Rebirth 76: Industrial Internet Empire

"While the capital chain is not broken yet, talk to Amazon. Mergers and acquisitions or overall sales are acceptable!"

"The future of e-commerce is uncertain. With just a click of the mouse, you can find out the lowest price on the entire Internet. No matter what company, on the e-commerce platform, they will face a fierce price war. I still think it is safest to cash out and leave!"

Jeff Bezos felt a sense of sadness in his heart. In the face of a crisis, capital will not be with you in the same boat. Their first thought is to abandon this broken ship that may hit the rocks and escape.

"Everyone, Amazon has only temporarily gained the upper hand. E-commerce is a potentially large market worth tens of billions or even hundreds of billions. As long as Cadabra successfully obtains financing, it can catch up. To say the least, even if we cannot compete head-on with Amazon, You can completely cultivate a certain niche, gain a foothold, and then seek development!” Jeff Bezos himself has also lost the confidence to compete with Amazon.

"Deeply exploring subdivided areas?" Valentin asked with interest.

"Yes! For example, our current profitable music store, or starting from electronic products, Amazon takes a broad and miscellaneous route, we go in the opposite direction, take a specialized and refined style, and form differentiated competition!" Jeff Bei Zoss explained.

After pondering for a long time, Valentin nodded and said: "This is a good idea! Just like a music store buying out the exclusive online sales rights of Sony/Columbia Records, we can also cooperate with leaders like Nokia, IBM, and Apple. Enterprises, reach strategic cooperation..."

Jeff Bezos regained a look of confidence on his face, and said eloquently: "Even if we cannot reach strategic cooperation with these leading companies, I am still confident to convince them to produce different models of products specially for various sales platforms. After all, Suppliers also don’t want their products to remain in a fierce price war!”

Jeff Bezos worked hard and finally convinced the employer to agree to advance Series B financing.

Cadabra's valuation in the capital market has reached 6500 million, and the board of directors unanimously agreed to take out 30% of the equity and raise 2000 million.

Although the valuation of US$6500 million is not overestimated, the news that Amazon is about to launch a full-category e-commerce platform has still caused Cadabra’s Series B financing to receive a cold reception in the capital market, not to mention Sequoia Capital, which has been leading the investment in the first two rounds. Actively gave up this round of financing.

No one is a fool. No matter what you say, why don't you vote?

…………

Andy Ventures, Dune Road, Silicon Valley.

"Dr. Andy, Mr. Valentine is here and waiting for you in the reception room!" the assistant opened the door and came in to report.

Andy Bertelsheim pushed open the door of the reception room, opened his arms, showed an exaggerated expression and said with a smile: "Mr. Valentine, long time no see! Are you okay?"

"Very bad! There are rumors in the capital market that Andy Investment has replaced Sequoia Capital and become the largest capital company in Silicon Valley. We old guys are about to be forced to leave Silicon Valley by you..." Valentine joked.

"Hahaha... If you, the "Father of Venture Capital", are also planning to leave Silicon Valley, Silicon Valley will be devastated..."

After a brief exchange of greetings, Valentine said straight to the point: "Andy, you must have heard about Cadabra's Series B financing, right?"

"I've heard a little bit, how come..."

“Is Andy Venture Capital interested in participating in Cadabra’s Series B financing?”

"Did I hear you correctly? Let Andy Venture Capital participate in Cadabra's Series B financing?" Andy looked at Valentine in surprise.

"I know that Andy Venture Capital is the major shareholder of Amazon, but this does not prevent you from investing in Cadabra. The long-term and fierce price war between Amazon and Cadabra is detrimental to the development of e-commerce. E-commerce is an industry worth more than [-] billion. The potential market is fully capable of accommodating two or even more e-commerce companies. Once you become one of Cadabra's shareholders, Amazon and Cadabra can shake hands and make peace, no longer locked in a brutal price war!" Valentin explained patiently .

Andy shook his head: "Even if Andy Venture Capital becomes a shareholder of Cadabra, Amazon will not stop the price war. There is a Chinese proverb: Don't allow others to snore on the side of the bed! It is difficult for two companies with almost completely similar main businesses to Peaceful coexistence!”

"Cadabra can make major concessions! Temporarily give up copying Amazon's full-category e-commerce model and delve deeply into a certain segment..."

"Mr. Valentine, with all due respect, this is just your verbal promise! Cadabra's controlling stake is still in the hands of Jeff Bezos. As far as I know, he is a CEO with a very tough personality and the company's strategic decisions , it is impossible to be at the mercy of the employer!"

How could Andy, who has been immersed in the capital market for many years, believe in Valentine's simple verbal promise?Although Andy has never heard the story of Mr. Dongguo and the wolf, he must not support Amazon's only competitor...

Valentin smiled and said: "Before coming, I also thought about your concerns, so I came up with a compromise plan, and we, Sequoia Capital, will come forward to help you complete the control of Cadabra!"

"Holdings?"

"Yes! Cadabra's current equity structure is that Jeff Bezos' entrepreneurial team owns 37% of the equity, Sequoia Capital 25%, and other capital companies total 38%. After Series B financing, Jeff Bezos' equity It will be diluted to 25.9%, and our Sequoia Capital will also be diluted to 17.5%. You only need to get 30% of the equity from other capital companies before the B round of financing to achieve control of Cadabra... "Valentin said.

Andy fell into deep thought. In business, it only cost less than 4000 million US dollars to control Cadabra, which was considered a good investment. Based on his understanding of Yang Mo, he was able to carefully lay out the e-commerce company, which shows that he Very optimistic about the future of e-commerce...

Valentin looked at Andy who was deep in thought, and said while the iron was hot: "If you are still not worried, you can get the 30% equity first, and then we can talk about Series B financing!"

"Jeff Bezos won't just watch the company he founded and lose control of it, right? If I were him, I would temporarily cancel the Series B financing..."

"At that time, he will be out of control! He can't ignore Cadabra's safety. If he can't get financing, Cadabra's capital chain will be broken..." Valentin promised confidently.