Chapter 373: Venture Capital
After listening to Zhang Guodong's introduction, Zhang Jiucheng lowered his head and fell into deep thought. The pen "Fun" Pavilion www.biquge.info a brave young man, coupled with a unique technical vision, in a country full of opportunities, what kind of career can be made, which makes people can't help but look forward to it. There is no shortage of self-made precedents on Hong Kong Island, and many very good talents just need an opportunity.
Some Hong Kong Island investors are skeptical about the mainland's prospects, but this is not the case with Zhang Jiucheng, who is full of confidence in the mainland's future. It is precisely because of his confidence in the mainland that a young man who is ready to give it a go in the mainland is more likely to be favored by him.
"Well, in that case, tell me what I can do for you. ”
Zhang Jiucheng finally raised his head and said to Feng Xiaochen.
Feng Xiaochen said: "I need funds. Mr. Zhang can choose to give me a loan, or he can choose to invest in shares. I hope to be able to raise the equivalent of 50 million RMB, which is about 150 million Hong Kong dollars. ”
"150 million Hong Kong dollars, that's not a small amount. Zhang Jiucheng smiled slightly.
Feng Xiaochen said: "If it weren't for such a number, I wouldn't have bothered Mr. Zhang." I have been in business in the mainland for several years, and now it is not difficult to scrape together 20 million yuan. But this money is barely enough to make a small business, and if you want to go to the next level, it is not enough. I came to Hong Kong Island this time to raise funds. 150 million Hong Kong dollars may be a large amount for a mainland company, but for Mr. Zhang's Zhang consortium, it is a sprinkling of water. ”
In the last sentence, Feng Xiaochen imitated the pronunciation of Cantonese, which made the serious atmosphere seem a little more relaxed. Zhang Jiucheng nodded and said, "I can take out 150 million Hong Kong dollars, but what kind of return can you give me?"
"It depends on whether Mr. Zhang wants to provide it in the form of a loan or in the form of a venture capital. Feng Xiaochen said.
"What about the way of borrowing, and what about the way of venture capital?" Zhang Jiucheng continued to ask.
Feng Xiaochen said:
"If it is a loan, I can accept an annual interest rate of 15%, repay the principal and interest in 5 years, and I will repay you 100 million yuan in 1990. I can use my current Chen Yu Bearing Company and Spring Restaurant as collateral, the current net value of these two companies is about 10 million yuan, and it is not a problem for the net value to rise to 50 million in five years. In the worst-case scenario, Mr. Zhang could at least recover the principal. If it is a venture capital, Mr. Zhang's investment of 50 million yuan can have a 10% stake in the future Chen Yu Construction Machinery Company. ”
"Scared! 50 million yuan, only 10% of the equity, how much of your own funds can you have now?" Zhang Jiucheng pretended to be surprised and asked Feng Xiaochen.
"My own funds are 10 million, plus my technology, my abilities and connections, and my efforts for the next five years. I can guarantee that the market value of my company will definitely exceed 1 billion yuan in 5 years, and Mr. Zhang will invest 50 million yuan to obtain 10% of the equity, which is definitely a profitable deal. Feng Xiaochen said calmly, not feeling that it was inappropriate for him to use 10 million to set 50 million and only give 10% of the equity.
Feng Xiaochen is so boastful, if it weren't for the previous words as a foreshadowing, and if Zhang Jiucheng was not a crazy adventurer like Feng Xiaochen, then Zhang Jiucheng would have swept Feng Xiaochen and his party out of the house long ago, and even called the police to catch the liar, it is also possible. But it is such a wild talk, but it sounds like a valuable entrepreneur in Zhang Jiucheng's style. If a person does not have a little ambition, what is the difference between him and a salted fish?
Thinking like this in his heart, Zhang Jiucheng had to bargain again. He said to Feng Xiaochen: "What if your market value does not reach 1 billion yuan?
Feng Xiaochen said: "We can sign an agreement, after 5 years, if Mr. Zhang is not willing to retain his equity in Chenyu Construction Machinery Company, our company can repurchase at a premium of 200 million yuan." Of course, the premise is that the company still exists and has a net worth of more than 200 million yuan. ”
"Interesting. Zhang Jiucheng smiled appreciatively again.
According to the way of the loan, he has a greater certainty that he will be able to recover the money, even if Feng Xiaochen is really bankrupt, he will at least be able to get back the principal. In case the business is not done, even if the 150 million Hong Kong dollars are thrown into the water, Feng Xiaochen has no obligation to repay the bearing company and restaurant under his name.
However, the return on venture capital is even greater. If it is really as Feng Xiaochen said, this company will become the largest construction machinery company in China in the future, then its market value is not only 1 billion, but also 10 billion. At that time, 10% of the equity is equivalent to a market value of 1 billion yuan, such a rate of return is simply against the sky, which can be called another legendary investment case.
If you are an investor who pursues prudence, you will certainly not have such great hopes for a company that does not yet exist, and it may be more appropriate to take the form of a loan. Of course, if you really pursue stability, I'm afraid you will have to consider even providing a loan to Feng Xiaochen, after all, it is also unreliable to use the bearing company and the Spring Restaurant as collateral.
But the person who has to make a choice now is Zhang Jiucheng, a legendary investor who has always pursued risk. What he is most afraid of is that there is no chance to gamble, and the word steady has never been the starting point for him to consider the problem.
50 million yuan, equivalent to 150 million Hong Kong dollars, is indeed not a large amount for the Zhang consortium. Let's put it this way, the rent of the Zhang consortium now rents office buildings, which is nearly 80 million Hong Kong dollars a year, and 150 million is only two years' rent. It's not bad to gamble on an opportunity with such a sum of money.
Feng Xiaochen's plan caters to Zhang Jiucheng's investment style very well and arouses his gambling nature. Although there was still a lot of information to know, and he couldn't make a decision right away, he had a hunch that he had decided on the project.
Feng Xiaochen and his entourage left some more detailed explanatory materials, and then left the Zhang consortium. Zhang Jiucheng politely sent the guests all the way to the elevator entrance, and personally helped them press the elevator call button, watched them walk into the elevator, and closed the elevator door, only then turned around and instructed the secretary who followed behind:
"Arrange two competent people to go to the mainland immediately to investigate this Feng Xiaochen and his enterprises, I need the most detailed information about him. ”
"Boss, are you really optimistic about this young man?" the secretary asked, a little surprised.
"He's a bit like when I was younger, and that's the kind of person who can do miracles. Zhang Jiucheng said to himself.
The secretary couldn't help grinning, let's not boast like this, okay? If you look like you when you were young, you can create miracles, is this praising the young people of this continent, or praising yourself?
However, his conditions were too arrogant. He now only has a total of 10 million yuan, that is, 30 million Hong Kong dollars, and he wants to win us 150 million, and he only promised to give 10% of the equity. I think if we asked for 50 percent, he would say yes. ”
The secretary suggested. In the negotiation just now, he had been taking notes beside him, and he was quite disdainful of Feng Xiaochen's conditions, so he questioned his boss at this time. His secretary is not the secretary who is responsible for serving tea and water, but the secretary who can help Zhang Jiucheng make decisions.
Zhang Jiucheng smiled and said, "Xiao Li, this is the difference between you and this Xiao Feng." If he hadn't had the guts, I wouldn't have invested my money in him. In fact, what is the difference between 10% and 50%, getting 10% in a promising company is worth at least 10000000000000000000000000000000000000000000000000000000 And in a company with no future, even if you get 50%, you will be lucky to get back 10 million in the future. Venture capital is such a thing, that is, the greater the risk, the higher the return, I am taking risks, where is this Feng Xiaochen not taking risks?"
"I see, boss Takami. The secretary knew that Zhang Jiucheng had made up his mind, so he didn't need to say anything more. Zhang Jiucheng has always been stubborn and self-serving, and no one can change what he recognizes. Since that's the case, what else can he say besides patting the sycophants?
Zhang Jiu understood the secretary's thoughts, and he said with a smile: "You don't have to be unconvinced, anyway, it won't be long, it's about five years, and you will see the results." Actually, I wasn't entirely convinced by this young man's words, what I valued was the connections behind him.
Didn't you listen to Zhang Guodong's introduction, this young man was originally the deputy director of the mainland's State Economic Commission, but now he has resigned and is about to go to the Academy of Social Sciences to study for graduate school. His graduate supervisor is Shen Rongru, you may not have heard of this person, but this person has dealings with many high-level people in China, and it is not an exaggeration to say that he is a national teacher. I paid 150 million Hong Kong dollars, what can't I draw on such a line?"
"The boss wants to enter the mainland market?" the secretary suddenly realized.
Zhang Jiucheng smiled proudly: "Isn't it, it's been more than ten years since Jiuqi's return, and it's too much of a hurry to lay out an overall situation." In this world, whether it is the United States, Europe, Japan, including Hong Kong Island itself, the period of adjustment and development has passed, and the most promising place in the next 30 years is Chinese mainland. If you want to make a lot of money, you have to occupy the mainland market. I want to take this opportunity to expand my business to Chinese mainland. This young man is just the first target of my investment, and we will find more opportunities in the future. ”
"Boss Takami!" the secretary sighed heartily this time. At a time when investors all over the island are in the air, it is indeed necessary to have great foresight and greater courage to be able to see the development opportunities of the mainland and dare to transfer their business to the mainland. From this point of view, Zhang Jiucheng can indeed be called a legendary investor.