Seeing that Li Enhong did not lose control despite his provocation, Chen Lidong decided to stoke another fire: "Brother, you are so much older than me, and you have been with Sam for another ten years. You should know that venture capital institutions can beat people like this."

.

They will only add icing on the cake, not add unnecessary trouble.

You think they believe your company will make money, so they invest money in it.

In fact, they may not understand your technology, your industry, and they may not even understand the profit model you mentioned.

They use money to invest, and they just have to explain it to the fund members. During the annual report, they let the investors know that they have been busy this year and how many projects they have invested in.

And what about Baidu? In their reports, probably only one name will be reflected.

Venture capital doesn't care how high-tech your search engine is or how one step ahead of others your algorithm is, because investors don't understand either.

They will only talk about how difficult it is to start a business in the current environment, how hard it is for employees in the organization, how everyone is constantly looking for seeds that can be cultivated in Blue Star, and so on.

As for whether Baidu is in difficulty and whether it is worthy of support, they will not care about you.

With $1.2 million, venture capital institutions won’t feel it’s a pity even if it’s all in vain.”

Li Enhong was stunned by Chen Lidong's theory and muttered: "No way?"

Chen Lidong continued his fallacy: "Don't you understand? This $1.2 million belongs to the investor, not the venture capital institution itself. If you lose, you will lose.

You must have heard that for certain funds, as long as the water in the pool continues to grow, institutions can take more money.

So some funds simply let their investments lose money so they can get more investment."

Li Enhong argued: "Is there such a thing? Then venture capital funds must produce benefits, right? If there are no benefits, who will invest in institutions?"

Chen Lidong looked at Li Enhong with a serious expression and asked: "Brother, do you think venture capital institutions understand Baidu?"

Li Enhong recalled the scene of dealing with the other party last year.

The representative of peninsula capital is greg penner. Li Enhong had dealt with this company when he was at Soxin. Peninsula capital also invested in Soxin.

Greg Penner once said to him: "I don't understand your technology, but your experience may make you successful."

What Greg Penner means is obviously because Li Enhong has a professional background and rich experience, so he spent $600,000 to support Li Enhong. This is also the consistent practice of venture capital institutions.

Scott Walchek, the founder of integrity partners, is concerned about the development of Baidu, but the other party is incompatible with Li Enhong's entrepreneurial philosophy. He would rather copy some of the models of Soxin Search to Baidu. Every decision made by Li Enhong seems to be blocked by Scott Walchek.

walchek’s objection…

Under Chen Lidong's "provocation", Li Enhong really had doubts about venture capital institutions.

Chen Lidong continued: "Brother, have you heard of the 'September 1 phenomenon' in the investment field?"

Li Enhong shook his head.

Chen Lidong asked again: "I funded the establishment of a Mr. G studio, have you heard about it?"

Li Enhong continued to shake his head.

Chen Lidong didn't feel like he was being slapped in the face, but he said in his heart that it was just right, then just listen to me pouring chicken soup for you.

He coughed and said, "Brother, I'm going to tell you a secret. You must never tell anyone else."

Li Enhong looked at the serious expression of the boy in front of him and nodded.

Chen Lidong said: “Our Mr. G Studio discovered the ‘September 1 phenomenon’ in the stock market, that is, the ratio of those who do not make money to those who make money is 9 to 1.

And among the 10% of people who make money, 90% of the profit part is earned by a very small number of 10% of the 10% of people who make money, that is, 90% of the money is gathered in 10% times 10%

in people's hands.

That is to say: wealth will eventually flow into the hands of the one percent."

The so-called secret mentioned by Chen Lidong comes from the financial classes taught by some experts in later generations.

He has the professional title of "Chen Huyou". He has a smooth talk and follows the gestures with 10 fingers, and he actually fooled Li Enhong.

Chen Lidong continued: "This 'September 1st phenomenon' is the same in the field of venture capital. Many institutions also understand this rule, that is, out of 10 projects invested, only one will succeed.

So those who engage in venture capital just sort out the projects that look good and can convince investors, and then they allocate money. The projects they allocate money to are not of high quality, some are selected based on what you like, and some are selected by throwing paper balls.

Anyway, almost 1 out of 10 investments will be successful.”

Seeing that Li Enhong was silent, Chen Lidong added more information: "The extension of the 'September 1st phenomenon' means discarding nine and picking one, which is also the law of investment.

This is related to the second round of investment. Rounding out the nine does not mean cutting off the 9 unprofitable ones and seizing the 1 profitable one.

But even if all 10 projects make money and are worth cultivating, 9 of them should still be cut and resources should be concentrated on the best one.

Do you understand what I said?"

Li Enhong was still digesting what Chen Lidong said, and it seemed that there was some truth in it.

He also understood the last sentence, which meant that the two institutions that had invested in Baidu Angel had given up on Baidu.

Yes, it should be so.

During this period, Li Enhong contacted Scott Walchek and Greg Penner many times to seek financial support, but the two have been vague.

He had previously guessed that the other party was going to give up Baidu, but after Chen Lidong's "September 1 phenomenon" and "taking one out of nine", it was basically confirmed.

When being ignored by Li Enhong, Chen Lidong said, "Take one out of nine." However, Donghua invested in so many companies and never abandoned any of them.

Chen Lidong is still deceiving: "So, in the first round of venture capital, you just close your eyes and throw money. Whether you invest in the second round is the key. Now that they no longer invest, it is enough to explain the problem.

Brother, you are also a man. Since they gave up Baidu, it's easy to talk and part ways.

I know you are thin-skinned. Just find someone to tell them. Just say that someone is prepared to pay 12 million dollars to acquire their original shares. If you are willing, come to me. If you don’t come, forget it. I believe they will not refuse ten times the return."

Li Enhong said tangledly: "Are you intending to control Baidu by investing in the shares?"

Chen Lidong laughed: "Brother, Baidu is yours, I won't steal it.

Besides, look at Donghua, who has been doing nothing but a hammer in the past two years, how can he find the time to build an Internet company?

The 12 million dollars is invested in you, provided that you help me save the supercomputer. The shares of the two institutions will be put into your name after they are recovered. I only need 35% of the preferred shares.

Oh, I only have the right to know and supervise these shares. I will not participate in Baidu's business decisions. The 35% voting rights are also transferred to you.

Okay?"

Li Enhong hesitated for a few seconds. To be honest, Chen Lidong's approach was very effective and he was very satisfied, but he still expressed his concerns: "If Baidu goes public in the future, its shares will definitely be diluted."

Chen Lidong rubbed his brow and said: "Brother, Baidu must be listed, otherwise what would I do if I invest in it?"

When Baidu's market value reaches tens of billions or hundreds of billions, I will still use equity to raise funds.

Let me tell you, the Internet bubble has not burst, it will quietly move from Sam to China."

Li Enhong's eyes lit up: "You mean, the bubble of Baidu will also expand into a bubble in the future?"

Chen Lidong looked at the other party with an affirmative look: "Yes, Baidu will create miracles. Come on, let's work together to write a myth in the history of Chinese entrepreneurship."

Li Enhong high-fived Chen Lidong again, and the smile on his face could no longer hold back, and he finally beamed.

This trip is coming!

The young rich man Chen Lidong invested more than 20 million US dollars in Baidu. Baidu and Donghua.com are "mutual fans". Chen Lidong and Li Enhong will work together to create the myth of China's Internet...

The news came out one after another.

In late August, two Sam's Angel investment institutions pocketed 12 million U.S. dollars. The 20% equity they held was donated to Li Enhong by Chen Lidong. Chen Lidong personally invested another 10 million U.S. dollars to own 35% of Baidu's preferred shares.

This wave of operations is equivalent to advertising for Baidu.

Baidu's road will immediately open up. Baidu's official website declares: We will build the world's largest, fastest and latest Chinese search engine.

Then we quickly won a series of heavyweight customers: at the end of August 2000, we started to serve Sohu; in September, we served Xinlang; in October, we signed a contract with 263; in November, we reached a cooperation with Tom...

After Baidu obtained a large amount of funds, it began to accelerate its expansion. Li Enhong entrusted the specific affairs to his entrepreneurial partners and returned to San Francisco.

That basement began to become his curse, and he wanted to find a team to assemble and run the supercomputing center.

Chen Lidong is also very happy to hold shares in Baidu.

In some rebirth novels he read in another life, the protagonist insisted not to disturb the growth of the awesome characters, but waited for the calves to grow into adults before squaring off with them. Wouldn't it be nice to accept these adults as his younger brothers?

Look at that Brother Dong, he was just as happy and solid doing his job in Donghua.

Harvesting calves is the same as harvesting calves, it must be done as early as possible.

The children of destiny are all blessed with good fortune, and when they become powerful, they will come to get involved with you, and you won’t know who will be taken over by whom.

Chen Lidong was lying on the boss's chair, wondering how Ma Huateng and Jack Ma were doing now.

In another life, when I heard them recall their entrepreneurial stories, they all said that the past few years were difficult, but I didn’t know if they were really suffering.

On Ma Huateng's side, he once asked Zhang Xuedong to pass on information about investing in Tengxun.

However, I heard that Tengxun received a sum of money. Tengxun’s angel investment came from an institution called idg and Dongzhu’s Yingke Venture Capital. The two institutions invested a total of US$2.2 million and each held 20% of Tengxun’s equity.

While he was distracted, Sun Jing walked in and handed him an invitation letter.

On the 16-page paper, the nine large characters seemed a bit abrupt: "New Millennium, New Economy, New Internet Hero".

Damn it, the invitee for the legendary "West Lake Sword Discussion" hero post was actually Li Siyuan, the director of Donghua website.

"Li Siyuan is still in Yanjing. Luo Hao asked you to take a look at this post first. Whether you want to go or not, what to say when you get there? I still need you to explain."
To be continued...