Chapter 383 Settlement enterprise service (seeking monthly ticket)

  "Dalun, you should have a general understanding of our products now, right?"

  Dufield smiled, "If you have any questions, just ask them directly, and I will answer them one by one."

  Xia Jingxing basically understands that this is a company that provides SaaS (software as a service) for enterprises.

  Enterprise software, a wide variety.

  This company belongs to the category of vertical segmentation, focusing on human resource management.

  Enterprises purchase software services annually, and use Workday software to help their company do performance evaluation, salary planning, and optimize employment costs.

   Take an example: when performing performance analysis, not only can you see the link between employee performance and salary, but it can even be traced back to the channel through which the employee was recruited.

  The American enterprise software market is booming. Even a small business with more than a dozen people will buy and use B-side software.

  The domestic SMEs lack the awareness of this aspect, and many of them are still using native methods to manage their employees.

  Large enterprises generally choose customized services and do not use SaaS services.

  So compared with the United States, even more than ten years later, two decent enterprise software unicorns have not been born in China.

  The enterprise software companies in the US market are living very well. Oracle and Salesforce are all large companies with hundreds of billions of dollars.

  Satisfaction returns to satisfaction, but Xia Jingxing still has to pretend to be provocative. The promise is too refreshing, and then the valuation will not be easy to talk about.

   "As far as I know, Oracle intends to let PeopleSoft continue its low-price strategy for a period of time until it defeats you."

  Xia Jingxing spread out his hands, “If you guessed correctly, the seed customers on the working day must come from the old customers of PeopleSoft, because everyone has a certain friendship.

  But if PeopleSoft provides more mature and stable services and has an advantage in price, the friendship will not stand the test. "

  Duffield smiled, “You’re right, no matter how good a friendship is, it can’t stand the test of interest.

  But Darren, have you thought about it? Why is Larry Ellison so afraid of us? "

   "Afraid of you?"

   Xia Jingxing asked, tilting his head.

  Dufield looked confident: "Yes, if he is not afraid of us, why bother to engage in low-price competition strategy and threaten investment institutions in the venture capital market?"

  Xia Jingxing shook his head, "It's not necessarily because I'm afraid of you, but maybe I want to eliminate all the factors of instability?"

  Although the old man was very old, he was very quick in thinking. He immediately caught the flaw in Xia Jing's jargon and said along the way:

  "Like Darren, you also admit this. For Oracle and PeopleSoft, the working day is an unstable factor.

  If our unstable factor develops, it may become a spoiler, causing Oracle's 10 billion dollars to be wiped out! "

   "I don't deny that working days pose a certain threat to PeopleSoft!"

  Xia Jingxing looked at the old man’s eyes and said sincerely, “Because Oracle’s acquisition of this time was obviously not satisfactory. It acquired the company’s assets, but let go of its most precious asset—talent.”

  Hearing Xia Jingxing’s comment on Oracle’s acquisition, the old man couldn’t help but a smile on his face: “Yes, Dai Lun, because it’s a hostile acquisition, Oracle is destined to be unable to successfully receive everything from PeopleSoft.

  Leaking through the fingers, all will flow to the working day, including talents, customers, etc. "

  Xia Jingxing waved his hand, “We don’t need to argue about the company’s threat to Oracle on working days. What I want now is an answer.

  Please tell me, how do you deal with Oracle’s suppression?

  This issue is very important, and it is also the basis of financing negotiations. "

  "Oracle and PeopleSoft cannot monopolize the entire market. We are negotiating with several large companies. If we win them, it will serve as a vane."

  Dufield asked Busri to carry a few stacks of documents, and handed them to Xia Jingxing, all of which were agreements of intention to cooperate.

  Xia Jingxing looked through it carefully, and can only say that the old man's industry prestige is indeed high. The company has only been established for a few months, and it has pryed the original PeopleSoft's major customers.

  No wonder Larry Ellison is so crazy, this is really wanting to make people spend 10 billion dollars in water and buy an empty shell.

  “This kind of relational business is destined to be unsustainable for a long time. If you want to attract more small and medium customers, the focus must be on the product itself.”

  Xia Jingxing gently put the file back on the desktop, and said lightly.

   "Yes, so we recently organized a meeting with technical backbones to discuss, and plan to upgrade PeopleSoft's original human resource management software to solve the original shortcomings or defects in one fell swoop."

  The old man shrugged and said, "At that time, the customer will know which company's product to choose."

  At this moment, the concept of cloud computing has not yet become popular, and the company has obviously not thought about it in this direction on weekdays, or it has been working hard in this direction, and it is still not aware of it.

  Xia Jingxing also didn't want to go to the seedlings to encourage him now, not to mention that the investment hasn't been wiped out yet, so it is not his turn to point out.

   asked a few more questions, and the old man gave answers one by one.

   "Okay, let's talk about valuation."

  Dufield nodded, which was exactly what he wanted.

   "Mr. Lin said, do you want to raise 10 million US dollars at a post-investment valuation of 200 million US dollars?"

  Dufield said sternly: "Yes, a few months ago, when the company was first founded, I, Boothri, and Graylock invested a total of 15 million U.S. dollars. At that time, the company was valued at 100 million U.S. dollars."

   Hearing this, Xia Jingxing felt a little bit insincere and suspected of driving up his valuation.

   smiled, and slowly said: "The working day was established in March. It has only been less than half a year, and the product has not been officially launched on the market. The valuation will not double, right?

  Furthermore, the A round of financing during the working day is not supported by actual products, and founders have joined it. It is more similar to the seed round and angel round of financing, right?

  Mr. Duffield, although Vision Capital was established for a short time, we are not completely ignorant of the industry. "

  The old man looked calm, "Human resources software is a tens of billions of dollars-level track, and the market potential has been verified by PeopleSoft.

  It is no exaggeration to say that the current 70 engineers in the working day, coupled with the industry experience of me and Busri, can be valued at 100 million U.S. dollars.

  In addition to the current semi-finished software, I think the valuation is 200 million US dollars, and there is no problem at all. "

  Xia Jingxing knows that even if the conversation with the founder is more harmonious, but when it comes to issues such as valuation and equity dilution, no entrepreneur is willing to give in easily.

   and the old man fought over words for a while, and no one would give in.

  Busri, who has not intervened much, jumped out at this time and said: “Dylan, let’s do this, let’s give in a little bit and raise 20 million US dollars with a post-investment valuation of 200 million US dollars.”

Duffield deliberately frowned, and sighed after a long while: "Hey, it's okay, Darren, you are an investor who understands the corporate market. I had a very enjoyable conversation with you today. Working with you, it shouldn't be What a bad choice."

  The two sang and played together, cleverly, and they wanted to take down the young investor in front of them.

  Xia Jingxing didn’t take this set, and compared it with a finger, "10 million US dollars, 10% of the shares, this is our final offer, you guys think about it."

  After speaking, Xia Jingxing will get up and leave.

  Seeing that the two did not intend to stay, Xia Jingxing had to play the trick to the end and really left.

  …………

  …………

  For the next week, Duffield called Xia Jingxing every day to negotiate valuations.

  In the end, both parties stepped back and reached an agreement with a valuation of 135 million US dollars before the investment and 150 million US dollars after the investment. Envision Capital invested 15 million US dollars in the working day, accounting for 10% of the shares.

  The old man didn't want to dilute so much equity, but Xia Jingxing made some concessions on the valuation, so he considered it and agreed.

  Xia Jingxing is generally satisfied with this result.

  He can’t really push the old man to the corner, because the old man has cashed out 600 million US dollars through Oracle’s hostile acquisition, and even after paying taxes, he still has four to five billion US dollars.

  The reason why I did not choose to inject capital by myself, but from external financing, is that the old man does not have much confidence at present, and the company will definitely be able to make it.

  Xia Jingxing clearly remembered that in the subsequent rounds of financing during the working day, the old man added up to invest 100 million US dollars, and until the company went public, he was still the controlling shareholder.

  So, apart from this opportunity, after the software is officially listed, there is basically no possibility of regaining equity.

  After the investment intention agreement was drawn up, Xia Jingxing also tentatively asked the old man: According to a valuation of 200 million US dollars, an investment of 40 million US dollars and obtaining 20% ​​of the equity will work?

  This proposal was rejected by the old man without hesitation.

  Because of the additional financing of more than 20 million U.S. dollars, it is not very helpful from the working day. They have enough funds now to support the software until the software is listed.

  After the software is listed, if it succeeds, its valuation will skyrocket; if it fails, everything will return to zero.

  Although you can get more funds in your hand, try it a second time.

  But the old man has his own ideas. If he really fails, he will retire completely and stop tossing because the times no longer belong to him.

  (End of this chapter)