What's wrong with me being a rich man?

Chapter 236 Financing
Those who are engaged in technology are engaged in technology, those who analyze the market analyze the market, and those who think about funds think about funds.

In mid-April, after almost two months of intensive preparation, Yu Xing suddenly felt a sense of relief on his shoulders. Then he suddenly realized that it was late spring and the weather was such that a long-sleeved shirt was sufficient.

Immediately, he fell ill.

There is a temperature difference between morning and evening, and I felt like running after not having a morning run for a long time. I got a fever that day.

Yu Xing did not work reluctantly. He worked with the doctor to finalize a closed-loop delivery mechanism. Through an end-to-end injection pathway, he ensured the efficient delivery of the drug within the body and seamlessly connected it to the blood circulation system, achieving rapid treatment effects with full-link coverage.

After all, he was young and recovered a lot after a day of intravenous drip.

I rested again the next day and just browsed some recent news.

Yu Xing has been paying close attention to the competitive situation between Penguin and 360 recently, but there has been no new development in this regard. I am afraid that both sides are planning or being on guard. There has been no movement from Computer World, which interviewed him earlier, and it is unknown when it will issue that famous report.

Other things...

Yu Xing saw the dynamics in the automotive industry at the end of last month. Geely signed the final equity acquisition agreement to acquire Volvo in Sweden. This will inevitably become the most important news in the entire domestic automotive industry this year.

Also, it is rumored that the first batch of pilot cities for subsidies for private purchases of new energy vehicles will be introduced in the near future, and this was already evident after the release of the "Automotive Industry Adjustment and Revitalization Plan" last year.

There is no doubt that China, which became the world's largest automobile market last year, will accelerate the development of this industry, and it is inevitable that a situation in which both good and bad will be involved will occur.

Yu Xing vaguely remembered that there were many news reports about subsidy fraud during this period.

On April 4, Yu Xing, who had not yet fully recovered, suddenly received a notice from the Shanghai Youth Entrepreneurs Association, informing him that he had been selected as one of the "Top Ten Young Economic Figures in Shanghai in 18" by the Nongshang Cup, and that he would have to attend a commendation meeting a week later, where he would also be awarded by city leaders.

"Ah? Thank you, thank you. It's an honor. It's on the 25th, right? Okay, okay." Yu Xing was quite surprised by the notice and inquired about the situation in detail, "Do I have to write a speech to thank you for winning the award?"

The staff member who notified the result on the other end of the phone was silent for a few seconds and gave the answer: "Mr. Yu, how about this? Our commendation will be reported by several media outlets. We will write your acceptance speech, so you don't have to improvise."

He seemed a little nervous to confirm: "Is it okay?"

Yu Xing readily agreed: "No problem, no problem."

It seems that although the award was won in an unclear manner, the organizer still has a certain sense of responsibility.

Yu Xing told Xiaoying about this, and couldn't help but admire Capital Today's resources in certain areas. This kind of activity had been recommended by them before, and he didn't expect that he would actually get a small honor in the end.

"That's great, Yu Xing, I hope your communication with them will go smoothly tomorrow." Liu Wanying gave her blessings.

According to the agreement, Bai Xiaosheng would negotiate the company's Series C financing in the middle of the year, and this time was quickly set a few days ago.

Both Liu Wanying and Yu Xing hope that WeChat can take this opportunity to let the three major institutions know more about it, so as to pave the way for future funding needs.

However, at ten o'clock in the morning on the 19th, when Yu Xinggang met the three shareholders, IDG, Capital Today, and Qiming Venture Partners, the opening remarks from the other side directly ruined any extra thoughts.

"Mr. Yu, let's only talk about Bai Xiaosheng today and not your new project." Xu Xin said happily as he sat down.

Yu Xing looked at the three shareholders opposite him, feeling that they might have communicated in advance, and could only sigh: "Sister Xin, you don't even want to mention its name."

"I sincerely wish you the best." Xu Xin said with a smile, "Isn't this enough?"

Yu Xing nodded and did not dwell on it. He just signaled Lu Haiying to introduce the shareholders to the development of Bai Xiaosheng since the beginning of 2010.

Bai Xiaosheng's recruitment business focuses on small profits but quick turnover in the lower-tier markets. It started to generate revenue in August last year. Its revenue for the five months from August to December 8 totaled 2009 million yuan, and its overall development momentum is very good.

Starting this year, due to the influence of the traditional Spring Festival holiday, the growth rate slowed down before the festival, but rose sharply after the festival, which was reflected in the monthly revenue performance of 2 million in February, even lower than 220 million in January. In March, this figure quickly rebounded to 1 million.

Most of April has passed. As of the meeting, Bai Xiaosheng's recruitment revenue is 236.8 million. There is almost no doubt that this month's revenue will exceed 300 million.

2009年8月起步是91万，2010年4月预计达到340万左右。

The growth performance of the recruitment business is quite outstanding. Regarding the fact that the revenue in April is about to break the 300 million threshold, it also has an important significance. The investment of Bai Xiaosheng Company in the recruitment business is currently about 320 million per month. Such performance can achieve a change from loss to profit.

"In addition to the company's strategy of staggered competition, the recovery of the domestic economic situation is also a very important reason. We are optimistic about the subsequent rebound of the overall economy. If stable growth is maintained this year, the company is expected to achieve overall profitability for the whole year." Lu Haiying gave a conclusion that made people smile.

It was established in October 2008, started recruitment business in August 10, and hoped to achieve overall profitability by utilizing recruitment + advertising business in 2009. It can be said that it is making steady progress.

Zhang Suyang of IDG nodded in satisfaction, but smiled and emphasized: "I think the company should not be in a hurry to pursue making money in the future, but should invest most of its funds in market competition to further expand its market share."

Yu Xing agreed: "Yes, this is our established strategy. We don't need to make money at this stage, but we want market share."

You can make money, but you don't have to.

Not only that, it is also necessary to get further money from institutions to support larger-scale business development.

Of course, Bai Xiaosheng’s profitability is undoubtedly reassuring.

Xu Xin of Capital Today put down the materials in his hand and couldn't help but say, "Mr. Yu, if Bai Xiaosheng can maintain this kind of development performance after more than a year after the C round, it will have hope of going public. It is worth your full investment."

Yu Xing replied succinctly: "Sister Xin, I won't mention it, and you shouldn't mention it either."

Xu Xin said angrily: "I mean well."

Yu Xing simply stopped looking at her and looked at Zhang Suyang: "Boss Zhang, we hope that this round of funds will be more sufficient. Last year, when we talked about financing and development, Bai Xiaosheng basically delivered. In fact, I think it can be considered an over-fulfillment. Part of our C round of funds will be used for recruitment business, and on the other hand, we will continue to expand the user scale of Bai Xiaosheng. There is still a large gap."

The number of Bai Xiaosheng users has reached 282 million, and it will basically break through 300 million in June. The daily active number is above 60, and the activity level is quite good. In the future, it will surely maintain its position as the top workplace platform in China.

Zhang Suyang nodded slightly and looked at the financing intention stated in the Bai Xiaosheng report in his hand: 3500% of the equity would be released for US$20 million, with a valuation of US$1.75 million.

In the past year or so, Bai Xiaosheng has achieved almost perfect results. Its revenue is growing, profitability is improving, market share is increasing, and user growth and activity remain steady...

It can be said that all indicators are very satisfactory.

What needs to be considered slightly is that Bai Xiaosheng's recruitment business still faces the risk of intensified competition from the three major established companies, but this has been taken into consideration before.

According to Bai Xiaosheng's verification of the business model, its growth from a valuation of US$5000 million in the B round to US$1.75 million is not unacceptable.

Zhang Suyang listened to the discussion between Today Capital and Qiming Venture Partners, thinking about Bai Xiaosheng and... probably a potential risk of it - President Yu's attention was diverted a lot by his newly incubated project.

The financing decision did not take too much time. Unlike the multiple inspections during the previous contacts, everyone was already familiar with each other and entered a period of relative trust.

In the end, the C round only had a small cut.

The three institutions are willing to continue investing US$3000 million in Bai Xiaosheng to support its further development in the market.

After Zhang Suyang expressed his opinion, he said in advance: "Mr. Yu, Bai Xiaosheng's performance is already very good. Logically, I don't need to say anything more. However, I may have to emphasize that the money raised is for the development of Bai Xiaosheng Company and is limited to it."

Yu Xing sighed: "How afraid are you that I will embezzle the funds?"

Xu Xin reminded: "Mr. Yu, these are all to be written into the contract terms. Our process is very formal, and it is also to ensure that everyone's common goals are achieved."

Yu Xing looked at the three shareholders and said sincerely: "Believe me, I have never thought of such an idea."

Xu Xin smiled slightly: "Mr. Yu, I trust you very much, but we don't need to test human nature."

Yu Xing, whose human nature may not be able to withstand the test, stood up and stretched out his right hand: "Okay, Mr. Xu, it's written in black and white, and it's fair to all. Bai Xiaosheng will definitely develop faster. This is my common goal, and it is also everyone's common goal."

When Xu Xin heard Yu Xing call him "Mr. Xu" again, he knew that he was a little unhappy, but he did not intend to try to ease his temper. This matter had to be handled in a businesslike manner.

Yu Xing shook hands with the shareholders one by one, with thoughts in his mind churning. The old guys were so wary and extremely pessimistic about WeChat. Maybe he should broaden his horizons, make more preparations, and see if there are other companies to help carry the sedan chair.

(End of this chapter)