Chapter 94

Perhaps it's because the readers have seen too many examples of second-generation rich kids starting businesses, and they always think that one can self-fund to overcome the early challenges of internet development. Actually, answering this question is quite simple; the author just needs to ask one question:

Are there any internet companies, even those that have gone public, that didn't rely on venture capital to sustain themselves until they could raise funds through an IPO?

Apple? Google? Amazon? Or our local internet companies like Tencent? Alibaba? Baidu!

In reality, Baidu only started making a profit two to three years after its founding, QQ took four to five years, Alibaba four to five years, and Ctrip two to three years... During this period, these websites burned through millions of dollars.

Let's not even talk about acquisitions and other capital operations. According to the development speed of Song Diaosi's company, shutting down the server for a month would cost several million RMB. Who can afford that?

It's worth noting that the setting of the book is 1998, when the entire internet industry was in the midst of a ".COM" concept frenzy. Employee benefits were extremely high, and labor costs were unimaginable. The question is: Where did Song Diaosi get the money? Borrow? From whom? Even if he borrowed all the money from his father, who is a shareholder of Chenxing Internet Cafe, and got a 100 million RMB interest-free loan, it wouldn't last a year!

What to do next? Rely on the "cash cow" of the Legend of Mir online game?

It is indeed a "cash cow." However, relying on it to support the three core technologies of the internet is a joke. One, it's only 1998, and it's still two to three years away from the birth of "Mir 2." Two, Chen Tianqiao's success was due to his strong market promotion capabilities. What drives the market? Money! So, not relying on venture capital? Who can you rely on?

This is just a miracle of a "diaosi" using limited knowledge and foresight to start a business from scratch in the "last chance for ordinary people to start a business"!

Third update! Support requested!

...

"This is the era when capital favors heroes! So I'm here!" In response to Song Chen's inquiry, Cai Chongxin, with his extensive legal and economic expertise, smiled confidently, "I heard that your Alibaba department has attracted many investors, but they were all rejected by Mr. Song. May I ask why?"

Since he was sincerely trying to recruit the other party, Song Chen changed his usual low-key and humble tone and said confidently, "I won't lie to you, I believe my Alibaba department is far more valuable than what venture capitalists have assessed!"

Cai Chongxin raised an eyebrow and asked with interest, "So, how much does Mr. Song think the Alibaba department is worth?"

Zhai Yan, sitting on the side as a guest, knew Song Chen's thoughts and listened attentively with a smile. Jiang Yan, however, didn't know Song Chen's bottom line, so she stared at him intently.

"I believe that the Alibaba website is now worth more than 100 million USD. I wonder if Mr. Cai thinks I'm just dreaming?" Song Chen smiled.

Although Cai Chongxin was surprised, he maintained his composure and smiled, "As the founder, it's natural for Mr. Song to value Alibaba highly! However, I must point out that, based on current performance, Alibaba, although growing rapidly, has not yet reached a valuation of 100 million USD. After all, Alibaba has only been online for a month! I don't think any venture capitalist would accept such terms!"

"So!" Song Chen leaned back on the sofa and said with a smile, "I rejected them!"

If Song Chen's goal was to accept funding at an exorbitant price, Cai Chongxin, though shaking his head, was not discouraged. He advised, "I know your company is short of funds, and the Alibaba department currently needs a large amount of capital to support its business expansion. I think Mr. Song needs to take a more long-term and pragmatic approach to solve this problem!"

"Then, what conditions does your company offer?" Song Chen asked curiously.

Cai Chongxin said confidently, "If Mr. Song agrees, our company is willing to lead negotiations with the Hong Kong Wanda Fund to jointly invest 10 million USD for a 40% stake in the new Alibaba company!"

Seeing Song Chen about to shake his head in refusal, Cai Chongxin carefully chose his words, "Mr. Song, I know most Chinese people place great importance on equity, especially controlling equity! However, in the current economic environment, your company needs a broad international perspective, ample capital, and rich resources, all of which international capital can provide!"

"I have no doubt that the investors will indeed provide the help you mentioned to maximize their interests!" Song Chen smiled, ignoring Jiang Yan's frequent eye signals, and politely declined again, "But with the company's current financial situation still relatively comfortable, I prefer that the employees focus on their products, and I... will wait for a better opportunity!"

Seeing Song Chen reject his offer again, Cai Chongxin could only sigh, "That's a pity!"

"Indeed! However, compared to your company's investment, I'm more interested in you!" Under the other party's astonished gaze, Song Chen smiled and said, "I wonder if Mr. Cai is interested in serving as the CFO of a future e-commerce company worth over several billion USD?"

Not only was Cai Chongxin shocked, but Jiang Yan also thought to herself, "What a boastful claim."

Zhai Yan chuckled, "You're quite confident!" Song Chen smiled without a word.

Cai Chongxin quickly regained his composure and said teasingly, "Although I don't know why Mr. Song is recruiting me without knowing my background, I can understand your eagerness to attract talent... So, how much can you offer me per month, Mr. Song?"

"About one to two thousand RMB, the same as Manager Zhai and Manager Jiang!" Song Chen was quite straightforward.

Cai Chongxin, with his hands on his knees, laughed, "Forgive me, but how much do you think I earn annually at the largest industrial holding group in Northern Europe, Investor AB?"

"Several hundred thousand USD, and I wouldn't be surprised if it's several million USD!"

Cai Chongxin was puzzled, "So, why do you think I would give up such a good job to join the newly established Chenxing Company? Just because of your claim of a several billion USD Alibaba company?"

Song Chen pondered for a moment, then smiled, "If I have to say why... it's the future of e-commerce, the future of Alibaba, and the future of Chenxing Company!"

These three futures not only shocked Cai, Jiang, and Zhai, but also made them think deeply. Song Chen's words were very straightforward. If Alibaba didn't have a promising future, would the Wanda-led venture capitalists be willing to invest such a large amount of money?

Cai Chongxin was silent for a moment, then said seriously, "Can I visit your company?"

"Of course! Welcome!" Song Chen was very excited, knowing that Cai Chongxin was interested.

It turns out I have such good eloquence too?

After a two-day inspection of Chenxing Company, Cai Chongxin returned to Hong Kong, reported to the headquarters of Investor AB, and then resigned. After that, Cai Chongxin, along with his wife, returned to Dong'ou City on February 13th and joined Chenxing Company the next day to assist Zhai Yan in setting up the wholly-owned Alibaba company. He would serve as the CFO of the wholly-owned Alibaba company in the coming days.

Cai Chongxin's resignation was just a small news item in Hong Kong, but it caused ripples in the venture capital world. Cai Chongxin, with his extensive financial and legal background, joining Chenxing Company drew the attention of more international capital to the rapidly growing Chenxing Company and its two major business products.

At the same time, Cai Chongxin's joining Chenxing Company also caught the attention of Sun正义, the president of Japan's SoftBank Group. That day, he only said one sentence to his assistant: "I want all the information on Song Chen and Chenxing Company!"

"Hi!"

Prior to this, Li Yanhong, who had already received an invitation from Chenxing Company, was busy writing "Silicon Valley Business War" and had to politely decline the invitation. However, upon learning that Chenxing Company was interested in his patents, he sent a written agreement for free use via fax.

Why is Li Yanhong so generous? Song Chen felt a mix of happiness and greed.

"When was Google founded this year? What were the names of the two founders? Larry Page and Sergey Brin? Perhaps my fellow alumnus Zhu Tiejun has heard of them..."

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