My Age of Investment

Hoffman took a deep breath, held up five chubby fingers and said, "The pre-money valuation of $50 million will raise $10 million."

"Five million dollars! It's still before the vote!"

Kopelman was the first to shake his head, "Although the business model is clear, LinkedIn's current user base is a very big problem, and it has not fully demonstrated its potential.

It is also impossible for us to give each user a valuation of nearly 1,000 US dollars! "

On the word $1,000, he also heavily added accents.

Moritz frowned, “Compared to Facebook and Dating.com, which already have millions of users and generate revenue, LinkedIn is too weak.

Your primary consideration is how to survive in this fiercely competitive market, rather than chasing high valuations.

The first Series A financing we plan to invest in LinkedIn is for you to grow users and gain a foothold in the industry.

As for revenue and data, I just need to have a brief understanding. It is still too early to talk about these things in the A round. "

Hoffman looked at Xia Jingxing, who smiled and said, "I also think Kopelman and Mr. Moritz are very reasonable, first talk about survival, and then seek development.

The pre-investment valuation of $50 million is indeed a bit too high. "

"I remember that Facebook's angel round financing is a post-investment valuation of 5 million US dollars, and the financing is 500,000 US dollars, right?"

Moritz was concerned about Facebook and asked Xia Jingxing.

"Yes!"

"How many users did Facebook have at the time?" Kopelman also leaned in and asked.

"100,000 users." Xia Jingxing replied.

Moritz spread his hands, "Hoffman, you heard it too, Facebook's 100,000 users are valued at $5 million, and LinkedIn's 60,000 users, although the users are professional elites, are not worth more than the Ivy League. The students are ten or twenty times higher, right?"

Hoffman shook his head and said to himself: "We can't look at the value of individual users, but also evaluate the overall business model.

In terms of the scarcity of investment targets, business social networking is currently the only one of LinkedIn.

I predict that every white-collar worker in the world will sign up for LinkedIn, which means that it will eventually reach 250-300 million users.

Gentlemen, you are not investing in LinkedIn, a tiny website with 60,000 users.

Instead, invest in the future!

We cannot take a narrow view of LinkedIn as it is today.

Good venture capitalists, their eyes can cross the long river of time and see the future..."

Xia Jingxing secretly applauded the fat man's confidence in his heart.

At present, there are only 60,000 users, but dare to shout the slogan of "reaching 300 million users", either a lunatic or a genius.

These "nonsense" had little effect on Moritz, he thought for a moment and said, "In this way, I give LinkedIn a pre-money valuation of 10 million US dollars, 6 million is the value of the 60,000 users, and the other 4 million is optimistic. You and LinkedIn's business model."

Hoffman is still dissatisfied with this valuation, but considering the embarrassing situation that the number of users is still too small, he really lacks some heavyweights in order to obtain a valuation of tens of millions of dollars.

If he didn't bear the aura of PayPal's success in starting a business, no one would give him an estimated valuation of 6 million with a mere 60,000 users.

As for gambling, no one dared to sacrifice this big killer unless it was a last resort.

continue reading! He is not stunned, he knows how greedy capital is. If the bet fails, it is possible to be kicked out of the company, or even go bankrupt.

All thoughts were in that moment, Hoffman had already decided to give in, but still said firmly, "This is too little, we need to raise at least 10 million US dollars, but at most 20% of the shares will be diluted out."

Kopelman laughed, "That's a pre-money valuation of $40 million and a post-money valuation of $50 million.

But given LinkedIn's current data and development situation, I can't give this valuation. "

Moritz followed behind and sang,

"Yes, with our current investment in LinkedIn, the risks we take are not small.

If you insist on this offer, then we can only re-evaluate the value and investment risk of this project. "

The two VC veterans cooperated rigorously, and you started to haggle wildly.

From business analysis to coercion and inducement, all kinds of tricks have been used.

Xia Jingxing listened on the side, he could see his vision, the top venture capitalists were the same as the uncles and aunts of the vegetable market, and they had to pay the same price.

This is no different from the venture capital he has contacted in China before, even more stingy.

In the past few years in China, there was a lot of hot money in the market, and it was very refreshing for venture capitalists to throw money.

A few college students make a beautiful PPT, and it is not a problem to make millions of angel rounds.

But the good opportunity is only a few years old. After the market has calmed down, or the balance of supply and demand, it has returned to its old state.

Today, he mainly has a learning attitude, listening more, talking less, and learning from the experience.

This investment is valued at 50 million or 60 million. The share he can get is very small. Hoffman has passed his anger before, and has also communicated with two other investment institutions, agreeing to let the investment. Follow behind for a sip of soup.

There were two old guys charging in front, and he was happy to relax.

He also thought that one person would directly wrap up LinkedIn's A-round financing share, and the big deal would be a high valuation of 30 to 50 million US dollars, and grab food from Sequoia Capital and Kopelman.

But with limited funds in hand, this idea can only be abandoned.

And Hoffman not only wants money, but also wants to obtain Sequoia Capital’s various resources and endorsements in Silicon Valley and the United States.

This is what he cannot give, and it is also his biggest shortcoming at present. The foundation is too shallow, and it is quite a disadvantage to grab the project on the same conditions as the big venture capital institutions.

The $5 million loan provided by First Securities to him is one year, so it is naturally impossible for him to use it for ten or eight years of equity investment.

All he can use is his own $2 million and part of his profit. And part of this part of the funds is the Aimico shares purchased in bulk transactions, which have to be locked for one year and cannot be used temporarily.

Hoffman, Kopelman, and Moritz were arguing fiercely there, and the valuations were very different.

Xia Jingxing was a quiet spectator by the side, and occasionally added a few sentences to give a sense of participation.

After all, he is also an investor, and it is really unreasonable to be completely Buddhist. It is enough to maintain a good degree.

…………

…………

This financing negotiation lasted for three days. After six or seven rounds of talks, several parties finally reached a consensus on the valuation after constant tug-of-war.

According to the pre-investment valuation of US$14.1 million, the three investment institutions jointly invested US$4.7 million in LinkedIn, with a post-investment valuation of US$18.8 million

continue reading! dollars.

In terms of LinkedIn management, 25% of the shares were diluted to three investment institutions.

Sequoia Capital took 15% and invested $2.82 million as the lead investor in this round of financing;

The first round of capital behind Kopelman took 7% and invested US$1.316 million as a follow-up investor;

Xia Jingxing took 3% of the shares and invested $564,000, making him the smallest co-investor.

All parties are generally satisfied with this result.

Hoffman raised the funds he wanted. Although it was only 4.7 million, it was roughly the same as the 5 million he wanted.

This financing amount is not random, but after careful calculation, he predicts that LinkedIn will need nearly 5 million US dollars of funds to reach the next stage of development goals.

When this money is used up, LinkedIn's development can enter a new level, and then take advantage of the opportunity to open the B round of financing.

It is not enough to raise too much or too little. Too much is a waste, diluting the shares in vain, because more funds can be raised at higher valuations when the B round of financing is completed.

And if there is less financing, the development has not reached the predetermined goal, and the B round of financing cannot be completed, which is also very embarrassing.

If the situation is good, you can do another round of A round of financing, raise some money at the post-investment valuation of the A round or a slightly higher valuation, and suffer some losses from the dilution of the shares.

In the worst case, the development is not as expected, the money is burned out, the shareholders are unwilling to make additional investment, and the new venture capital has not been negotiated, then there will be no follow-up, and the project is cool...

This round of financing has diluted a total of 25% of the shares, which makes Hoffman feel more painful, and he is still a little unhappy after working for capitalists.

He originally only wanted to dilute up to 20% of the shares, but the valuation was too low, and the financing amount did not reach his ideal value, which is nearly 5 million US dollars.

However, when it was time to sign, Hoffman still behaved rationally, with a smile on his face, without any dissatisfaction, and exchanged documents with the three investors, shaking hands one by one.

Sequoia Capital has taken the largest share of this round of financing, and the valuation of LinkedIn is not high. What else is Moritz dissatisfied with?

He smiled and patted Hoffman on the shoulder, encouraging: "Dude, it's up to you, I'm very much looking forward to the day you lead LinkedIn to go public and ring the bell!"

Hoffman had a smile on his face, and Mahler Gobi in his heart.

He introduced Sequoia Capital on his own initiative, mainly thinking that the venture capital has a strong brand, and there are many post-investment management support policies. In addition to money, it can also bring many other resources.

So even if I feel a little unhappy, I have to endure it.

Kopelman also shook hands with Hoffman and said a few words of encouragement.

When it was Xia Jingxing's turn to shake hands with Hoffman, the former said with a smile: "Hoffman, congratulations, you are one step ahead of Facebook in opening the Series A financing."

"Isn't Facebook about to raise money too? I can wait."

Xia Jingxing was purely for soy sauce, and he didn't jump out to haggle much, so Hoffman still had a good impression of him.

"Haha, I will let you know when the time comes, and I will definitely not lack your support."

Xia Jingxing took three points of shares in LinkedIn. In return, he had to ask Hoffman to invest in Facebook.

As for whether he can occupy three points of shares, then he can't guarantee it. It depends on Hoffman's personal strength and how much he can spend.

"Facebook is about to open Series A financing?"

When Moritz heard the news, he leaned over like a shark smelling blood. #

continue reading! Copperman also looked at Xia Jingxing with interest.

Xia Jingxing said it to them on purpose and admitted it generously: "Yes, in a few months, I am currently in contact with various venture capitalists."

Moritz nodded, his face as usual, but he was analyzing quickly in his heart.

Why put the financing in a few months, it is natural to have a showdown with the dating network, Moritz is very clear about the doorway.

Whether the new king replaces the old king, or the old king defends the throne, the entire Silicon Valley is watching.

He was a little interested in Facebook, and felt that he could pay more attention.

If Facebook continues to occupy the first position on the social track, there is nothing to say, and it will be invested at any cost.

If you lose, then vote for Dating.com.

If there is no winner yet, buy the entire social track together.

"Buying a track" is not the original creation of Shen Nanpeng, but first proposed by Don Valentine, the first-generation head of Sequoia Capital: betting on the track, not the players.

When Moritz left, he handed Xia Jingxing a business card. He didn't show too much enthusiasm or indifference, and his attitude was just right.

"When Facebook formally raises funds, it can also send a business plan to Sequoia. We are interested in all social networking sites that perform well."

"it is good."

Xia Jingxing responded with a smile, but scolded the old fox in his heart.

"Good performance social networking site", this sentence has many meanings, and it is also reminding Xia Jingxing.

Kopelman also took out his business card, handed one to Xia Jingxing, and talked a few words, also showing a slight interest in Facebook, hoping to participate in Facebook's A round of financing negotiations.

After watching the two investors leave, Hoffman stood beside Xia Jingxing and said indifferently, "Believe it or not, they will definitely tell the people on the dating site in the same way. Venture capital is like this, and it's only profit."

Xia Jingxing smiled and glanced at Hoffman, guessing that he still had some resentment in his heart.

But capital is like this.

However, Hoffman can tell him this, obviously he did not put him in the column of venture capital, and still regards him as an entrepreneur.

In fact, he only occupied three points of shares, and he did not even get a director seat. This investment is more like a human relationship. It is not surprising that Hoffman sees him this way.

"Perhaps, but it's not important, is it?" Xia Jingxing said easily with his hands behind his back.

He will not dislike the double-edged sword of capital, because this is also the survival law of others.

Hoffman shook his head and laughed, feeling that he was not so young as a teenager who could understand it.

Although the conditions are not particularly ideal, the A round of financing has been completed anyway.

To worry about these things is to worry about yourself.

After being enlightened by Xia Jingxing, Hoffman felt that his body of more than 200 pounds had relaxed a lot, and he felt a sense of enlightenment.

He shrugged, "You're right, the result is the most important thing!"