Chapter 259 Agreements
Lu Chong knew what he was thinking as soon as he saw the embarrassed expression on Zuckerberg's face, in fact, this is also the most taboo problem for entrepreneurs, losing control of the company. 【】
In fact, as the company continues to raise capital, a self-made entrepreneur cannot always have a dominant stake. For example, when Facebook went public, only 28 shares remained in Zuckerberg's hands. 1% only.
Another Internet company that is also growing rapidly, Huaguo's Alibaba, whose founder held only 8 shares at the time of listing. 9% of the voting rights. If it weren't for the agreement signed with SoftBank at the time of the initial financing, Jack Ma would have even lost control of the group.
However, Lu Chong is not ready to learn from SoftBank and Alibaba, he doesn't want to completely tie his hands and feet. However, in order to allow Zuckerberg to develop Facebook with peace of mind and dedication, Lu Chong has already designed a set of plans for this issue.
"Mark, I know what you're worried about, but as I said before, I'm an investor who comes with sincerity, and I'll help you solve these problems!" Lu Chong drank all the juice in front of him, patted Zuckerberg on the shoulder and said.
"When the company grows to a certain extent and needs financing, I will have the right of first refusal to inject capital, and this right also exists for the other shareholders of you!"
Zuckerberg's face changed, and he immediately wanted to interject, but Lu Chong waved his hand to stop him and said: "I know what you're worried about, you're afraid that you won't have the money to inject capital at that time, right? Of course I'll help you solve this problem, and I'll lend you money when the time comes!"
Rao was with Zuckerberg's high IQ, and he couldn't understand Lu Chong's train of thought for a while, so he frowned and thought for a while before asking: "You mean that if all the capital increase is maintained by you, our equity will remain unchanged, but we will bear the debt proportionally in your investment?"
Lu Chong shook his head with a smile and said: "Mark, even if you borrow money from the bank, there is still interest, I can't provide you with financial help for free, the funds I lend to you need to pay interest, and the interest is the equity in your hands." ()”
Seeing Zuckerberg's face change again, Lu Chong continued to explain: "Of course, this interest is definitely within the range you can bear, before going public, I only require you to pay 10% of the equity in your hands as interest, according to the 61% equity you have in your hands, it is only 6." 1% of the equity, even if Eduardo still retains his 5% equity, that is only 6. 6% equity, that doesn't get in the way of your control of the company, right?"
According to the equity distribution negotiated by Zuckerberg and Lu Chong, Lu Chong took back 10% of the equity in Ed's hands, which only occupied 34% of the company's equity, plus 6. 6% is only 40. 6%, while Zuckerberg's hand is minus 5. After 1%, there are also 45 left. 9%, which is still the largest shareholder of the company.
Even if Eduardo really made a stupid move and transferred all 15% of his shares to Lu Chong, Lu Chong's equity would only be 44 at that time. 1%, which is still slightly lower than Zuckerberg's equity, plus Zuckerberg's three roommates, can completely suppress Lu Chong in equity.
As a computer genius, Zuckerberg is of course extremely sensitive to numbers, and almost as soon as Lu Chong's voice fell, he calculated the stakes and disadvantages, and his face suddenly became much better.
If normal financing is followed, the shares he can ultimately keep in hand may be less than 30%, and Lu Chong's plan can definitely be regarded as a win-win situation.
However, this plan must have a premise and set a condition, otherwise Zuckerberg will never be at ease.
"Lu! I feel your sincerity, but with all due respect, if our company conducts a second or even third round of financing, the funds needed may be as high as tens of millions of dollars, do you have the ability to pay? In addition, you mentioned that the term of the loan is until the listing, does it mean that you want to hold the shares until the company goes public? At that time, what proportion do you want to distribute the shares to the public at that time?"
Tens of millions of dollars, converted into the currency of China, that is hundreds of millions, Zuckerberg has never heard of such a rich man as Lu Chong in China, and it is normal to have such worries.
As for the latter point, when the company goes public, they need to put at least 25% of their shares into public offer, and if they still reduce their holdings evenly, Zuckerberg and his companions' shares will be immediately diluted.
If Lu Chong buys these publicly issued shares in the name of other companies, he may surpass them in equity and achieve the goal of controlling the company, so Zuckerberg has to guard against it.
Lu Chong laughed and stood up, stretched out his right hand to Zuckerberg and said: "Mark, I never thought of controlling Facebook, my ultimate goal is to go public to make a profit, really to the day of listing, if you want, all 25% of the shares issued to the public can be deducted from my share, this can be written into the agreement, so are you satisfied?"
When Zuckerberg heard this, a smile finally bloomed on his face for the first time, and he also got up from his chair and stretched out his right hand to Lu Chong.
"Happy working together!"
Of course, it is impossible for Lu Chong to take out the shares at the time of listing, but Lu Chong's attitude made Zuckerberg's last bit of worry come to naught, and he did feel Lu Chong's sincerity.
A contract that could be worth tens of billions of dollars in later generations was negotiated in a small café at Harvard University, and it took less than half an hour in total.
Moreover, this is about the equity agreement of the largest Internet company in the future, and when it was drafted, it was not even used by a computer, but was directly handwritten by Avril's agent Joanna, and then taken to the photocopier in the café to copy it.
After signing his name on the two agreements, Lu Chong suppressed the excitement in his heart and said to Zuckerberg: "I will only stay in New York for one day, and I will fly to Portugal to attend the closing ceremony of the European Cup, and then fly back to New York, I hope that you have negotiated the terms with Eduardo at that time, and I am waiting for your good news!"
Zuckerberg, who signed the agreement, was also greatly relieved, and the negotiation with Lu Chong just now really put this genius boy under great pressure.
"Dear Lu, you should prepare the funds, when you come back from Portugal, I will personally visit Eduardo and complete the exchange of shares!"
Finally, Lu Chong also made an additional request, if Zuckerberg decides to adopt a series of recommendations in his document, his name will need to be added to the name of the site's co-founder in the future.
"No problem!" Zuckerberg agreed to this condition very simply, made a number of constructive proposals, and provided the first financing for the website, Lu Chong deserved this honor.
This year, at the age of 20, Zuckerberg signed his first business deal. In the long years that followed, Zuckerberg gritted his teeth and uttered a few words whenever he looked at the handwritten agreement that he had locked in the most secret part of the safe.
"Cunning Chinese!"
PS: Finally made Zuckerberg crippled.,It's hard to write this paragraph.,I hope you can like it.,In addition, continue to ask for all kinds of votes.,If you don't have a ticket, you leave a word is also a support for the old man.,Thank you in advance here!