Back home, Li Ze sat quietly on the sofa in the living room. He was still thinking about Lin Dong's request to invest in Zerun Technology on the phone.
Li Ze naturally knew some basic information about the US International Data Corporation.
IDG was one of the internationally renowned venture capital groups. He had an extremely wide network of connections in America.
With the help of the other party, it was not impossible for Zerun Technology to enter the US market.
Li Ze was considering what kind of valuation Zerun Technology should accept the other party's financing.
After all, Zerun Technology's two MP3 players were currently selling well in the country. Their prospects were bright. If they could successfully enter the US market, they believed that their performance would definitely be good.
All of this had a crucial impact on the company's valuation.
"Zerun Technology's profit last month was nearly two million dollars. Moreover, with the opening of direct sales stores in other cities…the profits in the country alone would definitely be high.”
"In addition to the prospects of successfully entering the US market…If Zerun Technology's valuation is less than 80 million USD, there's no need to talk about it.”
"IDG's visit this time has provided me with an idea.”
" If the discussion with IDG doesn't go well, you can try to contact other American venture capital companies and introduce their capital. With the help of their power in the United States, Zerun Technology can enter the American market…"
Thinking of this, Li Ze could not help but take out a cigarette and light it. As he smoked, he continued to think about the matter of introducing American capital.
Just as Li Ze was deep in thought, his son, Li Dong, suddenly walked out of the room.
When he saw Li Ze smoking, he couldn't help but twitch his lips and say,""Dad, what are you thinking about? Why are you smoking at home again? I'm still a child. It's not good for me to smoke secondhand smoke…"
Li Ze was stunned for a moment before he snapped back to his senses. He looked up at his son and smiled awkwardly. He quickly put out the cigarette in his hand.
"Okay, okay, okay. Dad won't smoke anymore!"
Seeing Li Ze extinguish the cigarette, Li Dong nodded in satisfaction and asked,""Oh right, Dad, you haven't said what you're thinking.”
"Did something happen? Otherwise, why would you smoke at home again?”
Li Ze glanced at his son and said," It's nothing. It's just that someone from the US International Data Corporation called just now. They said they want to invest in Zerun Technology and that they can help us open up the US market."”
"So I want to weigh the pros and cons."
"The US International Data Corporation wants to invest in Zerun Technology?”
Li Dong was stunned and seemed a little surprised.
"Yes, that's right."
Li Ze nodded and looked at his son, Li Dong, as if he was expecting something.
Sure enough, his son Li Dong's voice soon rang in his mind.
The US International Data Corporation…Isn't that the famous IDG? If the other party could help Zerun Technology enter the US market, it was not impossible for them to accept their financing.
The American market was much stronger than the current Xia country, especially the MP3 player, which was still a very trendy technology product.
Also, if I remember correctly, Apple's iPhone will only be released at the end of the year. It's still half a year away from now.
If they could take advantage of this period of time to let the Z1 and D1 players enter the US market and occupy the market ahead of time, they might be able to compete with Apple's iPhone in the future.
However, Apple's iPhone had the iPhone platform. Later, it bought countless music copyrights from major music copyright companies and associations, forming its own music ecosystem barrier.
If Zerun Technology's MP3 player wanted to compete with Apple's iPhone, they had to create their own music software platform, purchase music copyrights, and build their own music ecosystem.
Moreover, the MP3 player itself was not a very high-tech thing. As the market matured, it would inevitably attract competition from many manufacturers.
If Zerun Technology's MP3 player wanted to maintain its competitiveness, it would be very important to have a closed loop music ecosystem...
Li Dong's mind was filled with thoughts, and he suddenly thought of a lot of relevant information and information.
Hearing his thoughts, Li Ze's thoughts were suddenly opened.
" It seems like I'll have to raise Zerun Technology's valuation after I meet with IDG's representative on Monday.'
" According to Xiao Dong, we can indeed create a music player software and buy a batch of music copyrights. Although it was not very useful for copyright in China, it was very important in the United States.'
'Moreover, with this idea, I can tell a better story. Don't they like to hear stories when they think about venture capital? As long as the story is told well, it's only natural that the valuation will be higher…
Thinking of this, Li Ze had already raised the valuation of Zerun Technology by a lot.
"Dad, since this US International Data Corporation can help our company open up the US market, I think it's not impossible to accept their financing…"
Li Dong said pretentiously.
Li Ze, who had already heard his thoughts, chuckled and pretended to say,"Yeah, I think so too. In addition, the United States seemed to be very concerned about copyright, and the MP3 player could download songs directly from the Internet.”
"This involves the copyright of the music. So, I plan that if we really want to sell our MP3s to the US, we have to first buy the copyright from those music companies in the US to avoid getting into trouble in the future…"
Li Ze said that on purpose.
It saved his son from racking his brains to think of a reason to tell him this. At the same time, it was also for his son not to find it strange when he made the arrangements in this area.
As expected, Li Dong was obviously stunned when he heard Li Ze's words. He glanced at Li Ze with a strange expression.
Was his father so powerful now? It seemed that his father had really been reborn in the past few years.
'Alright, that's good too. Since Dad has such foresight and thought of these aspects, I don't have to remind him indirectly. I'm happy to relax…'
Li Dong muttered in his heart.
Li Ze smiled to himself when he heard his thoughts.
Then, he changed the topic." Right, Xiao Dong, Dad will bring you somewhere in a few days.”
"Hmm? Where is it?"
Li Dong was a little surprised and could not help but ask.
Li Ze smiled." You'll know when the time comes. Consider it a small surprise for you, hehe.”
Seeing Li Ze's somewhat mysterious look, Li Dong did not ask any more questions despite his curiosity.
In the blink of an eye, it was Monday.
Li Zegang walked into Zerun Technology's office. After thinking for a while, he called Lin Yue over.
"President Li, you were looking for me?"
Lin Yue asked.
"Yes."
Li Ze nodded." Mr. Lin, the company is going to set up a new software development department. I need you to hire some talents related to software development as soon as possible."”
"In addition…the people from the US International Data Corporation will come to our company to discuss the financing. You should join them.”
Lin Yue was stunned, and a look of surprise appeared on her face.
"President Li, our company is going to accept financing? But…I don't think that's necessary! At least there's no need for that at the moment. Our company is developing well now and doesn't need funds at all!”
"You're right." Li Ze smiled. If Zerun Technology only plans to continue to cultivate in the domestic market, there is really no need to introduce external financing.”
"However, what if our company wants to enter the US market?”
Hmm?
Lin Yue was stunned again. Her eyes were filled with surprise and realization.
"President Li, are you planning to let the Z1 and D1 players enter the US market, so you want to introduce US capital?”
As she spoke, Lin Yue nodded and said,""If that's the case, it's indeed necessary to introduce the US International Data Corporation's financing.”
"Yes."
" Yes," Li Ze replied." Actually, it was someone from the US International Data Corporation who contacted me and offered to help our company enter the US market."”
"That's why I asked him to come to our company for a face-to-face meeting today.”
"I see."
Lin Yue nodded and asked in confusion,""By the way, CEO Li, you just said that you want me to recruit some software development talents and set up a software development department.”
"Our company makes MP3 hardware devices. We don't need a software development department, right?”
"I plan to create a music software platform so that users who buy our MP3s can download songs directly from the platform."”
After a pause, Li Ze continued," After all, if our company's products are really going to enter the US market, they're very concerned about copyright.”
"At that time, if you don't want to get into unnecessary lawsuits, you'll have to buy all kinds of music copyrights. Having our own music platform is undoubtedly much more convenient.”
"It can also increase the competitiveness of our products…"
After listening to Li Ze's explanation, Lin Yue suddenly understood.
Then, he couldn't help but praise,"President Li, you're thinking too far ahead." I'll get Director Zhao to be in charge of recruiting relevant personnel later…"
The " Director Zhao " she was referring to was the Human Resources Director of Zerun Technology, Zhao Cheng.
"Yes, I am. That's all. You can go ahead. When the people from the US International Data Corporation come, you can accompany me to meet them and have a detailed discussion…"
Li Ze said.
"Good! President Li, I'll go out first."
"Go ahead."
Li Ze waved his hand.
……
At around 10:30 in the morning, the people from the US International Data Corporation finally arrived at Zerun Technology.
Apart from Lin Dong, he also brought a few assistants with him.
"Representative Lin, long time no see.”
Li Ze greeted him warmly.
"Hehe, you're too polite, Director Li."
Lin Dong replied with a smile.
Then, Li Ze led him to a meeting room.
Lin Yue followed him in.
After everyone was seated, Li Ze couldn't help but look at Lin Dong. Then, he went straight to the point and said,"Representative Lin, we're old acquaintances, so let's not waste time on the pleasantries.”
"Let's talk about the specifics."
Lin Dong smiled and nodded." Alright, CEO Li is the most straightforward one! Then I'll be straightforward."
"Recently, I've been paying attention to your company's two MP3 players. I've also bought two of them and used them for a while.”
"I have to say that the two products developed by your company are very good. It was much stronger than the similar players on the market. To exaggerate, it was simply a product from a different era.”
"Currently, the sales of your company's two MP3 players in the country have also proved its excellence. However, the overall consumption level in China was limited, but it was different in America.”
"For example, your company's Z1 player is priced at 2699 yuan per unit in the country. For the average wage earner in the country, this is at least two months of their salary.”
"But converted to US dollars…it's only about 300 US dollars. With the spending power of the American people, this was nothing at all.”
"From what I know, there is no similar product in the US market that can compete with your company's two MP3s.”
"So, if your company's two products can enter the US market, it will definitely be very promising!”
The other party had said so many good things. It was obvious that he wanted to build up a good impression before the formal negotiations.
Of course, what he said was the truth.
"Thank you, Representative Lin, for your recognition of our company's two products.”
"Then, what is your company's valuation of Zerun Technology?”
"If your company can really help Zerun Technology enter the US market, I'm happy to accept your company's financing in principle."”
These words clarified the basis of cooperation between the two sides and reached a basic consensus.
What was left was to discuss the details.
"Director Li, you can rest assured about the strength of our US International Data Corporation," said Lin Dong with a smile. As for the valuation of your company…we have also conducted a detailed internal evaluation.”
"We think 60 million USD is a reasonable valuation.”
" 60 million USD?"
Li Ze shook his head." Representative Lin, it seems like your company doesn't know our Zerun Technology well enough!"”
"Let's not talk about anything else. Just last month, our company's two MP3 players sold more than 46,000 units in 10 cities in China.”
"Next, our company will continue to set up new direct sales stores in other provincial capitals in the country, as well as in the four first-tier cities of Shanghai, Jingdu, Yangcheng, and Pengcheng.”
"It can be foreseen that with the opening of these direct sales stores, the sales of our company's two MP3 players will definitely reach a new high.”
"In addition, I might as well directly reveal to Representative Lin that our company's profit reached more than 15 million last month, close to 2 million USD.”
"Not to mention, if our company really successfully enters the US market, the future prospects…"
"So, Representative Lin, do you think that a valuation of 60 million USD…is too 'conservative'?”
After saying that, Li Ze looked at the other party with a smile.
Lin Dong was a little surprised.
Although he had a detailed understanding of Zerun Technology's situation, he was not clear about the specific profits of Zerun Technology in April.
After all, this data was only known internally.
It was very difficult for him to understand this information.
Moreover, Zerun Technology was about to open new direct sales stores in other provincial capitals in the country, which Lin Dong did not know before.
" What about 70 million?" Lin Dong asked after some thought. President Li, what do you think?"
Li Ze still shook his head.
This time, Li Ze was much more direct.
"Too low!"
"Representative Lin, let me reveal another piece of information to you. Currently, our company is preparing to develop an online music software platform that matches our own MP3 player.”
"At that time, our users will be able to download the songs they need directly from the platform. This would greatly improve the user experience.”
"Another thing is that after this music platform is established, our company will also negotiate with major domestic and foreign music copyright companies to buy the other party's online music copyright.”
"We can use this to form our own music ecosystem barrier and increase the competitiveness of our products.”
"Once this music ecosystem is established, I think you can imagine what it means.”
The information that Li Ze revealed, or rather, the future development plan of Zerun Technology, indeed surprised Lin Dong, and then turned into a pleasant surprise.
As a veteran venture capitalist, Lin Dong naturally had his own ideas about the future blueprint that Li Ze had drawn.
At the same time, he was also very clear about the market situation in America.
If Zerun Technology could successfully establish such a closed loop music ecosystem...
Then, in the US market, or even the possible future European market, there would probably be no similar competitor that could compete with Zerun Technology!
After all, the European and American markets valued copyrights very much.
If other similar players did not have music copyrights, they would be equivalent to an empty shell.
After pondering for a while, Lin Dong couldn't help but whisper a few words to the assistant beside him.
Then, he looked up at Li Ze and said,""President Li, the plan you just revealed does give people a lot of room to imagine.”
"In that case, I wonder if it's convenient for you to give us some space to carefully evaluate your company's valuation?”
Li Ze smiled and said,"Of course."”
"Then, you guys can chat here slowly. CEO Lin and I will go out and get some fresh air first…"
"Alright, thank you, President Li!"
Lin Dong nodded.
After Li Ze and Lin Yue left, Lin Dong immediately started talking to his assistant.
"Manager Lin, I think if we really follow what the other party said, we can completely accept the valuation of Zerun Technology within 100 million USD.”
One of them said.
" I agree." The other person nodded." I also think about 100 million dollars is acceptable."”
" As long as Zerun Technology can successfully build the closed loop music ecosystem that President Li described just now, then the competitiveness of Zerun Technology's two MP3 players in the US market will be unparalleled.”
"Moreover, it can also block the competition from the latecomers.”
"That's right. More importantly, with the rise of the internet, the future music market would most likely belong to the era of digital music.”
"Although Walkman players are still mainstream, once digital music really takes over, the entire Walkman market will belong to digital music players!”
"This is a vast market of tens of billions or even hundreds of billions!”
Lin Dong nodded slightly." Zerun Technology has the advantage of being the first to move. Moreover, once CEO Li really sets up a closed loop music ecosystem, it will be difficult for latecomers to compete with him.”
"IDG definitely can't miss out on this cake. Now, it was time for the specific valuation of Zerun Technology.”
"One hundred million USD…is indeed acceptable. I just don't know what CEO Li's expectations are…"
After saying this, Lin Dong pondered for a moment and said,"How about this? I'll contact CEO Xiong and tell him about the situation. I'll see what he thinks.”
"Alright."
The others nodded.
Lin Dong immediately took out his phone and called Xiong Xiaoge, the president of IDG China.
As soon as the call went through, Lin Dong immediately reported the entire situation.
Xiong Xiaoge seemed to be silent for a moment after hearing this, and then he said,"" You can talk to the other party about the valuation of 100 million USD later. If the other party is more determined and wants a higher valuation..."
"The bottom line is 120 million USD!”
With Xiong Xiaoge's words, Lin Dong instantly felt much more relaxed.
He felt that the bottom line of a valuation of 120 million USD could be negotiated no matter what. However, it would be best if they could lower the valuation and negotiate for about 100 million USD.
"Alright, President Xiong. Then I'll talk to the other party for 100 million US dollars later and see their reaction.”
"Yes."
Xiong Xiaoge answered and said,""In terms of shares, you should try your best to fight for more shares.”
"Don't worry, President Xiong. I will!"
" That's it for now. Report to me when you have any news…"
"Good!"
After hanging up the phone, Lin Dong immediately walked out of the conference room and told Li Ze that their internal communication had been completed and they could continue the negotiations.
Li Ze called out to Lin Yue, and the two of them returned to the conference room to continue their negotiations with Lin Dong and the others.
This book comes from：m.funovel.com。