Volume 3 Summer Rain Chapter 0306 Cisco, Come to the Bowl
Hearing Bill Gates' declaration over the phone, Nan Yi smiled knowingly.
The name "Wei Ye, the richest man" sounds arrogant, but the advertising effect will be very good. As long as we wait until Microsoft goes public and its market value soars in the future, everyone will know that this company is not bragging.
Of course, this effect is not that important now. The Internet is not yet so popular among everyone, or in other words, most people still don’t know what kind of changes the Internet will bring to the world.
The richest man Wei Ye has made it clear that he wants to invest in this field. "Garage companies" and "tool room companies" that want to make a difference in this industry will naturally come to him with their PPTs.
Slowly, the "richest man effect" will form.
And the phrase "the next company favored by the richest man making machine" will make a company's stock rise to the daily limit in the near future.
Startup companies will cry and shout, lowering their valuations and begging the richest man Wei Ye to invest.
Nan Yi hung up the phone, got out of the car, looked in the direction of the cliff, then walked straight to the rocks on the beach, lay on the rocks and looked at the stars for a while.
After the press conference, Rachel drove to Palo Alto.
There is a couple at Stanford University, Leonard Bosack, director of the computer center of the computer department, and Sandy Lerner, director of the computer center of the business school. Together, they designed a networking device called a "multi-protocol router" for the Stanford campus network, integrating incompatible computer LANs on campus into a unified network.
This "multi-protocol router" networking device is only a prototype compared to the truly complete routers of later generations.
At present, the router designed by the Bosaks still has a lot of problems. Slow data exchange, frequent disconnection, etc. are all defects of this router.
Many companies and individuals have wanted to purchase the Bosaks's patented technology, but the highest bid was only $100,000, which was rejected by the Bosaks.
For the Bosaks, both professors at Stanford University, $100,000 was just a drop in the bucket.
Precisely because the Internet has not yet been taken seriously by everyone, people do not know the great significance of multi-protocol routers, and it is impossible for them to truly recognize its value. Its valuation will certainly not be high. Those who want to purchase this technical patent simply regard it as a technical reserve.
At this point in time, the Internet was still just a product used in laboratories, and the core purpose of China's development of the Internet was to prepare for war.
In order to ensure that China's domestic defense forces and overseas defense forces still have a certain degree of survival and counterattack capability after the first nuclear attack by the Soviet revisionists, the Ministry of National Defense of China
It is considered necessary to design a decentralized command system: it consists of decentralized command points. When some command points are destroyed, other points can still work normally, and these points can continue to maintain communication by bypassing the destroyed command points.
This led to the birth of the ARPANET. Moreover, computers at that time were different from those in later generations. Computer operating systems were still quite simple, and there was no highly usable graphical operating system.
At that time, IBM and Apple computers were high-end products with high prices, and only businesses, university research institutions and some wealthy families would choose to purchase them.
More Chinese people use Compaq home computers, which are driven by floppy disks and can be used to do spreadsheet and word processing work, as well as play games.
Now is a good time for Nanyi to lay out the Internet. A large number of future high-quality enterprises have been or are being established at this point in time, but are still in the stage of silent accumulation.
Rachel arrived at the gate of Stanford University and soon came to the cafe where she had an appointment with the Bosacks.
The Bosacks took Rachel's arrival very seriously. They were dressed very formally and had come out early to wait outside the cafe. They had no choice but to take it seriously. Pan American Investment Holdings was already well-known in the United States. It was a company with a large scale, although its valuation was still unclear.
For Rachel, this was good news. The Bosacks attached great importance to meeting her, so it would be easier to negotiate later and she could gain more benefits for the company.
Rachel said in an affirmative tone, "Hey, Sandy, Leonard, have you been waiting long?"
"No, just waited a while," said Santi Lerner.
After a brief greeting, the two sides entered the cafe, called the waiter, ordered coffee, and then the conversation between the two sides entered the formal stage.
Sandy Lerner spoke first on behalf of the couple: "Rachel, thank you for coming. I wonder if you can tell me more about investing in the Internet-connected devices we designed?"
"Of course, Sandy. I overheard about the internet-connected device you guys were designing and I was very interested, so I rushed over right after the press conference."
When the Bosaks heard Rachel's words, they looked at each other, nodded, and both smiled.
During this period, the couple did not have an easy time. They wanted to promote the equipment they designed on a large scale at Stanford University, so they tried to apply to the school, but their application was rejected by the school.
The school route was not feasible, and the Bosaks were struggling with whether to start their own company and promote the Internet-connected device themselves. However, they found many investors, and the conditions of these investors were quite harsh.
The Bosaks wanted to find investors mainly to share the risks that the company would face with them, rather than to find an ancestor for themselves.
According to the original trajectory, the Bosaks have not found investors that suit their tastes, and will eventually choose to invest in the company themselves next year.
Now, Rachel found the Bosaks and told them that her company wanted to invest in their project, which of course made the Bosaks ecstatic. On the one hand, someone recognized their design, and on the other hand, they found a financial sponsor willing to invest in them, commonly known as a sucker.
At this time, Santi Lerner said again: "I don't know what conditions your company will offer, Rachel? If they are too harsh, we will not accept them."
Rachel smiled and replied, "Why don't you two tell me your conditions first, so that I can have a reference. According to our company's procedures, I am only here to have a preliminary talk with you today. Someone will naturally come to discuss the subsequent steps."
The Bosacks looked at each other again and said the number they had agreed on earlier. "Rachel, the two of us value our Internet-connected device at $1 million."
Hearing this number, Rachel felt a little amused. Before coming here, her boss told her that he was very optimistic about this technology and the investment conditions could be relaxed.
But now it seems that perhaps the two inventors did not realize how valuable the technology they developed was, or perhaps her boss overestimated this technology.
"Oh, this valuation is not too high. I tentatively agree with your valuation."
The Bosaks looked at each other for the third time. It was obvious that they had not expected that the negotiation would go so smoothly and the other party did not even bargain.
According to their judgment before they came, this negotiation would be a protracted tug-of-war, but now they have reached a preliminary consensus so easily, which is really a surprise.
Rachel said to the Bosaks, "Since we have no dispute over the valuation, why don't you tell me how many shares you are willing to give up?"
Hearing Rachel's words, the Bosacks knew that sex was about to begin.
For venture capitalists, determining valuation is only the first step; determining how many shares can be obtained is the most important step.
Rachel certainly hopes to get more shares for the company without reaching the controlling stake. In the future, it is still unknown how many rounds of financing this company, which has not yet been established, will have to go through.
Whether you continue to invest or wait for dilution or transfer, it will never go wrong to hold a few more shares.
The current investment in the Bosacks can only be regarded as a financial investment, and the core purpose is to make profits by taking advantage of the inflated market value of the "company".
This is the angel round, and there will be rounds A and B. If Pan American Investment Management wants to follow the investment, it can continue to do so as long as it abides by the principle of "everyone shares the meat".
Why did Nan Yi give Pan American Investment Holdings a Chinese-style cover?
Why did Nan Yi decide early on that Pan American Investment Holdings would absorb a number of powerful shareholders?
Just because the future market value of this company will rise to a sky-high price, and it is in a relatively sensitive field, if you don't approve of Zhang Pi and it is not a local Chinese company, it is simply a dream to hold a large number of shares and transfer and sell them in the secondary market when the market value rises to a high point in the future.
Once he did that, Nan Yi would have to worry about whether he would have the life to make money or spend it.
Doing that is equivalent to cutting the leeks of the Chinese people, and cutting them by whole carloads. If you say you just want to pull out a few, people will turn a blind eye. But you drive a train trailer hundreds of meters long to load them. What? Do you think others are dead?
As soon as Nan Yi showed signs of cashing out, he was framed with 782 charges, including stock market manipulation, money laundering, providing funding to terrorist organizations, and espionage. No matter what, he would be clearly charged and might not be released even if he spent 2,000 years in prison.
Only Wall Street and the forces behind the Donkey Party and the Elephant Party can reap the leeks of the Chinese people. Even with the exception of China and the Soviet revisionists, the Americans consider the global stock markets to be their private domain.
"My own son can harvest our own leeks, and my godson can harvest them too. How dare you, an illegitimate son of Lao Wang, come and harvest our leeks?"
This statement is actually a consensus among countries all over the world. Wolves guard their own sheepfolds, not to entertain wolves coming from other grasslands.
Santi Lerner said, "Rachel, we can give you 30% of the shares, but you can't interfere in the company's affairs at will."
Rachel smiled and said, "Of course, as long as you don't make any decision-making mistakes, we at Pan American Investment Holdings will never interfere in the company's affairs. We will only send representatives to monitor the accounts and audit the accounts regularly. As for the shares..."
Rachel paused deliberately, "Are you sure you can't invest any more? I can promise that in future financing, Pan American Investment can dilute the shares and will definitely ensure your controlling stake."
"Can your guarantee be written into the contract?"
"Sure, why not?"
After the Bosacks looked at each other for the fourth time, Santie Lerner said, "Rachel, we need to discuss this."
"Don't worry. I can give you a day to discuss it slowly. The day after tomorrow at 10 o'clock in the morning, our company's people will come to negotiate with you formally. They will also bring a sample contract. Please don't forget to hire a lawyer." Rachel said, taking a step back to advance.
Pan American Investments has no competitors now, so Rachel is not worried that the Bosaks will leave. She has enough patience to create the illusion for them that she is easy to talk to.
Well, this seems to be the tactic her boss is good at.
