He Zhengcheng, accompanied by Lin Zhiling, visited numerous high-tech companies, including Yahoo, Amazon, eBay, Cerent, Compaq, and Red Hat, which KPCB was currently in contact with.
He also attended several evening events, including some charity galas. As for networking events for investors and entrepreneurs, he participated in one or two.
"The entrepreneurial atmosphere in Silicon Valley is truly insane!" Lin Zhiling exclaimed.
"But without a doubt, it's these people who are changing the world," He Zhengcheng replied.
"So you stayed in Silicon Valley," Lin Zhiling observed.
"Yes! Don't you think it's incredibly fulfilling to be deeply involved in this great era?" He Zhengcheng asked.
"I haven't thought that much, I just find it all very interesting," Lin Zhiling said.
"In my vision, the internet has only just begun, and there will be many more interesting things to come!" He Zhengcheng stated.
"Really? We can slowly wait for them to appear together," Lin Zhiling suggested.
"Of course, this is the life I aspire to," He Zhengcheng affirmed.
As they spoke, the two walked into a coffee shop where Koslin was waiting for him.
"I'd like to invite you to join KPCB and entrust you with a fund of around $300 million," Koslin proposed.
"..." He Zhengcheng lowered his head, speechless. He felt he hadn't achieved anything significant in Silicon Valley.
"How did I earn your favor?" He Zhengcheng asked.
"Your ability to have many topics of conversation with the founders of internet companies like Yahoo, eBay, Netscape, and Amazon, and to maintain a good rapport with the founders of companies like Compaq and Cerent, is an outstanding skill.
Compaq CEO, Pfeiffer, highly praised your suggestion to transform the PC business from a high-tech product into a consumer electronics product. He said it was very farsighted," Koslin explained.
"I originally intended to invest in the PC industry, but after arriving in Silicon Valley, I realized that the profit distribution model for this industry was already set: Microsoft and Intel were the dominant players.
Moreover, the widespread adoption of PCs and intensifying competition would cause this industry to lose its former appeal. Only tech companies with strong brand appeal, like Apple, would become the kings of the future," He Zhengcheng elaborated.
"So you're optimistic about Apple?" Koslin inquired.
"That's right. After such a long period of refinement, Steve Jobs has finally found his positioning and is now an excellent manager. I am optimistic about Apple's long-term development potential," He Zhengcheng responded.
"Then why didn't you... wait, let's talk about you joining KPCB? Your Shanhai Capital doesn't even have $300 million in total funds.
The fund I'm entrusting to you this time is $300 million, and if this investment goes smoothly, you'll receive even more funds in the future. At the same time, you can also participate in investments yourself..." Koslin continued.
"I can't think of a reason to refuse, but, you know, I plan not to do venture capital for the next year or two.
During my time in Silicon Valley, I've met dozens of startups, and my impression of them has been getting worse and worse. Any random project requires tens of millions, and they have an unrealistic understanding of the future.
Including companies like Webvan, I believe that even if they go public, they won't last more than a few years.
Well, what I want to say is that in this market, I can no longer find companies I want to invest in. It's not that there aren't excellent companies, but these entrepreneurs have been blinded by wealth and no longer want to look to the future," He Zhengcheng lamented.
"You also think the NASDAQ bubble is about to burst?" Koslin asked. The NASDAQ bubble was a hot topic of discussion recently.
"Whether NASDAQ has a bubble or whether it will burst isn't the most important thing. The key is that I don't believe the development of the internet will defy common sense. The number of global internet users cannot triple overnight.
The performance of PC computers will not surpass servers in two years, and the appeal of various PC games to consumers will hardly exceed game consoles.
Nor will we suddenly develop online shopping habits, and Yahoo will find it difficult to replace Time Warner in a short period.
However, current entrepreneurs believe they can achieve this, and I don't believe them. Moreover, there's a crucial factor: Silicon Valley is running out of talent. Even Yahoo and eBay are starting to have some idle, incompetent employees. Other internet companies, even with excellent founding teams, will find it difficult to assemble an excellent team.
Perhaps only after a batch of internet high-tech companies die off will we see the ultimate winners," He Zhengcheng concluded.
"You have a point, but I'm not as pessimistic as you. You know, after successfully investing in Netscape and Amazon, I also thought the internet would have problems, but then Yahoo emerged, and eBay emerged.
Especially eBay, I heard that under your suggestion, they developed a shopping platform," Koslin noted.
"I did offer some suggestions, but it was Omidyar and Meg Whitman who brought those suggestions to fruition," He Zhengcheng clarified. Starting in December last year, eBay began developing an online store system based on online auctions, allowing people to trade freely 24 hours a day.
However, this hadn't seemed to launch yet, and Koslin already knew about it. Connections truly were a valuable asset.
"Even with a bubble, companies like eBay can develop very well. Perhaps when the bubble bursts, they will have already established their leading advantage," Koslin remarked.
"Yes, eBay has that possibility, but the possibility for other companies is shrinking. Who knows how long the NASDAQ bubble can last? One year or two? Will companies that haven't gone public this year, or those that went public but didn't raise enough capital, have hope? Will venture capital funds need to continue investing...?" He Zhengcheng pondered. No company can raise funds indefinitely.
"That's your concern, but KPCB can accelerate the IPO process for internet companies. That's our advantage, so as long as there's a suitable opportunity, we can cooperate!" Koslin said.
"..." He Zhengcheng heard the word "cooperate." He hadn't initially intended for He Zhengcheng to join KPCB; was he settling for a compromise?
"I do have an idea for Overture, but the implementation cost is very high, the possibility of failure is not small, but the rewards after success will be immense," He Zhengcheng revealed.
"Can you tell me?" Koslin asked.
"Let's sign a non-disclosure agreement first!" He Zhengcheng suggested.
"Alright, I'll meet your request," Koslin agreed.
Non-disclosure agreements were almost boilerplate. Both He Zhengcheng and Koslin had signed many similar NDAs.
"I want to build Overture into an online electronic music sales platform, where people from any corner of the world can buy electronic music at any time. At the same time, we'll establish the world's largest music resource library and music portal, striving to become the internet's preferred promotional destination for major music companies to release their albums.
The specific implementation steps are as follows: first, get MusicPlayer users to exceed ten million, then negotiate with major music companies to obtain music sales agency rights, transforming into a platform for selling legitimate music.
After Overture goes public, we'll acquire some music copyrights. Simultaneously, we can cultivate small music studios, discover new musicians, and reduce our reliance on large music companies.
There will certainly be many difficulties in this process, but we are an internet company, inherently possessing a technological advantage. As long as we persevere, we have the potential to become the world's largest digital music company.
If users develop a habit of using our software and products, couldn't we expand the range of products sold, for example, global movies?" He Zhengcheng explained.
"Clap, clap, clap..." Koslin clapped enthusiastically.
He Zhengcheng's face was flushed, filled with passion and fervor. "Watch me trick you! Online music and movie sales, hehe... Thanks to Wang Xusheng for the reward, adding an extra chapter. This book seems to be a flop, with only 1200 collections now. Some readers have already suggested I give up... I really want to cry!"