Chapter 244: See Me, You Can See the Future
In the garage, Larry Page discussed the future of the company with his partner Sergey Brin with a serious face: "Man, I think it's time for us to discuss the next development."
In August, Google was founded as a privately held company. The two received an angel investment of $100,000 from David Filo, one of the founders of Yahoo!, and then raised $1 million in start-up capital from family and friends. Finally, they embarked on the entrepreneurial journey with great success.
But after two months, most of the money had been burned through and Google was running out of money.
Sergey Brin was deeply worried about this: "We really need to talk about it. You know, our idea is very cool and has even attracted the attention of many investors. Even Sequoia and KPCP, two large investment institutions, are optimistic about us. But listen to me, man, we have to find a way to get money, otherwise we have to consider selling shares."
Both of them are graduates of Ivy League schools with high IQs, so they both saw how broad the application prospects of Google search engine on the Internet would be in the future.
Today, the main users of the Internet are still business elites or programmers with a very high baldness rate in the industry. However, the emergence of portal websites has shown that with the popularization of computers, more and more ordinary people are beginning to choose to surf the Internet.
At this critical juncture of change in this era, whoever can seize the opportunity and meet the Internet needs of ordinary computer users will be able to gain the upper hand in the newly opened "new world" of the Internet and control the future.
Just like in the Age of Exploration, those countries that first discovered and landed on the New World could reap wealth like harvesting wheat, achieve fame and success, and even dominate the world.
Search engines are definitely the most important link in the future Internet industry, because they are the easiest channel for ordinary people to obtain information from the Internet.
As long as Google controls this channel, its future will be limitless.
Google's search engine is great, and the two have strong technical skills, so it has received rave reviews online. Many people use Google, and the number will continue to increase.
But now there is a small problem that bothers Larry Page and Sergey Brin, two young Silicon Valley technical geniuses - Google is not making money.
Yes, Google still has no way to make profits so far, and all of its businesses are purely burning money. The rental of servers and broadband alone is creating losses every minute and every second.
The funds they had borrowed with great difficulty were almost running out.
The two knew that what they made was cool and that it would definitely change the world, but the problems they faced were very real.
It’s like the person opposite you wants to hit you, and you even know how he’s going to punch you and how much force he’s going to use, but you can’t dodge it.
In one word, frustrating.
The two people knew that this technology could change the world, but they didn't know how to use it to make money.
Some people are suited to be scientists, while others are suited to be businessmen.
Unfortunately, neither Larry Page nor Sergey Brin has yet awakened their business talents.
Sergey Brin thought about it and finally persuaded his partner: "I know you don't want to, but if we don't give up some equity now in exchange for the development of the company, then the company may not be able to continue, and by that time, the equity in our hands will be worthless."
Larry Page thought about it and it seemed to be true.
In the magical country of America, there is never a shortage of wonderful creativity.
Creative geniuses are everywhere, but successful ones are rare.
Although the two were very confident in their creativity, other geniuses thought so too.
To say that only one in a hundred can be turned into a commercial product is an exaggeration.
So now Google’s purpose is clear.
That is to survive.
If you can't survive successfully, then everything is GG.
"I have to admit that what you said makes sense, but..."
Just as Larry Page was about to say something, the phone on the table next to him rang with a slightly harsh sound.
"Who would call at this time?"
Larry Page picked up the receiver with doubt in his heart.
"Hello?"
A slightly childish voice came from the other side: "Hello, Mr. Page, I am Lu Yiming, the boss of Future Capital. My employees should have contacted you in the past few days, right?"
Larry Page has been annoyed by Li Yiwen in recent days. Although Li Yiwen is willing to invest, he is too lazy to even consider it.
After all, in his eyes, Google is a company that is destined to be great, and his own business does not need a country bumpkin shareholder from the mysterious East. After all, the other party can't provide any other form of help except money.
Therefore, Larry Page was annoyed when he heard the words "Future Capital". After Lu Yiming introduced himself, he said impatiently: "I've already said that I don't need investment now."
Facing Page's bad attitude, Lu Yiming still smiled and spoke with confidence: "Mr. Page, are you sure you don't need it? As far as I know, Google should be very short of money at the moment. You don't have any profit model. Even if the future prospects are bright, you have to think about how to survive first, right? So, how about I offer twenty times the price?"
Google's initial investment totaled only about one million.
Twenty times means that Lu Yiming is willing to acquire Google shares based on a valuation of 20 million. For a company that has been established for less than three months, this is definitely an "appalling" price increase.
However, Larry Page chose to refuse without hesitation.
"You're right, we at Google do need money, but, Mr. Lu, we don't need your money."
Larry Page obviously has a clear plan for Google's future. He is not the kind of novice who rushes into starting a business and accepts all investors.
Google does need money, but Larry Page has long made up his mind that he will never sell himself to investors easily. What he needs is a shareholder who can provide various strategic values to Google, not an Asian bumpkin who has nothing but money.
Obviously, in his eyes, Lu Yiming is just a country bumpkin who has nothing but money. This is not in the interests of Google and cannot provide the value he needs.
Without waiting for Lu Yiming to continue speaking, Larry Page hung up the phone.
At the Boning Hotel, Lu Yiming sat on the soft bed, looking out at the starry sky through the floor-to-ceiling window with some melancholy.
Making money is really not an easy thing, especially dealing with those smart entrepreneurs, it is even more frustrating.
If anyone in China were in Larry Page's situation and suddenly heard someone offering to buy the property at a 20-fold premium, he would probably not even think for a second and would agree to it right away.
But Larry Page is obviously not an impulsive person. He has a shrewd mind and clearly sees the true value of Google.
So he wanted to wait a little longer.
But Lu Yiming was unwilling to wait.
If you wait any longer, Google will raise its prices.
As I recall, by June of next year, Google will receive an investment of 25 million US dollars from two top venture capital funds, Sequoia Capital and KPCB, and will be able to get rid of the financial crisis and soar to success.
If that happens, Google will become invincible, and it will be extremely difficult for it to become a shareholder of the other party.
With the support of the capital giants behind it, Google will evolve into a complete entity, with all its shareholders being top financial institutions on Wall Street or super-rich people in the United States.
At this time, Lu Yiming was not yet qualified to compete with such an opponent.
Therefore, for Future Capital, this is the only opportunity to acquire Google shares. Any further opportunity is basically impossible. The best that can be achieved is to go to the secondary market and buy some leftovers from others.
As a reborn person, is it reasonable to go to the secondary market to pick up trash?
That doesn't make sense at all.
Therefore, Google must be taken down before things become irreversible!
But how do I get it?
Lu Yiming thought about it carefully and suddenly came up with an idea.
He picked up the phone again and called Larry Page.
"Mr. Larry Page, or me, Lu Yiming of Future Capital."
Larry Page wanted to curse when he received the call, but after all, he claimed to be a noble man, and cursing was really uncivilized. He took a deep breath and said, "Mr. Lu, I think I have made it very clear just now. Google does not need your money."
Compared to Larry Page's violent temper, Lu Yiming looked confident and calm at this time: "Even if Google doesn't need my money, Google definitely needs me."
Larry Page was so angry at Lu Yiming's words that he laughed. He couldn't help shaking his eyebrows and said jokingly, "Google needs you? Mr. Lu, I heard that you are in Hong Kong now. According to the time zone, it should still be late at night in Hong Kong, right? Are you sure you are not talking in your sleep?"
Although he was teased by Larry Page, Lu Yiming was not angry at all. Instead, he nodded very seriously: "Of course I am not talking in my sleep. I am talking to you about dreams. Larry Page, I only want to ask you one thing now - do you want to change the world?"
Larry Page mocked again: "I do, but what does it have to do with you?"
Lu Yiming's mouth curled up, and a look of smug joy suddenly appeared on his face: "You want to know? Then come to Hong Kong. When you see me, you can see the future."
Larry Page was stunned when he heard this, and then he became angry and said, "This is inexplicable. You are totally unreasonable. Don't call me again. I'm very busy. Not everyone in this world is as leisurely as you, Mr. Lu!"
In Larry Page's opinion, Lu Yiming was probably some spoiled rich second-generation from the East, with high aspirations, no education, and only knew how to squander his family's wealth to find some fun in his boring life.
He despised such people because what he lacked now was a rich father who would allow him to squander money at will.
Just as he was about to hang up the phone again, Lu Yiming's voice came again: "Do you want to know how to make Google profitable?"
Larry Page seemed to be under a spell, with his hands suspended in mid-air, hard as stone.
“Want to know how to make Google profitable?”
This sentence kept turning over and over in his mind.
This is exactly the problem that has troubled him and Sergey Brin for a long time.
The Internet is still a new thing, and Google is even younger. Human babies take ten months to be born, but Google was founded less than three months ago.
Even though the future prospects are unlimited, the profit model is still a noose that troubles all Internet companies.
And it's not just Google that is hanging on this noose, but all Internet companies in Silicon Valley.
So far, no one in the company has been able to come up with an idea to make money quickly.
But the money is being burned faster and faster, so fast that it can't be stopped.
This is also the biggest reason why large numbers of startups die in Silicon Valley every day.
Everyone thinks they are great.
Everyone wants to change the world.
But in the end, they all fell halfway towards their dreams and future.
Although Lu Yiming's words made Larry Page hesitate, Larry Page didn't believe that Lu Yiming could do it.
After all, the United States has countless elites, and the smartest people in the world are in the United States and in Silicon Valley. I can't think of a solution. How can you, an Asian from the wild east, solve this problem?
"You think I would believe that?"
Facing Larry Page's questioning, Lu Yiming didn't care, but felt it was reasonable. He said, "Well, how about a bet? You come to Hong Kong to see me, and if you are not satisfied with the answer, I will give you $5 million. If you like the answer I give, you can use the $5 million to buy Google shares."
Five million dollars!
Even in the United States, this is by no means a small amount.
Many middle-class people who lead a comfortable life only have an annual income of around $100,000, and five million would take a middle-class family in the United States almost a lifetime of hard work to earn.
Now, Larry Page only needs to go to Hong Kong, and no matter what the result is, the five million will fall into his hands.
Just for this reason, he couldn't refuse.
After all, this is five million dollars in real money. Who can withstand such a test?
"I'll take the nearest flight to Hong Kong."
"Then I will be looking forward to seeing you, Mr. Page."
After hanging up the phone, Larry Page said to Sergey Brin excitedly: "Our funding problem will be perfectly solved soon!"
Sergey Brin was puzzled by his companion's excited expression: "What's going on?"
"The boss of the Xia countryman who has been visiting me frequently in recent days just called me and said that he knows how to make Google profitable and wants me to go to Hong Kong for an interview. He said that this is a bet. If I am not satisfied with his answer, the five million dollars will be directly lost to me as a bet. If I am interested in his plan, the five million will be used to purchase Google shares."
Sergey Brin showed a look of surprise: "Doesn't that mean we will get the $5 million no matter what?"
“That’s right!”
As the saying goes, there must be something fishy when things are out of the ordinary. It is really hard to believe that Lu Yiming is spending so much money. Sergey Brin is a little worried: "Is this a trap?"
Larry Page was confident in himself: "Don't worry, is it possible that a teenager would be more difficult to deal with than those greedy and shameless vampires on Wall Street?"
