My Age of Investment

  Chapter 274 Potato Clause

  Xia Jingxing smiles, coffee that helps digestion? I haven't heard of it, so I have to taste it.

  However, the goal has been achieved, and he did not embarrass Yang Haoyong, nodded and said, "That's OK, then have a drink."

  Next, Xia Jingxing followed the two brothers to a cafe.

  Drinking coffee, the three chatted again.

   "Darren, we thought about it, and think your words still make sense."

  Yang Haoran paused, "However, the valuation of one million US dollars is really too low.

  How about three million? We raised 500,000 U.S. dollars and diluted 14.3% of the shares to you. "

  Xia Jingxing smiled and shook his head, "I can't increase the price anymore, this is my bottom line.

  You have nothing now, even the website has not been developed yet, there is too much uncertainty.

  My investment cannot even be called an angel investment, it can only be called a “seed round investment”.

  You can inquire about the seed round investment. What is the general investment amount?

  The common ones are 30,000 or 50,000 U.S. dollars, and the most will not exceed 100,000 or 200,000 U.S. dollars.

  I dare to invest half a million dollars in you. It can definitely be called an expression of trusting you.

  Of course, if you feel that my conditions are not good enough, you can also contact other investment institutions. "

  Xia Jingxing tilted Erlang's legs, took a sip of coffee and took a sip. His attitude was very casual, but his words were very strong.

  Yang Haoyong and his brother Yang Haoran looked at each other, and they all saw the dissatisfaction in each other's eyes.

  Yang Haoyong said with a serious face: “If a start-up company gets one-third of its shares taken away by investors during the angel round of financing, I think it may hurt the entrepreneur’s passion for entrepreneurship in the future.”

  Xia Jingxing agreed with this point of view in his heart. He offered such a low price. He just wanted to bargain. He never thought of directly taking away one-third of Ganji.

  Because this is a bit unrealistic, entrepreneurs who are a little capable and confident will not agree to such conditions.

He recognized it in his heart, but he still showed a look of disapproval on his face, saying: "Entrepreneurship passion is the basic quality necessary for entrepreneurs. If you don't even have this, no one will dare to invest, because it is destined to draw water. drift.

  At the same time, there is no Internet company that does not raise funds. If there are too many rounds of financing and the equity dilution is too much, entrepreneurs will directly choose the project. Then I will choose not to invest in this kind of project. "

  Yang Haoyong was a little bit angry. Xia Jingxing was trying to change the concept. What he said was that he could not accept a single financing to dilute too much equity, and he did not say that he could not accept multiple rounds of financing and a large amount of equity was diluted.

  On the contrary, if the project can successfully complete multiple rounds of financing, it means that the project has been successfully operated and the equity has been greatly diluted, which can be ignored.

  Because without these financing, the project cannot develop so successfully.

  The two are complementary.

  But a single round of financing will dilute a large amount of equity, which is tantamount to overdraft in the future.

  The two have different meanings.

   Seeing that his younger brother was agitated and he was about to explode, Yang Haoran kicked the opponent under the table.

Then, Yang Haoran smiled and said, "Well, Dai Lun, we will raise funds based on the pre-investment valuation of one million US dollars, but we don’t want to raise half a million dollars. it is good."

  Xia Jingxing made a quick calculation in his mind. Before the investment of 1 million US dollars, the investment of 250,000 US dollars, the post-investment valuation is 125 US dollars, and you can get 20% of the shares.

  This number is not too small, and he is also very satisfied.

  But listening to Yang Haoran’s tone, it seems that there is still room for discussion?

  Xia Jingxing and Yang Haoran looked at each other and said, "I can invest you three hundred and fifty thousand dollars, but I have to give me 25% of the equity."

  Yang Haoran shook his head, "Impossible, we only need two hundred and fifty thousand dollars, and more than one hundred thousand dollars, there is not much practical significance."

  Xia Jingxing expressionless, continued to increase the price, "400,000 US dollars, or only 25% of the equity."

  Hearing this, Yang Haoran hesitated.

  Dilute five more shares, and you can get an extra $150,000.

  For start-up companies, every extra penny in their hands means an extra chance to survive the fiercely competitive market.

  He was a little tempted, but he couldn't make good decisions. He looked at his younger brother Yang Haoyong.

  Yang Haoyong slightly nodded to his brother, he still barely accepted this condition.

  400,000 U.S. dollars is the start-up capital they urgently need.

With this money, they don’t have to be frugal when they return to China. Xiaomi added a rifle instead of a shotgun. A mature development team can be hired for website development, and marketing personnel can also recruit a lot of them at once, let Ganji.com. Go online quickly and make certain data.

  A quarter of the equity did not exceed their individual holdings, and it was not considered a net job for the capitalists.

  Can do it!

  Yang Haoran looked at Xia Jingxing’s eyes and nodded, "Okay, we agree to this condition."

   "Happy cooperation!"

  Xia Jingxing put away Erlang's legs, stood up and shook hands with the two brothers.

  After the deal was concluded, the original serious atmosphere instantly eased, and the three chatted and laughed.

  Yang Haoyong is not so angry anymore. The post-investment valuation of $1.6 million is almost close to one-third of Facebook’s angel round financing valuation.

  But how successful is Facebook?

  Furthermore, as Xia Jingxing said, Facebook was already online at the time and had 100,000 users, and the user growth was gratifying.

  Ganji.com?

   is just an idea, it still stays in his head.

  In a certain way, Yang Haoyong still feels that he has made a profit.

  "Daren, when do you think we sign the contract?"

  Yang Haoyong can’t wait, he wants to finalize the matter as soon as possible, so as not to have many dreams at night.

  How could Xia Jingxing not understand what the other party meant, and smiled and replied, “Because the website has not yet been born and the company has not yet been registered, you need to return to your country to register the company first.

  Only after this step is completed, we can officially sign the contract.

  It’s very simple to do all the related work. We can speed up the pace, go through all the processes as quickly as possible, and then transfer the money to the Ganji account. "

  Yang Haoyong nodded, "Okay, I will simply clean up, and I will return to China as soon as possible to handle all this."

  Xia Jingxing looked at Yang Haoran and asked, "How about you?"

  Yang Haoran smiled and said, "Actually, Ganji.com was mainly created by Hao Yong. He found me and I invested some money in him. It is his seed investor, and you are an angel investor."

  Xia Jingxing recalled that in his memory, this old man would return to China to join Ganji.com in a few years. At the beginning, he did not return to China to start a business with Yang Haoyong.

  The reason is not hard to guess, the brothers must leave a way out.

  Especially Yang Haoran’s job is pretty good, as a middle-level manager in a listed company, his income is very good, and his family lives in the United States.

  Xia Jingxing nodded, and then asked: "Then the equity structure, how do you plan to divide it?"

  Yang Haoyong quickly replied, “My brother and I each occupy half of Ganji.com.”

  Xia Jingxing frowned, the most taboo start-up company is the non-standard shareholding structure.

  The two brothers divide the equity in half, which is very irregular.

  If two people disagree on major decisions, who obeys whom?

  If there is no definite core person, then the company will lack a unified voice, it is easy to change day and night, and even infighting.

  Once these bad things happen, the impact and blow to a startup company will be extremely fatal.

  In the past life, the two brothers of Ganji.com did not have any scandals of "brothers escaping the wall".

  But Xia Jingxing still couldn't help but reminded, "The company must identify a soul figure, and there can be no equity split."

  Yang Haoyong frowned. Is this worrying about the conflict between the two brothers and bringing some hidden dangers to the company’s management level?

Yang Haoran thought for a while and said, "You can give Hao Yong an additional 0.5% of the shares. I will get 37%, he will get 38%, and the remaining 25% will be returned. Darren you.

  In this way, Hao Yong, as the largest shareholder and actual controller of the company, should be fine, right? "

  Xia Jingxing shook his head, "There is also an option pool. You must plan an option pool of 10% to 20% of the shares for your employees before I invest."

  Xia Jingxing has not forgotten this point. If the option pool is not set up early, when the option pool is set up in the future, his shares will still be diluted.

  Yang Haoran did not expect Xia Jingxing to be so familiar with equity financing.

  It is not surprising to think that the other party is the CEO of Facebook and has invested in several companies.

  "Okay, let's set up a 10% option pool first. This part will be paid by our two brothers."

  Hearing Yang Haoran’s promise, Xia Jingxing nodded in satisfaction.

   "Wait, there is one more question."

  The two brothers looked at Xia Jingxing in surprise, and looked at each other with serious expressions, not knowing what the other party wanted.

   "Brother Haoran, you should be married, right?"

  Don’t understand what Xia Jingxing meant, Yang Haoran nodded, “Yes, I was married in 1995, and it’s been almost ten years. Is there any problem?”

  Of course there is a problem!

  The problem is still big!

  Xia Jingxing thought of the previous life Ganji.com's way of going public.

  Originally, Ganji.com has always been on par with 58 same city, and even in some areas, it is even ahead.

The reason why it was later acquired by 58.com, the bad thing is that the listing is constantly delayed and the financing is not in place. In the competition of classified information advertising, the 58.com. Accept the merged proposal.

  The reason why the listing has been continuously delayed is that as one of the founders, Yang Haoran had a problem with his marriage and divorced his wife who had been married for more than ten years.

  After the divorce, Yang Haoran’s wife sued him, sued in the United States and in China. The lawsuits took several rounds and took several years.

  The specific dispute is that Yang Haoran secretly transferred his equity in Ganji.com to his brother Yang Haoyong for free.

  Secretly transfer the marital property, and then decisively divorce, to teach his wife a vivid lesson, what is social sinister!

  Of course, the other party’s wife is not stupid, because of property disputes, Yang Haoran has been sued continuously, which has caused the listing of Ganji.com to be repeatedly delayed.

   Similar to Ganji, there is Tudou. It is also because of the founder’s divorce lawsuit, which delayed the listing and slowed down the pace of financing, which was surpassed by opponents and then swallowed by opponents.

  Ganji.com and Tudou.com both have the same investor, Xu Xin of Capital Today.

  The queen of venture capital has also suffered for eight lifetimes. Whoever voted will get divorced, and then the situation fell apart.

  Originally, a Dong Ge was added to the divorce list, but it is a pity that Dong Ge is old after all, and his pre-marriage property is clearly organized.

  Because of this kind of thing, the venture capital institutions later learned to be smart. Based on the dog-blood story of Tudou.com, they improved a “Tudou Clause”.

  This potato clause can be said to have left a strong mark in the history of Chinese Internet corporate governance. It is on a par with Sina’s “Sina structure” which opened the VIE structure to facilitate the overseas listing of Internet companies.

  Xia Jingxing retracted his thoughts, this hidden danger must be cut off.

  Otherwise, his investment in Ganji.com can get much less income.

  Xia Jingxing glanced at Yang Haoran and asked: "The next words may be a bit ugly, you have to prepare mentally."

  (End of this chapter)