After obtaining Jiang Hui's authorization, Tang Wenwen has been talking with venture capitalists such as SoftBank, IDG Capital, and Sequoia Capital for almost a month.

In the past month, the intranet has continued to develop steadily, with the number of domestic users reaching 12 million and the number of international users exceeding 2 million. The average daily income is about 1.5 million, which is equivalent to 45 million per month, excluding various expenses, there is a balance of nearly 40 million per month, of course, it has reached this level in the last month, and it will definitely not be able to reach it earlier, but it should basically not be less than this in the future.

Considering the importance of the game to the group at this stage, Jiang Hui arranged for the personnel of Guanghui Games to continue to develop web games such as defending radish, and at the same time, in order to change the image of Guanghui Games can only do web games, Jiang Hui built the framework of Glory of Kings in advance, so that the company's employees took this opportunity to develop the first online game of Guanghui Games.

The market performance and financial performance of the intranet are very good, and after many contacts, various venture capitalists have a deeper understanding of the actual situation of the intranet, and the valuation is constantly adjusting. After all, for a company that is expected to have an annual profit of 500 million, it is unreasonable to value it at only 700 million or 800 million.

In the end, SoftBank offered a valuation of 1.9 billion, IDG Capital gave a valuation of 1.6 billion, and Sequoia Capital gave a valuation of 2.2 billion.

After many discussions with Jiang Hui, Tang Wenwen decided to take out 15 percent of the shares for the first time and raise funds from Softbank Celestial Dynasty and Sequoia Capital respectively.

Although after negotiations, SoftBank finally accepted the same valuation of 2.2 billion yuan as Sequoia Capital, Jiang Hui only gave 5% of SoftBank's shares for financing and Sequoia Capital 10% of its shares for financing, with a total of 330 million yuan. Ten percent of these financing amounts are allowed to be cashed out by shareholders, except for Jiang Hui, Bai Xue and He Ling, everyone else has taken advantage of this opportunity to cash out some of the funds. However, other people's shares themselves are not much, and only 10% of the financing amount is allowed to be cashed out, so the actual amount of cash is not much, only ranging from 100,000 to hundreds of thousands.

According to the financing agreement, Sequoia Capital sent a deputy general manager and deputy legal director to the company, and SoftBank sent a deputy finance minister and deputy marketing director to the company, both of whom also joined the company's board of directors.

Taking the opportunity, Jiang Hui adjusted the personnel structure of the school intranet, no longer served as the general manager, only retained the position of chairman of the board of directors, and promoted Tang Wenwen to the general manager of the school intranet. He Ling will no longer serve as the head of the finance department of the school intranet, and Lin Muxia, the vice minister, will be promoted to the minister of finance.

Jiang Hui has carefully studied the term list of venture capital agreements, and the preemptive rights and anti-dilution clauses in it are quite reasonable.

The pre-emptive right clause is actually easy to understand, which requires that when the company conducts Series B financing, the current Series A investors have the right to choose to continue to invest in at least the number of new shares corresponding to their current equity ratio, so that the equity ratio of Series A investors in the company will not be reduced due to the issuance of new shares in Series B financing. In addition, the right of first refusal may also include the transfer of shares of the current shareholder, and the investor has the right of first refusal on a pro-rata basis.

Anti-dilution clauses, or price protection mechanisms, have become standard clauses in the term sheets of most VC investment agreements. This clause is essentially to establish a new conversion price for the preferred shares, and no additional preferred shares will be issued. Anti-dilution clauses can be divided into two main categories: one is to prevent the value of shares from being diluted in the shareholding structure, and the other is to prevent the value of shares from being diluted in the process of subsequent financing. To put it bluntly, it is a clause in which VC prevents its own interests from being bullied by major shareholders in the development of the follow-up company.

There are some other clauses, and the entire agreement is sixty or seventy pages long, which basically lists everyone's rights and obligations and how to deal with them in various situations. In fact, it's okay to do things according to the agreement, and you can avoid a lot of unnecessary fights.

The news that the school intranet raised 15% at a valuation of 2.2 billion yuan quickly spread throughout the Internet community on the day the agreement was signed. The financing amount of 330 million is basically a very high value in recent years, although it is not comparable with more than ten years later, corporate financing is hundreds of millions of US dollars, but in 2004, as an Internet company that has just been established for half a year, the 330 million yuan of A round of financing is still very powerful for everyone.

……

Penguin reported: Yesterday, the well-known Internet company Intranet announced that it had completed a round of financing of 330 million yuan, which is the largest Internet financing this year. The intranet now has more than 14 million domestic and international users, how can the intranet that has only been established for half a year achieve a valuation of 22 in a short period of time?

Du Niang News reported: The first batch of funds of 330 million yuan was raised yesterday by the new star intranet of the Celestial Empire Internet industry, and it is reported that the intranet will use this financing to start the construction of the data center. As an SNS website based on the college student market, the school intranet has firmly locked the hearts of more than 10 million college students in the Celestial Empire with a market share of nearly 100 percent,。。。

……

A forum.

"Damn, the school intranet is too awesome, and it is worth 2.2 billion in just half a year since its establishment."

"330 million, a lot of money, how to spend it."

"Upstairs, this money is not your family, you are worried about how to spend it and what to do."

"I also went to learn computer science, but I didn't study mechanical design and automation, and IT money came too quickly."

"Bill Gates wasn't as awesome as the founder of the school intranet back then."

……

A start-up company.

"Brothers, if you work overtime, we will be another school intranet in the future."

"But we don't even have 10,000 users now, and we already have 14 million users on the school intranet."

"Don't be afraid, the road is coming out step by step, and we will definitely be more popular than the school intranet to build a campus SNS website on the shoulders of the school intranet."

"But we've been around for more than a month, and there's no sign of popularity."

……

IDG Capital

"Sequoia Capital has always been the vane of investment in the industry, they dare to give a valuation of 2.2 billion, while we judge 1.6 billion, why is there such a big difference?".

"The valuation algorithm of each company is different, and it is normal to have differences, and it is strange to be exactly the same."

"You have to review whether there are any advantages of the intranet that we have not considered, and we have to learn the lesson of this time, and always be unenterprising, we will be left behind by SoftBank and Sequoia."

……

(End of chapter)