My Age of Investment

The latest website: "One hundred million dollars!"

Hearing this, Peter Thiel almost spit out his coffee.

Xia Jingxing also felt very high.

When Facebook raised its Series A round, it had tens of millions of users and was only valued at US$500 million, which translates to US$50 per user.

However, LinkedIn is a business person, and it is not impossible for a user to be valued at $100.

But if you want to consider the scale effect, this million users, placed in a large number of social networking sites, are inconspicuous.

Xia Jingxing didn't seem particularly surprised, he pretended his emotions well, and asked lightly, "Pre-money valuation or post-money valuation?"

"Post-investment valuation, pre-investment valuation of 90 million US dollars."

Hoffman explained: "Our post-A round valuation was $18.8 million, and now the valuation has risen less than five times.

Compared with the tens of thousands of users at the time of the A round of financing, the number of our users has increased by more than 20 times. "

Xia Jingxing smiled and said nothing.

At that time, LinkedIn, which had only tens of thousands of users, was valued at US$18.8 million because it not only calculated the value of its users, but also included LinkedIn’s business model and team value, including Hoffman.

Now that the B round of financing has arrived, the valuation ratio of the team and business model has dropped. The core has to look at the website, how many users and how much traffic.

However, since the decision was made, Xia Jingxing didn't care about that little bit of gain or loss.

"Hoffman, if you agree, we will sign the contract now, and $10 million will be credited to LinkedIn's account a week. I can accept this valuation."

Peter Thiel gave Xia Jingxing a surprised look, is it too simple?

Hoffman shook his head and smiled: "Daren, thank you very much for your optimism about LinkedIn, but we still want institutions to invest in us."

"I also have an organization!" Xia Jingxing said lightly.

"Do you have an organization?"

Not just Hoffman,

Even Peter Thiel was surprised.

"Envision Capital recently plans to set up a VC fund called "Lichun"!"

Hoffman understood instantly. He smiled and said, "Darren, it's a hedge fund and a venture capital fund. You don't want to build an investment empire outside the Internet!"

"The empire doesn't dare to be, and this one of mine is called "Knight Leader" at most."

Xia Jingxing's humor made the two of them laugh out loud.

After laughing, Hoffman said slowly, "Daren, let me tell you the truth!

A newly established venture capital institution does not actually meet LinkedIn’s financing requirements.

We need an established institution that can pull in Series C financing for us, and at the same time provide resources such as human resources, media relations, government relations, etc.

These are all things a fledgling VC can't give. "

Peter Thiel nodded, "That's why so many established VCs are getting bigger and stronger.

Because these established institutions have the money and time to build their own resource ecology.

Entrepreneurs also prefer to take the money of their established institutions, and even take their money as the first goal, as the dividing line from mediocre entrepreneurs.

For a long time, the top projects have gone to the established institutions.

This in turn has resulted in established institutions continuously harvesting successful projects and creating huge returns. LPs also prefer and trust these established institutions.

It can be said that, until now, the old-fashioned venture capital institutions already have a brand premium. "

Hoffman nodded, thinking his partner was absolutely right.

"I don't have a brand premium, only a money premium!"

Xia Jingxing compared his two fingers and said with a smile, "I have two plans.

The first one, the post-investment valuation is 120 million US dollars, and Vision Capital invested 12 million US dollars, accounting for 10% of the shares;

Second, the post-investment valuation was US$120 million, and Vision Capital invested US$10 million, accounting for 8.33% of the shares. "

With a 20% premium, Hoffman instantly felt Xia Jingxing's courage.

Hoffman smiled and said, "It's not about the money, Darren."

That is not enough money!

Xia Jingxing understood in an instant, "In that case, Vision Capital invests 10 million US dollars, and we only need eight points of shares."

After thinking about it, he added: "The right to vote is also entrusted to you."

To be honest, Hoffman was a little moved. After the investment, the valuation has been given to 125 million US dollars, and he also entrusted the voting rights to himself.

Where can I find such a good investment institution?

Xia Jingxing used the routine of the well-known investor DST Yuri Milner in his previous life.

I don't want the voting rights of the company, I support you unconditionally, but you have to take me to make money.

Xia Jingxing knew how powerful that bald head was, relying on this trick to cast all over the world's big and small Internet giants, Sun Zhengyi would be slightly less coquettish in front of this person.

He doesn't have any special ideas about LinkedIn either, just financial investment, take more equity, and make more money in the future.

The idea is so simple!

"Okay, Darren, I'm accepting investment from Vision Capital."

Hoffman was also a decisive person and made a decision quickly, he stood up and extended his hand to Xia Jingxing.

In his opinion, although the brand of Vision Capital is not strong enough and the resources are scarce, it can't stand the money given by others, and it doesn't like to meddle in business.

Xia Jingxing smiled and shook hands with Hoffman.

Peter Thiel watched the investment decided in half an hour, secretly amazed.

He smiled and applauded, "Congratulations to you two!"

"Oh, Reid, the investment will take half a month in the evening."

Hoffman frowned, is this going to go back?

Peter Thiel also looked at Xia Jingxing in surprise.

"There is absolutely no problem with investing, but you have to give me half a month to register the fund first."

Xia Jingxing didn't feel embarrassed at all, and said it generously.

In fact, he has not registered the fund!

Hoffman froze for a moment, then laughed, "It seems, Darren, you set up a fund specifically to invest in us.

It's okay, we can wait, but we're only waiting for half a month. "

Xia Jingxing nodded, "Half a month is enough."

Peter Thiel thought it was the most outrageous and absurd investment he had ever seen.

When I came up, I invested at a premium. After a long time, I didn't even register the fund.

But the two of them didn't think there was much of a problem.

Tesla's investors, founders of Facebook and YouTube, this is the best credit endorsement.

They were not worried that Xia Jingxing would let go of the pigeons, after all, he was also a person with a head and face.

…………

…………

After finalizing LinkedIn's B round of financing, Xia Jingxing went to Vision Capital and gave Liu Hai an order.

"Set up a venture capital fund under Envision Capital? The name is Lichun Fund?"

After listening to the boss, Liu Hai was surprised.

"Yes, the hedge fund is on fire, so it is called Lixia.

The venture capital fund, named Lichun, implies that the arrival of our fund is like the arrival of spring, everything recovers, and the startup company becomes vigorous after receiving our investment. "

Liu Hai chuckled, he didn't ask why the fund was called this name.

In fact, as long as the fund has strength, it doesn't matter what its name is. Investors only care about your performance and your rate of return.

Even if you call it junk capital, as long as the investment returns are amazing, people will rush for it, and even the media will interpret the name of the fund as a kind of "self-effacing".

However, the boss explained a lot, and he couldn't help but say something.

Nodding in agreement, "Jing Xing, the name is good. The twenty-four solar terms in China show that Vision Capital has not forgotten its roots and its roots..."

Xia Jingxing nodded, what Liu Hai said was deeply in his mind.

After Liu Hai complimented, he asked with a smile, "But we don't have any money right now?"

"I'll think about it, you don't have to worry about this, you just need to register an offshore fund first."

Liu Hai nodded, "Alright then, I'll do it now."

Because of the tight time, Liu Hai contacted the agency and arranged for an expedited treatment.

…………

…………

In October, the Lichun Fund was finally registered.

Xia Jingxing sold 520,000 shares of Amyco at an average price of $39.19, and received more than $20.37 million in funds.

$10 million in Tesla and $10 million in LinkedIn.

These two investments were made in the name of Lichun Fund.

After Tesla's due diligence was completed, he originally planned to increase capital in his own name.

But now that the fund has been established, he has decided to use the fund instead of holdings.

At the same time, in order to keep his 3% LinkedIn shares from being diluted, he co-invested $300,000 in his own name.

In other words, LinkedIn’s Series B financing totaled $10.3 million.

At the signing ceremony, Liu Hai, as the fund manager, attended on behalf of Vision Capital.

Xia Jingxing represented himself.

Witnessed by the old shareholders, Xia Jingxing, Envision Capital and LinkedIn signed and exchanged contracts.

Hoffman smiled and shook hands with Liu Hai and then with Xia Jingxing.

He was completely convinced by the action of Vision Capital, and it was extremely efficient.

Moritz, as an old shareholder, also applauded.

After the ceremony, the old man walked up to chat with Xia Jingxing.

"Daren, when will Facebook's Series B financing be ready?"

Xia Jingxing said with a smile, "This has not been decided yet. When the time comes, Mr. Moritz will be informed."

Moritz thought that the other party was still angry last time, and said with a smile: "Daren, the valuation of 3 billion US dollars, do you want to think about it?"