Different times will have different concepts, and in 1999 and 2019, people's thinking was completely different.

After the news of NewPay's acceptance of financing was released through Warren Jensen, investment institutions in Silicon Valley and Wall Street flocked to it.

But online shopping companies are not very cold.

Zhou Xin originally thought that the first person to come to him through Warren Jensen to talk about NewPay's investment would be Bezos.

Both Amazon and Ebay will be very interested in investing in NewPay.

It didn't.

"Whether it's Amazon or Ebay, they only accept acquisitions, not investments.

However, they are interested in adding NewPay to their payment options, and neither Amazon nor Ebay has turned it down. ”

Only then did Zhou Xin realize that people are completely unaware of the importance of electronic payment.

They believe that electronic payment is just a simple payment, and there is no concept of financial technology in later generations.

Moreover, from the exchange with Warren Jensen, the current regulatory policy of Ameriliken on electronic payment is only the "Code of Operation for Electronic Money Clearing Institutions" issued by the Federal Reserve Board in 1996.

Electronic payments are in a regulatory loophole.

Like Ebay and Amazon have launched their own electronic payment systems, such as Amazon Payments and Ebay Payments.

However, it only stays as a supplement to e-shopping, unlike e-payment that later became an independent company, let alone provide its own e-payment system to other companies.

NewPay, or Zhou Xin, is the only one who clearly knows the superiority of the electronic payment field.

"And they all know that NewPay is expensive, and the price is likely to be more than they can afford, so they didn't talk to me about the price specifically.

Ebay sent their head of payment strategy, Gretchen, to talk to me about the implementation details.

Including Amazon, while Bezos wasn't too happy about me joining NewPay, they didn't mind adding NewPay to their payment options. ”

Through a short exchange, Zhou Xin realized that now the executives in Silicon Valley regard electronic payment as a simple infrastructure.

If you are willing to provide me with the infrastructure you have built, I will be happy to use it.

eBay, which has a market capitalization of $5 billion at this time, and Amazon, which is better off and valued at around $26 billion, both lack the capital and motivation to wholly acquire NewPay.

"The only companies that can and are willing to pay for our wholly owned company should be AOL and Yahoo, but I am talking about the fact that we only sell 20% of the shares, so AOL and Yahoo are not very interested.

However, Silicon Valley investors are still interested.

Most of their prices are between $500 million and $1 billion. Warren replied.

The millennium is known as the dot-com bubble, but how bad is the bubble?

In addition to Amazon and Ebay, there are also Priceline with a market value of $4.7 billion, CDNow with a market value of $2.3 billion, eToys with a market value of $1 billion and a market value of $3.7 billion, and so on.

When Zhou Xin asked NewPay's marketing staff to talk to online shopping companies, he learned that Ameriken has so many listed companies that focus on online shopping.

The market value of one by one is still high.

Because of this, he couldn't understand that the valuation of these investment institutions was only one billion dollars, and NewPay was not worth more than CDNow?

CDNow is a company that specializes in selling CDs online, and the CD industry is a sunset industry that is about to be completely outdated in the era of digital rights.

Zhou Xin can't believe that this kind of company can enjoy a valuation of $2 billion.

(According to a Wall Street Journal report on January 8, 1999, CDNow's market capitalization at the time was about $870 million.) ）

After Zhou Xin looked for the specific information of CDNow, especially its stock price curve, Zhou Xin was surprised.

In just four months, CDNow's valuation soared from $870 million in January to $2.3 billion in April.

Zhou Xinren is directly stupid, this kind of company can be worth so much, and the Ameriken stock market is too crazy.

Under this valuation system, it is no wonder that the bubble does not burst.

"This price is so much lower than my psychological price, why are they only willing to give this valuation?" Zhou Xin asked.

Under his leadership, NewPay will not lose even if it is valued at 10 billion, but it just needs to be a friend of time.

You must know that Bill Gates is willing to give half a billion dollars.

Warren Jensen explained: "Boss, because you're choosing an A/B share structure, and NewPay currently only has users, there's not much more data to prove its worth.

NewPay is a newborn, and being able to enjoy this valuation is based on your past success stories.

The meaning of this more data is that the vast majority of NewPay users have only one transaction on NewPay, which is to purchase Plants vs. Zombies.

At the same time, they did not transfer the money from their bank cards to our e-wallets.

How much money is deposited on our escrow account, how many transactions occur per month on average among our users, and how many active users we have.

There are no such data, only more than one million registered users, and it is difficult for investment institutions to give too high a valuation. ”

Warren Jensen knows that his boss has an unbridled imagination and far more insight into products, but he lacks common sense in many areas of finance.

The A/B share structure is also known as the dual-class share structure, where a company issues two different types of shares, namely A shares and B shares, which are the same in terms of share ratio but different in terms of shareholding structure.

A shares are held by the founders or controlling shareholders and enjoy more voting and decision-making rights, while B shares are held by ordinary investors, and their voting rights and decision-making rights are lower than those of A shares.

This structure first appeared in 1978, when a company called Walter Annenberg first went public with an A/B share structure.

This ownership structure has been around for many years, but it was only after the success of Google and Facebook that Silicon Valley and Wall Street investors began to embrace it on a large scale.

In the case of Yahoo, Yahoo did not adopt an A/B share structure, either in terms of financing or later listing on the NASDAQ. Amazon doesn't either.

"And many investors can't accept the A/B share model, they think it's a disguised cut in investors' rights.

At present, Accel Partners, Accel Partners, Kleiner Perkins, Sequoia Capital, etc.

Greylock Partners said they could not accept the A/B share structure, and they would rather give NewPay a higher valuation than accept the A/B share ownership structure. Warren Jensen said.

Among these investment institutions, those who were willing to accept the A/B share structure later either invested in Google or FB.

Zhou Xin thought for a moment and said: "Then according to the valuation of one billion US dollars, the first round of financing will be carried out, or the structure of A/B shares will be adopted." ”