As a mage, I just want to pursue the truth

Chapter 316 New Opportunities
The shareholder representatives present soon realized that the profits from patent licensing would not belong to either of the two companies that would be split off from Science and Technology Innovation Future.

This part of the profit will be retained by Kechuang Bio.

An important part of Ke Chuang Bio's profit comes from patent licensing, not only patent licensing for brain-computer connection technology, but also patent licensing for endorphins.

These two parts together contribute more than 80% of Kechuang Bio's revenue and profits.

In the era of globalization, there are many companies that rely on patents for their livelihood.

In the era of mobile Internet, Qualcomm is a well-known company that has taken this route.

Qualcomm is a chip design company, somewhat similar to HiSilicon Kirin. Most of Qualcomm's chips are manufactured by TSMC and Samsung.

In the previous years of the smartphone war, domestic mobile phone manufacturers were proud to obtain the latest Qualcomm chips.

Xiaomi always emphasizes at its annual flagship phone launch conference that the new flagship phones are equipped with the latest Qualcomm chips.

Later, due to overperformance, people gradually paid less attention to chips. Coupled with the economic downturn, most people changed their phones less and less frequently, and the heyday of smartphones also passed.

Even so, Qualcomm collected 15 billion yuan in patent licensing fees in a single quarter, in US dollars.

Of course, as a monopoly company that holds the technology for connecting brain-computers to mobile phones, Kechuang Biotechnology's total revenue from mobile phone patent licensing is even greater than that of Qualcomm.

After all, Apple does not use Qualcomm's chips, but instead uses Ke Chuang Bio's brain-computer connection technology.

Even in brain-computer VR, the main chips used are still designed by Qualcomm.

“I agree to split up Kechuang Future.”

Almost all the shareholder representatives present agreed to split up Kechuang Future.

Everyone realizes that a new era of VR is coming.

The brain-computer connection patent is licensed to other consumer electronics companies, which will greatly increase the penetration rate of VR.

The funds that Ke Chuang Future alone can invest in promotion and marketing are limited.

And if the giants in the consumer electronics field enter this field, consumers will be surrounded by VR marketing.

This is the power of trends.

It would be difficult for a single company to achieve a similar trend, no matter how powerful its technology is.

Taking smartphones as an example, the global smartphone shipments are 13 billion units a year. Assuming that one smartphone is eliminated every five years on average, that means the global mobile phone stock is 65 billion.

There are 79 billion people on the planet, and 65 billion of them own smartphones, which means there are 82 smartphones for every people.

The number of brain-computer connected VR devices in use is 100 million, which means less than two per 100 people.

With the entry of consumer electronics giants and various new forces, brain-computer connected VR will soon usher in explosive growth.

The shareholders present here are all Internet giants, and everyone is happy to see this happen.

I'm worried that there are no new profit growth points.

Brain-computer connected VR will soon usher in a new round of explosion.

After the meeting, the relevant news quickly spread to everyone who should know it.

Top Internet companies and top investment banks and securities firms all know that Ke Chuang Future has decided to open up the technology licensing of brain-computer connection VR to the outside world.

Ren Yu reported the matter to Pony after the meeting.

After listening to this, Pony quickly realized that this was both an opportunity and a challenge:
"Regarding the plan for redistribution of shares, this is your sole responsibility."

Ren Yu nodded and said, "Okay, I want to ask, among the two newly established companies, are we more inclined to be a hardware company or a VR system company?"

Pony asked back, “I want to hear your opinion first.

After all, it was you who attended this meeting.

What do you think the other shareholders meant at the meeting?"

Ren Yu laughed and said: “This is the downside of VR, you can’t observe other people’s micro-expressions and eyes.

But I guess everyone would prefer to get more shares in the system company.

After all, VR systems are a monopoly business.

Even if Kechuang Biotech licenses its patented brain-computer connection technology, all companies that want to enter this field must use Kechuang Future’s VR system.”

In fact, this is somewhat related to monopoly.

But Ke Chuang Future is cunning. They have always been stuck on brain-computer connection. VR is also VR. There are so many VR companies on the market, and there are so many VR systems at the same time.

If they create a new term for brain-computer interface VR, they will be fined even more severely by the Europa League and America.

After listening to this, Pony said: “The main reason is that hardware companies do not have patents for brain-computer connection VR technology.

The patent rights are still held by Kechuang Biotechnology.

In this case, it is clear that the potential of brain-computer interface VR system is much greater.”

"When redistributing equity, we also focused on the equity of VR Systems."

Tencent can be said to be one of the first companies in China to benefit from monopoly.

Whether it is QQ or WeChat, they have formed a substantial monopoly in the field of communication software.

But there has never been a monopoly on operating systems.

Mainly because Windows and Android don’t give it a chance.

Tencent did not have the ability to develop an operating system before.

Pony went on to say: “Another very important thing is that a new wave of VR is coming.

Another very important thing for us is to find good companies in the VR field to invest in.

In the VR era, this will form our moat.”

Ren Yu: “We have been trying to negotiate with Red Fox Studios, and now it’s Red Fox Entertainment.

They have been refusing to agree.

It feels like they want to go the miHoYo route.

Just keep making games and then invest the profits into the research and development of new games.”

Chihu is the company that Zheng Li had previously been involved in. Relying on the start-up capital and game engine provided by Zheng Li, it became a first-tier company in the domestic VR game field.

"Feather of the Lawbreakers" has won unanimous praise at home and abroad.

At the same time, their unique Cthulhu art style is even more popular abroad.

Pony seemed to remember something: "The founder of Red Fox Entertainment seems to be an employee of Tencent? I remember hearing you say that before."

Ren Yu nodded and said, "Yes, most of their initial team members were Tencent employees."

Pony: "Let's talk again. We can give each other the greatest autonomy."

While Pony was talking to Ren Yu about investing in the VR field, Young was also talking to Zhang Lei about the same thing.

"Zheng Li is very courageous and was able to realize that the timing of licensing brain-computer VR technology to other parties was just right.

I have spent three years building the brand, and then opened up the lower-level patented technology to the outside world. This rhythm is well grasped.”

Young was full of praise for Zheng Li. He had always admired Zheng Li and believed that he was one of the most powerful entrepreneurs in China in recent years, and he could even remove the word "one of".

Zhang Lei also has his own understanding of Zheng Li.

For any domestic investor involved in the technology field, Kechuang Biotechnology is an unavoidable case. Zhang Lei shook his head and said, "This kind of thing should not be planned by Zheng Li.

This was most likely discussed by the senior executives of Sinovation Biotechnology, and Zheng Li was the final decision-maker. "

"That's great, too. What managers are supposed to do is make decisions," Young explained.

Zhang Lei nodded and said, "That's right, we will be busy later.

We will soon be able to see the manufacturer war that we have seen in the smartphone field before.

First there was the war between hardware manufacturers, then there was the war between software manufacturers.”

Young asked, "What type of business are you planning to invest in this time?"

Zhang Lei suddenly sighed:

“To put it bluntly, investing in application companies in the VR field is no different from investing in mobile Internet companies.

In essence, both are Internet businesses, just in different fields.

Internet businesses have business model dividends and algorithm dividends. If you enter the market early, the cost of developing new customers in this track is almost zero.
The earlier you start in a new track, the more customers you can develop.

If the algorithm is better than that of competitors, it can retain users.

Ultimately, the company that has the business model dividend and algorithm dividend will be the winner. "

This is exactly the case with ByteDance. Even though it is targeting different tracks, ByteDance is still eroding the user groups in other segments.

The duration share of short videos in the mobile Internet sector is more than twice and nearly three times that of online videos.

In today's world where big data is popular, big data and algorithms help the elite class "understand" the preferences of every grassroots individual, "discover" needs that these grassroots groups themselves are not aware of, and create products that are most suitable for them.

Pinduoduo is the best product of the algorithm dividend, where the elites reap the benefits and the bottom-level people pay.

Young applauded: "The analysis is correct, so it is important to choose the right company. The first-mover advantage is important, but sometimes the algorithm dividend of the company itself can make up for the disadvantage of being a latecomer to a large extent."

“Or it could be to increase the first-mover advantage.”

As for investing in all the companies in a track, it is not a loss if the winning Gu King can go public in the end.

This kind of gameplay is more common in the biomedicine field, but it is almost impossible in the Internet industry in recent years.

Because when a company enters the C round of investment, it is the company that chooses the capital rather than the capital that chooses the company.

A company will not allow its capital to be invested in its direct competitors at the same time.

For example, in the battle between Mobike and OFO, Mobike will definitely not accept investors betting on both sides.

Even during the mobile travel war between Didi and Kuaidi Dache, the capital behind them could not bet on both sides.

Instead, the capital side forced the merger of Kuaidi and Didi.

Zhang Lei asked: "Are you planning to invest in hardware manufacturers this round?

Like the smartphone war, with the emergence of Nubia, Meizu, and Hammer.

Would you choose to invest in similar companies? "

Young said without hesitation: “No.

There is no business model dividend for hardware, and the algorithm dividends that can be enjoyed are also very few.

Hardware products compete on the ability to fold costs, the design ability to make functions smooth and easy to use, the channel ability to deliver products to consumers, and the marketing ability to make consumers pay.

It is difficult for a startup to possess all of the above capabilities at the same time.

In the past era of mobile Internet, the reason why people chose to invest in these mobile phone brands was because they were new things on the market at that time.

At the same time, the collapse of Nokia's mobile phone business and the failure of Microsoft made us realize that this is a brand new field and everyone has opportunities.

But this is not the case in VR.

Let’s not talk about companies like Kechuang Future that have already taken a three-year lead.

The VR field alone is actually very similar to the mobile Internet, and the supply chain is already very mature.

When supply chains mature, it’s very difficult for new startups to take off.”

Zhang Lei added: “I think so too.

Now it is like the second half of new energy vehicles. Those who can get the entry ticket to play are all successful players in other tracks. They have enough blood and capital to play.

In 16 and 17, the new energy vehicle industry was just emerging. The supply chain technology of brands such as Xpeng, NIO, and Ideal was immature, and it was normal for everyone to lose money.

Investors are able to accept losses and are willing to persevere.

Now, supply chain technology is mature, everyone is profitable, and new startups start from scratch, integrating suppliers and ultimately pushing products to consumers.

There will definitely be losses in the early stages, and it is not even known how many years the losses will last. Investors are certainly unwilling to invest in such a company.

Even if Rice is making cars, it has been losing money for two years, right? "

Young: “So instead of investing in hardware manufacturers, it’s better to wait for the share price of Sinovation Biotech to fall and then buy some.

Or find a way to get involved in the next round of financing for Kechuang Future.”

Zhang Lei sighed: "That's too difficult. Kechuang Future is not short of money.

And even if they ask for money, the shareholders behind it can afford it."

Young explained: “That’s not necessarily the case.

According to the information I received, Ke Chuang Future's hardware company is likely to seek financing.

Because they want to design their own chips and put them into the next generation of Pico Verse, which is a low-end product for brain-computer-connected VR. "

Zhang Lei asked: "I remember that it was rumored a long time ago that Kechuang Future would develop its own chips."

Young nodded and said, “Yes, the results are almost coming out now.

Then the subsequent chip design and manufacturing is another huge expense.

It is estimated that appropriate external financing is still needed, which is an opportunity.

I may not trust startups, but I still trust the future of science and technology.

With the support of Kechuang Biotechnology and the patent advantages in hand, Kechuang will always have a place in the field of brain-computer connection VR. "

Whether a company raises funds has little to do with whether the company has money.

Although Kechuang Bio has money, it does not mean that Kechuang Bio will invest the funds in its subsidiaries without reason.

A company like Apple is not short of money, with 200 billion yuan in liquid funds on its books, but it still seeks external financing.

For example, in 2022, Apple chose to issue 55 billion US dollars of corporate bonds in America's high-rated bond issuance market, with a term of up to 40 years.

Sometimes it's not best to pay all the money yourself.

Zhang Lei's eyes lit up after hearing this: "This is indeed an opportunity. I need to think carefully about how to make it work.

Among the projects I have known in recent years, Kechuang Future ranks first. "

Young nodded and said, “In addition, when other consumer electronics companies enter the field of brain-computer connection VR, new hot spots will be born.

In the next three to five years, investment focus will be on VR-related companies, and a group of new giants will be born.

I don’t know if I can seize the opportunity this time.”

(End of this chapter)