What's wrong with me being a rich man?

Chapter 66 Angel Investment
When Yu Xing returned to Jinling, the first thing he did was to contact Song Yufeng, get the guest certificate for the Internet conference, and confirm the specific time for his performance.

September 2008, 9, 24: p.m.

The second thing was that he planned to visit his teacher again.

But just before he finalized the time, Liu Wanying contacted him again.

To Yu Xing's surprise, the potential angel investor made a famous quote.

Liu Wanying: Keynes said that even if human beings remembered all the mistakes they had made in the past 2000 years, when a hundred pounds was placed in front of them, they would quickly forget everything.

Yu Xing: Have you sold your stocks?

Liu Wanying: The essence of financial supervision should be to nip in the bud the signs of greed, and we must always be vigilant against the greed behind financial innovation.

Yu Xing: Haven’t you cut it yet? What else is there to wait for?

Liu Wanying: However, finance does not exist in isolation. There are people behind it, and human nature cannot be avoided.

Yu Xing: If you ask me, draw the knife into one piece.

There were three messages between them, each saying its own thing.

Liu Wanying stopped sending messages and angrily called directly: "Yu! You are just gloating over other people's misfortunes, right?"

"Hey, Sister Ying, why do you misunderstand me? I feel sorry for you. If you were willing to invest in me earlier, you could have avoided some losses." Yu Xing explained, "I care about you, but seeing that you have begun to reflect on financial innovation, I have an idea. You resign from Bain and then sell this kind of chicken soup for the soul. Maybe it's not a bad idea."

Liu Wanying sneered and sighed, "This has become a complete crisis. We can't say for sure whether we will be laid off. Our projects in Shanghai have been suspended. When the economy is on the rise, we consult on mergers and acquisitions, or expand organizational capabilities to cope with future strategies."

She paused and continued, "We have already started consulting on organizational optimization, and we need to make structural adjustments and personnel optimization."

Yu Xing pretended to be concerned and asked, "Can you still find a job after being laid off? If not, come to our Guiai Internet Cafe, which has unlimited potential."

Liu Wanying laughed angrily, going to this Guiai.com that is about to be sold, right?

She sighed, "You are so cold-hearted!"

“Like you said, projects are tools, and people are tools too. In this era, small entrepreneurs like me are inexplicably affected, and so are elites like you.” Yu Xing became more serious, “I can only try to keep a normal mind.”

Liu Wanying was silent for a while, then asked, "Are you really going to cut it off?"

Yu Xing actively gave advice: "If it was my money, I would definitely not want to part with it, but since it is not my money, I will definitely have to cut it off."

Liu Wanying: “…”

Yu Xing asked, "Do you mind if I speak so bluntly?"

"I was very angry at first." Liu Wanying thought for a moment, "After thinking about it carefully, I seem to be even angrier."

"Sister Ying, it's not just about investment. In other words, investment is just a small matter." Yu Xing recruited her seriously, "If you are not happy at Bain, or if you have been thinking about leaving during this period, my place is a good fit for you. I want to build a short-selling organization, and all I need is you to come."

Liu Wanying was surprised. She had heard Yu Xing mention it once before, but she didn't expect to hear it for the second time now.

She thought for a moment and confirmed, "Are you serious?"

Yu Xing replied simply: "Of course."

Liu Wanying asked incomprehensibly: "Do you understand this?"

Yu Xing asked back: "If I understand, why do I need you?"

Liu Wanying was speechless and felt that the man on the other end of the phone was having wild thoughts.

"But I think it's not difficult to understand the thinking of the short sellers." Yu Xing remained serious. "Find the weakness, borrow the stock and then sell it, attack the weakness, buy the stock and then return it, right?"

He was talking about the short selling operation commonly used by short selling institutions, while "finding weaknesses" means checking for anomalies and conducting research, and "attacking weaknesses" means issuing relevant reports to the public, causing stock prices to fall and ultimately achieving profits.

Liu Wanying was silent for about ten seconds, then replied: "That's roughly the case, but..."

“It’s not easy to research, but you need to have a certain influence.” Yu Xing analyzed himself, “I think it’s worth a try. Moreover, as a grassroots entrepreneur, I think I can not only ‘discover weaknesses’, but also ‘create weaknesses’.”

What if there are no weaknesses?
We must create weaknesses!

As he imagined, the situation of the giants is always changing, the times are developing, and one can make a lot of money by taking advantage of the situation.

"Yu Xing, I've been thinking about your position as Bai Xiaosheng these past two days." Liu Wanying suddenly mentioned the previous incident, "Do you know what I'm thinking about?"

Yu Xing guessed, "Want to cut some meat?"

Liu Wanying ignored the cruel ridicule and gave an answer: "I was thinking about what you said about 'Penguin has a stance'. The more I think about the nature of your project and the situation in the Internet industry, the more I think...Mr. Yu, how did you come up with this?"

"Because how to develop in the face of such a giant has become a question that the industry needs to consider." Yu Xing pondered, "Penguin currently has the highest traffic, and the effect of wielding such a weapon is so effective that it has been using it all the time." "Like Alibaba and Baidu, their businesses are relatively narrow, but areas related to their core businesses must also think about similar issues."

"What lies ahead in this era is that if you want to do business on the Internet, you must directly or indirectly face large companies and giants."

"Guiai.com is a living example. Who would have thought that a large Internet company like NetEase could also have a dating business?"

"NetEase is just a microcosm. Alibaba, Baidu, and Penguin will definitely have more and more businesses that you may never imagine."

"The current workplace field is still not well developed. From the perspective of entrepreneurship alone, this is a market that is very suitable for vertical segmentation."

Yu Xing gave a fairly comprehensive description of his ideas.

As Liu Wanying spoke, she seemed to see the tentacles of the companies standing at the top of the industry spreading downwards, whether it was capital, business, or traffic.

She hesitated for a while and said, "I've decided to cut it off!"

From the 15th to now, in just a few days, Lehman Brothers went bankrupt, Merrill Lynch was acquired, stock indexes plummeted, and panic engulfed the global financial markets like a flood.

Liu Wanying suffered heavy losses this time. In addition to the shrinking stock value, some of the funds were leveraged to pursue higher returns.

However, after gradually recovering from the initial shock, she was thinking about new ways to get the funds, despite her low mood.

Is the project that Yu Xing wants to do promising?

Judging from the development of Guiai.com and his operations, he is quite capable despite being his first venture. His understanding of the practice of vertical segmentation and the industry's competitive situation is also worth looking forward to.

Although they are not true angel investors, the angel round does not have overly strict requirements.

What we have in front of us now is a fairly clear business plan, a preliminary entrepreneurial team, and real market demand, so we can give it a try.

"Sister Ying, congratulations." Yu Xing heard Liu Wanying's decision and immediately said enthusiastically, "You made an absolutely correct decision!"

Liu Wanying wanted to laugh when she heard his exaggerated tone: "So I should say 'Congratulations to you all'?"

"Yes, but I still need to ask for a specific number." Yu Xing remained enthusiastic, "How much can you invest?"

Liu Wanying asked back: "How do you calculate the valuation of this project? How do you divide the equity?"

"Not counting your angel round, my initial idea is to use most of the funds from the sale of Guiai.com." Yu Xing said seriously, "We will still reserve stock options for employees, and the parent company will still use the Hong Kong one, but we will change the name later. From this perspective, the starting price will be around 100-150 million. Song Yufeng will have about 12."

The fluctuating numbers in the middle represent the investments of Lu Haiying, Zhong Zhiling and Song Yufeng.

Liu Wanying thought for a moment and said, "You are quite determined. Your investment really makes me feel more at ease. I will take out about 50 yuan. Well, let's make it a round number and confirm it is 50 yuan."

"Okay, Sister Ying, let's have a face-to-face meeting later. While you're still in Shencheng, or, I've been in Jinling these days, and if you're passing through here, we can talk in detail." Yu Xing immediately finalized, "50!"

Liu Wanying thought about the loss of cutting meat and said with some pain: "I hope this investment doesn't need to be cut again."

"Don't worry, we are all family. Even if this company can't be successful, we can sell it when the time comes, and it will still have its position and market." Yu Xing thought about what he had heard from others, "Let's make a clear exit mechanism when we sign the contract."

Liu Wanying agreed.

She hung up the phone, holding the phone, thinking about the finalized intention, and the collapse of the global financial market. Suddenly, she felt confused. Would this be a good decision?

Maybe, as long as it's not bad, it's not bad.

Unlike the angel investor who was confused at the moment, Yu Xing's mind was very clear and he immediately called Song Yufeng.

"I have found an angel investor and asked him to clarify the current equity according to the investment. Will you pay the 12 yuan?"

When Yu Xing met with Song Yufeng, he briefly mentioned the issue of funds and learned that he had a deposit of 12 yuan.

Song Yufeng was caught off guard: "Ah? Angel investor? I, uh, Mr. Yu, I'm still considering it. Why are you moving so quickly?"

"They are all like you. We don't know when the company will be able to develop." Yu Xing said simply, "We have initially determined that we have 50 yuan in funds. If you take out 12 yuan, you can still get a lot of equity."

Song Yufeng: "This, this..."

"Give me a reply tomorrow, no more waiting." Yu Xing emphasized, "Give me a reply on whether to invest or not, the specific equity figure needs to be determined later."

Song Yufeng took a breath and said, "Okay."

Yu Xing ended the call and thought about the relevant equity division in his mind. Once Guiai.com was sold, he believed that Song Yufeng would be able to accept the expected reduction in equity ratio. After all, that was the amount of money he invested.

And if Guiai.com had not been sold successfully, we would have almost locked in the initial start-up capital of 62 yuan.

If something really goes wrong, since Sister Ying has made the investment decision, she shouldn’t mind becoming a major shareholder.

(End of this chapter)