Rebirth Tokyo 1986

Chapter 384 Requires More Investors

"Your company offers excellent benefits. Thank you for your recognition, Chairman Takeshita. However, I need to resolve my contract with Texas Instruments first before I can sign a contract with your company."

"It's natural."

Takeshita Masato nodded, then turned his head and instructed, "Mike, go to Texas Instruments and handle Mr. Wang's contract."

Mike, president of Xinghai Group's US branch, said confidently, "President, please rest assured, it will be resolved in a month at most."

Xinghai Group and Texas Instruments have many collaborations, and Texas Instruments wouldn't make things difficult for their own company over a department-level employee.

"Okay, try to be as fast as possible."

"Yes."

As expected, Texas Instruments did not make things difficult for Zhang Rujing. He was allowed to leave the company after only one week.

When Xinghai Group and Zhang Rujing signed the contract, he only glanced at the other clauses after his lawyer had reviewed them. The only clause he insisted on including in the contract was the investment in Chinese wafer manufacturing, along with a specific timeframe.

"Yes. Xinghai Group will definitely build a wafer fab in mainland China within two years, with an investment of no less than US$10 billion."

This was part of Xinghai Group's future strategy, so Masato Takeshita naturally wouldn't refuse.

He even wanted to build an 8-inch wafer fab in Shanghai, Beijing, and Guangzhou in one go, covering the three most promising regions in mainland China.

With money, one can naturally do whatever one wants.

"I'm sorry, President, you must have made me laugh."

Zhang Rujing felt a little embarrassed, wondering if he had been being petty.

However, considering the situation of his homeland, he still felt deep down that he had to do it.

Be careful today, so that our motherland can get on the fast track tomorrow.

"This is all as it should be. Is there anything else you require?"

"Yes, there is another requirement."

Zhang Rujing crossed his arms, pursed his lips, and said awkwardly.

“I can only sign a 5-year contract with the company, and I am willing to return the housing and job provided by the company when I leave.”

"Sigh, there's no reason to ask for something back once it's been sent."

The young man waved his hand and refused, saying that it was just a few villas, and Xinghai Group could afford to give them away; there was no reason for them to be taken back.

Besides, these are the bonds between employees and the group. If employees succeed in the future, they may be able to help the company in its business.

For example, after Lou Gerstner became president of IBM, the two companies, which previously had little cooperation, had much more business together.

The same was true for Cisco; after Chambers took over as president, the collaboration between the two companies immediately increased by more than 50%.

A few villas are just a drop in the ocean compared to the new partnerships.

Then, with a vague suspicion in his mind, Takeshita Masato asked softly.

"Mr. Zhang, can you tell me why you're only willing to sign a 5-year contract?"

“I want to start my own business. If the chairman doesn’t contact me, I will retire early and start my own semiconductor company.”

really!

Masato Takeshita had already guessed it, but he didn't say it aloud. Instead, he smiled and gave a thumbs up in praise.

“A very ambitious idea. When you start your company, Xinghai Group is willing to invest and support you.”

"Really? Thank you, Chairman."

Zhang Rujing was somewhat surprised, but secretly pleased to have joined such a magnanimous company.

However, considering Xinghai Group's reputation, it seems quite natural.

Without such a broad mind, it would be impossible to achieve such high praise from both the general public and the elite around the world.

"Not at all, we just hope that Zhang Sang won't refuse us when the time comes."

"Definitely not, the more investment the better."

The two became increasingly happy as they chatted, because they both shared a desire to contribute to the development of China.

Zhang Rujing's true nature was outwardly apparent, while Takeshita Masato kept it hidden in his heart.

The young man also wanted to stand out, but his status prevented him from doing so.

However, his children in China will inherit most of his wealth in China and realize their own dreams.

After the events in the United States were over, Masato Takeshita took the opportunity to visit Silicon Valley.

"So, how have you felt after all this time?"

"If I had to describe my feelings, the biggest impression would be that the internet industry here is developing very rapidly, and our country needs to catch up with its development as well."

After arriving in the United States, Shinji Kikuno remained steadfast in his belief in his chairman's speech about the future.

The internet industry will absolutely trigger an industrial revolution worldwide.

If Japan had not joined in time, it might have missed out on an entire era.

"Don't worry, our company has been working hard on this all along, hasn't it?"

If asked what Xinghai Group's greatest contribution to the internet industry is...
That's definitely the Xinghai Internet Cafe Alliance, which opened stores all over the world 5 years ahead of schedule.

Since the establishment of the Starry Sky Internet Cafe Alliance, the gap in computer internet access between the United States and other developed countries, as well as between developed and developing countries, has been significantly narrowed.

The United States will no longer have the same strong first-mover advantage in the internet as it did in the past.

Other countries can have more internet users earlier and launch websites that suit their citizens' lives more quickly.

While the center of the internet industry remains in the United States, signs of secondary centers are emerging in Japan and Europe.

The internet wave in developing countries is expected to arrive even earlier, leading to advancements in internet technology worldwide.

"Yes, I've seen the relevant information, but I feel it's still not enough. I think our Xinghai Group needs to do this, this... to be sufficient."

Shinji Kikuno abandoned his previous conservative approach and hoped that the company would also establish a venture capital firm or department in Japan to encourage high-tech talent in Japan to start internet companies.

"That makes sense. We definitely need to increase support for Japan's internet industry."

Masato Takeshita somewhat agreed, because a healthy internet system certainly cannot rely on just one company.

If the Japanese internet industry can innovate more, the Xinghai Group can also draw strength from it to make progress.

As long as Xinghai Group controls a few key sectors, it can remain invincible.

Even if it declines, it will simply become one of China's search companies in later generations. It will no longer be a leader in the internet industry, but it can still make a lot of money.

Having made up his mind, the young man raised his head and asked seriously.

"Japan lacks talent in this area. Do you have any suitable candidates?"

"Masao Shimizu is very good; he has excellent leadership skills and insight."

"Okay, have Shimizu-san come over here for a moment."

"Okay, President."

A short while later, Masao Shimizu arrived at the president's office, led by his secretary.

He first gave the two men a respectful question, and then, after receiving a signal from the young man, carefully sat down on the sofa with one side of his bottom.

"Is such that……"

Takeshita Masato briefly explained his reasoning, then asked him if he would like to return to Japan.

"Thank you. I'm very happy to receive the president's recognition; it's my honor."

Such a good offer, Shimizu Masao naturally agreed without hesitation. Why did he come to America? Wasn't it for a promotion and a raise?
It's important to understand that the United States is far inferior to Tokyo, Japan, in terms of safety and environment. Furthermore, there are significant differences in lifestyle between the two countries.

If it weren't for the chance to get a promotion, he would never have wanted to come here in his life.

"Okay, it's settled then. You can hand over your work now, and we'll see you next month."

"Yes, President!"

After Masao Shimizu left, the two stopped discussing the Japanese internet and continued talking about the progress of the American internet industry.

"Yahoo is progressing so fast that I can hardly keep up."

"However, it also cost a lot of money, so we may need to raise a third round of financing."

Hearing Shinji Kikuno's exclamation, Masato Takeshita remained unmoved.

The internet industry is characterized by its early-stage spending spree.

If a company can still make a profit after burning through all its money, then it's an excellent company.

For example, China's Tencent, Alibaba, and ByteDance, or the United States' Facebook, Google, and Amazon.

If a company has a very large influence in a certain field after burning through all its money, then it is barely acceptable.

Bilibili (B站) in China is a classic example.

Despite losing money every year, the company still manages to gain investor approval by dominating niche markets such as anime and manga videos.

If all the money is burned through and there is no profit, and the investment has no advantage in the niche market, then it is a failed investment.

There are many companies of this type, dozens of times more than the former two.

However, the current internet market is still in its early stages. As long as the company founders are good at marketing and exaggerating, and the investors behind them are powerful enough, there is a very high chance of making a fortune.

Because most investors had overly optimistic expectations for the internet industry, the entire internet market was very immature. Therefore, even those with substandard qualifications could easily go public.

In a previous life, there was an internet company in China that used a Linux operating system as a shell and successfully listed on NASDAQ in the United States.

This company shares an office building with early versions of Tencent. After going public, they even treated Pony Ma and other owners and employees in the same building to roast suckling pig.

But these kinds of companies make money through unethical means, and Masato Takeshita would never go down that path.

"So what are Yang Sang and David Sang thinking now? Are they going to introduce new competitors?"

"I estimate so, but the asking price is too high and we haven't been able to finalize it yet."

Jerry Yang and David Filo certainly wanted to bring in more competitors to prevent the company from losing control.

However, the reality is that everyone's focus is currently on Netscape, and there is some disdain for Yahoo, with many not agreeing with the two companies' asking price.

"Oh, what's your valuation for Yahoo?"

"One hundred million."

"It's alright, not too many. Has no one made an offer?"

Masato Takeshita's thinking on the internet is still largely stuck in 2025.

Back then, in the internet industry, if any company showed signs of rising to prominence...

Let alone $100 million, there would be people scrambling to invest even at a valuation of $1 billion.

However, the young man quickly realized that this was the 1990s, and people's understanding of the Internet was not so clear. Most investments were small-scale, trial-and-error.

Yahoo's previous valuation had already left everyone in disbelief.

A valuation of $1 million is indeed a bit daunting.

Therefore, he quickly added, "I forgot that the internet is a relatively new and niche industry, and people tend to be more conservative in their investments."

"No, it's not the chairman's fault. Everyone will realize sooner or later that Yahoo's valuation is reasonable."

Shinji Kikuno also agreed with Jerry Yang and his colleague's valuation of Yahoo, which is one of the most popular websites among Americans.

Even if it were $1 million, let alone $2 million, it would still be a worthwhile investment.

At that moment, a name suddenly flashed through Shinji Kikuno's mind.

"By the way, Chairman. Masayoshi Son, the president of our national software company, wants to try investing in 1% of the shares and is willing to pay $350 million for it."

Masayoshi Son wants to invest in the internet industry, but he's a little unsure.

He hopes to use this small investment to carefully observe the operating rules of the internet industry.

"Okay, agree to it."

Masato Takeshita was pleased to see Masayoshi Son invest in Yahoo, because the internet industry lacks investment giants like him.

This audacious investor can continuously invest heavily in internet companies, thereby attracting more people to invest in the internet industry and then igniting the internet worldwide.

As for Masato Takeshita, he dislikes prolonged media exposure and prefers to quietly complete his investment plans.

While Sequoia Capital doesn't prefer to remain hidden like Masato Takeshita, they also hope to attract more investors to the internet industry.

Many hands make light work; in industries with only a few investors, it's difficult to quickly go public and cash out.

Extensive exposure and a flood of investors throwing money at the problem are exactly what Sequoia Capital wants to see.

"Yes, President."

"By the way, we must take Yang Sang and David Sang's opinions seriously."

"Don't worry, Chairman. They are very willing to invest small amounts of money, and they even hope that future investors will do the same."

The best investment strategy for company founders is naturally to raise small amounts of capital when they are short of funds.

In this way, they will have the opportunity to retain more shares.

The founders of later companies like ByteDance followed the path of raising more rounds of funding, raising only a small amount of equity in each round.

However, only popular internet companies can afford to do this.

In the early stages, or for companies that are not yet fully developed, they need to be mindful of the investors' opinions.

The founder has to give up whatever amount of stock the company wants to raise.

Of course, investors won't be too greedy.

It would be terrible if the founder felt the shares were too small and simply withdrew from the project.

Therefore, generally speaking, each subsequent round of financing rarely exceeds 20%.

You should reserve a certain percentage of shares for the company founders to prevent them from backing out before the IPO.

As for what happens after the company goes public, they can use any means necessary. Because for the vast majority of venture capitalists, the IPO of their invested company is a victory.

"That's good. We are outsiders, so we must value the opinions of the company's founders."

Xinghai Group must be the strongest supporter of the company's founder, because once the founder is excluded from the company, Xinghai Group will quickly lose its influence.

Yes, when Masato Takeshita invests in the US internet industry, what he values ​​most is not making money, but the industry's influence.

He certainly didn't want his company to become a chrysanthemum factory, subjected to relentless suppression by the bald eagle.

As for making money, that's a secondary condition. It's good if he does, but it won't affect his investments in related industries if he doesn't.

In addition, Xinghai Group's active support for the founder has another major benefit.

American internet companies are more willing to accept investment from Xinghai Group.

Penguin has adhered to this investment philosophy overseas, which is why the global gaming industry is happy to accept Penguin's investment.

Even some game companies that can consistently make money are begging Tencent to acquire them.

(End of this chapter)