Guan Huang: "I always believe that the essence of venture capital is money, and other additional resources can be listened to, and must not be used as a criterion for judgment, and the development of enterprises ultimately depends on itself rather than external forces." ”

Zhang Bo agrees with this judgment.

For help other than the money promised by the investor, expect it, but don't expect it.

Guan Huang: "Of course, it is undeniable that many top venture capitalists can introduce a lot of relationships, bring a lot of resources, and help the company develop to a certain extent, but whether it can solve the substantive problems depends on whether it conforms to the laws of the market and fate. ”

Zhang Bo looked at the new boss, he was really mature.

It's not at all like the consciousness that a novice entrepreneur should have.

Guan Huang: "For example, even if they are both venture fund-invested companies, whether the two sides can cooperate and how deep the cooperation will be depends on whether both parties can achieve a win-win situation. Win-win cooperation will be carried out without a relationship, and cooperation without win-win will be useless with a relationship. ”

Zhang Bo: "This is also true, when many funds are grabbing projects, they will say that they can provide a lot of value-added services and a lot of resources. ”

Guan Huang remembered Mr. Liu of Lenovo.

Many people don't know why Mr. Liu's status in the rivers and lakes is so high?

Just from one small thing, you can get a glimpse or two.

Since its establishment, Legend Investment has taken value-added services as its core competitiveness.

It is not very cost-effective, and even set up Hony Consulting Company to provide better services to the invested companies.

It insists on holding a CEO club event every year, convening all the CEOs of the invested companies to participate and communicate, and Mr. Liu personally participates.

Over time, it is really a protégé everywhere.

"Of course, the core factor is that I can't tolerate a veto."

Zhang Bo suddenly realized.

He should have guessed a long time ago, with the character of the other party, it is unlikely that he will back down on this.

Generally speaking, price is not the most critical factor in the financing conditions, but the core is certain key terms.

Each of these is enough to determine the life and death of the company, such as a veto.

After the financing, the investor enters the company, holds the stake and enters the board of directors.

Generally speaking, they will ask for a veto on many important matters.

This means that the founders themselves no longer have decision-making power on major issues of the company, and need to listen to the opinions of investors.

This is the standard terms and investment premise of almost all top venture capitals.

No matter which one you choose, you can't avoid it.

Zhang Bo: "These are not unsolvable in future financing. ”

Founders and venture capitalists are two sides of the game.

At the beginning, the founders were weak, and the venture capital was in a dominant position, proposing various harsh conditions.

When the enterprise grows and the initiative returns to the founder, the founder can work together to force investors to abolish the "one-vote veto" and other conditions and completely control the situation.

Guan Huang smiled when he heard this: "I naturally know that there will be opportunities to solve these problems in the future, but at the moment, I have a choice, I can find funds from other channels, and I can find obedient capital, so I ......"

Zhang Bo was stunned.

This is also true, for a person with a strong desire for power, it is not easy to force him to submit.

It's just that this is self-isolation from the capital circle?

Guan Huang immediately comforted: "The next thing is nothing more than insistence, capital is profit-seeking, and when Superman really flies, they themselves will give up unrealistic conditions, and it will not be too late to talk about it at that time." ”

Zhang Bo nodded.

Although he doesn't think there is anything wrong with the "one-vote veto", he also knows that this is the boss's bottom line, and there is almost no possibility of wavering.

Guan Huang said this, a little unable to stop the car, "I just met a venture capital the day before yesterday, the other party's conditions are okay, and the veto power is not negotiable, but the repurchase clause is quite disgusting." ”

Zhang Bo was curious: "What do you say?" ”

Guan Huang remembered the conversation between the two:

"The valuation of 2 billion is no problem, 3 billion is acceptable, and a veto can be dispensed without, but a repurchase clause must be added, and if the company is not listed within three years, it will be acquired at an annualized rate of 20% interest."

Zhang Bo also smiled: "In this way, if you go public, you can make a lot of money, and if you can't go public, you can still eat interest, so what kind of venture capital is it, and the entrepreneur bears all the risks." ”

Guan Huang didn't care and said: "I asked him if he could change these, and he told me that these were "standard terms" and "industry practice terms", and without these terms, their investment committee would definitely not be able to pass them, and then they didn't talk about it again. ”

Although Guan Huang can be sure that the company's development is good, it will definitely be listed, but when to go public is determined by a variety of factors.

How is it possible to determine such a timeline for listing?

Bai Xiaoya interjected on the side, "Isn't it a pity to give up like this, they give the highest valuation." ”

At that time, she was also on the spot, serving tea and pouring water.

In the end, the negotiation failed, and the regret failed.

Zhang Bo couldn't understand the relationship between the two, so he was able to interject casually, explaining that he was not a simple classmate, and replied with a smile: "Valuation, not the higher the better." ”

"Huh, why?" Bai Xiaoya was very curious.

Will anyone still hate the burning of money?

Zhang Bo explained: "Generally speaking, the valuation of a company is a dilution of shares for entrepreneurs, and the lower the valuation, the more shares you have to pay for the same investment. However, at this time, the company is still in the development stage, and it is not easy to convince investors of excessive valuation, and on the other hand, it also overdraws the future potential, laying hidden dangers for future valuation. ”

Bai Xiaoya understood.

That is to say, this round of valuation of one million, the next round of at least a million to be in line with the company's development trend.

Otherwise, if this round of 1 million and the next round of valuation of 1.2 million, does it mean that the company's potential is not good, or the industry is not good?

The development of start-up companies, not to mention ten times and a hundred times, has also doubled.

Chasing up or not chasing down brings a negative impact that can't be eliminated by that bit of money.

Zhang Bo continued: "Actually, there is no difference between talking about the company's valuation and buying vegetables in the vegetable market, both the seller asks for the price and the buyer sits on the ground to pay the money, and there is no standard for both parties. ”

Bai Xiaoya was curious: "Didn't you say that there is a valuation model?" What company revenue, user volume, retention ratio, etc.? ”

She has been studying like crazy lately, from investment to finance, from management to industry, trying to maximize herself.

Zhang Bo smiled: "The so-called valuation model is just a bargaining rhetoric, don't be superstitious about the valuation model, the transaction price must be the intersection of the psychological price of both parties, why there is a price-earnings ratio, that's the reason, how much you say, I think it's appropriate, then you can make a deal." ”

Bai Xiaoya stuck out her tongue and suddenly realized.