Chapter 48: Series A Financing
Financing is a process that a startup must face, although it is painful to give away your company's shares to someone else, even if someone buys them with money. This is the first psychological hurdle for founders and management teams to overcome.
It is also necessary to see the benefits of financing, the diversification of equity, the introduction of external funds, the expansion of the company's business channels and strategic partners, the ability to make the cake on the plate bigger, etc., etc., so learn to make trade-offs.
Liu Qing saw Lin Fan's expression again, a little surprised, and a little helpless. shrugged his shoulders very Westernly, "Mr. Lin, I'm sorry, let's meet again." ”
Lin Fan tilted his head, "Why do I hear that you don't seem to be too willing to come?" There was a hint of curiosity and exploration in his tone.
"Just thought it would look stupid to sit in front of you again. ”
"But here you are. Lin Fan pouted, and seemed to be helpless about this meeting.
Liu Qing picked up the teacup, "If I had bought 20 percent of the shares for $2 million, maybe I would have been able to behave more calmly today." ”
"No, it can't be. Lin Fan had a joking expression, "Even if you had paid five million dollars, I wouldn't have been able to sell twenty percent of the shares." ”
Liu Qing smiled, "I can hear the meaning of Mr. Lin's words, the current 10% of the shares Mr. Lin's quotation will be less than 2.5 million US dollars?"
Lin Fan smiled and didn't speak, less than 100 days after the creation of Qihoo 360, the first round of financing got 20 million US dollars, and the shares taken out were about 10% to 25%, even if there was a bonus from the portal Qihoo.com, but the number of users made by Lin Fan was far more than 360 in the same period. So ten percent of the shares are less than seven million dollars, and Lin Fan will not talk about it at all.
"Doing business is originally a process of you coming and going, and bargaining is normal. ”
"Eight million, fifteen percent of the shares. ”
Lin Fan stood up and tidied up his suit, "Since Miss Liu can sit here, she must have passed the assessment of Vice President Xu, and you must know part of our business plan, at present, our number of users has exceeded 20 million, Mr. Liu might as well think about it again." As he was talking, Lin Fan looked at his watch and smiled apologetically, "I'm sorry, I also made an appointment with other venture capitalists." ”
"Really, not a gentleman at all. Liu Qing saw Lin Fan walking out mercilessly, and couldn't help complaining, but she didn't dare to look down on him because of Lin Fan's youth, even if she subconsciously complained because of Lin Fan's youth, but now at this time and that time, the ancient saying is called the offensive and defensive momentum, and now mortal safety is a fragrant bait, and many people want to eat it.
Out of the café, Lin Fan did not go to other investment banks for an interview as he said. Instead, he went straight back to mortal headquarters, where he needed to listen to his staff.
"Mr. Lin, for our A round of financing, only 10% of the shares were taken, Sequoia Capital quoted $5.5 million, SoftBank Group quoted $5.8 million, IDG Group quoted $5.6 million, and Defengjie quoted $5.7 million. ”
"Hey, what's going on, it's like a negotiated. ”
Chaida smiled and said, "This is the first round of negotiations, and their bottom line has not yet been revealed, and they are all testing at the moment." "Nowadays, venture capitalists are seeking investment, and Chaida is also very easy.
At present, Meng Ling, the big girl in Yanjing, is basically dizzy, although she graduated from a prestigious school, she is also an ordinary family, where have you seen so much money? Look at the three men in front of her, millions of dollars are like drinking cold water, she has to take it slowly. Internet startups are like this, as long as you are creative and have potential, you will be sought after by capital.
Lin Fan knocked on the table and attracted everyone's attraction, "Everyone, I hope we won't be dazzled by the enthusiasm of venture capital, they originally came for profit, if our company is not doing well, they will still abandon us." So every step of the way we can't afford to make mistakes. ”
Xu Sheng and Chai Da were a little hot on their faces, and the two people who were almost thirty years old had not yet had a hairy boy who could calm down, and they were indeed a little fluttering. According to their estimates, they will be able to get at least $6 million in this financing, what does this mean? In three months, a company with a market value of one million has become a company with a market value of 400 million! But there is no young man like Lin Fan who can see it, and he is really going back as he gets older.
"Capital aside, I would like to talk to you now about which capital you are more inclined to bring in. We're a team, and I want you to be able to speak up. ”
Xu Sheng cleared his throat, and there was a faint embarrassment on his face, "I personally like IDG, the venture capital has always had a good reputation in Huaxia, and I don't like to participate in the specific operation of the company." In addition, IDG is well-known in the circle as a new type of Internet enterprise with potential investment, and accepting IDG can not only have a free publicity for the company, but also strengthen the confidence of the B round of financing. ”
"Okay, you old Xu, the A round of financing hasn't been completed yet, so you remember the B round?" Lin Fan couldn't help but laugh and scolded.
"Sooner or later. Xu Sheng laughed, "Who let us have Mr. Lin." ”
"Lao Xu, don't be a sycophant. Speaking of things in the future, I think it is most important to do a good job in the present, just now Mr. Lin also said that we can only maintain the enthusiasm of investment banking by making the company better, so I prefer SoftBank, SoftBank has always been generous, and our cash flow will greatly quench our thirst. ”
The conference room suddenly fell silent, and Meng Ling pointed to herself, "Don't expect me, I just joined the company, and I don't know anything about this." ”
Lin Fan pondered for a moment, "I personally tend to stabilize the company's development first, and strive to obtain Series A financing to develop the company into the No. 1 antivirus software in China." ”
"I have no opinion. Xu Sheng thought for a while and said in a deep voice.
"Then let's focus on SoftBank?"
Lin Fan shook his head when he heard this, and the three of them were stunned, "What does Mr. Lin mean?"
"Let's get in touch with SoftBank first, set off smoke bombs, and let other investment banks raise prices and preferential terms first. ”
"What do you really think?"
Lin Fan's expression was unpredictable, as if he was smiling, "The secret of heaven must not be revealed, and let me sell it." ”
Waiting for everyone to leave, Lin Fan let out a sigh, Softbank, Lin Fan would not agree to the nationality of its owner, not to mention hypocrisy, not to mention that there is no difference between justice and evil in money, but Lin Fan is an angry young man.
Lin Fan rubbed his brows, but Softsilver's nose was quite sensitive, and mortals came out as soon as they showed their heads, just hoping that the fish that should be bitten would be hooked......