Return to 88: Starting from Marrying My Sister-in-law

The air outside the municipal government building carries the unique warmth and moisture of West Lake, quite different from the coolness created by the air conditioning in the conference room.

Lu Yang declined Wu Ying's offer to arrange a private car, and instead walked with only a personal assistant, accompanied by Ma Yun, whose eyes were burning with excitement, towards a charming lakeside café not far away.

Ma Yun walked briskly, even with a hint of excitement, talking incessantly along the way. He hardly needed Lu Yang to respond; he could continue to elaborate on his grand vision for Alibaba.

From the pain points of global trade to how the internet is reshaping business rules, and the profound significance behind the mission of "making it easy to do business anywhere in the world".

His voice was still hoarse, but it was like a chisel, full of a firm determination to carve his mark on the barriers of reality.

Lu Yang listened quietly, nodding occasionally. His gaze swept across the shimmering surface of West Lake, but his thoughts drifted further afield, back to a future filled with information overload and fragments of "success literature."

He clearly remembered that before his rebirth, he had come across a "financial story" about Ma Yun's early financing on a noisy short video platform.

The content is roughly as follows:
In early 2000, Alibaba was in dire need of capital injection.

Founder Ma Yun traveled to the small country of Japan to meet with Masayoshi Son, the head of SoftBank Group. After a passionate speech lasting only a dozen minutes, Son was deeply moved and immediately decided: "I will give you $40 million for a 4000% stake!"

In the context of the internet winter and widespread capital shortage at the time, this was like a timely rain in the snow, a "lifeline" that countless startups dreamed of.

However, to everyone's astonishment, after returning to Hangzhou, Ma Yun, along with her core team, especially Cai Chongxin, who was later known as the "God of Wealth," spent the entire night deliberating and made a decision that could be described as shocking:

Ma Yun proactively called Masayoshi Son, rejecting the tempting $4000 million offer and only willing to accept a $2000 million investment.

Ultimately, the two parties reached an agreement: SoftBank would invest $2000 million in exchange for approximately 30% of Alibaba's shares.

The comments section of this story is often filled with praise, interpreting it as a model of Ma Yun's "treating money like dirt," "having backbone," and "knowing how to resist temptation," perfectly interpreting the "core essence" of entrepreneurial financing.

Phrases like "How much money you get isn't the goal, the right amount is key," "Equity is the founder's most valuable asset and shouldn't be diluted excessively," "Fundraising is a strategic move that requires considering several steps into the future," and "Great entrepreneurs know how to resist short-term temptations in exchange for long-term control and growth potential" are all the kind of arguments that come out of the mouths of great scholars when someone achieves great success.

At the time, Lu Yang, a seasoned veteran who had been through thick and thin in society, would scoff at such stories at first.

He instinctively believed that this was just another "success story" woven by self-media to deliberately mythologize and fabricate stories about business giants in order to generate traffic.

Rejecting $4000 million?
Take only half?
When you were most short of money in the early stages of starting a business?
This sounds like it goes against the most basic business logic and human nature!
He is more inclined to believe that either SoftBank later imposed harsh conditions on the valuation or terms, or the story itself is seriously exaggerated or distorted.

However, today, in that small municipal government meeting room just now, when Ma Yun stood in front of him, waving her arms and describing the blueprint for the "global online marketplace" with shining eyes, Lu Yang's past doubts were completely shattered.

That unwavering, fervent belief, that almost obsessive conviction in his own career, and the vision and perspective that transcended the limitations of the times revealed in his words, made Lu Yang instantly understand the true core behind that story—this was by no means some self-media fabrication of inspirational stories, but a crucial decision made by a genius entrepreneur based on profound strategic foresight that truly happened in business history!

Ma Yun is indeed the kind of ruthless character who would resolutely reject huge "sugar-coated bullets" in order to maintain long-term control and the healthy development of the company!
Thinking about this, Lu Yang's lips unconsciously curled upwards. If he were to offer the other party an exorbitant price that they couldn't refuse, and demand more Alibaba shares, what would they choose?

promise!?
Or should I refuse?
Or is history repeating itself?

I'm still looking forward to it!

A strange light suddenly appeared in Lu Yang's eyes.

The café's window seats frame the twilight over West Lake like a flowing painting through floor-to-ceiling windows.

Ma Yun ordered a cup of fine Longjing tea for Lu Yang, while she herself ordered an espresso. The rich aroma of coffee filled the air, temporarily easing the delicate atmosphere before the negotiation.

“President Lu.” Ma Yun put down her small coffee cup, leaned forward slightly, and the eager smile on her face faded a bit, replaced by a serious expression that was a mixture of expectation and caution. “Thank you very much for taking the time to listen to my rambling. I know that Century Group is a powerful company with a keen eye for investment. The fact that UTStarcom has won your favor proves President Wu’s vision and your foresight.”

He subtly praised Lu Yang, while also implicitly affirming the recommender, Wu Ying.

Lu Yang picked up his teacup, the rising steam blurring his eyes behind his glasses, making it impossible to discern his hidden emotions.

He gently blew on the tea, took a sip, and moved with unhurried ease.

"Mr. Ma, you're too kind. UTStarcom has mature technology and a team, and PHS (Personal Handyphone System) represents a tangible market. And your Alibaba..."

talking.

Lu Yang paused, put down his teacup, and looked sharply at Ma Yun across from him. "The blueprint is grand, and the imagination is amazing. But it is still just a concept, a concept that requires huge amounts of funding and extraordinary execution to bring to fruition. The risks are equally enormous."

His voice was calm, yet carried an invisible pressure.

Ma Yun's facial muscles tightened slightly, but her eyes showed no sign of backing down: "President Lu is right! Starting a business is a matter of life and death. But it is precisely because the risks are so great that the rewards of success are enough to change the world! We already have a clear model and an excellent core team. Now all we need is a powerful strategic investor to ignite this fire and let it spread throughout the mainland market of 1.2 billion people!"

He once again demonstrated his unparalleled charisma, attempting to ignite capital with conviction.

Lu Yang nodded slightly, seemingly acknowledging the passion.

"Well then, Mr. Ma, let's be frank. How much funding does Alibaba need right now? What is your valuation of the company? How much investment are you hoping to attract, and how many shares are you willing to give up?"

Here comes the key question.

Ma Yun took a deep breath. This was a question he had prepared countless times, and it was a crucial step in determining whether Alibaba could embark on the fast track.

He straightened his back, his voice clear and powerful, with a do-or-die determination: "Mr. Lu, based on our market potential, team value, and development plan for the next three years, our valuation of Alibaba is—$5000 million."

When this number was announced, even Lu Yang's assistant, sitting behind him, subtly raised an eyebrow.

In early 1998, a valuation of $5000 million was astronomical for a fledgling internet company whose product was still in its infancy. This undoubtedly reflected Ma Yun's extreme confidence in her project, and could even be described as "asking for the moon."

Lu Yang showed no surprise or displeasure; instead, a playful smile appeared on his face.

This valuation perfectly matches the starting point of the widely circulated story he remembered.

Very good, this is the key moment in history.

He leaned back, relaxed, and tapped his fingers lightly twice on the smooth wooden tabletop, making a soft, rhythmic sound, as if setting the tone for what he was about to say.

“5000 million US dollars…” Lu Yang repeated, his tone devoid of emotion, “President Ma’s boldness is indeed well-deserved.”

He paused for a moment, his gaze landing squarely on Ma Yun's face, clearly catching the fleeting tension in her eyes.

"How about this."

Lu Yang's voice was calm yet authoritative as he presented his carefully prepared proposal: "Based on my optimism about the prospects of this 'global business platform' you described, and my trust in your personal capabilities, I am willing to offer a premium. Century Group can invest 3000 million US dollars."

He specifically emphasized the word "premium".

Ma Yun's breath hitched for a moment, and her heart felt as if it were being squeezed by a giant hand!
$3000 million!
This is much higher than the maximum amount he expected to raise!

With this money, Alibaba could almost immediately enter a period of rapid growth!
His eyes instantly blazed with uncontrollable ecstasy, and his lips parted slightly, almost as if he were about to blurt out his agreement.

However, Lu Yang's next words were like a bucket of ice water, precisely pouring it on the fire of excitement that had just been ignited in him.

“As a return on this $3000 million investment,” Lu Yang’s tone remained calm yet carried an undeniable air of control, “I need to acquire 45% of Alibaba’s equity.”

"45%?!" Ma Yun exclaimed in shock, her ecstasy instantly freezing and shattering, replaced by shock and instinctive resistance.

This proportion far exceeded his psychological bottom line!
It's important to understand that this is only the company's angel round of financing. There will be Series A, Series B, and even Series C rounds to come. If so much company equity is given up at the very beginning, it's conceivable that his and the founding team's shareholding ratio will be severely diluted in the end, and the future control of the company will face huge uncertainty. This also means that as long as Mr. Lu continues to invest and prevents the shares he has acquired at this time from being excessively diluted in the next few rounds of financing, he will undoubtedly become Alibaba's absolute largest shareholder in the future. How similar this is to the story of Masayoshi Son's offer of 40 million US dollars for 4000% of the shares!

Even more "demanding"!
The immense temptation and the immense risk collided violently in Ma Yun's heart like two raging torrents.

The allure of $3000 million was irresistible, but the price of 45% equity was an unbearable burden for him!

He seemed to see the future, a terrifying vision of the company growing and expanding, losing control of major decisions, and his painstakingly built business ship veering off course.

That familiar, suffocating feeling of being "hijacked" by capital surged into my heart.

A chilling silence fell over the café.

As dusk deepened over West Lake outside the window, the city lights were reflected on the lake's surface, shimmering in the sunlight, but this did not reflect the turmoil in Ma Yun's heart at that moment.

His hands, which were under the table, were clenched into fists so tightly that his knuckles turned white from the force. Fine beads of sweat even appeared on his forehead.

He needs time, he needs to calm down, and more importantly, he needs to have in-depth and unreserved discussions with his team.

So he got up and left temporarily.

"I'm sorry, Mr. Lu, I... I need to use the restroom."

Lu Yang took in all of Ma Yun's struggles, and the last bit of doubt in his heart about the short video story from his previous life completely vanished.

He knew that the powerful inertia of history was about to repeat itself in a wondrous way.

He didn't urge him, but simply picked up his teacup, took another sip of the now slightly cooled Longjing tea, and calmly gazed at the tranquil surface of West Lake outside the window, patiently waiting for the answer he had already foreseen.

Time seems to have frozen.

A dozen minutes later, Ma Yun returned from the restroom, took a deep breath, and then slowly exhaled, as if trying to expel all the hesitation and greed from her chest.

He slowly walked in through the door, blocking the sunlight outside, and came to Lu Yang, who was drinking tea. He looked up, and although there was still a lingering desire and resentment for the 3000 million US dollars in his eyes, there was more of a clarity and determination after painful weighing of the options.

He met Lu Yang's deep gaze, his voice slightly hoarse from the inner struggle he had just endured, yet he spoke with exceptional clarity, enunciating each word distinctly:

"Mr. Lu, thank you very much for valuing Alibaba and for this... extremely generous offer. $3000 million is indeed a huge support. However..."

He paused for a moment, as if gathering his last bit of courage and conviction, "After careful consideration by myself and the founding team, we can only accept your investment of 1500 million US dollars."

Meeting Lu Yang's seemingly unsurprised gaze, he firmly stated the proportion that would determine their fate:
In return, Alibaba will issue new shares to Century Group, giving up 30% of its equity.

And so, history repeated itself, only this time the protagonists were Ma Yun's Alibaba and Masayoshi Son's SoftBank Group, and Lu Yang's Century Group.

Even though Lu Yang was mentally prepared and had already guessed a possibility, he was still inexplicably shocked.

It's amazing that someone could resist the temptation of $3000 million.

Indeed, Ma Yun of the era was not just a name without substance!
Lu Yang stood up, his eyes fixed intently on Ma Yun opposite him: "Accepting my $30 million will immediately value your company at least $3000 million, far exceeding your previous offer of $6600 million. On the contrary, you're only willing to accept my $5000 million, but you'll have to give up a whopping 1500% of the equity. There's not a single premium in that deal. Have you really thought this through?" (End of Chapter)