Chapter 1248 Valuation

Things are going on at Manchester United, and the second negotiation has not yet started. In contrast, Farfetch in the Internet industry is much faster, and it is similar all over the world. It is efficient, decisive, and quick.

This is determined by industry attributes.

Entrepreneurship on the Internet is simpler than entrepreneurship in traditional industries. What is difficult is the follow-up operation and development. Time sensitivity is very important, and homogeneity is very serious. Whoever can take the lead in entering the market, and then get financing and quickly do a good job in marketing to generate awareness among users will be able to gain a firm foothold.

First-mover advantage can be multiplied.

Just like QQ.

Ziweixing has poured too much resources into the Helo product, not only taking advantage of Zhou Buqi's various foresight advantages, as well as cross-complementation in multiple fields, but also playing with "tens of billions of subsidies". But even so, the number of users of Helo in China is still more than 10 million less than that of QQ, and the first-mover advantage is too great.

If the latecomers want to surpass the first movers, they have to pay a hundredfold and a thousandfold effort.

As a result, financing in the Internet industry tends to be swift and resolute. Entrepreneurs understand it, and investors understand it too. The two sides can talk about it...it’s almost enough, and hurry up to spend money on the market and occupy the pits.

Because the action is fast, the valuation will not be too accurate in many cases. It is basically a slap on the thigh and a slap on the forehead. There is usually a convention that the entrepreneurial team's income for 10 years.

For example, when an undergraduate student from Tsinghua University comes out to start a business, it doesn't matter what project he does, and the valuation method is very uniform.

According to the market price, a fresh graduate from Tsinghua University's computer department can usually get an annual salary of 200,000-300,000 yuan after entering the job, and then it will increase year by year. You can earn about 5 million yuan in 10 years.

Then, his entrepreneurial project can be valued at 5 million yuan. If three fresh graduates from Tsinghua University start a business, the valuation of the entrepreneurial project is 15 million yuan.

If the vice president of Microsoft came out to start a business, it would be great. His annual salary at Microsoft is US$5 million, and if he can earn US$50 million in 10 years, his entrepreneurial project can be financed at a valuation of US$50 million.

Lu Qi, Xu Liangjie had a formal meeting with Farfetch.

The other party is very happy!

Very enthusiastic!

This wave of investors is really in line with their appetite.

First, it is an economic crisis, and micro, small, and medium-sized enterprises are seriously shutting down, and they urgently need to find financing.

Ziweixing came to give money.

Second, Farfetch's entrepreneurial team used to be an offline buyer's store, lacking relevant experience in Internet operations and lack of Internet thinking. They hope to find such a leader to help.

Ziweixing is here.

Third, it is best to be in line with the company's strategic positioning.

The best investors must be in line with the long-term strategic plan of the start-up company. A good company does not lack investors, but what it lacks are investors who can match its own company's strategy.

Ziwei Star is in line with Farfetch's strategic plan.

More than half of the world's luxury goods are absorbed by the Asian market, and the rest is mainly divided by the American market. There are many luxury brands in Europe, but the sales of these things in Europe are not high.

In the Asian market, the established sales destinations are South Korea, Japan, Hong Kong, Taiwan and Singapore, while the mainland is a large emerging market. In other words, the region with the highest sales volume is now Japan, and the highest sales volume may be the mainland in the future, which fits Farfetch's strategic concept very well.

For Farfetch, Ziweixing, Yahoo Japan, Amazon and other Internet companies should be regarded as the best investors for them.

Among these three, Ziweixing is the best!

Yahoo Japan can provide Japanese resources, and Amazon can provide logistics resources. Ziweixing has already started its business in Japan, and has a close cooperative relationship with JD.com and Jingtao, which can help Farfetch build a logistics system.

The two hit it off.

The only small difference is the valuation of Farfetch and the way of cooperation with China business.

Farfetch is not an ordinary entrepreneurial team. They have already had a very successful offline buyer store experience before, and this time they have transformed into an online buyer store. This is the same as Jingdong. JD.com used to be an offline store, but later transformed into an online e-commerce business.

This valuation is very high.

The entrepreneurial core team consists of three people, one man and two women. In the past two years, their offline buyer stores have earned 2 million pounds, and each person's personal income is about 500,000 to 800,000 pounds... In total, the valuation may reach 40 million to 50 million pounds.

This bubble is a bit big.

They are not entrepreneurs with an Internet background, so they have to shrink when calculating.

That night, Zhou Buqi had already returned to Manchester, and received a call from Xu Liangjie to report the incident.

"How much? Is the annual income of 500,000-800,000 pounds per person?"

Zhou Buqi was surprised.

Xu Liangjie said: "Yes, the quality of life of these people is not low at all."

Zhou Buqi said speechlessly: "Sure enough, he is not an entrepreneur from the Internet industry."

Entrepreneurs who are born in the Internet, in the process of starting a business, can’t wait to spend a penny in half, not to mention receiving such a high annual salary. used in the development of the company.

When Ziweixing first started its business, the "bosses" of the entrepreneurial core team had a salary of 800-1500 yuan per person, which could only meet some basic living guarantees. So much so that Chen Dong's family was so difficult that he was so short of money that he almost made a mistake. Only migrant workers can get high wages. For example, the engineers recruited by Friends.com have a monthly salary of more than 20,000 yuan.

Xu Liangjie said: "We really can't compare the Farfetch team with us. They are in the fashion industry. They have to attend many fashion events regularly, dress appropriately, and maintain external etiquette. It costs a lot. This is An industry that has face and face.”

Zhou Buqi accepted the statement, "What do they want?"

Xu Liangjie said with a smile: "It's much simpler than we thought. The main reason is that there is a lack of a vice president in charge of website operations, and he promised to give 5% of the shares."

Zhou Buqi was very happy, "Are you willing to give shares? Yes! This further shows that this team has great potential for development. It seems that they didn't start the Internet out of enthusiasm. This is because they have conducted in-depth investigations."

Entrepreneurs who have transformed from traditional industries are willing to give shares to their partners, which is not easy.

A few years ago, when JD.com transformed into an online e-commerce business, Liu Qiangdong was a complete novice. He didn’t understand anything and held all the shares in his hands. Later, Zhou Buqi told him that he should learn to share. The more you have, the less you get; the more you share, the more you get.

Xu Liangjie said: "Well, their soul is Jose Neves, who is very business-minded and able to do things. He never talked to me about the valuation from the beginning to the end, and he always talked about the current situation. website operation and future strategic planning.”

"What do you think the valuation is?"

"Don't press too low."

"Of course, it is necessary to show the sincerity of cooperation."

"I think 20 million pounds, or 25 million pounds is more appropriate. We will invest 4 million to 5 million pounds and get 20% of the shares."

Zhou Buqi said: "It doesn't matter if you pay a little more money, you have to win 25% of the shares."

These are all minor issues.

The market is determined by supply and demand.

If there are 100 investment institutions sending money to Farfetch, the specific financing plan will be decided by Farfetch. But now the only investment institution is Ziweixing, and the other party does not have much room for negotiation.

Xu Liangjie said: "Is the joint venture company only for the domestic market? I think it can go a step further. Ziweixing's business in Japan is doing quite well. Once Ziweixing and Farfetch establish a joint venture company, they can..."

"No, the joint venture company only takes care of the domestic market. The Japanese market is directly in charge of the Farfetch headquarters." Zhou Buqi paused and explained, "In the Internet industry, domestic and foreign worlds are two worlds. Don't challenge the big environment, it's better not to be compatible. .You know Xin’er, right? I’m going to split Ziweixing’s domestic business and overseas business.”

Xu Liangjie pondered for a while, "Okay, if it's just like this, it should be easy to negotiate. We can come up with a specific plan within three days."