Chapter Ninety-Four: Negotiation
"Duke, these are the VC fund evaluation reports on GmoSystems, and we can see from this report that the company has made about a million dollars a year in the past two years, of which about 40% is the income of brainwave helmets.
According to the P/E valuation method, the average P/E ratio of such companies is about 10 times, and the most outstanding Apple has a dynamic P/E ratio of only 15 times this year, so the valuation of $10 million is more appropriate, and considering its growth, it is at most $15 million. ”
On the flight to Los Angeles, Suzanne gave Duke a detailed introduction to GmoSystems, and Duke listened and looked through the materials, which were very detailed, and carefully analyzed GmoSystems' market, production, technology, management team and other aspects.
This company is also from a Stanford research brainwave interface doctor founded according to his own research results, in the past three years, has launched three generations of brainwave helmets, but the scope of brainwave helmet application is not large, currently focused on the game, but the playability of the game is average, after all, the recognition rate of the general command of the brainwave helmet is technically difficult.
Although GmoSystems' brainwave helmet has stronger reception sensitivity than Mindsky's, and has the upper hand in terms of command number and recognition rate, it still does not exceed ten commands, which is at least a dozen streets away from the 30 commands and nearly 100% recognition rate of Duke's improved brainwave helmet.
The gap in the supporting game is also very obvious, and the 3D fighting game developed by Duke has surpassed the classic fighting game Street Fighter in terms of playability, after all, the intelligent adaptation of NPCs is not something that ordinary people can design.
After reading the information, Duke closed his eyes and thought for a while, feeling that this company still has a unique place in the technology of brainwave helmets, which makes Duke excited in addition to being able to accept the valuation now, and the production technology patent of the brainwave helmet with independent intellectual property rights is also very attractive.
Now the most criticized is that its production cost is too high, according to the evaluation report, the sensitivity of GmoSystems' brainwave helmets has been improved, in order to increase the number of electrode modules that receive brainwaves, in medical EEG helmets can do as many as 120 EEGs, GmoSystems brainwave helmets have achieved 18 EEGs in the latest generation of helmets.
And this EEG module is the most important cost component of a brainwave helmet, and GmoSystems can be said to be sacrificing cost in exchange for sensitivity.
"In addition to cost control, GmoSystems' indicators are more in line with our expectations, if we can buy it at a price of about 10 million US dollars, and reduce the production cost of brainwave helmets to 80 to 100 US dollars, it will be perfect for our company, so that we can completely control the brainwave game at 150 to 200 US dollars, and we can also have more than 50% gross profit."
Duke read the information and said to Susanna. Originally, Shu Ya wanted to accompany Duke to come, but Shu Ya had to face the upcoming final exam, and she didn't have a cheating artifact like Duke, so she had to stay at school to review.
Suzanne has already finished her coursework, and this year is the thesis writing period, so she has a lot of time to squander. Moreover, in terms of communication skills and negotiation skills, Suzanne is also a very suitable candidate.
It's just that letting this unrestrained sexy beauty walk with Duke, Shu Ya always feels a little bit of a wolf in the room.
"I also think this company is more suitable for us, but we also have to see if there are any problems with their R&D team and production capacity, I don't understand the technical aspect, this depends on you to get the idea, and leave the rest to me, I hope we can have good luck this time." Suzanne said.
Today, she is dressed relatively normally, wearing an impeccable professional skirt, which strictly covers the usually wonderful human breasts, although she still stands proudly, but the lethality of Duke has finally been reduced by half.
"I think when we were in contact with them, we started with the topic of custom brainwave helmets and showed them what we did, and I think they would be amazed by your results," Suzanne said with a smile.
"With this upfront foreshadowing, I believe that in this case, they will no longer have doubts about our technical strength, and then we proposed to customize a contract for 10,000 sets of brainwave helmets priced at $100 to see if they can do it. If they can commit, it shows that there is potential in terms of technology and productivity. In that case, we can move on to acquisitions. ”
It's normal that venture capital companies can't get some information, and no company is stupid enough to give out all the secrets. To understand the specifics of a company, most things have to be inspected in person to determine their authenticity.
"Of course, it's important that we don't show that we're too familiar with their company in our negotiations with them, because some of the materials you're looking at now are confidential data from venture capital firms, which is not legal in some cases. So we can't just blurt out the data. Suzanne finally confessed.
Duke nodded, he can be said to have forgotten it now, this is a good thing in most cases, but if it is accidentally leaked out in this case, I am afraid it will bring a lot of trouble to Suzanne and the venture capital company behind it, so Susanna's explanation is very timely.
After the two finished talking about business, they began to chat, from Boston to Los Angeles, the flight time was more than five hours, such a long time, thanks to Suzanne was able to find so many topics, the two actually chatted with great interest until they got off the plane.
And unconsciously, Duke revealed some of his own things to Susanna, such as Sala voice input method, and now the English computer version has exceeded 50 million downloads, basically sweeping all voice input products on the market.
Only then did Suzanne know that the genius she was optimistic about turned out to be a quasi-billionaire. can't help but strengthen his determination to keep Duke's thick leg. It's really not easy to meet such a person in a lifetime.
Suzanne knows that even if she can't buy GmoSystems and win the entrepreneurship competition this time, it will only be a few more twists and turns for the future of the startup, and as long as there is a genius like Duke, it will not affect the bright future prospects.
After a long journey, Duke and Suzanne arrived in Los Angeles and it was already early in the daylight, and the tired two simply ate and rested separately, ready to recuperate for tomorrow's negotiations.
The next day, Suzanne and Duke came to GmoSystems, Suzanne briefly explained what she meant, and then in the GmoSystems conference room, Suzanne and Duke demonstrated the brainwave telekinesis control fighting game together, the two of them have practiced countless times, and this time Duke deliberately lowered the difficulty of launching the game's ultimate, the gorgeous battle scenes and smooth operation really shocked the boss of GmoSystems, Dr. Clement.
"Dr. Duke, Miss Suzanne," Clement's eyes revealed an unconcealed eagerness. "I don't know if your company's game can be sold to us, we can buy your company's game copyright at a high price, and establish a long-term cooperative relationship with your company, and we will give priority to buying the games developed by your company at a high price in the future."
Clement's wishful thinking is really good. It's a pity that the wrong object was used.
"Dr. Clement, I don't think you understand what we mean," Suzanne said with a smile. "We're here to talk to your company about brainwave helmets, and this game is not for sale."
"That's a pity, I don't know how many sets of brainwave helmets your company is going to purchase?" Clement sighed and retreated, being able to sell hundreds of thousands of helmets is not bad for the company, according to his estimates, this game is so exciting, there is no problem at all to sell hundreds of thousands of sets.
It's a pity that it can't be bought, and if the company has dozens of games of this quality, Clement is even confident that it can compete with game platforms like PSP and XBOX.
"We are not a simple purchase, but customized, according to the minimum order price of 10,000 sets of no more than 80 US dollars, I don't know if your company can provide?" Suzanne said with a smile at Clement.
"What?" Clement simply couldn't believe his ears. "Eighty dollars a set? Did I hear me right? ”
"Yes, from our point of view, in fact, we don't need such a high-precision brainwave helmet, simplification, it can be stronger than Mindsky's headset brainwave interface. I don't know if your company can improve it and produce a lower cost brainwave helmet. Suzanne knew that just saying that, the other party would definitely go straight away, so she took out the Mindsky headphone brainwave interface.
"You see, this product basically meets our requirements, but the relative function is still weaker, but unfortunately the customization ability of Mindsky's products is weak, and it cannot meet our customization requirements. We heard that your first generation was six electrodes, and now the third generation has increased to eighteen electrodes. Obviously, your company's products can increase or decrease the sensitivity of brainwave sensing by increasing or decreasing the number of electrodes.
We all know that EEG is the main part of the cost of brainwave helmets, we are willing to cooperate with your company to customize a simplified brainwave helmet suitable for our game, and produce a lower cost brainwave helmet to cooperate with our game to jointly introduce to the market, I wonder if Dr. Clement is interested in researching this area? ”
Clement listened to Suzanne's suggestion and couldn't help but be moved. He is very clear about his product design ideas, and there is no doubt that Susanna's proposal is quite actionable.
(Ask for collection, ask for red tickets)