such a huge investment, although they have a high position in various companies, it is impossible for them to make such a hasty decision.
But all the bigwigs promised to study Cai Siqiang's proposal well when they went back, and asked for more detailed information about SAL.
Sending away these venture capital bosses, Cai Siqiang is full of confidence. The billion-dollar financing appeal put forward by the temporary change of hexagram is a figure that Cai Siqiang pondered overnight, because after the acquisition of TOMTOM, in order to quickly cut into the market, the demand for working capital must also be considered in advance, in order to sell the new navigation device developed by SAL as soon as possible and make it a mainstream product in the high-end market, the later operating expenses of this advertising cost are definitely not a few.
Rather than raising $500 million or living tightly, it is better to simply finance more and be more prepared, and strive for the capital needs to be in place in one step. As for the proportion of shares that are ready to be ceded, Cai Siqiang does not want to increase it, and today revealed some new trends of SAL companies, which is enough to induce venture capital bigwigs to have more imagination and make these bigwigs reconsider their offers.
Rationally use the resources in his hands to strive for his own maximum interests, Cai Siqiang has always been handy in doing this kind of thing.
Originally, the mobile phone market was already a key market that Cai Siqiang was considering entering, after all, the success of Gemdale was amazing, and the profits suddenly soared from hundreds of millions and billions to more than 10 billion, which completely exceeded everyone's imagination.
In the face of such a huge market temptation, it would be strange if Cai Siqiang was not moved. Cai Siqiang is only thinking about how to cut in. It is not that Cai Siqiang is hot-headed for a while, but that he has already considered it.
Just collaboration? Or is it a sole proprietorship? This is a new multiple-choice question in front of Cai Siqiang.
From a rational point of view, choosing to continue to cooperate with Gemdale Mobile and participating in profit sharing is the least risky and most trouble-free, but relatively speaking, there are more benefits to be given out. According to Cai Siqiang's own ideas, it has not yet been decided whether the profit sharing price is about four or six or three or seven, but SAL will basically not give in if it is at least 30% of the profit.
After all, this is not just a matter of SAL unilateral benefits, after all, the big head has also let Gemdale take it, which should be very good for Gemdale.
This depends on the fact that the Gemdale mobile phone brand is not bad in China, and if it is a little worse, Cai Siqiang dares to open a fifty-fifty share.
However, there is basically no risk of capital investment in this part of the money, and the manpower investment is relatively small, after all, the customization work is basically relatively perfect, so this income is equal to the net profit.
Sole proprietorship starts from scratch, and everyone will face the same problem as navigators, which is what kind of enterprise to acquire to meet the needs. Basically, well-known large enterprises don't think about it, Nokia, HTC these companies are difficult, and now the market value is more than 10 billion US dollars, considering the case of the acquisition of MOTO, plus the premium, to acquire a more influential international mobile phone manufacturer without more than 30 billion US dollars of funds can not be taken at all.
Of course, you can also spend only a few hundred million yuan to take down a certain copycat factory in China, but the construction stage of this brand and channel is enough for you to wait for three or five years, the mobile phone market is not the same as the navigator, the operator customization allows the communication equipment manufacturers to control most of it, and most of them are low-end, so the mobile phone can not simply take the route of the navigator, and it can't go through this route.
In this way, it seems that within three or five years, it can be said that it is better to acquire domestic copycat factories to produce mobile phones by themselves, and it is better to cooperate directly with Gemdale to get a share. Gemdale mobile phones can be sold, in addition to the built-in intelligent voice recognition technology is unique, and the brand created by years of high-intensity advertising investment is also inseparable, billions of advertising dollars per year, how many years to smash out of a well-known brand.
That's it, before there was no deep customization of intelligent voice, most of Gemdale mobile phones were low-end goods, most of them were concentrated in models below 1,000 yuan, not that there was no development of 230000 models, the problem is that this kind of model can't sell much at all, many times these high-end models are just decorations, set off the low-end machines of their own homes.
For consumer electronic products, a new brand in the hearts of the Chinese people, no matter how strong it is compared to copycats, it is not much stronger. Therefore, to create a new brand to enter the high-end market and achieve sales of more than 10 million units, although it cannot be said to be a fantasy, but it is also infinitely close to a dream.
At this point, although Cai Siqiang is becoming more and more confident, he still has to admit this reality.
Looking back at this financing, from the current point of view, everything is going smoothly, which is equivalent to the promotion of the roadshow, and did not intimidate the venture capital bosses on the spot, Cai Siqiang believes that although the venture capital bosses feel quite unhappy, everyone still has to recognize their own ideas in the end.
There is no way, there are so few good companies that are really worth investing in right now, and there is not much choice for a business like SAL that raises up to a billion dollars.
Compared with those pure hype concept companies, SAL companies, which have a fairly clear business model as soon as they are established, have a very predictable development trajectory to a large extent, and the investment risk has actually been greatly reduced.
The information leaked this time shows that SAL will accelerate its progress and continue to expand SAL's business scope, and I believe that venture capital bigwigs will reconsider SAL's development space.
Anyway, the price, Cai Siqiang has been offered to venture capitalists. As for whether it can be successful, Cai Siqiang doesn't know, if these venture capitalists refuse to invest, it will only delay the development of the navigator for SAL, and the impact on the entire company is not great.