At this time, Mrs. Yu led Tong Mu downstairs, and when she heard them laughing, she asked them what was so funny.

Wu Tong explained to the two of them.

Hu Yiting was in a good mood, holding a teacup and tasting it carefully, with Yu Youcheng joining, Hu Yiting thought that the investment blueprint in his heart finally had a tough substrate and could start painting on it.

Because of nationality restrictions, it is inconvenient for some investors Hu Yiting to come forward by himself, or even if he does, he will be suspicious, picky, and excluded, and there must be a capable comprador in the United States to run for him, so that he can hide behind the scenes, and some things are convenient to carry out.

"Mr. Yu will pay 3 million US dollars, Sister Wu will pay 500,000 yuan, then I will pay 16.5 million yuan, the funds are still more generous, 10 million is a little less. ”

Yu Youcheng's eyes lit up, he knew that for a venture capital, 10 million and 20 million have a fundamental difference, after all, some projects have a high capital threshold, and the principal of 10 million is withdrawn from millions and invested in it without the right to speak, if the A round follows up, but can not continue to increase investment in the B or C round, then only in the face of the dilution of the share capital, the right to speak is deprived of the new big capital, if you are extremely optimistic about the prospects of the project, then this dilution of the share capital will undoubtedly cause a lot of losses.

"Hu Yiting, do you have any conditions for partners? We set up this venture capital, is it open or closed, and will other partners be allowed to enter in the future?

Now there are two types of venture capital companies, one is only two or three partners, with less capital, focusing on a certain industry, digging deep into projects in the industry, only doing A or B rounds, and not holding shares to the market. The other is more open, with abundant capital, and the number of partners is even as much as a dozen, most of the members have served as directors of large international enterprises, and each has a share when choosing projects, and the partners choose projects from their respective familiar industries to recommend to the board of directors, and finally vote on whether to invest, and the abundant capital makes their tactics more flexible, and they can intervene in any round, even starting from the seed round, through the A round B round C round...... Held until the stock is listed. ”

Tong Mu was confused, and after hearing what Yu Youcheng said, he subconsciously opened his mouth and asked Hu Yiting in a low voice: "What is round A and round B?"

Hu Yiting didn't care at all, and explained to her gently: "I'll give you an example, you set up a company, but you need money to develop your business, so I give you $100,000 in exchange for 10% equity of your company, so that your company's valuation becomes one million dollars, I am your angel round investor, after half a year, you are about to spend $100,000, the company needs to expand its business, so it needs more money, so Mr. Yu came, as a Series A investor, gave you $1 million, and also exchanged 10% for you As an angel round investor, 10% of the equity in my hand has also increased tenfold, and then after half a year, you have spent the million dollars, and you are short of money, so Sister Wu appeared, she gave you 10 million US dollars in exchange for 10% of your equity as a B round investor, so your company's valuation reached 100 million US dollars, and the 10% equity in the hands of Mr. Yu and I also rose and was worth 10 million US dollars. Then you go public, if the stock price just reflects the previous valuation, then I made a hundred times, Mr. Yu made ten times, and Sister Wu didn't make a penny. If the stock price is higher than the previous valuation, then of course Sister Wu will make money. ”

Tong Mu nodded as if he didn't understand: "Then what if the stock price is not as good as the valuation?"

Hu Yiting said with a smile: "If the stock price is only half of the valuation, then I will also earn fifty times, and Mr. Yu will also earn five times, only Sister Wu will lose half of the investment." ”

Tong Mu said innocently: "So angel round investment is a sure way to make money and not lose money? In this case, why do Sister Wu and Mr. Yu want to be Series A and Series B investors?"

Hu Yiting nodded: "So in practice, Series A investors sometimes ask angel round investors to go out, for example, when Mr. Yu invests, he asks me to put 5%, 8%, or even 10% All the equity was sold to him, and he gave me for example, 200,000 US dollars as compensation, otherwise he would not invest, I could agree to his request, anyway, the original 100,000 yuan doubled in half a year, and it has already made a lot of money, if I don't agree, the company may not have the money to continue operating, and it will die, and the 100,000 US dollars I invested before may not be recovered. ”

Tong Mu asked: "Since you are optimistic about me, why don't you invest 10 million US dollars at the beginning." ”

Hu Yiting said with a smile: "But have you ever thought about it, I may only have 100,000 US dollars? Or am I not optimistic about your company at all, and just want to find someone to take over? Or am I a venture capital company specializing in angel rounds, and in principle, I will never get involved in Series A or Series B? As long as there are Series A or Series B investors, my company will in principle beg me to pay off all the equity in my hands, put the profits in my pocket, and avoid all kinds of unpredictable risks in the future. ”

Tong Mu had a sudden expression on his face and nodded: "Oh, I understand." After speaking, she found that Mr. Yu and his wife, Wu Tong, and Wang Qi were all staring at her with a smile, so her face turned red and she said embarrassedly: "I'm sorry, I shouldn't have interjected." ”

Mrs. Yu said with a smile: "Hu Yiting is so good to you, if you want to replace me, Youcheng will definitely not give me such a patient explanation, and send me away with a sentence of 'you don't understand'." ”

Yu Youcheng smiled: "Do I have it? You wronged me too much, right?"

Hu Yiting also smiled: "Tong Mu and I are one, if she doesn't understand anything in the future, please bear with me and teach her." ”

Mrs. Yu exclaimed with envy: "Oh, Tong Mu, you see how good Hu Yiting is to you!"

Tong Mu blushed, and the three of them leaned on the couch with Mrs. Wu Tongyu, smiling silently, looking at Hu Yiting with their pulses.

Yu Youcheng saw that Hu Yiting attached so much importance to child herding and respected her so much, thinking that her family background was very high, so he also explained to her with a smile: "In fact, reality is not always so sweet, almost eighty percent of the NASDAQ market is zombie stocks, to put it bluntly, there is no market, you want to sell the stock according to the market price, you can't find a takeover, only one or two percent of the stocks that are really active, for unpopular stocks, you want to put 10% It is difficult to get rid of even a few months, and once you sell more, the stock price will fall like a high diving. If you are unlucky and the company is not running well, you will not be able to sell the equity in your hand, and you may even be delisted with the company. Therefore, it is very important to choose a good company, it is not necessary to make money by listing the stock, but also involves the interests of underwriters and market makers, and it is difficult to explain in one or two sentences. ”

Tong Mu said gratefully: "Thank you Mr. Yu for teaching me, you don't have to care about me, you can talk about serious things." ”

After this episode, Yu Youcheng rediscovered the topic: "That's it, Hu Yiting, which direction do you think we should go?" Do you specialize in angel rounds, or do you not stick to rounds, as long as you are optimistic, you will hold all the way, increase investment all the way, until the company is listed?"

"Don't be stubborn, with our professional vision, since we voted, it will basically not be wrong, no matter which round you enter, we will never quit lightly!" Hu Yiting said neatly.

Yu Youcheng approvingly: "Okay, have courage! I also think we should be more flexible and patient." In addition, if you want to add some partners in other fields, I can find some friends in my own network to participate, such as new materials, Biopharmaceuticals or new energy fields, etc., of course, I will find Chinese technical experts, I am not xenophobic, but I think there is no cultural barrier between Chinese, it is easier to communicate, but we Chinese are generally risk-averse investors, I estimate that it is unlikely that they will come up with too much money, and those Chinese who are willing to invest a lot of money are often immigrants with no technical background, just like the kind of big money that you mainlanders often say, such as Chaoshan business group, Jiangsu and Zhejiang business group, Hu Jian business group, they are rich, but I think it is better not to touch. ”

Hu Yiting also nodded: "I agree, I can accept professionals to join, and it doesn't hurt to have less money, but just the kind of people who have money but no technical background don't have to, after all, I'm not short of money." At present, we should focus on mining Internet technology companies, the future world must belong to the Internet, and in a few years, I don't think there is a need to increase partners for the time being, first run the company, standardize it. ”

Yu Youcheng nodded approvingly: "Fortunately, you are not short of money, this is our advantage, and I don't like too many people, you see that there are some financial investment companies on Wall Street, which are full of Jews, and they are not looking for other ethnic groups at all, you know the stock god Buffett, when he graduated from college, he proposed that he wanted to work in the investment company of his mentor Graham, but because the investment company only accepts Jews, Graham did not make an exception for his students. ”

"I see. Hu Yiting suddenly said: "Probably there is a greater sense of identity and cohesion among members of the same ethnic group." ”

Wu Tong smiled at this time: "I suddenly feel that I have taken a big advantage now, if I don't accompany Mr. Hu to this trip, otherwise how can I be my turn to participate? ”

Yu Youcheng and Hu Yiting laughed again when they heard this.

"Hu Yiting, you are so anxious to engage in venture capital now, do you already have a goal?" asked Yu Youcheng.

Hu Yiting looked at Wang Jue, smiled at him, and didn't want to hide it, so he said directly: "Yes, I have taken a fancy to a company established last year, Amazon, an online shopping company in Seattle, have you heard of it? Their current main business is to sell books on the Internet." ”

Yu Youcheng nodded thoughtfully: "E-commerce, this entry point is good, now this concept is very popular in Silicon Valley, is there anything else?"

Hu Yiting licked his lips, he remembered that before the NASDAQ stock market crash in 2000, almost any Internet stock could be bought to make money, and from 1995 to 2000, the NASDAQ market rose from 1,000 points to 5,000 points, a fivefold increase.

"I didn't think of anything else for the time being, I think let's do Amazon first, this company has currently received an angel round of investment, and we will strive to enter the next A round. ”

Yu Youcheng's eyes were blazing: "Are you so optimistic about them? Did you hear any news before?"

Wu Tong also asked: "Mr. Hu, where did you know about this company?"

Hu Yiting casually made up a reason: "I saw in the newsletter that there are companies in the United States that sell books on the Internet, and I looked at their website on the Internet, and I felt very good. ”

"Just like that, it feels good?" Yu Youcheng was a little stunned, he didn't expect that the basis of Hu Yiting's vision was actually feeling, can this thing be reliable? There are still three million in this money!