My Age of Investment

Xia Jingxing smiled lightly, coffee that helps digestion? I've never heard of it, so I'll have to try it.

However, the goal has been achieved, he did not embarrass Yang Haoyong, nodded and said, "That's fine, then have a drink."

Then, Xia Jingxing followed the two brothers to a cafe.

After drinking coffee, the three chatted again.

"Daren, we thought about it and think your words still make some sense."

Yang Haoran paused, "However, the valuation of one million dollars is really too low.

How about three million? We raised $500,000 and diluted 14.3% of the shares for you. "

Xia Jingxing smiled and shook his head, "I can't increase the price, this is my bottom line.

You have nothing right now, even the website has not been developed, there is too much uncertainty.

This investment of mine can't even be called an angel investment, it can only be called a "seed round investment".

You can ask about it and see how much is the investment in the seed round?

The common ones are 30,000 or 50,000 US dollars, and at most they will not exceed 100,000 or 200,000 US dollars.

I dare to invest half a million dollars in you, which can definitely be called a show of trust in you.

Of course, if you think my conditions are not good enough, you can also contact other investment institutions. "

Xia Jingxing crossed Erlang's legs, picked up the coffee, took a sip, his attitude was very casual, but his words were very strong.

Yang Haoyong and his brother Yang Haoran looked at each other, and both saw the dissatisfaction in the other's eyes.

Yang Haoyong said with a serious face: "If a startup company is taken away by one-third of its shares during the angel round of financing, I think it may dampen the entrepreneurial enthusiasm of the entrepreneur."

Xia Jingxing agreed with this point of view in his heart, his offer was so low, he just wanted to bargain, and he never thought of directly taking one-third of the equity of Ganji.

Because this is a bit unrealistic, even a little capable and confident entrepreneur will not agree to such a condition.

Recognition in the heart is recognition,

But he still showed a look of disapproval on his face, saying: "Entrepreneurial passion is the basic quality that entrepreneurs must have. If you don't have this, no one will dare to invest, because it is destined to be a waste of water.

At the same time, there are no Internet companies that do not raise funds. If there are too many financing rounds and the equity is diluted too much, the entrepreneurs will directly choose to choose, then I will choose not to invest in this kind of project. "

Yang Haoyong was a little resentful, Xia Jingxing was secretly changing the concept, what he said was that he could not accept too much equity dilution with a single financing, and he did not say that he could not accept multiple rounds of financing, and a large number of equity was diluted.

On the contrary, if the project can successfully complete multiple rounds of financing, it means that the project is operating very successfully, and the equity has been greatly diluted, which can be ignored.

Because without this financing, the project would not have been able to develop as successfully.

The two are complementary.

But a single round of financing dilutes a large amount of equity, which is equivalent to overdrafting the future.

The two have different meanings.

Seeing that his younger brother was emotional and was about to explode, Yang Haoran kicked him under the table.

Then, Yang Haoran said with a smile: "Well, Darren, we will raise the financing at a pre-money valuation of one million US dollars, but we don't want to raise half a million US dollars, you just invest us $250,000. it is good."

Xia Jingxing made a quick calculation in his mind, the first investment of one million US dollars, the investment of 250,000 US dollars, the post-investment valuation is 125 US dollars, and he can get 20% of the shares.

This number is not small, and he is also very satisfied.

But when he listened to Yang Haoran's tone, it seemed that there was still room for negotiation?

Xia Jingxing and Yang Haoran looked at each other and said, "I can invest you $350,000, but you will give me 25% of the equity."

Yang Haoran shook his head, "Impossible, we only need $250,000, more than $100,000, it doesn't make much practical sense."

Xia Jingxing was expressionless and continued to increase the price, "400,000 US dollars is still only 25% of the equity."

Hearing this, Yang Haoran hesitated.

Dilute five more points and you get an extra $150,000.

For startups, every extra penny in their hands means an extra penny in their chances of surviving in a highly competitive market.

He was a little tempted, but he couldn't make a decision, and looked at his younger brother Yang Haoyong.

Yang Haoyong nodded slightly to his brother, and he was still reluctant to accept this condition.

$400,000 was the start-up capital they desperately needed.

With this money, they don't have to save money when they go back to China. Millet has added a rifle, but can directly replace the gun. The development of the website can hire a mature development team, and marketing personnel can also recruit a lot at one time. Go online quickly and make certain data.

And a quarter of the equity does not exceed their personal holdings, and it is not net work for capitalists.

can do it!

Yang Haoran looked into Xia Jingxing's eyes and nodded, "Okay, we agree to this condition."

"Happy cooperation!"

Xia Jingxing put away Erlang's legs, stood up and shook hands with the two brothers.

After the deal was concluded, the serious atmosphere instantly eased, and the three chatted and laughed.

Yang Haoyong is no longer so resentful. The post-money valuation of $1.6 million is almost one-third of Facebook's angel round financing valuation.

But how successful is Facebook?

And as Xia Jingxing said, Facebook’s website was online at that time, and it had 100,000 users, and the user growth was gratifying.

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What about the market network?

It was just an idea, still stuck in his head.

From a certain point of view, Yang Haoyong still feels that he has earned it.

"Daren, when do we sign the contract?"

Yang Haoyong couldn't wait, and wanted to finalize the matter as soon as possible, lest there would be too many dreams at night.

How could Xia Jingxing not understand what the other party meant, he smiled and replied, "Because the website has not yet been born and the company has not been registered, you need to go back to China to register the company.

Only after this step is completed, we can officially sign the contract.

The work related to due diligence is very simple. We can speed up the pace, go through all the processes as quickly as possible, and then transfer the money to the account of Ganji.com. "

Yang Haoyong nodded, "Okay, I'll simply pack up, and I'll go back to China as soon as possible to handle all this."

Xia Jingxing looked at Yang Haoran and asked, "How about you?"

Yang Haoran said with a smile, "Actually, Ganji.com was mainly founded by Haoyong. He found me, and I invested some money in him. It is his seed round investor, and you are an angel round investor."

Xia Jingxing recalled, in his memory, this old man will return to China to join Ganji.com in a few years, and he did not return to China with Yang Haoyong to start a business at first.

The reason is not difficult to guess, the brothers always have to leave a way out.

In particular, Yang Haoran's job is still very good. He is a middle-level management in a listed company, and his income is very good. Everyone lives in the United States.

Xia Jingxing nodded and asked, "How do you plan to divide the shareholding structure?"

Yang Haoyong quickly replied, "My brother and I each own half of the shares in Ganji.com."

Xia Jingxing frowned, the most taboo thing for startup companies is the irregular ownership structure.

The two brothers divide the shareholding in half, which is very irregular.

If the two have a disagreement on a major decision, who obeys the other?

If there is no definite core person, the company lacks a unified voice, and it is easy to change from day to day, and even infighting occurs.

Once these bad things happen, the impact and blow to a startup company are extremely fatal.

In the previous life, the two brothers of Ganji.com did not have any scandal of "brothers fighting against the wall".

But Xia Jingxing couldn't help but reminded, "The company must identify a soul, and there can be no half-share equity."

Yang Haoyong frowned, is he worried that the two brothers will have a conflict and bring some hidden dangers to the company's management level?

Yang Haoran thought about it and said, "You can give Haoyong 0.5 more shares, I will take 37%, he will take 38%, and the remaining 25% will be returned to him. Darren you.

In this way, as the largest shareholder and the actual controller of the company, Haoyong should be fine, right? "

Xia Jingxing shook his head, "There is also an option pool. You must plan a 10% to 20% option pool for the employees before I invest."

Xia Jingxing didn't forget this point. If he didn't set up the option pool earlier, when the option pool was set up in the future, his shares would be diluted.

Yang Haoran did not expect Xia Jingxing to be so familiar with equity financing.

It's not surprising to think that the other party is the CEO of Facebook and has also invested in several companies.

"Okay, let's set up a 10% option pool first. This part will be taken out by our two brothers."

Hearing Yang Haoran's promise, Xia Jingxing nodded in satisfaction.

"Wait, there's another question."

The two brothers glanced at Xia Jingxing in surprise and looked at the other party with a serious expression, not knowing what the other party wanted.

"Brother Haoran, should you get married?"

Not understanding what Xia Jingxing meant, Yang Haoran nodded, "Yes, I got married in 1995, it's been almost ten years, is there any problem?"

Of course there is a problem!

The problem is still big!

Xia Jingxing thought of the wasted road to listing on Ganji.com in his previous life.

Originally, Ganji.com has always been on a par with 58.com, and even ahead in some areas.

The reason why it was later acquired by 58.com is that the bad thing is that the listing has been delayed continuously, and the financing has been delayed. Accept the combined proposal.

The reason why the listing has been delayed is that Yang Haoran, one of the founders, had problems with his marriage and divorced his wife who had been married for more than ten years.

After the divorce, Yang Haoran's wife sued him, sued him in the United States, and sued him in China. The lawsuit took several rounds and took several years.

The specific dispute is that Yang Haoran secretly transferred his equity in Ganji.com to his brother Yang Haoyong for free.

Secretly transfer marital property, and then decisively divorce, to teach his wife a vivid lesson, what is social evil!

Of course, the wife of the other party is not stupid. Because of property disputes, Yang Haoran has been continuously sued, which has caused the listing of Ganji.com to be repeatedly delayed.

Similar to Ganji.com, there is Tudou.com, which is also due to the founder's divorce lawsuit, which delayed the listing and slowed down the pace of financing, so it was overtaken by its opponents and then swallowed by the opponents.

Both Ganji.com and Tudou.com have the same investor, Xu Xin from Capital Today.

The queen of venture capital has also been down for eight lifetimes. Whoever votes will get divorced, and then the good situation will collapse.

Originally, I had to add an eldest brother to the list of divorces, but unfortunately my eldest brother is an old man after all, and his pre-marital property was clearly arranged.

Because of this kind of thing, later venture capital institutions learned to be smart, and improved a "potato clause" according to the dog blood story of Tudou.com.

This potato clause has left an indelible mark in the history of Chinese Internet corporate governance, and it is comparable to the "Sina structure" that Sina Corporation opened a VIE structure to facilitate overseas listing of Internet companies.

Xia Jingxing retracted his thoughts, this hidden danger must be cut off.

Otherwise, his investment in Ganji.com will get much less income.

Xia Jingxing glanced at Yang Haoran and asked, "The next words may be a bit unpleasant, you have to prepare yourself."