My Age of Investment

  Chapter 211 One punch, lest you get a hundred punches

  Facebook Company.

meeting room.

  Six directors, Andrew, Old John, Breyer, Christina, Little Dog, and Evans, were placed on both sides of the long table and looked at the figure sitting at the top of the long table.

After simply recounting the two events of "Eighteenth-Road Princes Alliance" and "F Agency obtained Series A financing", Xia Jingxing spread his hands, "Gentlemen and ladies, the situation is like this now. The enemy has already Armed with enough ammunition, we are about to launch an attack on our position."

   "Their alliance will not be mentioned, it is not reliable at all. If a group of losers gather together, they are still losers and cannot change their essence."

  Kristina paused and said seriously, “The opponents that really need our attention are listed in order, namely Juyou.com, F Agency, and Diaoyou.com.

   Although Juyou.com has not received the investment, it is backed by a listed parent company, and the support and resources it can obtain are not worse than those of startups that have generally received one or two rounds of financing.

  F agency specializes in social networking with pictures, and it is aimed at the student market, which is the core market of Facebook. Every time we lose a user, it means that we have to acquire a new user outside the campus to tie the two.

  If they leave them alone, it is very likely that our efforts in the international market and off-campus markets will be wiped out!

   Special attention should be paid to "quantitative change causes qualitative change." When F agency captures half of the American university and high school market, the remaining half of the people may also go to them.

  Daoyou.com’s threat is the smallest of the three companies. They have basically abandoned the US market and focus on the Asian market.

  We have not entered the Asian market for the time being, and there will be no competition with them. "

  Kristina’s analysis is very thorough. Old John smiled and nodded, “Kristina, you are right. Then, what shall we do next?”

  "On the basis of maintaining the normal expansion speed of other markets, we will increase the consolidation of the university market and accelerate the coverage and penetration of the high school market."

  Kristina explained in detail, “Needless to say, the university market, our coverage rate has far exceeded 80%. What needs to be done is not to expand, but to consolidate to prevent the loss of users.

  For the consolidation work, we have the following arrangements to expand the user base of friends on the website, precipitate the user’s relationship chain, and enhance the Facebook brand...

  In the high school market, Facebook’s current market share is more than 10%. "

  Kristina stood up, turned on the projector, and put up the PPT.

  The first picture is a map of the states of the United States. There are 50 states in total. Each state map uses a different color font to indicate the number of Facebook high school users in that state.

  Then is a histogram, from high to low, showing the number of high school users in each state.

  Followed by the ratio of the number of Facebook high school users to the total number of high schools in each state, and then ranked according to this ratio.

  Through these pictures, the penetration rate of Facebook in high schools in various states has an intuitive manifestation.

Kristina pointed to these pictures and introduced: “There are 37,000 high schools in the United States, 26,000 public high schools, and 11,000 private high schools. Most areas are in the fourth grade of high school, with a total of 15.6 million high school students. ..."

  Xia Jingxing looked at the pictures and thought about it carefully.

  The number of high school students in the United States is relatively close to the number of college students, and even the number of college students is one or two million more than the number of high school students.

Of course, this number of college students counts various community colleges and two-year universities, and there are hundreds of thousands of international students in the United States. In the future, the number of international students will exceed one million, which is close to 6% of the total number of American college students. Chinese students accounted for one-third of them.

6% is only an average ratio. In fact, students from various countries studying in the United States are basically better universities. The proportion of international students at private top universities such as Harvard and Stanford is much higher than the 6% ratio, and even reached 20%, 30%.

  The university education industry also contributes a lot of GDP to Laos.

  At the same time, because the proportion of international students in private universities in the United States is too high, the United States is constantly adjusting.

  Because the money is made, but I feel that the monopoly of technology seems a bit dangerous!

  The high school student market, in fact, the advertising value is not high.

   But considering that students want to grow up, students have to go to school and graduate.

  After a few years, even a year, these high school students are college students, or directly enter the society.

   Facebook naturally has to consider the long-term, not just the immediate interests.

  Furthermore, after the high school student market is occupied by F, it can become a springboard for opponents to enter the university campus.

  So, Facebook can't make its opponents stand firm in the high school market anyway.

  Kristina continued: “We allowed high school students to register for Facebook accounts in October last year. As of today, it has only been five months.

  Everyone has worked hard, but there are still less than 2 million high school users on the website.

  Give us another six months, it should be possible to increase the number of high school users to more than 8 million in one fell swoop, and complete the rule of the high school market. "

   "But competitors will not wait and die, they will definitely take action. Am I right?"

  Brayer looked at Kristina and said with his hands outstretched.

  The foreign girl nodded, "We were stuck in the Boston area by F agency before, mainly because of their insufficient funds.

  Now that they have received another US$3 million in investment, they should be able to compete with us.

   Let me explain, the high school student market and the university student market are actually similar.

  They see their classmates using this website, and others will follow it, paying attention to the group effect.

  This requires a high school, a high school to promote the past.

  Only when a high school gains a very high market share, for example, after 30% or 50%, can the next high school be promoted.

  If there are only a few users or a dozen users in a certain high school.

  It is very possible that after a while, the students feel that there are no new friends to join, and only a few of them have been playing. They feel boring and abandon the website. "

  Brayer nodded slightly. He has studied Facebook and naturally knows that Facebook is a way of promoting campus social networking.

  Facebook is a social acquaintance, which is equivalent to moving the real relationship network to the Internet.

  Juyou.com is a social network for strangers. Many online promotion methods can be used. Naturally, the growth rate during the same period is faster than that of Facebook.

   "The total valuation of F agency is only 5.5 million U.S. dollars, and the financing has raised 4 million U.S. dollars?"

  Andrew was more curious about this, and asked.

  Kristina smiled and said: “This is because their website has only tens of thousands of users, with a maximum value of 1.5 million U.S. dollars. Because of the injection of 4 million U.S. dollars, their valuation swelled to 5.5 million U.S. dollars.

   Facebook also had 100,000 users at the time, and all of them were college students from Ivy League schools, and it was valued at 4.5 million U.S. dollars before the investment. "

   Old man John commented: “The website of F agency is a typical product of forced maturation of capital. It is not surprising that valuation and equity structure are deformed.”

  Brayer looked at Xia Jingxing and asked, “I heard that the major shareholder of F agency had approached you and wanted to sell the company to you for $2 million?”

  Brayer spread his hands and made a pity, "Why not accept it? Wouldn't it be cost-effective to end this war with only 2 million US dollars?"

  Now they have raised 3 million US dollars, which means that we may have to invest more numbers than this to be able to defeat them. "

   "I can't tell the prophet!"

  Xia Jingxing really did not expect George to come such a hand.

The assets of   F are not worth mentioning to Facebook.

   To cut out competitors is indeed cut out, but only temporarily.

  Daoyou.com and Juyou.com can launch such a website at any time as long as they want to do it.

  He is even more worried about the fact that this acquisition has made a bad start.

  Other college students have learned a lot. They start a website and develop tens of thousands of users, so they come to Facebook to talk about acquisitions.

  That can't be acquired at all.

  Once he finds the wealth code, he believes that there will be no shortage of college students in the United States who dare to practice.

  In a sense, this is to add to yourself.

  But in order to save F agency, George added additional chips and joined forces to make F agency what it is today.

  In terms of cost, his previous choice was wrong.

  But there is no way. When facing the unknown, no one can guarantee that they can make the right choice.

  Even if he is born again, the same is true.

this is the truth!

"Ok!"

  Brayer compares his heart to his heart and replaces it with himself. I am afraid that he will make the same choice.

  The activity budget of two million U.S. dollars has been spent, and then to buy competitors, wouldn't the two million be spent very worthless.

  Stop talking about the past, Breyer paid attention to the present, and he asked: "Then how to deal with their counterattack next?"

   "We have close to 2 million high school students, and F agency is only a few tenths of ours."

  Christina said confidently: “According to the usual practice, whoever occupies half of the high school campus market first, the other party is basically out.

  And they only have a picture function. In addition to the picture tagging function on Facebook, there are also functions such as groups, message walls, and blogs.

The attractiveness of    to users, they are naturally at a disadvantage.

  We have two major advantages. Maybe we won’t be able to kill Company F without using $3 million.

  Next, I will personally take charge of the high school student market, and will not give F agency any chance of a turnaround. "

  Breye haha ​​laughed, "In fact, there is another advantage, the capital advantage.

  What if it really cost three million dollars? Facebook can afford the money. "

  Brayer put a smile away, glanced at Xia Jingxing and their four management team, and said with a serious expression: “Since you want to spend money, then give me a little bit of money, and make the plan according to the activity budget of 6 million US dollars.

   Speed ​​up the pace of expansion a little bit, and don't leave them any opportunities to take advantage of.

   To dominate the high school market as soon as possible can also let those competitors lose their unrealistic illusions. "

  Xia Jingxing nodded, Breyer’s words, in other words: to fight the battle brilliantly, fight beautifully, it's okay to waste more ammunition.

  The old saying goes well: hit a punch to avoid a hundred punches!

  (End of this chapter)