Reborn Entrepreneurial Giant.

Chapter 120 Investing in Twitter and FB

Yang Zhiyuan has talked with the Twitter team, so it is very simple to buy shares this time. Twitter is a project under the odeo company founded by Evan Williams and is responsible for Noah Glass and Jack Dorsey. It is said that the idea is Jack Dorsey which provided.

Surely it matters who provides the idea?It's important that he can be known to the world for providing ideas many years later. This guy is definitely awesome. Otherwise, who would remember that Mark Zuckerberg plagiarized whose ideas led to FaceBook?

Because of Yang Zhiyuan's star power, Evan Williams rejected other investors and chose to sit down and chat with Qu Li and others.Before chatting, Qu Li went to Google headquarters, met with Schmidt, and learned that they were promoting the Open Handset Alliance.Qu Li took out several prototypes built by Honor, with metal frames and high-end texture. He could finally recruit partners in the name of Google.

Twitter was the first target of Qu Li's deception. Google Android provided a development kit, and Honor Phone provided parameters. Is it difficult for them to develop a mobile APP?Of course it’s difficult. How can we hire engineers if we don’t have money?No one thinks that they can develop apps just by knowing how to develop web pages. Is there something wrong?Forget it, this is a small problem.

"The cooperation between our company and Google is very important. We need a popular APP. I have chosen Twitter. If it succeeds on Android, Bridges will also ask you to develop an IOS version..." Qu Li not only wants to become a shareholder, It also affects their development direction.

"Are you investing in the name of Honor Mobile?"

"Of course not, that will affect Twitter's neutrality as a social media. I will use one of my funds to invest in Twitter, but I hope Honor can reach a cooperation agreement with Twitter." Qu Li is a little famous in Silicon Valley, and Google's cooperation could dispel many doubts, so Evan Williams quickly agreed to Qu Li and Yang Zhiyuan's investment.

Historically, Twitter raised $2008 million in May 5 and was valued at $1500 million. Now in July 8000, Twitter's valuation is between $2007 and $7 million.There are also several other investors, such as Netscape browser developer Marc Andreessen and early Google investor Ron Conway.

Qu Li wanted to accelerate the development of Twitter and invested US$500 million, Yang Zhiyuan invested US$200 million, and the other two invested US$100 million in total.The total equity before financing was 1100 million shares, and the stock price was US$2. Qu Li purchased 500 million shares for 250 million. After financing, the total equity was 1500 million, with a valuation of US$3000 million.

Without due diligence, Qu Li didn’t have a good idea on how to supervise the development of Twitter in the future. It was impossible to give up voting rights. He did it only because he was mentally retarded. With the advice of Yang Zhiyuan and other big bosses, he found a suitable candidate for Twitter. CFO, that's it for now.

Qu Li contacted the founder of Facebook through his relationship with Google, and he could visit this young entrepreneur, Mr. Zuckerberg, the very controversial robot in the future.

Zuckerberg temporarily watched Qu Li's video on YouTube and learned that Qu Li's three ways to defeat Microsoft were increasingly respected in Silicon Valley.

The exchange between the two started from those three paths. They talked about their respective entrepreneurial experiences. Of course, they were all embellished. This was not important. Qu Li talked about the two companies he founded and his employment principles, choosing those that did not require management. of elites.

The two of them chatted more and more enthusiastically, and Qu Li also talked about his troubles. After the introduction of venture capital, the development of the company became more and more out of control. For example, at first he wanted to be a clothing e-commerce company and use informatization to connect traditional enterprises with the Internet. However, after the entry of IDG and Sequoia, it transformed into a fashion e-commerce, and after the entry of Lehman Brothers, it will become an e-commerce platform.It’s unclear whether he wanted to do this or was forced to do so by capital.

"I went to see Sequoia Capital in slippers and pajamas, and they treated Sean..." Zuckerberg was still a "good guy" at this time and was willing to help his friend Sean Parker, but a few years later he said Expressed regret.

Qu Li gave him a thumbs up and praised him. The two young people, one is a junior high school student from Zhongguo, and the other is a top student majoring in psychology at Harvard. Their experiences of starting their own businesses almost at the same time made the two of them quite sympathetic to each other.

Until the end, Qu Li talked about cooperation. First, it was a cooperation project with Google. He hoped that Facebook would develop applications for Android and adapt to Honor phones; then, Jumei. He wanted to sell coconut shoes through Facebook, but he had not thought of the right fit yet. The way.

After finding Zuckerberg's size, Qu Li asked the driver to get a pair of coconut shoes from the trunk for Zuckerberg to try. These sneakers, suitable for outdoor activities and general sports, were indeed popular.Zuckerberg has a lot of affection for this Chinese entrepreneur.

"Facebook is your best partner." Zuckerberg saw the coconut shoes and thought that this might be an opportunity to unlock Facebook's business value.

"I made a lot of money recently. I wonder if it's possible for me to buy shares in Facebook?" Qu Litu had a clear idea and stated his ultimate goal.

"Facebook is not cheap." Zuckerberg said meaningfully

"But I am optimistic about the future of Facebook. In the eyes of Google, I am just an ordinary collaborator, but I hope to enjoy the treatment of a large enterprise on Facebook with the advertising costs of a small enterprise."

"This won't work. The best I can do is give you the best price." Zuckerberg

“What is Facebook’s current valuation?”

"What do you think?"

"I agree with Barron's valuation of Facebook at $30 billion."

"A little low, Peter Thiel said Facebook is worth $80 billion."

"I can give up the right to vote and entrust the right to vote to you."

“How much money are you going to put in?”

"$3000 million for one percent of the stock."

"$5000 million, I agreed." Zuckerberg hesitated for a moment and said

“But within 3 to 5 years, Facebook will reach a strategic partnership with my clothing brand, and it must have a higher tolerance for our advertising. The scope of targeted advertising must cover the user groups of sports brands such as Adidas, Nike, etc., and it must ensure a certain Crowd coverage, such as full coverage in North America and the highest push frequency in the entire network." Of course Qu Li came to Facebook to advertise. I really thought he was doing it for investment and was not a fan.

“We can’t guarantee the most in the entire network, it also depends on the quality of the coconut shoes…”

"The product quality is on par with Adidas Nike, and the service level is on par with Zappos." Anyway, it is not illegal to brag. Zappos later implemented 365 days of free returns and exchanges, with a return rate as high as one-quarter. If Qu Li really did this, it would be a shame.Therefore, words do not count and being shameless is the key to success as an entrepreneur.

"Facebook can ensure that your advertising is at the highest level."

“The most important thing is to deliver it accurately to sneaker enthusiasts!”

"No problem!" Zuckerberg

Both of them are straightforward people, leaving the specific details to professionals. Qu Li didn't even do due diligence. He just wanted to give it a try, but he didn't expect to get an unexpected gain. This is really a pie falling from the sky with such fame...

Qu Li felt like he had become the chosen one. How could Zuckerberg agree to Qu Li's investment so easily?why is that?

The two made an appointment, and Qu Li brought his lawyer to Facebook and signed a shareholding agreement and a voting rights entrustment agreement. This meant that Qu Li had no initiative before Facebook went public.

The next step is to raise money. Qu Li invested 500 million in Twitter and 3000 million in Facebook. A total of 5500 million US dollars is needed, which is quite a lot.

Fortunately, international oil prices have continued to rise in the past few days. After cashing out, Xiangjiang's crude oil futures are worth about US$1200 million. What should we do if there is still a gap of US$4300 million?

200 million shares of BYD stock worth HK$55 are obviously not enough for HK$1.1 million. 35 shares of Jiangxi Copper, currently priced at 15, will yield HK$500 million after cashing out.There are also 800 million shares of COSCO, which were cashed out for HK$9600 million, which adds up to about US$2700 million.

The share price of Australia's FMG rose from 1.5 to 3.5, and the exchange rate rose a bit. After all cashing out, it only had 3000 million US dollars.

Qu Li cashed out all his overseas assets and received approximately US$6900 million. He was about to spend US$5500 million and had US$1400 million left.However, there is still a bank mortgage loan of US$167 million to be repaid, leaving US$1233 million in available funds.

It's a pity that Qu Li borrowed 3000 million US dollars from Lehman Brothers and 3 million US dollars in loans from HSBC Bank, so he is not considered a rich man.Of course, his $2000 million investment in the Paulson Fund and the $4000 million in crude oil call options he purchased remained unchanged.

The professionalism of HSBC was reflected at this time. Together with the well-known lawyers he hired in the United States, he helped him deal with the remaining problems, especially Facebook. Zuckerberg is not a man of faith. Anyone who does not protect his own interests seriously is a fool. cross.

Looking at the equity documents in his hand, Qu Li took a deep breath. No matter what stocks he speculates in, he might as well make money as a venture capital investor. Bragging is better than any investment strategy. Facebook's future market value will exceed US$5000 billion. Even if he makes money this time, It’s less than 100 times, but you can still make twenty or thirty times!

Since then, the Vision Fund has held 250 million shares of Twitter (total share capital of 1500 million) and 1% of Facebook shares.