My Age of Investment

On this day, Nikki took her boyfriend, George, to Facebook.

Sitting in Xia Jingxing's office, George smiled and said, "Daren, the environment of your company is really good. It doesn't look like a start-up at all. Everything is so orderly."

"thanks!"

Xia Jingxing wore a polite smile and did not know why the two came here.

Christina made a few cups of coffee and brought in a tray.

After serving everyone a cup of coffee, she sat down next to Xia Jingxing, just in front of Nikki and George.

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George took a sip of coffee and put it down, not quite to his taste, and cast inquiring glances at the two sitting opposite.

"Hey, by the way, when did Facebook go online?"

"Last August last year."

Christina replied, then asked with a smile, "What's wrong?"

George smiled and nodded, "So far, it has been in operation for 15 months, and the number of users should be breaking through 10 million, right?"

"There's still some distance."

Naturally, Kristina doesn't say anything about the company's situation, so it's more general.

"George, what's the matter, just say it directly, aren't you friends?"

Xia Jingxing couldn't take it any longer, he didn't have time to chat with this second ancestor here, and he still had a lot of things to deal with.

"Yes, we are all friends."

George nodded again and again, followed Xia Jingxing's words and said, "I heard Nicky briefly introduce your entrepreneurial story, and I was curious about Facebook, so I went to investigate.

The more I investigate, the more I think your company has potential. "

Nicky also came out to help, "Yes, George is collecting information about your company these days, and seeking advice from senior people in the Internet field."

Xia Jingxing asked with a smile, "George, do you want to invest in us?"

"Yes, I want to buy some of your Facebook shares."

George tapped the table with his fingers and said in a very positive tone.

Xia Jingxing thought he heard it wrong and reminded, "Investment and acquisition are different."

George nodded, "I know, I'm not investing money in Facebook, but I want to transfer some of your equity.

This equity transfer money does not go into Facebook's account, but into your personal account. "

Xia Jingxing smiled and shook his head, "We can't control this, we signed a sales restriction clause in the angel round of financing."

George works at Morgan Stanley? Naturally knows this clause? He waved his hand and said, "It doesn't matter? I can talk to your angel investors first.

If they give up the right of first sale, you can sell a portion of the equity.

I don’t want too much of the specific shareholding ratio, just 10%, which is a number I have repeatedly weighed.

This is not a large-scale cash-out? Your founding team is still the largest shareholder? There is motivation to continue to struggle.

At the same time? You can also get a part of the cash without worry.

If Facebook's development fails in the future, you won't get nothing? You won't get anything.

This is very pertinent advice, and I hope you will seriously consider it. "

George looked serious compared to his five fingers, "This 10% stake? I'm willing to pay $5 million to buy it."

Christina sneered? "Facebook is worth more than $50 million."

George thought, is he really ignorant? He explained: "This kind of equity transfer and equity financing are two different things and cannot be confused.

Since this money does not enter the company's account and does not strengthen the company's strength, my investment is very risky.

If your startup fails, you still have $5 million, and my investment is all gone.

Ask for a small discount on the valuation,

That's not too much, is it?

I believe that apart from me, no other investor should give you this condition, right? "

After speaking, George held his hands and looked at the two of them quietly.

He also did some homework before he came, and he believed that his conditions would surely impress the other party.

If he is not satisfied with the price, he can add a little more.

As for why not to choose equity financing, on the one hand, the valuation is inflated, and there is no equity transfer cost-effective;

On the other hand, I am also afraid that the competition will not be able to compete with all kinds of venture capital, and I will not be able to get enough shares.

The money in his hand is also limited, otherwise he would want to buy the entire Facebook.

Of course, he could still ask his dad for help, but it wasn't necessary, the Facebook project wasn't that good yet.

"Christina, Darren, I think you can seriously consider George's plan, which is the best of both worlds for you."

Nicky said with a smile, "You can bring in a heavyweight shareholder and take advantage of this opportunity to cash in a lot of money.

If George becomes a shareholder of Facebook, he can also use his family's connections to bring in more investment and resources to Facebook. "

George nodded, "Nicky is right. If I become a shareholder of Facebook, I will definitely give you all kinds of help."

In all fairness, Xia Jingxing felt that this second ancestor was not stupid, and the choice of entry point was just right.

If it were an ordinary entrepreneur, maybe he would readily agree.

Another $5 million in cash, and the son of a financial tycoon.

But does he look like someone who lacks that $5 million?

"We don't want to cash out now, what we need is financing to support the next expansion of our company."

Xia Jingxing said with a smile, "If you are interested, George, you can participate in our Series A financing next month."

George frowned, "You will have a Series A financing next month?"

"Yes, you don't have to preach everywhere. As a friend, I only told you."

When George saw his investment plan was disrupted, he was a little impatient.

He asked, "Daren, are you really not considering my plan?"

Xia Jingxing shook his head, "I don't think about it."

George's face sank, and his eyes darkened as he said, "If I'm not satisfied with the price, I can add it. How about $6 million?"

George looked at Xia Jingxing, but the latter refused without hesitation: "This is not a question of price, it is a strategic issue of our company."

"Strategy?" George wondered.

"right!"

Xia Jingxing nodded, "Delayed gratification, have you heard of it?"

George thought to himself I've only heard of "delay", what's your strategy?

Nicky was also confused, not understanding why Xia Jingxing was so disdainful of the $6 million.

Xia Jingxing explained: "Delayed gratification, simply understood, is to keep entrepreneurs in a state of hunger and thirst, so as to have the motivation to overcome various difficulties and take the company to a higher position.

If you get into your comfort zone too early, the entrepreneur is dead.

After cashing out a large sum of money, immediately buy luxury houses, luxury cars, and party on yachts.

Still thinking of starting a business? "

George and Nicky are speechless now, there are still such self-disciplined people.

What are you doing to start a business? Isn't it just to get this kind of life?

George asked in disbelief: "According to your theory, where do you want to take Facebook before you start harvesting?"

Xia Jingxing said solemnly, "At least reach 1 billion users worldwide, and then start listing. At this time, you can stop for a while and pursue some material life."

"Hahaha~"

George laughed, "Daren, if you want to reject me, just be direct! I can accept it, and I don't need to make up such unreliable reasons."

Xia Jingxing shook his head, "I'm not talking nonsense, this is my true opinion."

"Okay! Let's go here today!"

Seeing that the investment was not successful, Xia Jingxing was also determined not to transfer the shares, and he said some rude words, George was not interested in staying any longer, he called Nicky and left with a cold face.

"Will you offend them?"

Looking at the two who left in a hurry, Kristina was a little worried.

"If you are offended, you will be offended. In the future, Facebook will become more and more valuable. Everyone comes to ask for a piece of cake. Do I have to agree to all of them?"

Christina shook her head, "I didn't mean it that way, I just thought it should be more euphemistic.

When you just said 1 billion users, even I thought it was a bit exaggerated. After all, we now have 10 million users, and we have not achieved 1% of the goal. "

Xia Jingxing said with a smile, "That's why I said "delayed gratification", social networking is a huge market, enough to support a huge Internet empire.

You don't think that we are satisfied with tens of millions or 100 million users, with a valuation and market value of several billion? "

"Ah...isn't that satisfying?"

Kristina thought it would be great if she could do that.

"How many people are there in the world? More than 6 billion, or half of the Internet coverage, that is, 3 billion netizens.

I said 1 billion users, and I said less. My goal is to let all netizens in the world share their life and make friends on Facebook..."

Kristina smiled and watched Xia Jingxing bragging, maybe that's how geniuses are, they all have a heart to change the world.