Unparalleled True Technology

Silicon Valley is the kingdom of today's electronics and computer industries. Countless high-tech companies that influence the world exist and have been born here, and it is also a paradise for countless related practitioners and entrepreneurs.

Of course, for some, it's hell, too.

In addition to the electronics and computer industries, Silicon Valley is most famous for its investment companies. Being favored by investment companies is undoubtedly the greatest blessing for entrepreneurs.

Tomdin is a salesman who has just joined American Century Investment Company. In fact, he doesn't like this job very much. His favorite job is related to games or movies. His previous job was a Hollywood employee. screenwriter.

"Boss, you have to believe me, the software of Instagram, just like "Plants vs. Zombies", is absolutely a work of genius, and it is completely worth our investment."

The hastily produced report has been handed over to his superior by Tomdin.

When the boss was looking through the report, Tomdin introduced: "I have been paying attention to this company since the launch of "Plants vs. Zombies". I have to say that the creator of this small game is a genius. But this time, Their new product, Instagram, is even more incredible. In just 24 hours of its launch, it has more than 5 million registered users..."

When he heard 24 hours and 5 million registered users, Tomdin's boss sat up straight. I believe that any investment company in the world will attach great importance to this kind of achievement.

"How did they get so many registered users? Is there a fee for this software?"

Tomdin's boss raised two very critical questions. For software in the conventional sense, the way to obtain registered users means that users can be retained, and whether to charge or not means that they can gain benefits.

Tomdin replied emotionally: "Their levels of "Plants vs. Zombies" are limited, and it took me a week to complete all the levels."

In fact, Tomdin lied, he only took two days to complete all the levels of "Plants vs. Zombies". And, it was done during off-hours. But when dealing with his boss, it is naturally impossible to answer directly like this, otherwise, the boss will think that Tomdin is playing games during working hours.

"This kind of small game, after the level is over, the playability is greatly reduced. Two days ago, "Plants vs. Zombies" pushed an advertisement, and a special version update will be launched at 12 noon yesterday. An update is free, but only after downloading and registering with Instagram."

When the boss heard this, he also saw the relevant content in the report.

"Social apps? Sharing photos?"

Tomdin explained: "Yes, this software is a free trial. Users can use the software to beautify the photos they take, and then share them among users on Instagram. At the same time, they can also share them with one click. Facebook and other social networking sites.”

Hearing this, Boss Tomdin's interest in this software has greatly decreased. No charge is only one of the reasons. The most important reason is that this software is functional software.

However, any functional software will fall behind the times with the advancement of technology and hardware, and will be eliminated by the market.

"Pseudo-social application software, and the way to acquire users is no different from users who spend money to buy. What kind of loyalty do such users have?"

Tomdin's boss said: "However, being able to have more than 5 million users also proves that the boss of this company has sufficient marketing means. I authorize you to negotiate financing matters with the other party, but there are a few prerequisites."

Although interest waned, Tomdin's bosses saw the software and the benefits Apple could bring them, so they decided to invest in it anyway.

Tomdin became serious and began to follow his boss's orders.

"First, we must obtain about 33% of the original equity. Second, our financing amount cannot exceed US$5 million. Third, we must not allow the other party to take ownership of Instagram or Plants vs. Zombies. Separated from Apple."

When Tomdin heard this, his heart turned cold. The bottom line of financing, let alone the founder of Apple, was impossible for him to accept.

Tomdin's boss added: "Of course, the bottom line of financing of 5 million US dollars is the bottom line of our first round of tentative negotiations, and it is not absolute. When you are negotiating with the other party, I will let the risk control department It conducts an evaluation, and if the evaluation result exceeds 5 million US dollars, we can increase the financing amount appropriately, but you must not show this in front of the other party.”

Venture capital companies are faced with huge profits but also huge risks. In order to reduce their own risks, they often expect to get more equity with the least amount of money.

Because of this sentence added by the boss, Tomdin breathed a sigh of relief and said: "Boss, you can take a closer look at Apple's revenue last month in the report. Although this revenue amount is not announced by Apple, it is I guessed it based on their downloads and payment ratio. So I think the risk control department will definitely increase the amount of financing this time, and it will be a very large increase.”

Although Tomdin's report was rushed out, it still had dozens of pages. In such a short period of time, it was impossible for his superior to read it through, let alone read it in detail.

Based on Tomdin's introduction, the boss turned the report to the page of Apple's revenue projections. After a glance, he stood up from the boss's chair.

"$60 million? Are you kidding me?"

With a monthly revenue of 60 million US dollars, it is naturally not a big company for a company as powerful as American Century Investment Company. But the opening chapter of the report clearly states that there was only a little more than a month between the creation of this company called Apple.

Tomdin liked his boss's surprise very much. He suppressed a smile and said, "I'm not joking. Moreover, the sales of "Plants vs. Zombies" have not stopped. Although the popularity has dropped, within the next three months, They can definitely reap $100 million in cash revenue. Boss, they have no cost."

Tomdin's boss frowned, sat down slowly, and said, "It seems that they have no shortage of funds to operate the software of Instagarm."

Tomdin nodded and said, "However, they lack operation channels and acquisition channels in the future. If they are unwilling to be acquired, then they lack listing channels."

A free software, when the number of users reaches a certain level, it is natural to find a way to convert the number of users into revenue.

Generally speaking, the easiest way is to package users and products together and sell them to capital that can use them to generate profits. The second is to operate the product, and then go public to collect money.

The most difficult thing is to convert existing non-paying users into paying users.

After reading the report for a while, Tomdin's boss said, "You should contact them first. The specific investment amount is waiting for the analysis results of the risk control department."

Tomdin nodded, and when he was about to leave, he heard his boss say: "Tomdin, the purpose of my invitation is to let you focus on those investment projects that can change IP. This time, although you Good job, but not in line with the company's positioning of you, you know what I mean?"

Tomdin smiled awkwardly and said, "Actually, my original purpose was to get the IP of the game "Plants vs. Zombies."

His boss glanced at him and said, "Stop playing games, don't forget how you went from being a well-known screenwriter in Hollywood to being a salesman."