You call this entrepreneurship?

Chapter 237 Venture Capital’s Change of Face
When Qvod was first established, it was valued at US$12 million and raised US$2 million from four venture capital firms.

This number is not much, and can even be said to be a very low estimate.

With Qin Shaoyan's reputation and YouTube's reputation at the forefront, it is easy to raise the valuation to 20 to 30 million US dollars.

When Xiong Xiaoge heard this valuation, he was slightly confused.

This offer is not quite like Qin Shaoyan's style. In the past, he used to take advantage of the opportunity to kill venture capital investors.

It wasn't until the two parties negotiated the details and signed that Xiong Xiaoge felt relieved.

Unexpectedly, it was only a month ago that Qin Shaoyan proposed to raise funds again.

It's not that Xiong Xiaoge dislikes Qin Shaoyan for being too money-burning. Qin Shaoyan spent much more than this on the campus network project.

However, the speed of spending money was beyond Xiong Xiaoge's expectation. The website was established less than a month ago and was in its infancy, so the first financing money was gone.

More importantly, Qin Shaoyan proposed to start a second round of financing.

To highlight the key points, Qin Shaoyan is about to start the second round of financing again!
Every time he raises money, Qin Shaoyan will set a valuation that will make venture capital investors jump.

Xiong Xiaoge suddenly understood that the last time the valuation was so low, it was not because Qin Shaoyan had corrected it, but because he was trying to make a nest.

Let us in first, and then kill us, right?

Xiong Xiaoge said with a straight face, "Tell me clearly why Qvod.com wants to enter the film and television industry?"

"Of course it's to make money." Qin Shaoyan said confidently, "Now Kuaibo.com is purely burning money to provide services to users, and it is burning money very fast."

"Moreover, there will soon be competition on the video website track. In the continuous competition, the test will be which website has more abundant capital flow. Whoever can persist longer will be the winner."

"If I were an ordinary entrepreneur, I could just keep raising money and burning venture capital money without thinking about anything else. It doesn't matter how far the website can go in the future."

"But I can't do this." Qin Shaoyan looked at Xiong Xiaoge and said very sincerely, "Mr. Xiong, I have to be responsible to you investors."

"I can't just burn money, I have to find a business model that can help Qvod."

"The ultimate goal of starting a business is to make money, and burning money is just a means."

“As an entrepreneur, you can’t just burn money without thinking about how to make money.”

Xiong Xiaoge was stunned for a moment when he heard this. He felt that what Qin Shaoyan said was so damn reasonable.

Since he entered the Internet industry, how does the person in charge of the projects he has invested compare with Qin Shaoyan?
I don’t know how to make money from the project. I only think about how to attract investment to make the website bigger.

The next question is "The business model is being explored.", and the next question is the cliché "advertising charges, membership charges".

Some people have never thought about how the website will make money. If you don’t know how to make money, why start a business?
In contrast, Qin Shaoyan's consciousness is simply top-notch.

Although he often draws pictures, talks nonsense, and shouts about valuations at every turn, what he always thinks about is how to make money for investors.

Qin Shaoyan's words are full of emotional value!

Don't worry about how much money Qin Shaoyan made for venture capital, but the emotional value feedback was particularly sufficient.

As soon as he talked about making money, Xiong Xiaoge immediately became energetic and said, "Please tell me carefully about making money."

"According to the traditional Internet thinking, advertising is generally introduced after the website becomes bigger." Qin Shaoyan said seriously, "But video websites are different from other websites."

"In addition to page floating windows, the insertion mode also includes advertising placement before the video is played."

“But this model that forces users to watch ads first and then content greatly affects the user experience.”

"It's compulsory to watch commercials just like TV shows, so why not watch TV?"

Xiong Xiaoge thought for a moment and said nothing. There is indeed nothing new in the business model of advertising.

Moreover, it has only been a month since Qvod.com was launched, and now it is about to be advertised, which looks too ugly.

Qin Shaoyan continued: "Of course, we have also considered the membership charging model."

"But the membership model has a prerequisite, that is, we can provide users with enough service content."

“There is nothing particularly attractive about Qvod’s content, and our services are not sufficient to support our charging.”

Xiong Xiaoge nodded, "It's too early to consider advertising, membership, etc. Qvod.com has not yet developed to that size."

"So we have to start from other places, develop new ideas, and break ideological barriers." Qin Shaoyan said while smoothing out his ideas, "We must first figure out, what is the core of the video website?"

“Video websites must be content-oriented and continue to provide users with more updated and higher-quality content. Only in this way can they become sticky to users and improve user retention rates and daily active data.”

"So what is the content of the video website?"

"The domestic environment is different from that in the United States. In the United States, YouTube mainly focuses on users producing and sharing video content. At the same time, there are people who continue to upload high-quality TV programs for users to enjoy."

“There is a lack of objective conditions for users to produce high-quality content in China, so the main content of video websites is movies, TV dramas and variety shows.”

"Whether it is domestic or foreign, domestically produced from Hong Kong and Taiwan, or Japanese, Korean, European and American, film and television variety show content has the highest number of video views."

"When I purchased the film and television drama rights, I considered, instead of simply purchasing, why don't we produce it ourselves?"

Qin Shaoyan said seriously: "Judging from the development prospects of the Internet, video websites will become the third largest platform after movies and TV series within ten years."

"Each video website is a TV station, so on the one hand, it can outsource programs, and on the other hand, it can also invest in self-made programs."

“In this way, we can not only customize film and television programs that meet the characteristics of the website, but also sell them to TV stations for profit, and also reduce procurement costs.”

Xiong Xiaoge frowned, "The film and television industry market is not big now, and Qvod.com is an outsider involved. It will be difficult for you to implement your plan."

"There are difficulties that can be overcome. As long as you work hard, you can achieve results." Qin Shaoyan said firmly, "The film and television industry will also develop. Only by entering the industry early and making arrangements early can we reap greater benefits."

Xiong Xiaoge continued to ask: "What are you going to do?"

"I will invest in a few dramas to test the waters first," Qin Shaoyan said, "I have already gone to headhunters to look for knowledgeable candidates, and then I plan to set up a film and television company."

"Sign up with a few more stars, try to support them, and then customize a few dramas."

"Whether it's a celebrity or a drama that's popular, if it's discussed online, it will also play a publicity role for Qvod."

Xiong Xiaoge thought for a while, "Then let's try it first."

"How much do you plan to raise in the second round?"

Qin Shaoyan pondered for a moment, "Twenty-four million US dollars, release 20% of the shares."

"Poof!" Xiong Xiaoge spurted out the tea leaves in his mouth.

Not only the IDG venture capitalists were dumbfounded, but even Zhang Pingyi was shocked. Good guy, Mr. Qin’s appetite is getting bigger and bigger.

"Qin Shaoyan!" Xiong Xiaoge put the teacup on the table hard and looked at him angrily.

"Do you really think that our venture capital money comes from strong winds?"

"Twenty-four million dollars, why do you have the nerve to open your mouth?"

Qin Shaoyan asked without blushing, "What am I sorry for? All I asked are reasonable demands."

"Reasonable request?!" Xiong Xiaoge became angry, "Listen, are these human words?"

"It has only been a month since Qvod.com opened, and its valuation has increased from US$12 million to US$120 million, a tenfold increase!"

"Come on, come on, tell me, how come your Qvod Network is worth 120 million US dollars?!"

Without saying a word, Qin Shaoyan took out a license from the folder and pushed it in front of Xiong Xiaoge.

"What is this?" Xiong Xiaoge glanced at it with a frown, and then his expression was startled.

"License for Information Network Dissemination of Audiovisual Programs"

There are not only a few lines of words on the license, but also a bright red official seal. The issuing authority is the State Administration of Radio, Film and Television.

Xiong Xiaoge glanced at Qin Shaoyan with surprise on his face, "Where did this thing come from?"

As he spoke, Xiong Xiaoge carefully looked through the details of the license and stared at the official seal in the sunshine.

Xiong Xiaoge looked at it for a few times and was still uneasy, so he subconsciously stretched out his fingers and rubbed them.

"Stop rubbing it, it's true." Qin Shaoyan said in a dumbfounded voice, "I wouldn't lie to you with a fake one."

Xiong Xiaoge snorted coldly and asked, "Where did you get this thing from?"

Qin Shaoyan leaned into Xiong Xiaoge's ear and whispered: "I sold all the places in the following international college summer camps to get this one."

"All sold?" Xiong Xiaoge looked shocked and shook the permit in his hand in disbelief, "Just exchange for this permit?"

"That's not the case." Qin Shaoyan said, taking another permit and placing it in front of Xiong Xiaoge.

""Radio and Television Program Production and Operation License"" Xiong Xiaoge frowned and looked at it for a few times. "These two licenses are not worth 120 million US dollars."

"This program production and operation license may not be worth it." Qin Shaoyan said with a smile, "but the information network broadcast audio-visual program license is very valuable."

"This thing is only issued to units under the radio and television system. The one you are holding is the first for an Internet company."

Xiong Xiaoge was very surprised. The first license for an Internet company was still very valuable, especially before the introduction of Internet regulatory policies.

With this license, you can avoid a lot of trouble when competing with other video websites, and in some ways it can even become a weapon.

"This is not enough." Xiong Xiaoge shook his head, "Your offer is too outrageous. The valuation has increased tenfold."

"Even if I agree, several other VCs won't agree."

Qin Shaoyan smiled and said, "Then let me tell you another insider information, and ask Mr. Xiong to keep it a secret for me."

Xiong Xiaoge turned to look at his assistants and waved his hands, "You guys go out first."

Zhou Dao agreed, got up and walked out with the others.

There were only three people left in the conference room, Qin Shaoyan, Xiong Xiaoge and Zhang Minyi.

Xiong Xiaoge snorted coldly, "Tell me what inside information is worth 120 million US dollars."

"Google is already contacting me." Qin Shaoyan said slowly, "They want to acquire YouTube. The asking price is US$800 million, and the payment method is cash and stocks."

"How much?!" Xiong Xiaoge was shocked, "Eight hundred million dollars?!"

"Yes, US$800 million." Qin Shaoyan added, "But this is not the final offer. I told them that I was still considering it, and they offered to add some more."

"Did someone from Google contact you?" Xiong Xiaoge looked incredulous, "They just wanted to buy YouTube?"

"They are very optimistic about YouTube's development potential and think it is a website worth investing in." Qin Shaoyan said with a smile.

Xiong Xiaoge frowned, "What did you think about it?"

"I don't think it's time yet." Qin Shaoyan said confidently, "I plan to talk about it in a few months."

"And I'll offer two billion dollars."

Xiong Xiaoge smiled again. Qin Shaoyan's style of asking for high prices treated everyone at home and abroad equally.

"You're selling a video website to Google for two billion?" Xiong Xiaoge said with a hint of ridicule, "I think you're going crazy because you want to get rich."

"There are so many people at Google who don't want to open a business and can accept your conditions."

"How are you so sure that Google won't accept it?" Qin Shaoyan looked at Xiong Xiaoge with a smile, "What if they agree?"

"This is impossible." Xiong Xiaoge was about to refute Qin Shaoyan when he suddenly paused and waved his hand, "Let's put YouTube aside first. It has nothing to do with what we are talking about."

"How could it be okay?" Qin Shaoyan said dissatisfied, "The domestic Internet has always been dependent on the direction of the United States."

"If YouTube really sells for a sky-high price, it will definitely stimulate domestic entrepreneurs. I don't know how many competitors will follow suit."

"Then again, YouTube can be sold for two billion U.S. dollars, so how much is Qvod.com worth as a benchmark?"

"You are talking nonsense!" Xiong Xiaoge said angrily, "Let's not talk about whether YouTube is worth so much money. Qvod and YouTube are two different things and cannot be confused."

"Mr. Xiong, it's boring if you say that." Qin Shaoyan said dissatisfied, "Then I'll just sell Qvod.com, and everyone can make a profit."

How could Xiong Xiaoge believe it? He said sarcastically: "Who can you sell your website to? Let's see who will buy your website?"

"If you want to sell it, you can sell it." Qin Shaoyan said calmly, "I will go to the United States after the year and ask YouTube to buy Qvod. They will definitely be interested."

"..." Xiong Xiaoge was immediately shocked, "Qin Shaoyan, is this fun for you?"

"You don't want to invest money in the development of Kuaibo.com, then just break up. If it continues like this, it will be painful for everyone." Qin Shaoyan sneered several times, "I sold Kuaibo.com to be responsible to the investors, so as to save you. Said I cheated venture capital investors.”

"Twenty million dollars is almost the same, and the return on investment has increased tenfold. The venture capital has made a very good deal."

"What a deal!" Xiong Xiaoge was angry, "Didn't you just say 120 million? Why did you sell it for 20 million?"

Gee, the face of venture capital has changed so quickly.

(End of this chapter)