My Age of Investment

When he received a call from Xia Jingxing and the other party informed Facebook of the results of the A round of financing negotiations, Hoffman opened his mouth wide enough to put an egg.

"$500 million, Darren, are you sure you're not kidding me?"

Xia Jingxing replied with a smile on the phone, "How could I joke with you about this kind of thing, to sign an investment agreement, it's written in black and white, and it can't be faked.

How about it? Whether to vote or not, the choice is yours. "

"I need to discuss with Peter and Mark."

Xia Jingxing understood the other party's hesitation. The market value of many listed companies is not as high as Facebook's A round valuation. It is normal to have ideas.

"Don't make me wait too long, I'm still waiting to sign an agreement with Axel."

Hoffman replied: "Don't worry, just one day!"

…………

…………

the next day.

Hoffman still brought Peter Thiel and Mark Pincus to the door.

Xia Jingxing felt that the historical inertia was really big, and after going around in circles, Facebook finally returned to its original point.

Axel, Peter Thiel, Reid Hoffman, Mark Pincus, these original Facebook angel investors and A-round investors still gathered under the Facebook banner they founded.

Thinking about it carefully, it is actually a necessity.

These people are the most optimistic about the development of social networking sites, and are willing to invest heavily in Facebook.

While other investment institutions have a lot of small ideas, either they are not optimistic enough, or they want to buy shares at a low price.

This result is also destined to be in the dark.

It was the first time that Xia Jingxing met Peter Thiel and Mark Pincus.

Peter Thielkin, 39, one of the business stars of recent years, is the founder of PayPal and runs a hedge fund called Thiel Asset Management, which has now been renamed Clay Rui Capital.

After PayPal was acquired by eaby, Peter Thiel managed his own hedge fund and engaged in the angel investment business, and he was well-connected in Silicon Valley.

Hoffman and he are old colleagues and old friends, so they have the opportunity to invest in Facebook, and they also called each other.

Xia Jingxing shook hands with Peter Thiel, the latter said with a smile, "Congratulations, Darren, at the age of less than 20 years, you own a company with a valuation of more than 500 million US dollars, which is admirable!"

Xia Jingxing shook hands with the other party and then let go. This old brother Jin Nian has come out publicly, he is a ruthless character, so keep a safe distance.

He responded with a smile, "Haha, this is not my company, it's everyone's company!"

"Yes, everyone's company!" Peter Thiel nodded with a smile and echoed.

A simple sentence brought a lot of distance between them.

Hoffman introduced another curly hair beside him, Mark Pincus.

This guy is not as famous as Peter Thiel, and he is also several years younger. He started a business in the 1990s and dug his first pot of gold? Since then, he has been an angel investor while starting a business.

Pincus and Hoffman are also friends? After obtaining the consent of Xia Jingxing, they brought each other to invest in Facebook together.

The reason why Xia Jingxing would agree is because this curly hair will start a company called zynga in the future? He has launched a popular global social game - Happy Farm.

In the future, Facebook will launch a third-party interface and become an open platform? The support of this company is indispensable.

Let the other party invest? The purpose is to form a good relationship first.

"Actually, my Jinnian also founded a

continue reading! Home social networking site tribe (tribe)? But the user growth is very slow.

I don't think it can compete with Facebook, so I shut down that site.

But this venture, let me see the potential of social networking sites, thank you very much Darren for agreeing to my investment. "

Curly Pincus was frank? Shaking hands with Xia Jingxing? He said that he had also founded a social networking site.

Xia Jingxing hadn't heard much about the other party's social networking site, so he couldn't rank it at all.

Nodding with a smile, "Thank you for your optimism and support for Facebook!"

Chatting with Mark Pincus, Peter Thiel, and others? Old John and Andrew came one after another.

Blayer, the biggest investor, finally arrived and brought Axel's official business team with him.

Everyone is familiar with each other? After confirming that there is no objection to the investment, they begin to draw up and sign the investment intention agreement.

According to the pre-investment valuation of 500 million US dollars, Facebook has raised a total of 55.55 million US dollars, and the post-investment valuation is 555.55 million US dollars, with a 10% equity dilution.

Old John and Andrew believed that the valuation was already too high, and gave up the exercise of the anti-dilution right, that is, co-investment, and allowed the equity to be diluted naturally.

Axel Investment Company invested 50 million US dollars and obtained 9% equity;

Breyer personally invested 2 million US dollars and obtained % equity;

Peter Thiel co-invested 2 million US dollars and obtained % equity;

Reid Hoffman joined the investment of 1 million US dollars and obtained % equity;

Mark Pincus also invested $550,000 for a 0.1% stake.

A total of 55.55 million US dollars of financing shares are allocated clearly.

After the completion of this round of financing, Xia Jingxing's personal shareholding in Facebook will be diluted from 70.2% to %; Xiaodog and Yang Niu's shareholding will be diluted from 5.4% to %; Andrew and John will be diluted from 5% to 4.5%; the option pool will be diluted from 9% Dilute to 8.1%.

In fact, Xia Jingxing could sell a part of Aimico's stock and make a follow-up investment.

But he chose not to do so because of his already high stake in Facebook.

Although no one has yet accused him of information security and national security as the CEO of such an important company as Facebook.

But he must be prepared for the unexpected.

In fact, these funds are the same for him to invest in the outside world, and they may not make less money than if they use them to increase their stake in Facebook.

After signing the investment intention agreement, the non-disclosure agreement and other agreements that have been attached, Breyer said to Xia Jingxing:

"Next, several of our investors will form a joint due diligence team and settle in Facebook to conduct a month-long detailed due diligence on Facebook's assets, revenue statements, intellectual property, executives, employees, etc.

After the due diligence is completed, the financing will be finalized. "

Xia Jingxing nodded and said, "There is no problem! Just follow the normal process."

So Breyer began to negotiate with several investors on how to form a due diligence team.

This is also a difficult task. As the lead investor, Axel will undertake the most important due diligence work, including hiring a law firm and an accounting firm, and the cost is also very high.

However, this process is also necessary.

After all, $50 million in real money is thrown out, and no one knows if there are any potential hidden dangers in Facebook.

If there is a problem, Axel can overturn the investment intention agreement at any time and stop the investment.

It's like ripping off a startup's clothes

continue reading! Guang, do a pre-marital medical examination, if you are healthy, we will get married; if there is a problem, we will not get married!

From a certain level, it is a bit of a disadvantage for startups to do this, and they will be looked at in vain if they are not careful.

A non-disclosure agreement can guarantee some rights and interests of a startup company.

However, after the due diligence, the investment institution repented and gave up the investment, which would waste a lot of time and energy of the startup company.

Especially for the morale of the company's employees, it will cause a considerable blow.

Because due diligence is such a big move, it is impossible to hide from the employees.

Angel round financing is rarely so complicated. The earlier the project and the smaller the investment amount, the simpler the project, and vice versa.

The scale of Facebook’s A round is a bit large, and it basically overwhelms the future prospects of an established venture capital institution in Axel, so they can’t be cautious.

In this regard, Xia Jingxing also quite understands, the industry rules are like this.

He cooperated very well with the staff, and asked Christina to lead the team to form a working group to prepare various corresponding materials, in order to complete the due diligence process as soon as possible.

Facebook suddenly has a bunch of strangers, and employees are very curious.

In particular, an office was vacated for this group of strangers, and a lot of documents and materials were brought into it every day.

Every now and then, a colleague was called into that office to chat and ask baffling questions.

Xia Jingxing didn't plan to hide it from the employees, and asked Christina to explain: the company is doing due diligence, as usual, just go to work as usual.

At the same time, a gag order was issued to employees, and the content related to the company's due diligence was not allowed to be shared, so as to avoid unintended consequences.