You call this entrepreneurship?

Chapter 202 Video Website
Fred was very puzzled as to why Qin Shaoyan wanted to set up a separate website for playing videos.

"Should we integrate the video playback page into Facebook?" Fred asked doubtfully.

"No." Qin Shaoyan said with a smile, "Let's build a separate website that can upload videos and play videos online."

"What's the point of doing this?" Fred asked with some confusion.

"It's easier to cash out this way." Qin Shaoyan replied, "First make the website bigger, and then sell it to Facebook, or sell it to others."

Fred suddenly realized, "This is indeed a good idea."

Then the two began to discuss the capital contribution ratio and equity distribution. Of course, this matter could not be bypassed by Fred, and the early development of the video website required the cooperation of Facebook.

Of course, it is impossible for Qin Shaoyan to spend his own money to build a video website this time like Facebook did last time.

He decisively contacted two venture capital firms, Sequoia and Microsoft, and pulled them over.

Taylor was a little surprised when he heard that Qin Shaoyan's new project was a video website, "Why do you want to build this thing?"

Microsoft representative Davis Hansen frowned, "Mr. Qin, your statement is too broad. You might as well make it clearer."

“It’s unclear how much impact the video website will have on Facebook after it develops. Whether it will be a positive or negative impact.”

"The trinity of text, pictures, and videos makes the Internet richer in information and makes the way for netizens to obtain information more intuitive."

"It's very simple." Qin Shaoyan replied confidently, "This is the future of the Internet."

"Facebook is the most successful website that has evolved from text to pictures. So whoever controls the video website next will control the future of the Internet."

"In the early days of the Internet, information was spread through text, and then there were pictures, and then it evolved from pictures to videos." Qin Shaoyan said with a smile, "The evolution process of websites is exactly the same."

"Even if it fails, just abandon it and it won't affect Facebook. If it succeeds, it's not too late to merge."

"One hundred million dollars?!" Taylor retorted displeasedly, "How can there be such a high value? You are extorting."

Taylor thought for a while and felt that there was no problem, so he asked directly: "How much do you want?"

Taylor thought for a moment and nodded, "The video website project is indeed good, but why not put it on Facebook as a sub-category page?"

"At least 100 million US dollars." Qin Shaoyan said casually.

"And with the continuous advancement of technology and the development of hardware and infrastructure, the development prospects of video websites are very broad."

"No, no, no, John, you are talking nonsense." Taylor shook his head and denied repeatedly: "Video websites may be the future, but now you have nothing, and it is not certain whether this project will succeed."

"It's too risky to put it on Facebook. It's better to set up a separate website."

Qin Shaoyan smiled slightly and said, "Why do you want to get 20 million US dollars?"

"The emergence of specialized video websites is an inevitable result of development. Although video services have appeared on the Internet, professional video websites have not yet appeared. There is a broad blue ocean on this track."

"In the near future we will be able to watch TV programs on the website, watch news videos, or watch movies on the Internet."

"Don't talk nonsense!" Qin Shaoyan said dissatisfied, "Video websites are very valuable. My entrepreneurial projects have always been like this. If you think it is expensive, sometimes you have to find your own reasons. After so many years, does Sequoia have any Invest well, have you worked hard?”

Microsoft's Davis frowned, "What's your valuation?"

"It's very simple." Qin Shaoyan replied without hesitation, "It's to isolate risks."

"A valuation of US$100 million is too exaggerated, but less than US$50 million is fine."

Qin Shaoyan didn't waste any time and stood up directly, "That's a pity. I hope we can talk about it next time when the video website has its A round of financing."

Taylor's butt was firmly seated on the sofa, not moving at all. Microsoft's Davis was about to get up, but when he saw Taylor didn't move, he sat back on the sofa.

"John, it's too sentimental for you to say this. We are friends." Taylor sighed, "For the sake of my friends, I will agree to this valuation. What about the division of shares?"

Qin Shaoyan said slowly: "Twenty million dollars in exchange for 20% of the shares, 10% of the shares will be given to a professional technician, and 10% of the shares will be reserved as an option pool. I will take 50% and Fred 10%."

"Of course, I will also contribute part of the funds."

Of course, this part cannot be 40 million US dollars. Qin Shaoyan is only prepared to try the water with 5 million US dollars.

Video websites are different from Facebook. This is a huge money burner.

Even if you seize the opportunity and develop early, it will be useless. It is easy for subsequent competitors to overtake you, and the websites that enter the game later are often supported by Internet giants with deep pockets.

Video websites are different from later short videos. Short videos also have a recommendation algorithm as a moat. Today's video websites will soon fall into fierce competition among their peers.

For example, YouTube will be established in three or four months, and will be acquired by Google more than a year later.

Qin Shaoyan didn't expect the video website to become No. 1 in the industry like Facebook. He simply wanted to make a fortune.

Microsoft's Davis was a little curious, "Which programmer are you looking for who is worth your 10% stake?"

"Bram Cohen." Qin Shaoyan said lightly, "the inventor of BT download technology."

Fred and Davis both took a breath. It turned out to be this great man, and it was indeed worth 10% of the shares.

Taylor didn't know Bram Cohen, he had only heard of BitTorrent.

But looking at Davis's reaction, Taylor quickly understood that this person should be a very powerful person.

Sequoia and Microsoft signed an investment letter of intent on the spot, and their assistants and teams were responsible for following up on the specific details.

It is impossible for several CEOs to discuss these trivial matters together. They are more imagining about good money and the future.

Qin Shaoyan is very good at this aspect. He can focus on the venture capital perception track. By aligning the granularity and emotional value as the starting point, he can achieve precise empowerment with the help of venture capital.

A set of underlying logic, top-level design, vertical fields, and abstract and transparent transmission.

After listening to a large section of the oral performance, Taylor and Davis left with great satisfaction.

The construction of the video website was quickly put on the agenda.

Qin Shaoyan asked Fred to recruit elite programmers from Facebook and start working directly in an office on Facebook without changing the office location.

While he was writing website design requirements, he was contacting Fat G, hoping that Fat G could come forward to persuade Bram Cohen so that the autistic boss could come over and help him build a video website.

Time was tight and tasks were heavy. Qin Shaoyan fell into crazy overtime work again, discussing the design needs of the docking website with programmers every day.

After working for three consecutive days, Qin Shaoyan, who was a little tired, got off work early and returned to his rented apartment, ready to take a shower and have a good sleep.

As soon as I walked in and before I took off my coat, there was a knock on the door.

Qin Shaoyan opened the door and saw Lei Meng standing at the door.

And behind him, there was a middle-aged man standing, who looked somewhat similar to Raymond.

"Mr. Qin." Lei Meng said in a sullen voice, "How is the progress you promised me?"

(End of this chapter)