"Yida, Kuaishou is still very similar to your Doushi, it is also making short videos, only user growth, no business income. ”

Shen Beipeng took a sip of tea, cleared his throat and said: "Didn't Ruixiang also participate in Kuaishou's B+ round of financing last year? At that time, it was led by DST, and the black shirt and you Ruixiang joined the investment.

You should still have some understanding of Kuaishou's situation, so it's okay to use it as a benchmark with Doushi, right?"

Zhang Yida nodded, there is indeed such a thing, Ruixiang invested 30 million US dollars in Kuaishou last year and won 5% of the shares.

However, it is really inappropriate to use Kuaishou and Shake as a benchmark.

However, Zhang Yida did not refute and continued to listen to Shen Beipeng's explanation.

"Didn't Kuaishou complete a $250 million Series C financing last month? Qiandu and CMC invested in Kuaishou, valuing Kuaishou at $2 billion.

Kuaishou's DAU is 20 million, which means that a daily active user is $100.

Push the timeline to last year's B+ round of financing, when Kuaishou's daily active users were 6 million ~ 7 million, and the valuation was 600 million US dollars, which was also a daily active user of 100 US dollars. ”

Speaking of which, Zhang Yida also understood what Shen Beipeng meant, that is, $100 for a daily active user, and $4 billion for 40 million daily active users.

Zhang Yida retorted: "Kuaishou's users are all in China, and we still have more than 10 million daily active users abroad?

In terms of advertising monetization, the foreign users earn US dollars and euros, and at the exchange rate, an overseas user can be worth six or eight domestic users. ”

"Having said that!" Shen Beipeng said with a smile, "However, your overseas users are basically teenagers, and their purchasing power is naturally insufficient.

Not to mention that you haven't started monetizing ads yet, even if you do, what ads can you push?

Toys and games?"

"Don't underestimate the purchasing power of children. Zhang Yida gave another example, "You look at the penguin game, isn't that supported by domestic children?"

"Yida, are you going to learn from Penguin and launch a game overseas, or are you just just advertising?"

Xu Xiaoming interjected.

Zhang Yida shook his head, "I definitely won't make my own games, I don't have such a deep background, and a good game studio can't afford it now."

However, most of our overseas users are teenagers, which is very suitable for promoting and attracting traffic to game companies. ”

"If the game has a chance, it must be done, EA, Vivendi, Ubisoft, Activision Blizzard, Villefort...... These companies are good. Xu Xiaoming began to give advice to Zhang Yida.

Shen Beipeng saw that the two of them were getting more and more off-topic, and coughed twice, "Don't talk too far, let's talk about the valuation!"

"The valuation of 6 billion US dollars is definitely not high, the domestic nearly 30 million daily active users are 3 billion US dollars against Kuaishou, and the adjusted exchange rate of the 10 million daily active users abroad is 6 billion US dollars.

That's a $9 billion total of that!"

Zhang Yida said with a smile: "The people invited today are all relatives and friends, so I didn't offer $9 billion, they were all friendship prices." ”

"Do you pay attention to Kuaishou's Series C financing?" Shen Beipeng suddenly asked.

"I didn't pay much attention!" Zhang Yida shook his head with a smile, "Ruixiang is just a financial investment, and after the completion of the C round, our shares are diluted to only 4%.

I only sent an investment representative to participate in their Series C financing negotiations, and it was just a formality.

Su Hua probably saw that I was shivering, and even became vigilant against Ruixiang. ”

Black Shirt Capital has participated in multiple rounds of financing in Kuaishou and is one of the most important investors, so Shen Beipeng knows some insider information.

But now that Doushi has become Kuaishou's opponent, it is not easy for him to point out these insiders directly.

Shen Beipeng thought for a moment and asked in a roundabout way: "Do you know why Qiandu invested in Kuaishou, and gave him a valuation of $2 billion for a company with less than a hundred people and no revenue?"

"I remember that Su Hua seems to have come out of the phoenix's nest?"

Shen Beipeng nodded, "Yes, it's the phoenix nest in the search marketing system."

After dropping out of Aoki University, Su Hua worked at Google and Qiandu, responsible for the research and development of back-end technologies such as search and recommendation algorithms and system architecture. ”

Zhang Yida thought for a moment and asked, "You mean that Qiandu wants to lay out short video ads?"

"I didn't say it!" Shen Beipeng waved his hand, "This is your own guess." ”

Zhang Yida remembered, didn't Qiandu engage in an advertising system with Kuaishou in his previous life?

But later, Kuaishou chose live broadcast as a monetization method, and short video advertising did not take off, and Qiandu also changed from a strategic investor to a financial investor.

"The recommendation algorithms of Kuaishou and Douyin are different, they are based on people rather than content consumption.

Jitter is the opposite, we are based on content consumption rather than people. ”

Zhang Yida recalled as he spoke, in his previous life, Kuaishou and Shake had seemingly similar but completely different patterns and strategies.

Kuaishou pays attention to the participation opportunities of users, scatters and sinks video recommendations, and strives to make ordinary users' videos visible;

Jitter focuses on the user's viewing experience, and the video recommendation is concentrated, focusing on a few broadcasters with a large fan base.

So for ordinary users, Kuaishou may be a little fairer, which leads to the uneven level of Kuaishou's videos, which don't look so good, but are more real and closer to life.

Jitter is to give more recommended opportunities to shoot exquisite, high-level videos with various contents, which can be regarded as a kind of performance, and the viewing is higher.

Zhang Yida is a little worried now, the style of Pindoduo is obviously more compatible with Kuaishou, both of which are sinking channels, and they are a little incompatible with Doushi.

"What about commercial monetization, are you planning to advertise or do live broadcasts?" asked Shen Beipeng.

"There's no hurry now, let's wait for the daily active users to exceed 100 million!"

Once you start business monetization, the user experience will definitely be worse.

Zhang Yida can think of it with his toes that users will definitely be dissatisfied when they encounter an advertisement after swiping a few videos.

The current leading position of Doushi has not yet been fully established, and he does not dare to start commercial monetization rashly.

Rivals like Kuaishou haven't started commercial realization, so why is he in a hurry?

Isn't it just burning money? Sooner or later, it will be earned back in a few years.

Shen Beipeng nodded, and also expressed his understanding of Zhang Yida's approach, typical Internet thinking!

"Okay! 6 billion is 6 billion, how much do you want to finance?"

After speaking, Shen Beipeng looked at Zhang Yida.

"Raise $600 million!"

Zhang Yida began to arrange, "Ruixiang invested 300 million US dollars, I personally followed the investment of 150 million US dollars, and Huayi, Heishan, and Zhenke each invested 50 million US dollars!"

Shen Beipeng was not happy, he frowned and said: "Such a small share? 50 million US dollars can't even account for 1% of the shares." ”

"Yida, atmospheric, we have all agreed on a pre-investment valuation of $6 billion, why do you have to open a $1 billion financing line?"

Xu Xiaoming's confidence in Zhang Yida is very sufficient, Chen Ou has been riddled with fakes recently, and he does not take Chen Ou as an example when he participates in various investment forums and carries out investment work.

And the development of Zhang Yida's company is better than the other, which has helped him earn enough face and various reputations.

Seeing that Yimin Wealth is about to go public again, Zhenke Fund will make tens of millions of dollars.

Therefore, his confidence in Zhang Yida has risen to an incomparably high height.

"So be it!"

Zhang Yida thought about it, and simply did it in one step, and he would no longer raise funds in the future.

He said his plan, "Ruixiang Industrial Fund 500 million, I personally invest 200 million, and each of the three of you is 100 million US dollars." ”

"Yes!"

Shen Beipeng no longer asks for too much share, and the $6 billion start-up, in his mind, has little room for growth, and there is not much money left.

However, Zhang Yida's investment of 200 million US dollars is still very impressive to him.

In this era when founders are scrambling to cash out, Zhang Yida dares to personally invest 200 million US dollars, which shows that he has great confidence in the success of this project.

Xu Xiaoming also nodded in agreement, the scale of Zhenke Fund is not large, far less than the black shirt of a big business, and the share of 100 million US dollars makes him very difficult, and he can't eat more.

After all, it is not possible for a fund to hold a heavy position in one company, and the investors are afraid that they will withdraw if they know about it.

Lan Lan and Lei Dongming also have no opinions, Zhang Yida has strong control over the two companies, and the two of them just do what he arranges.

After completing a series of due diligence procedures, Zhang Yida signed a Series A investment agreement with the four parties in a low-key manner.

Doushihe's Cayman Holding Company received a joint investment of $1 billion from a total of five parties, including Zhang Yida, at a pre-investment valuation of $6 billion, bringing the company's post-investment valuation to $7 billion.

The equity structure before the financing was 90% owned by Zhang Yida and a 10% option pool.

After the merger and acquisition, and the development of North America, Europe and other operation centers, Doushi saw more executives such as Ma Jun, Yang Lu, and Ryan.

These people are conscientious and diligent to follow Zhang Yida to start a business, take Ma Jun as an example, after opening up the North American operation center, he went to Europe non-stop, and did not return to China for the Chinese New Year, which can be said to be hard work.

They are fighting so hard, and what they are asking for is options, and they want to make a huge fortune when the company goes public in the future.

So this 10% option pool is set up for these people to motivate them to work better.

In addition to the company's executives, middle management and key employees also have the opportunity to obtain options.

There are fewer grassroots management and employees, and if they don't make any outstanding achievements, they are generally given some comforting options.

After all, the cake is so big, and the biggest piece must be for the employees who contribute the most.

After the completion of the A round of $1 billion financing, because he personally invested $200 million, Zhang Yida's equity did not decline much, and he still held 80% of the shares;

Ruixiang obtained 7.14% of the shares, and Blackshirt Capital, Huayi Capital, and Zhenke Fund each held 1.43% of the shares;

The option pool has shrunk, from 10% to 8.57%, but it's still worth a lot of money, worth a full $600 million.

The financing was carried out in a very low-key manner, and Zhang Yida did not invite any media and reporters, after all, the $1 billion Series A financing was quite shocking.

If the outside world knows, it will inevitably attract more hot money to invest in the field of short videos, bringing a lot of unnecessary vicious competition.

But this kind of thing is impossible to hide for too long, especially after the completion of financing, Zhang Yida gave the company's executives, middle-level and key employees a round of option incentives.

For option incentives, you have to tell employees how much it is worth! Although a confidentiality agreement is signed, it is inevitable that some employees will brag to their former colleagues and peers.

This is the case in China, where there is a weak sense of law.

But Zhang Yida didn't plan to hide it for long, one more month is a month!

In addition, Zhang Yida also pays close attention to Zhang Ming's movements, Toutiao has its own algorithm and technical precipitation, and it is not difficult for them to launch a short video.

There was already a Kuaishou as a competitor, and if Toutiao joined it again, it would be the Three Kingdoms Kill.