My Age of Investment

  Chapter 244 Series B financing

  Because of the prototype car and the real thing, you can have a driving experience.

  Tesla’s B round of financing went very smoothly, and many venture capitalists have thrown out olive branches.

   Even Eberhard felt that the venture capital finally stopped treating Tesla as a liar.

  Before, he held a few car model drawings and PPT, touched the wall countless times, and suffered countless eyes and cold reception.

  Compared with the warm reception now received, it is simply a world of difference.

  Among all venture capital institutions, the best condition is the capital of “value equity partners”.

  Eberhard invited Antonio Gracias, the founding partner of this investment institution, to Tesla. Accompanied by shareholders of Xia Jingxing, SDL, and Compass, they started negotiations together.

  Value equity partner has a small capital scale, located in Chicago, and its founding partner Antonio is also very young, in his thirties.

  Antonio shook hands with everyone. After a few greetings, he sat on his seat and slowly said:

  "The value equity partners have been paying attention to the new energy entrepreneurship field. After learning that Tesla is building electric sports cars, I suddenly became interested. In my opinion, this is a cool business..."

  Xia Jingxing smiled, the other party was very eloquent, and did not put on the airs of an investor. His words and attitudes were very reasonable, and it was easy to make people feel good.

  As the CEO of Tesla, Eberhard was the first to respond to the other party: "Mr. Gracias, the current situation of Tesla, I have already introduced you before, so I won’t repeat the introduction.

  At present, we have overcome many core technologies including batteries and motors. The next plan is to mass-produce electric vehicles.

  To support this plan, we need to raise 13 million US dollars. "

  Antonio nodded, then looked at Xia Jingxing, smiled and said: "If Dai Lun leads the investment of 10 million U.S. dollars, the equity value partner capital can also invest 3 million U.S. dollars."

  Xia Jingxing nodded, no comment.

  In fact, he paid out all the 13 million US dollars by himself, and there is no problem.

  It's just that the two original founders of Tesla hope to introduce more diversified shareholders and expand the company's network of relationships.

  He has no objection, anyway, if the meat is eaten, he has to give others a mouthful of soup.

  Tesla has a long way to go, and there are many things that need peace.

  He has limited ability alone, and it is impossible to hold all the equity to death. If it is too late, it is enough to maintain the status of a major shareholder.

   Eberhard smiled, "Okay, that's it."

"and many more."

  Antonio interrupted.

  He looked at everyone with strange eyes, smiled and said, "I have a little doubt."

  Eberhard thought that the other party was not satisfied with the valuation, and said lightly: "The pre-investment valuation of $50 million is not high.

  In fact, in addition to equity value capital, there are many investment institutions interested in Tesla. "

  Antonio smiled and waved his hand, "You have misunderstood what I mean, I have no problem with this valuation."

   "Then you are?" Eberhard asked.

  Antonio smiled: "I think only 13 million US dollars may not be enough to support Tesla's mass production."

  The reason why Eberhard did not raise enough money at one time was actually purposeful.

  At present, Tesla has come out of the quagmire and does not need to raise large-scale financing and sell too much equity.

  At the same time, there is Xia Jingxing, a major shareholder, to follow the pace of development, and every time a goal is achieved, a round of small-scale financing is the best choice.

  Eberhard pretended to be confused and said: "In fact, 13 million US dollars is enough. We plan to use all of this money for research and development.

  And our sales method is to take the form of "reservation", the customer pays first, and then picks up the car.

  We take the customer’s advance payment, and then place an order with the factory to purchase parts, and Tesla will come to the final assembly.

  The most ideal state is that after the car is mass-produced, it will quickly reach break-even. We will then obtain more reservations through the "reservation" sales model, expand production and sales, and Tesla will reach a profitable state.

  Of course, it is also possible that the car is mass-produced, but because the sales volume has not increased, it is still unable to break the break-even point.

  At this time, we can carry out another round of financing to supplement the cash flow.

  But that is already another stage of development.

  The current 13 million US dollars is only used for pre-mass production. "

  Antonio chuckled, how could he fool Eberhard into it in a few words.

  The current US$13 million financing, coupled with Tesla’s previous investment, is at most more than 20 million US dollars.

  With this little money, can we produce electric sports cars? Going profitable?

He is still relatively optimistic about Tesla, so he didn’t click on Eberhard, and said with a smile: “I’m just one request. When Tesla reopens financing, I hope that equity value partner capital will lead the investment. We have priority to lead the right to vote."

  This is Antonio’s true idea. When Tesla is mass-produced, the business prospects will undoubtedly be brighter.

  If their company makes additional investment at this time, it can be regarded as maximizing the benefits.

   At present, he only built a prototype car, and he didn't bother to compete with the Asian chairman for the lead.

  After all, investing now is still very risky. If you can't mass production, you will be finished.

   Mass production is a threshold. If you cannot cross it, you will die. If you cross it, it will be a new world.

  Of course, real mass production, Tesla's valuation is more than just tens of millions of dollars.

  Low risk and relatively low return.

  But at the moment they have invested 3 million US dollars, Tesla really took off in the later period, and their early investment will still have a considerable return.

  This is the way to do venture capital. It is necessary to control risks, but also to seize good projects, and increase investment along the way to maximize profits.

  Eberhard couldn't be the master, so he turned his attention to Xia Jingxing.

"Can."

  Xia Jingxing smiled brightly and readily agreed.

  Tesla’s next financial black hole is very clear to him, and he is afraid that the other party will not dare to get in the car.

  Antonio proposed the "priority of lead investment", not that he must lead the investment in Tesla's next round of financing, but that he has this priority.

  Generally, depending on the development of the target company, choose to exercise the lead investment right or not to exercise it.

  Xia Jingxing has no objection, Eberhard and Tarpening, as well as the other two shareholders, naturally have no objection. Anyway, whose money is money, Tesla has not yet reached the stage of being qualified to pick and choose.

  Antonio saw that his request was approved, and did not make any other requests.

  Next, he chatted with several shareholders and founders of Tesla about some general framework agreements.

  After basically negotiated, the parties signed the investment intention agreement, and after the due diligence was completed, they signed the formal investment agreement and paid money.

  Xia Jingxing probably forgot it in his mind. If this round of financing is successfully completed, his share of Tesla will increase from 42% to 49.21%, which is close to half.

  This shareholding ratio is quite high. Even if he gives up a few rounds of follow-up investment later, he should be able to maintain his position as the largest shareholder.

  (End of this chapter)