Chapter 423: Entering Venture Capital (2nd Update)
Because Lin Zi delayed returning to China for the funeral, one of Joseph's existing projects was almost aborted because Lin Zitan could not come back in time.
After all, now Lin Zitan is an investor in the new project, even if Joseph and Jimmy are both optimistic about the prospects of this company, they have to wait for Lin Zitan to make a decision, so Lin Zitan went to work at Joseph's side the day after returning from China.
The venture capital company that Lin Zitan cooperated with them this time is different from the simple company trading that Jimmy and Joseph had before, and this kind of venture capital company is actually a bit like the profit model of private equity.
It is a capital operation mode in which they invest their own funds into various high-tech companies with potential, and promote the listing process of the other party through capital injection and assistance to the company, and profit from it.
To put it simply, venture capital is an investment behavior for investors to obtain benefits, and it is a very important financing channel for entrepreneurs.
According to the different periods of venture capital introduction by entrepreneurs, venture capital can be divided into four types, namely seed capital, introduction capital, development capital and venture merger and acquisition capital.
If the entrepreneur can succeed, the venture capitalist will get several times, dozens of times or even hundreds of times the return; if the investment fails, the venture capitalist's money will be wasted, but the entrepreneur will not be burdened with heavy debts.
Because of the advantages of venture capital, it has attracted countless entrepreneurs, which has greatly encouraged the passion and courage of entrepreneurs.
Seed capital investment, also known as angel investment, is of great help to early-stage entrepreneurs.
But what Lin Zitan and they are doing is development capital and venture M&A capital, because for them, the front line of angel investment is too long.
Joseph and Jimmy have been doing business acquisitions and buying and selling for so many years, and have done a particularly detailed analysis of the operation and management mode of each company, especially the reasons for the failure of each company's investment.
When they choose investment targets, they will also examine the company's technology, market, management and other aspects to see whether the company has investment value.
Now Joseph's company is a small company with potential, but because of financial constraints, it wants to raise money.
As long as they join in, coupled with Jimmy's team's capital operation method, the company can go public in less than two years.
"How to ?, too, an Internet company?"
After Lin Zitan got the information handed to him by Jimmy, he looked up and said after reading it carefully.
The materials show that this is an emerging Internet industry, saying that it is emerging, in fact, it is just that their ideas are relatively novel, and the company currently has less than 10 people, but the profit model is very attractive.
"Yes, in the United States, Guge has almost monopolized all search engines, but this company starts with Guge's browser, and only needs to import these users who ask questions to this page of their company, so it can bring a steady stream of advertising revenue. ”
"Is this really possible?" Lin Zi said in surprise.
"Come and see~"
Jimmy immediately turned his notebook to Lin Zitan and typed "how to.." into the ancient song browser. A whole bunch of words will appear later, such as how to buy things on Amazon, how to grow vegetables in the yard, and various suffixes will lead you to the answer you want.
And no matter what answer appears in the search engine, the company's icon and answer are always in the first place.
They will answer a variety of strange questions from customers, and some of the answers are actually just reproduced from other professional websites, but they are completely professional.
The general questions and answers may be boring, but there are still thousands, if not billions of pieces of information that are useful.
And the more these answers are clicked on, the more they will earn, because the page is set up with various ads, and the page is also making money by the placement of these ads.
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Next, Jimmy introduced the company's current market prospects and management model to Lin Zitan, and he and Joseph both looked full of confidence.
"Is this a gray area in the network industry? What if we help them through the difficulties and are sued by other Internet companies after going public?"
Lin Zitan hesitated after listening.
"Of course, we also considered this risk, so our lawyer and our professional team went to do an investigation report, and then based on this investigation report, we will sign a contract with the other party.
We invested $10 million here, only responsible for pushing the company to the market, after the listing, we only need to take the highest stock price in the first week, 30% of the par value of the total amount of the stock, and the rest even if the stock rises to 10 million, it has nothing to do with us!
On top of that, they pay us a 2.5% fee to keep our team up and running.
"Looks pretty good, but I probably need to take it back and see, how much time do we have to make a decision?"
Lin Zitan looked up and asked Joseph.
"The sooner the better!" said Joseph calmly.
"Okay, I'll answer you early tomorrow morning at the latest~"
After Lin Zitan finished speaking, he sealed all the materials and packed them in the briefcase he was traveling with.
"By the way, can I consult someone who does the Internet? I mean Andrew?"
Before leaving, Lin Zitan still told the two of them the purpose of bringing him back.
"At the technical level, we have consulted a lot of professional people, if you are not sure, you can consult with him again, after all, he has handled a lot of patent applications. ”
Jimmy understood that Lin Zitan still had hidden concerns, so he replied very naturally.
"Okay, I understand, then I'll go first, this is our first investment, I just hope we can strike cautiously and be able to hit it in one hit!"
After finishing speaking, Lin Zitan greeted Xiao An, who was waiting for him outside, and immediately drove straight to the network company.
It's not that Lin Zitan doesn't believe in Jimmy's composure and Joseph's precise vision, he just wants to ease the enthusiasm of these two people for this investment.
It's like if you're in a hurry to do something, you will overlook a lot of small details that you didn't notice in the first place.
Lin Zitan needed a little time to calm down these two experienced investors and look for problems that they might have overlooked in this investment.
When he arrived at the network company, it was lunch time, and when Chu Feng saw them coming, he specially asked the assistant to order two more lunches.
"You're really hardworking, every time you just come back, you just start going to work straight to the clock, look at your dark circles. ”
Chu Feng couldn't help but complain while handing Lin Zitan the cup of coffee that the assistant had just made for him.
"No way, born hard work~" Lin Zitan said with a faint smile.
"I have something to report to you! Our North American money-saving strategy has been taken a fancy to, and there is a company called Dealmoons, which at first thought that our company had imitated their model and wanted to sue us.
Later, Andrew provided all the modeling materials of our company from venture capital to the judge and asked the other party to explain the plagiarism part, and they shut up, but within a few days, the person in charge of the company found someone to talk to us about cooperation.
When it comes to talking about cooperation, I don't think they have any sincerity, because they only want to buy our greatdeal for 3 million......"
After Chu Feng explained the ins and outs to Lin Zitan, Andrew just finished handling the matter at hand and walked into the office with the lunch brought to them by the assistant.
"3 million wants to buy us, it's just wishful thinking!" Andrew said unhappily.
"I'll go back and ask Jimmy to help investigate whether they have any room for profit, if so, we can just buy them and merge them into our mature model, wouldn't it be more profitable?" Lin Zitan said with a smile.
"Alas, I think so too, hahaha~" As soon as Lin Zitan finished speaking, Chu Feng immediately laughed and said.