Global Monopoly of Technology

"$70 million, we want 40% of the equity and a veto, and follow-up financing, as long as you are short of money, we will support your development."

Zhang Yiming finally calmed down when he heard Cao Yi's request for a veto. Toutiao also adopted the AB share system with different rights, which is a trend brought by Bluestar Technology Group.

Today's Internet startups are almost all like this.

Because of the shareholding structure of the same share with different rights, Zhang Yiming didn't care about Cao Yi's statement that he wanted to take 40% of the equity, not to mention the current scale of Toutiao plus the investment amount of 70 million US dollars, Toutiao is taking advantage.

But the veto power is a very sensitive issue, which involves the control of the company.

The next negotiation between the two sides is no longer as smooth as before. Zhang Yiming is very reluctant to share this veto with VCs. As Luo Sheng said in his opening speech at the IT Forum Summit the day before yesterday, capital is short-sighted. Zhang Yiming deeply agrees.

No matter how well this investor performs, capital is capital after all.

Cao Yi said bluntly: "To be honest, Mr. Zhang, I am not investing in Toutiao, but you. You rejected the solicitation of giants such as Bluestar Technology and Ali, and almost all VCs except me. , maybe I will also be rejected by you, there should be few people who think you can have the last laugh."

"Objectively speaking, this is a very high-risk investment for Anaheim Asia Technology Ventures. Bluestar Technology's AI technology, Luo Sheng's layout in this field, can easily develop a more outstanding than Toutiao's current Intelligent push algorithm to provide users with interesting content.”

Zhang Yiming had no way to refute this statement. Wang Qiong had already contacted more than 20 friends in the investment community, but in the end he was unable to reach a conclusion.

Every investor finally asked the same question: Toutiao rejected Bluestar Technology, how can Toutiao, which is still in the incubation stage, stand out in the face of Bluestar Technology's siege and strangulation?

Zhang Yiming can't give an answer to this question, or the answer is impossible.

Those VCs didn't even fight for the veto power like Cao Yi did. They just passed the question after asking this question. VCs are really not confident.

In fact, there is nothing wrong with VC. Once Bluestar Technology develops its strength, the headlines that have not yet become a trend will definitely die.

Burning money with Bluestar Technology?

Giants like Ali and Microsoft are enough.

What does Toutiao use to compete with such an opponent to burn money?

Only rely on VC blood.

Obviously, such an investment risk index is out of the table, but any rational investment institution will say NO.

Wang Qiong, who was sitting next to him, sighed softly in his heart, Zhang Yiming made the road narrower and narrower because of himself.

But then again, if Zhang Yiming did this, Wang Qiong would not appreciate and support him as much as he does now.

In the end, Zhang Yiming compromised and took a step back.

Toutiao did not have much negotiating capital, so they agreed to share a veto power with the Anaheim Technology Venture Fund, but at the same time, they also managed to sell 10% less equity, and only 30% of the $70 million. , and this veto power requires a 5-year lock-in period.

That is to say, after this additional clause is written into the shareholder agreement, it means that this veto will not be exercised until after 2018.

Zhang Yiming's reason for proposing this additional clause is that he needs absolute control over the company at the start-up stage to ensure that the company can develop according to the blueprint he planned.

This is the last concession, otherwise I would rather not have this investment.

In this regard, Cao Yi pretended to fight for a while and chose to make a final concession, agreeing to Zhang Yiming's additional request, but he knew very well that the task given by the headquarters, the amount of equity was secondary, and the veto power was the core of this task.

Zhang Yiming is not too stubborn either. This veto power is valuable, but only if you live today can you have tomorrow.

But this is also the only one-vote veto. Zhang Yiming will never share the financing with the second VC in the future. Anyway, Anaheim Asia will continue to lead the investment, which is to be written into the contract.

If you share too much veto power, the hidden danger is too great. Once you have a disagreement with the VC, you will be given a one-vote veto. If you are satisfied, you will be given a one-vote veto if you are not satisfied.

The company cannot develop normally.

Haina Asia also continued to co-invest 5 million US dollars, so Toutiao’s B round of financing was only two VCs, namely Anaheim Asia Technology Venture Capital Fund and Haina Asia Venture Capital, with a total financing of 75 million US dollars, which was given to Toutiao Current valuation of $230 million.

"The matter has been negotiated, then I should also leave. I will send a team of lawyers to sign the contract tomorrow. Three days after the contract is signed, the $75 million will be remitted to the account designated by your company on time."

After finishing speaking, Cao Yibing got up from his seat, and after the task was completed, he said goodbye and left.

...

A week later, the Science and Technology Complex Building.

"Cao Yi completed Toutiao's B round of financing and successfully got a veto right, but there is a 5-year closed period." Qin Weimu came to Luo Sheng's office to report on his recent work.

"The five-year lock-up period doesn't matter, as long as you have the right to veto, the biggest effect of a veto is to not use it." Luo Sheng was also quite happy to learn that Toutiao and Zhang Yiming were settled.

The greatest significance of this veto power is that if there is a conflict with Zhang Yiming in the future, you can use the veto power to negotiate conditions with the other party and force the other party to agree. Otherwise, I will veto whatever you want, and I cannot advance one Proposals, but I can veto any proposal with one vote, and you must compromise.

"If Zhang Yiming knew that the veto was in your hands in the future, he would probably be surprised by this... Maybe he would be so angry that he would scold the streets." Qin Weimu couldn't help but tease with a smile on his face. The reason why he refused the giant's solicitation , Just to get rid of the giant, I didn't expect to jump into the pit in the end.

"Haha, this is the shopping mall. He doesn't want to be my employee. In the end, he still wants to be my employee and work for me." Luo Sheng said cheerfully. With this vote in hand, the future development can be assured. It is also possible to let Toutiao expand, and even realize it through cooperation with Bluestar Technology.

"By the way, how is the preparation for this year's Shengfeng Capital Global Technology Venture Capital Summit?" Luo Sheng skipped Zhang Yiming's question, the headlines are already in his pocket, and he doesn't need to worry too much. .

Shengfeng Capital Global Technology Venture Capital Summit, which is an annual technology investment event, held by Shengfeng Capital itself, will be held on March 22 every year as scheduled.

This year is the fourth time.

"Everything is going well, I'm about to tell you about this." Qin Weimu said in an orderly manner: "In the past 2012, Shengfeng Capital has invested in a total of 278 start-up technology companies around the world, and the annual investment amount A total of 18.9 billion US dollars. According to your requirements, 12 start-ups in popular fields such as artificial intelligence, cloud services, and IoT chips have been selected as the key exposure objects of this investment summit.”

If Bluestar Technology and Azure Coast are the core of the DNA double helix structure that supports Luo Sheng's technology empire, then the meaning of Shengfeng Capital's existence is that he vows to build a solid technological moat for his technology empire.

Shengfeng Capital only invests in companies related to the field of science and technology. Fundamentally, the start-up companies invested in it are to serve Bluestar Technology and Cote d'Azur, and the purpose is to create a future self-owned supply chain system for these two technology giants.

2013 is a very critical year for the global technology circle. The beginning of the year is the battle between the two domestic giants of the technology Internet. It is also destined to be a year of AI boom. At the same time, the fourth generation of smart phone products will also be released this year on the Côte d'Azur. , Every family is trying their best to sing a good show.

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