My Age of Investment

   Chapter 634

  On the second day when Lin Xinhe and the First Year Alliance were torn apart, Zhao Keren, another partner of DCM, quickly resigned from the board of directors of Legend Capital.

  The outside world did not pay much attention to this humble news.

  But everyone in the venture capital circle smelled something wrong.

  Zhao Keren is not an unknown person. He invested in 51job and served as the chairman of the board of directors of this Nasdaq listed company.

  In 2004, Zhao Keren was also listed as one of the top 25 venture capitalists in the world selected by Forbes.

   Such a well-known investor suddenly withdrew from Legend Capital without any signs, and Legend Capital did not give any response to the outside world.

  This makes the whole thing a little bit strange.

  Next, it was discovered that Lin Xinhe had also stepped down as directors of several companies related to Lenovo, IDG, and Sequoia.

Xiong Xiaoge, Zhang Fan and others originally served as directors of several companies invested by DCM, but in recent days, they have resigned from their positions.

  The people outside the circle have not understood it, the insiders have understood it, and DCM and several venture capital institutions have completely parted ways.

  Many people are speculating about what happened in this story.

  No matter how the outside world speculates and discusses, the protagonists of the story-IDG, Sequoia, DCM and other institutions have remained silent.

  As previously analyzed by Xia Jingxing, the relationship between domestic venture capital institutions is very serious and the formation of gangs is very serious.

  DCM and IDG have cooperated for many years and forged a deep friendship.

   But no matter how thick friendship is, in the face of interests, it is as thin as a piece of paper and cannot withstand wind and rain.

  While delinking each other, the two sides also held several rounds of talks.

  Zhao Keren rushed back from the United States and warned Xiong Xiaoge and others that they must buy back the shares of Thousand Oaks for 20 million US dollars, and a penny is not less.

  Xiong Xiaoge and others are naturally unwilling, and want to threaten the lawsuit.

  But Zhao Keren did not take this set at all, and made it clear that he had sent letters to IDG and Sequoia in the United States, informing the two companies of related matters.

Shortly afterwards, Xiong Xiaoge and Zhang Fan received instructions from the US headquarters.

  Although IDG China and Sequoia China are very independent, the opinions of the US headquarters cannot be completely ignored.

  The Americans are a little worried that the tracking and secret shooting will spread to the world and affect the company's brand. It is recommended that the Chinese branch handle disputes quickly, properly and rationally.

  The US headquarters stepped in, causing Xiong Xiaoge and Zhang Fan to feel very angry. It was clear that they were the victims, but instead they needed to make a smile on the insider of DCM.

  They did not follow the guidance of the US headquarters, but they did not further stimulate the conflict with DCM, so they dragged on and did not sue DCM or repurchase the equity of Thousand Oaks Group held by DCM.

  Planning to dry the DCM for a while.

  In a few days, the venture capital circle suddenly received the news from DCM that it wanted to transfer nearly 10% of the equity of Thousand Oaks Group held by 20 million US dollars.

  According to this price, Thousand Oaks Group is valued at just over 200 million U.S. dollars, which is equivalent to a 30% discount on the 300 million U.S. dollars after the B round of financing.

  DCM invested in Thousand Oaks during the A round of financing, and originally made a certain amount of paper profit.

  But now I have discarded all these profits and only want to get back the initial investment of 20 million US dollars.

  The valuation of Thousand Oaks Group was broken. As expected by Xia Jingxing, there have been many discussions on the Internet, and various interpretations have been made.

  Chen Yizhou's head was so big that he kept receiving condolences calls from friends.

  On the surface, it was condolences, secretly inquiring about Thousand Oaks' business situation, and banging on the side is not enough.

  There are also some people in Thousand Oaks Group who are worried. The employees know that investors are clamoring to withdraw, and they are very optimistic about the next development of Thousand Oaks Group.

  This casts a shadow over the hearts of all employees who are looking forward to ringing the bell to go public, especially the part of employees who have obtained options, almost not crying.

  The stock price corresponding to a valuation of US$200 million is lower than their exercise price.

   is equivalent to saying that the option granted after the company's B round of financing has become a piece of waste paper.

  This is too shocking, and many employees' enthusiasm for work has been affected.

  The whole company goes up and down, like eggplants that have been beaten by frost, without energy at work.

  In addition, the September campus activities being planned by Thousand Oaks Group have also been affected to a certain extent.

  The partners thought that Thousand Oaks Group was going to die soon, so they called and asked Thousand Oaks to increase the cooperation deposit and the first purchase payment.

  The piles of mess after another, almost didn't hurt Chen Yizhou out of anger.

  The withdrawal of DCM was originally a trivial matter, but under the impetus of a caring person, the Thousand Oaks Group was brought into turmoil.

  In desperation, Chen Yizhou had to discuss with Zhang Fan and Xiong Xiaoge, hoping that the two major shareholders would repurchase DCM’s shares in Thousand Oaks as soon as possible and end the nightmare as soon as possible.

  The U.S. headquarters is forcing them. The wording in the e-mails is more severe than each one. Now Chen Yizhou has come again to suffer.

  Zhang Fan and Xiong Xiaoge felt very uncomfortable. After a long conversation, they decided to temporarily accept this "humiliation under the crotch".

  Sequoia and IDG are Thousand Oaks' round B lead investors. In this company, they each placed more than 30 million U.S. dollars in heavy bets.

  Due to risk control management, the two companies decided not to take the US$20 million stake in DCM alone.

  When they approached several institutions such as Capital Today, Legend Capital, Walden International, etc., the reality gave them another blow.

  These institutions have also seen the recent decline of Thousand Oaks Group. Oral support is fine, but they all hesitate to invest money.

  Finally, it was Tong Shijie of Axel who took the lead in subscribing for US$2 million in equity to break the deadlock.

  Other institutions, each reluctantly subscribed for US$1 million in equity.

  In the end, the remaining 10 million US dollars of unsubscribed equity, Sequoia and IDG each subscribed for 5 million US dollars.

  Tong Shijie succeeded in gaining the trust of Xiong Xiaoge and Zhang Fan by taking the lead in subscribing to stock rights and taking the lead in bombarding Lin Xinhe, and he became the core of the Junior One League.

  In the words of Zhang Fan to Xiong Xiaoge in private: I used to think that this fat guy was a stubborn guy, but he never thought that at a critical moment, he would never lose the chain.

  Xiong Xiaoge agrees.

  The scale of Axel's asset management is not large, only 100 million US dollars. However, he has invested more than 10 million US dollars in Thousand Oaks Group, 58.com, Youku and other companies. He is a very courageous figure.

  Xiong Xiaoge remembers that Tong Shijie privately gave him a promise: As long as the league needs, Axel's remaining money can be poured in at any time.

  These performances fell in the eyes of Xiong Xiaoge, which greatly improved his evaluation of Tong Shijie.

  This young man knows that he has little industry experience, so he is very willing to follow him and Zhang Fan.

  When Tong Shijie told Xia Jingxing about the situation, the latter laughed sour that his jaw was sour, and greatly praised Tong Shijie for his more and more ace business spy demeanor.

  Axel invested more than 10 million US dollars back and forth, and the potential cost is not low.

  However, as long as Qianxiang, Youku, and 58.com can be defeated, the profits will be transferred to the school, Tudou, and Ganji, and Envision Capital is the major shareholder of these companies, so Xia Jingxing does not feel sorry for the money spent.

  At first, after the alliance had collected 20 million US dollars, it soon signed an equity transfer agreement with DCM and repurchased all the equity of Thousand Oaks Group held by DCM.

  DCM officially broke off with the first-year league.

  After DCM received 20 million US dollars, he turned around and voted for the school intranet, obtaining 3% of the equity.

   Benefiting from the recent decline of Thousand Oaks Group, the valuation of the school intranet has risen again, reaching 6666.6 million US dollars.

  (End of this chapter)