Those Years When I Was Forced to Top the Forbes List

Chapter 165 An Unpleasant Negotiation

Chen Xuebing hadn't finished speaking.

"The company's current funds are completely insufficient to cope with development. In the coming year, the parent company will continue to inject capital. If you are given equity as soon as you join the company, your shares will be diluted significantly."

"Moreover, the development of this product may not be successful, and the funds invested by the parent company during this period may be lost."

"In a responsible manner towards our employees and the company's development, we are still wholly owned by our parent company."

"About a year later, Singularity Technology will confirm the project's R&D progress, make a final investment, and then ask an authoritative review agency to evaluate the company's value. It will then carry out a shareholding reform at one yuan per share, at which time technical talents and founding members will receive shares."

"you"

Chen Xuebing poured a glass of water for the two of them, and then smiled at Lin Bin and said, "I don't know how you calculated the valuation of Qidian Technology. I don't think it's that high right now. I think the company is worth 20 million right now, so I'm giving you 3 million shares plus an annual salary of 1 million. However, a year later, I will make sure it's worth more than 100 million through capital injection."

Now we're talking about equity, so valuation suppression is necessary.

We must also give them confidence.

Chen Xuebing's attitude of going all out even at the cost of losing money left the two of them speechless.

Before Lei Jun brought Lin Bin here, he told Lin Bin that the company's boss was a very insightful investor. Once the company had a concept, it would quickly enter into capital operations, introduce a large number of investors, and start a money-burning mode. In addition, with Lin Bin's understanding of Microsoft's Windows Mobile system, they would soon be able to make the first domestic flagship smartphone and start the second round of fundraising.

This is the path a tech company should take!

And now.
Lei Jun couldn't help but click his tongue: "President Chen, you're also an investor. How can a company do this? Since the risks are unclear, you should have brought in capital from the very beginning to share the risks!"

As he spoke, he lowered his voice and said, "The mobile phone market is a world-class, top-tier market. With Lin Bin joining us, many people will definitely be optimistic about it. That way, when you're short of money, other investors will be there to help you find a solution!"

Now Chen Xuebing suddenly understood what Lin Bin meant by Series A funding.

Lin Bin felt that he was only worth a Series A funding round.

Chen Xuebing's face slowly darkened, and he snorted coldly, saying, "President Lei, according to you, that's not about being optimistic about the market, but simply believing that investors will be optimistic about it. My thinking is different from yours. I genuinely believe in this market and want to delve deeply into the technology. Capital marketization can drive technology, but a completely capital market-oriented mindset won't produce good technology. If there are seven people on the board of directors, and six of them only want to make money, then that company will only become a marketing tool. A company that prioritizes marketing will never become a century-old enterprise."

These words are actually a debate between Huawei and Xiaomi.

After a series of events, including the waste of 5G investment, the suppression of Huawei's chips, and the cost issues caused by SMIC's multiple exposure technology in manufacturing chips for Huawei, which led to inflated mobile phone prices, Huawei's reputation declined. Meanwhile, Xiaomi's continuous efforts to "bring down prices" and promote technological equality have significantly improved its reputation.

People's expectations for it are also rising.

Indeed, Xiaomi is an outstanding company that brings benefits to everyone through its low-profit, high-volume sales strategy, and its position is indispensable.

The debate over whether Xiaomi or Huawei is superior is a matter of personal opinion among netizens, perhaps without even the netizens themselves having considered arguing about it.

A mature person shouldn't think about things this way.

However, looking at the long term and considering only lifespan, Chen Xuebing can conclude that Xiaomi's market-oriented approach will not outlast Huawei's, and its low-price mentality could be completely changed at any time due to a change in leadership or Lei Jun's personal ideology.

This is similar to Alibaba, which was once at the top of the domestic market and enjoyed a legendary status for ten years, but all of that couldn't withstand the negative impact of a bad IPO. A thousand years of hard work burned down in a single day.

Fundamentally, Xiaomi's technological foundation is too shallow, unlike Huawei's consistent approach of self-development and localization of the supply chain.

Having witnessed so many cautionary tales, Chen Xuebing has long since lost his mystique towards all influential figures. He doesn't want to become a marketing legend like Lei Jun, nor does he have the means to become like Ren Zhengfei, who holds only 1% of the shares and controls the narrative through the company's articles of association.

He's only 20 years old and not a born business genius. If he loses his foresight in 2024 and doesn't have a great technological foundation, he'll be left with a pile of money to retire before he turns 40. Otherwise, the money he earned will be gone in the same way.

The world after 2024 is unpredictable, with increasingly intense technological and geopolitical shifts. It is so exciting and unknown that he does not want it to end prematurely.

At that time, he needed to stand on a high place to observe.

Whenever he thought of these things, his heart became unwavering.

"Mr. Lin, what I value most about you is your technical skills, not your senior management position at Microsoft. Coming here will mean enduring hardship, perhaps even more so than at Microsoft. I can only guarantee that you won't be shortchanged financially. Also, you need to consider whether you can give up your US green card and remain a pure Chinese citizen, just like before you went to the US to study. Otherwise, you'll only be able to work in software, and you won't be able to get involved in the IC department."

After Lin Bin went to the United States, he obtained a green card. In his previous life, he had always been an American citizen. His boss, Kai-Fu Lee, gave up his green card and returned to China completely, but Lin Bin remained an American citizen.

This point must be made clear.

Chen Xuebing's "Don't say you weren't warned" completely killed the conversation.

Lei Jun was so embarrassed that he dug his toes into the ground, and his tone hardened.

"Which company doesn't want to accumulate its own technology? But we should embrace the world with an open attitude! Mr. Chen, your thinking is too authoritarian! How can you interfere with an employee's personal choices?"

Chen Xuebing then smiled, took the cup from his hand, and poured him another cup as a gesture of goodwill.

"I didn't interfere at all, I was just talking about the IC department."

His words were both soft and firm. He had just said that the company wanted to develop its own IC design, and if he couldn't get in touch with a core department, it meant that Lin Bin would not be able to enter the core management team in the future.

Lin Bin wasn't actually angry. He was born and raised in Guangzhou, and even got a spot at Sun Yat-sen University for four years before going abroad for graduate studies. It wasn't that he lacked Chinese sentiments.

He was just a pragmatist.

Since he's already here, he's not going to walk away just because of a question involving an American and a Chinese person.

To be honest, he was not used to this way of chatting. From downstairs until now, this Mr. Chen had not talked about anything, but about money first.

"Mr. Chen, you haven't clearly explained what you're doing, so how can we talk? I understand that you mean your first-generation product can only be released after you complete the independent chip design, is that right?"

This criticism made Chen Xuebing cough awkwardly.

He was indeed a little too wary because the other person was an American.

"No, it's a self-developed product. My idea is to eliminate at least two generations of designs before using them in-house. The first generation chip is tentatively from Samsung; we're currently in talks with them about customizing the system-on-a-chip, which should be ready around the new year."

Before he could finish speaking, Lin Bin interrupted, "Samsung can't do it. They just received an order from Qualcomm in the US. They were planning to have Qualcomm manufacture a Windows Mobile 5.0 phone chip they were developing this year. It's a big company, but they still refused. They don't have any plans to produce it themselves for the time being, and their production capacity is insufficient. Samsung staff will meet with you, but you'll definitely have to wait a long time for the order, maybe two or three years. Of course, if you don't need customization and just want to buy their existing chips, they will sell them to you."

He spoke very decisively, and then asked, "What about the phone's operating system? Is that also self-developed?"

Chen Xuebing's heart sank.

He was planning to place an order with Samsung as soon as possible, hoping to snatch Apple's business, but he didn't expect that Samsung was already in operation.

However, we cannot give up just because of Lin Bin's words; we still need to talk.

"We have established many different operating habits from previous mobile phones, and the mobile phone system will definitely be self-developed, based on LINUX 2.6."

"How big is the screen? Could you describe your operating habits?"

Chen Xuebing stroked his chin, thought for a moment, and then simply said, "Full screen, 3.5 to 3.8 inches."

Lin Bin pondered for a moment and said, “I think you should contact Marvell. They have some very powerful embedded processors that work very well with embedded Linux or Windows CE systems, suitable for PDA phones and handheld PCs.”

Chen Xuebing's heart skipped a beat: "Perfect happiness?"

He had been eyeing established mobile phone chip factories, and this mention brought back his memories.

"Yes, this is an American company founded by overseas Chinese from Indonesia. Mr. Chen, if I can help you negotiate OEM manufacturing and develop your first generation of Linux-based smartphone system within a year, how many shares would you be willing to give me?"

After discussing several key issues, Lin Bin finally started talking about money.

As for the other supply chains, Lin Bin didn't even ask, as if they weren't a problem. Chen Xuebing sighed inwardly.

Damn, no wonder Xiaomi is doing so well.

That's the allure of top-tier talent.

Sometimes, Americans are pretty good too.

"Tell me, how many do you want?"

Lin Bin smiled slightly: "I heard you say you plan to invest 100 million to secure the investment. I originally planned to ask for 10 million, but considering your personality, I might not be respected enough. How about 15 million shares? I need to guarantee my voice in the shareholders' meeting so that I can receive the respect I deserve. Also, if I decide that you can't make a phone after I get the shares and decide to withdraw, you must guarantee to repurchase the 15 million shares at one yuan per share. Furthermore, the guarantee of the investment must be signed in the contract, and you will personally bear the liability for breach of contract. Of course, if you go bankrupt during this period, I will not pursue the matter."

The arrogance of a cultured person suddenly surfaced the moment the conditions were proposed, sweeping away Chen Xuebing's previous haughty attitude.

"make a deal!"

Chen Xuebing, however, was all smiles and agreed without even a moment's hesitation.

Do you think you can guarantee control with just 1500 million shares?
Ha ha.

When I say I'm betting 100 million, that's the minimum 100 million.

Lei Jun, who was standing nearby, underestimated Lin Bin's decisiveness and stood up with a sigh of regret:
"Hey, he's so disrespectful, don't work for him anymore! I'll find you another company!"

That being said, Lei Jun also knows that it is very difficult for a technical talent to find a company that recognizes their worth and is willing to generate 1500 million yuan in revenue per year.

"Who said I'm disrespectful?" Chen Xuebing was in a much better mood. He sat down next to Lei Jun with a sheepish grin and forcefully put his arm around Lei Jun's arm.

"Mr. Lei, I grew up reading your reports, you're my idol! Come on, come on, a new water park sauna just opened in Luohu. You've come all this way, I'll definitely treat you well! Oh, and Li Xueling is downstairs too, call him over!"

"you"

Lei Jun struggled for a moment, but found that the other party was incredibly strong and he couldn't break free at all.

A sense of foreboding flashed through his mind.

This kid is so reckless; if he enters the internet industry, it will surely cause a bloodbath.

If someone were to suddenly challenge an internet founder they knew to a duel outside the courthouse, like Li Yanhong and Zhou Hongyi did, probably no one could beat them.

"What are you doing! I came all the way from Beijing to check your phone!"

"Hey, look! I'll definitely show it to you after President Lin signs the contract! By the way, Li Xueling recommended a project to me, let's talk about it."

"What project?"

"It's called UC, they make mobile browsers."

Why didn't Li Xueling contact me?

"Hehe, we're all under someone else's roof."

He went downstairs and brought Li Xueling, who had just moved her whole family to the third floor of Henggang Building.

Four people shared a meal of Chaoshan beef.

A sauna and a hot spring bath.

Gurgling.

After steaming in the wooden sauna for a while, the feeling of happiness returned.

Lei Jun originally came here to befriend Chen Xuebing. Now that he wants to enter the investment world, Chen Xuebing is a private equity firm and has his own views on the internet, so they will inevitably have to deal with each other in the future.

After chatting for a while, their relationship warmed up again.

Lying on the sofa in the living room, we chatted briefly about UC, which Chen Xuebing had mentioned earlier.

Li Xueling draped a hot towel over his forehead, his chubby toes twitching like a Taiyi Zhenren from the animated film "Nezha." He didn't seem to care much about the investment, and casually said:
"What?"

He Xiaopeng.

"I used to be an employee of NetEase."

"When I started my business, I was a little short of funds. Ding Lei lent me 80 yuan and also lent me an office, which was right next to my office. That's how we met."

"They make mobile browsers, which I've tried. They're pretty good, but the market doesn't keep up. They're lukewarm, and they quickly run out of money."

"I recommended him to Yu Yongfu of Lenovo Capital, but the investment committee of Lenovo Capital rejected it."

“When I went to Mr. Chen’s company in Chongqing, I happened to remember this matter and mentioned it to him. I didn’t expect Mr. Chen to be so interested.”

"Oh?" Lei Jun turned his head: "Why are you interested?"

Chen Xuebing smiled.

why?
Because they later sold it to Alibaba for 300 billion.

Now, with an investment of only 200 million, you get 10% of the shares.

A return of 1500 times.

It's said that Li Xueling, this social butterfly on the internet, is a lucky charm; she knows a bunch of people who are capable of great things.

He Xiaopeng didn't just work on UC; he also started XPeng Motors.

He had been envious of that flying car since his past life.

"Anyway, I've invested 400 million, 20%. This browser will be included in my phone when it comes out. Whether you follow suit or not is up to you."

Chen Xuebing still had to rely on Lei Jun. In his previous life, Lei Jun had invested in this project and even served as chairman for two years. Without him, it's hard to say whether the project would have been done so well.

Upon hearing Chen Xuebing's clear statement, Li Xueling sat up abruptly.

"You really want to invest? 400 million??"

Lei Jun was also thinking about it; Chen Xuebing wanted to invest and provide support, so it seemed like a business opportunity.

"What company is it? Does Xue Ling have any information? Let me see."

Li Xueling immediately got excited and was about to get up: "You all vote? Then I'll call He Xiaopeng and ask him to send over the materials. We can talk about it over lunch this afternoon!"

Chen Xuebing quickly raised his hand.

"No, no, no, I have an appointment this afternoon. I'll have someone arrange accommodation for you later. We can talk tomorrow."

Besides meeting Lei Jun and Lin Bin, he had another important matter to discuss when he came to Shenzhen.

I need to visit someone.

(End of this chapter)