Chapter 170 August 19 Business strategy is the key to winning thousands of miles

Technology itself is not the only decisive factor, business strategy is the key to winning thousands of miles.To allow failure, to allow good ideas to hatch conditionally, to tolerate creative chaos, to share blessings... Li Yanhong, who is familiar with the rules of the business game, believes that for investors, there is really nothing better than profit to convince them. In other words, if the price is right, Baidu may be sold by shareholders at any time.Therefore, if you want Baidu, which you created with your own hands, to continue to go on better, the control of Baidu must be in your own hands.

At the first financing, Xu Yong negotiated with the venture capital for 1 million US dollars and 25% of the shares. Later, because he was optimistic about Baidu, the venture capital increased the original financing amount from 1 million US dollars to 1.2 million US dollars. Logically speaking, The shareholding ratio of venture capitalists should be increased to a certain extent, but Li Yanhong's attitude is very firm, and the proportion is resolutely unchanged. Similarly, in the second financing, DFJ, an internationally renowned investment institution, and the American International Data Group invested US$10 million in Baidu, which was just established 9 months ago, of which DFJ accounted for about 75% of the total investment, becoming Baidu's single largest shareholder, but it still only owns 30% of Baidu's shares. You must know that a year ago, 1.2 million US dollars of funds were exchanged for 25% of the shares.

The founders must run the company according to their own ideas and not be swayed by venture capital.