Michael Moretz was happy at first, and then felt a little strange, when did this kid talk so well?

Even so, since Zhang Chen agrees to open the financing channel, it is a good thing.

Moretz suppressed his doubts, and said to Zhang Chen: "Zack, Sequoia and Tinder Source have cooperated on five projects. But if you don't say it, I also understand that Matrix is not the same size as other projects. Even if it is only 20% of the Series A financing, it will cost hundreds of millions of dollars. With such a large amount, even Sequoia cannot be invested alone. I mean Sequoia led the pitch, with Goldman Sachs, Blackstone, Benchmark, BlackRock and Lehman Brothers following. The specific amount can be negotiated later, and the top priority is to determine which ones are shortlisted, here is a plan made by Sequoia, you can take a look at it first. ”

Zhang Chen took the plan and rolled his eyes, the co-investment units selected by Moretz, among them, are not only the financiers of Sequoia, but also most of them have something to do with the source of fire.

Not all of the funds of venture capital firms come from themselves, and a considerable part of them also come from various investment institutions.

Sequoia's plan is to get 10 percent of the shares for $250 million, Goldman Sachs for $125 million for 5 percent, Blackstone and Benchmark for $25 million each for 1 percent, and BlackRock and Lehman Brothers to split the remaining 3 percent.

At the same time, the investor will have three seats on the eight-member board, with Michael Moretz, Goldman Sachs' CFO Davinia, and Blackstone's Steve Schwartzman serving as directors.

Zhang Chen gently put down Moretz's plan and was silent.

Moretz smiled: "How? Goldman Sachs Lehman BlackRock, you should be able to accept these three, as for Benchmark and Blackstone I brought in, Schwartzman has a strong influence in the Wall Street venture capital circle, and has a good relationship with General Motors and IBM, which will be of great help to the future development of Matrix." In addition, Schwarzman has a good relationship with Gerstner, and if you don't agree with Schwarzman joining, he can let Gerzner replace him on the board. ”

Gerstner is the CEO of IBM, and he has brought IBM from the bottom to the current peak, and like Jack Welch, he is a legend of a professional manager. If a strongman like Gerstner joins the board of directors of Matrix, it is conceivable that it will help Matrix in terms of operation for the fledgling company.

The world is so small, speaking of Guo Shiner, there is still some indirect relationship with Sandywell, an old acquaintance of Zhang Chen.

At that time, Sandywell failed to compete for the position of president of Express and was swept away, and the driving force behind it was Gerstner. In a sense, Gerstner is also Sandwell's nemesis. After Sandyvae left Amex, he took control of the Commercial Credit Company, the predecessor of the Travelers Group, through various means. Since then, Sandyvale has had a smooth sailing journey and has made the Travelers Group one of the largest financial institutions in the United States.

And Gerstner, after getting rid of Sandwell, also spent a few years of unsmooth time in Yuntong, and after several job changes, he came to the stormy IBM. He has become one of the biggest names in American business circles by streamlining business units and restructuring the company's strategic organizational structure to save IBM from its biggest losses ever.

Moretz has a vague smile on his face, he is very confident in his plan, even though he may still be entangled with Zhang Chen in terms of revaluation, but in terms of financing structure, he believes that this is already the best lineup.

Unexpectedly, Zhang Chen shook his head, and Moretz was stunned, "What do you think is the problem?"

Zhang Chen said calmly: "Three points, the first is the valuation, is the valuation of $2.5 billion a joke?"

Moretz breathed a sigh of relief, sure enough, it was valuation, so it was easy to talk about, "I just said that the valuation issue can be discussed later." Sequoia is only based on the business information disclosed by Matrix, and after the actual negotiation, everyone can sit down and re-determine the valuation according to the audit report. However, the valuation of $2.5 billion is already around 35 times the price-to-earnings ratio, which I think is reasonable. ”

Zhang Chen smiled: "Public information?hehe, Matrix shouldn't have disclosed so much information, the work done by Sequoia is really solid and worth learning." However, Michael, the P/E ratio data you used in the report is a rolling P/E ratio, right? Based on the 12-month rolling P/E ratio, there is indeed a PE of 35 times, but if you calculate it according to the floating P/E ratio, 35 times P/E should be valued at least $5.2 billion, right?"

Everyone knows that purely from the P/E ratio indicator, the lower the P/E ratio, the more undervalued the value of the company, the more valuable it is to invest.

Rolling P/E ratio and floating P/E ratio are two standards for calculating P/E ratios, in layman's terms, rolling P/E ratios are calculated as the average of 12-month rolling P/E ratios, while floating P/E ratios are calculated based on the current month or current year performance.

Compared with the floating P/E ratio, the rolling P/E ratio can better reflect the stable value of a company, so in many situations where the P/E ratio needs to be accurately calculated, the rolling P/E ratio is often chosen for valuation.

However, for Matrix, which is in the stage of rapid growth, X did not have a penny of income in the first half of its establishment, and the income in the last four months has increased geometrically, and if the rolling P/E ratio is used, the valuation has dropped by more than half compared with the floating P/E ratio.

This is also the reason why it is also 35 times the price-earning, Moretz said that the matrix is worth 2.5 billion, but Zhang Chen said that it is worth 5.2 billion.

Moretz frowned slightly: "Zack, using a rolling price-earnings ratio for valuation is a convention in the industry, and you have also invested in a lot of projects, so you won't know it, right?"

Zhang Chen waved his hand: "This is not a convention, whether it is Yahoo or Netscape, it is still losing money until now, if you calculate the price-earnings, it is possible to be hundreds of times." Michael, there's not much to say about that. In fact, you understand that after the launch of iBook, the Matrix product line will be further enriched, and at that time, the floating P/E ratio may not be fair to Matrix. ”

Moretz was already prepared in his heart, nodded and said: "Okay, this article will be put aside for now, and after we have the intention of cooperation, we can sit together and talk." What are the other two points?"

Zhang Chen waved his hand: "Wait a minute, let me emphasize again, this is my bottom line, I can't break through, you can bargain on the P/E data, but you must use the floating P/E ratio calculation method." If you disagree with that, there's no need for us to go any further. Everyone's time is precious, so don't waste it. ”

Moretz helplessly: "Okay, I'll give you an answer as soon as possible." What are your remaining two doubts?"

Zhang Chen nodded and said, "Second, there are only two seats on the board. ”

Moretz frowned: "No, zack, whether it is based on a valuation of 2.5 billion or 5 billion, 20% of the equity is not a small amount of money." Blackstone and Benchmark, which are the least expensive, will also contribute at least $25 million. Goldman Sachs and Sequoia are the main players in this financing, and Schwartzman is very important to help Matrix's operations. Not one less person. ”

Zhang Chen shook his head and said: "I don't agree with Goldman Sachs sending people to the board of directors, Goldman Sachs likes to meddle in operations too much, Morgan Stanley and Merrill Lynch can also accept Goldman Sachs' conditions, and they do not require to join the board of directors and give up their voting rights." ”