My Age of Investment

  Chapter 298 Frame Media

  Chen Hong got up and rummaged in the office for a while.

   Soon, he found out a stack of documents, threw them on the coffee table, and said with a smile: "Look at it for yourself. It's very operability, but the risk is not small.

  Look at it first, after reading it, let me explain to you where the risk lies? "

  Xia Jingxing nodded, picked up the file, and looked at it carefully.

  The home page of the file contains a large catalog: "Frame Media Series B Financing Plan".

  Frame Media was established in 1999 and is a leading domestic elevator print advertising service provider...

  Xia Jingxing read the contents of the plan carefully and probably extracted a few key pieces of information.

  Frame Media was established very early and enjoyed the dividends of industry development. Before 2003, the development was smooth.

  However, because of the low barriers to entry in the industry, elevator print advertisements continue to flood into new competitors, and the market has quickly become a "red sea".

  As soon as competition in the industry is fierce, price wars have become conventional weapons.

  As a result, the market becomes more and more chaotic, the industry becomes more and more disorderly, and profits are getting thinner and thinner. Advertising companies everywhere are facing the dilemma of survival.

  Frame Media is also facing the problem of slowing down in development and urgently needs to find a breakthrough.

  At this time, Frame Media was inspired by the success of the LCD screen advertising divided into media, to achieve the "differentiated" competition in the elevator advertising, from static to dynamic advertising.

  So in 2003, Frame Media initiated a round of financing, raised nearly 20 million yuan, and launched the LCD screen advertising project.

  But it is a pity that the LCD screen advertising business has not been done, and the original mirror frame business has no time to take care of, and the market is quickly eroded by competitors.

  Under internal and external troubles, this company launched a B round of financing.

  The company's 2004 revenue is estimated to be 40 million yuan, and the net profit is estimated to be about 8 million yuan.

  After reading the documents carefully, Xia Jingxing looked at the date of signing, November 2004.

  Almost three months have passed since today.

   Putting the documents aside, Xia Jingxing asked indifferently, “It’s been three months now, haven’t the financing been successful?”

  Chen Hong smiled and said, “Of course not. The financing has been successful. Guess what the valuation is?”

  Xia Jingxing frowned, "Calculated at a price-earnings ratio of ten times, at least seventy to eighty million yuan, right?"

  Chen Hong laughed and said: “If their business maintains a very good growth rate, let alone ten times the P/E ratio, even twenty times can be given.

  Unfortunately, when Frame Media found us, their advertising market share was shrinking.

  LCD screen advertisements were crushed by Focus Media and Juzhong Media, and framed print advertisements were eaten away by other opponents.

  After negotiation, we injected 15 million yuan into Framework Media at a pre-investment valuation of 20 million yuan, and took 43% of the shares.

  Of the 15 million yuan, we invested 10 million yuan and IDG invested 5 million yuan. "

  Xia Jingxing did not speak.

  Is very robbed of the fire?

  But what capital does is icing on the cake and giving charcoal in the snow!

   When the icing on the cake, the valuation must be higher than the sky, the founder of Capital Seeking.

  To send charcoal in the snow, then, the valuation will be overwhelming.

  An advertising company with an annual net profit of nearly 8 million yuan, just passed the pre-investment valuation of 20 million yuan.

  On the one hand, it can be seen that Hanergy Investment and IDG are both cruel guys;

  On the other hand, we can also see how bad the situation of Frame Media was at that time, and this financing condition can be agreed.

   "You all voted, why are you looking for me? Do you vote for a B+ round?"

  Listening to Xia Jingxing’s tone, Chen Hong felt that the other party was a little uncomfortable. Maybe it was because he didn't take a look at this project, or it was because Hanergy didn't notify him earlier.

  Chen Hong and Xia Jingxing met at the annual meeting of the Huayuan Science and Technology Association last year. They also drank together and have known each other for more than half a year.

  If you want to talk about how deep the relationship is, that’s not enough.

  However, Chen Hong was a smart man, and said tactfully: "Oh, Jingxing, it's not that I didn't notify you. I didn't know that you founded Envision Capital at the time.

  And you have always been in the United States, I think your development focus will be on the United States.

  IDG’s partner Wang Gongquan, I and Tan Zhi are all friends, so I finally found them.

  Tan Zhi, a partner and managing director of Hanergy Investment, and a senior consultant of TOM Group.

  At present, he has been appointed by us to Frame Media, as the chairman of the company, and is responsible for the transformation plan of Frame Media. "

  While speaking, Chen Hong calmly observed Xia Jingxing's expression.

  But Xia Jingxing's expression remained as usual, and Chen Hong hadn't noticed at all. He cursed that he was really a little fox.

   "Jingxing, what do you think? Our two institutions only paid off the equity investment funds last month.

  Vision Capital’s additional investment at this time came just right. "

  Xia Jingxing nodded, "Okay, I think about it."

  Chen Hong did not bother Xia Jingxing, and waited quietly.

  Xia Jingxing is trying hard to recall. Have you never heard of such a company as Frame Media?

   When it comes to advertising in elevators, the most famous ones are undoubtedly Focus Media, Juzhong Media, and there will be a trendy media in the future.

  Frame Media also entered the LCD screen advertising, but it failed according to the introduction in the plan.

  Failure is also normal.

  Focus Media is too powerful. Before founding Focus Media, Jiang Nanchun owned a traditional advertising company called Yongyi, and achieved annual revenue of 150 million yuan.

   Really care about it, Jiang Nanchun is the one who has been hanging out in his life. When he was 21 years old, he made his first million in his life through an advertising agency.

  Then, in 2003, Yongyi Company was renamed Focus Media, which opened a new chapter in life.

  Xia Jingxing once considered investing in Focus Media, but he couldn't afford it. In 2003, when he raised his A round of financing, he accepted a tens of millions of US dollars from SoftBank China.

  What he thinks now is, do you want to invest in this little-known framework media?

  Have never heard of it, it is most likely to die in the middle of starting a business, right?

   However, he did not make a rash decision. Instead, he asked: "Now, when I vote for the B+ round, how much is the valuation?"

  Chen Hong thought Xia Jingxing had figured it out, and said with a smile: “Our investment agreement was signed in November last year, and then Tan Zhi joined Frame Media as the chairman of the board and was responsible for the transformation of the company.

  It has been three months now. Compared with before, the company has improved to a certain extent.

  If you are interested in further understanding, I will call Tan Zhi over and let him talk to you. "

  Xia Jingxing nodded, "Okay, let's call over and have a chat!"

  Chen Hong took out his cell phone and started calling Tan Zhi.

  After waiting for almost an hour, a middle-aged man in a suit with white temples walked in.

  "Mr. Xia, hello, I’m Tan Zhi, currently the chairman of Frame Media.

  Which aspect of the situation you want to know, you can directly raise it. "

   Tan Zhi shook hands with Xia Jingxing enthusiastically while talking, while also looking at this young man who was thirty years younger than him.

  Xia Jingxing looked at this uncle, who was more elegant and elegant because of the white spots on the temples and the clear appearance.

  The more I look at it, the more familiar...

   Feeling about to remember, Chen Hong interjected: "Jingxing, what's the matter with you? Did you know Tan Zhi before?"

  Come on, after being interrupted by Chen Hong, Xia Jingxing forgot again.

   "I don't know him, but I think Mr. Tan is very temperamental, not like a businessman, but more like a diplomat, or a show host."

  Xia Jingxing's words made Tan Zhi couldn't help but smile, "Mr. Xia, you passed the award, I am fifty years old, what kind of temperament do I have?

  It is you who are heroic and vigorous, far better than those of Ding Sanshi and Chen Tianqiao. People can't help but sigh after seeing that there are talented people from generation to generation, and there are talents everywhere in China. "

  Xia Jingxing laughed so much that her mouth was about to split to the back of her head, and she would boast, so she just said a few more words.

   "Jingxing, you are really right. Tan Zhi is considered to be the most popular girl among our generation of international students when she was young."

   Tan Zhi spread his hands and said humorously: "Isn’t it also popular with middle-aged women now?"

  Chen Hong nodded, "Yes, yes, you have to be sent on stage if you want to deal with the lady."

  Xia Jingxing chuckled a few times with him, but he didn't expect that both of them were so old and so old.

   "Jingxing, every time we meet, we love to make a few jokes, but it makes you laugh."

  Chen Hong pointed to Tan Zhi and introduced: "This guy never worked as a diplomat when he was young, but he served as the director of the Computer Center at the Ministry of Foreign Trade and Economic Cooperation. He was only in his early thirties at the time!

  I also worked in official business for a few years, and went abroad to do business for a few years.

  People who have been officials naturally have a temperament in their bodies, which is different from our flat-headed people. "

  Chen Hong greeted Xia Jingxing to take a seat while complaining about his partners.

  "He worked at UTStarcom for a few years, and then went to serve as the deputy general manager of Microsoft China, and then went to 8848 to serve as their CEO..."

Xia Jingxing asked: "8848?"

   "Yes, that's the e-commerce website."

  After Chen Hong said this, he noticed that Xia Jingxing smiled suddenly, laughing very inexplicably.

  　 At four o'clock in the morning, the fourth update, pay the debts owed the day before yesterday, and the debts must be paid!

  (End of this chapter)