My Age of Investment

Xia Jingxing glanced at the founder and husband of Little Swan, and said calmly: "Before today, have you two had contact with venture capital?"

He Yonghui smiled slightly, "Mr. Xia, to be honest, Mr. Shen Bei, a friend of Sequoia Capital, also chatted with us once."

Xia Jingxing coughed, he really wasn't targeting Sequoia Capital.

It can only be said that China's venture capital market is too small, and the road to enemies is narrow.

He Yonghui looked at Xia Jingxing with a smile, like an amiable mother-in-law looking at her son-in-law.

In fact, her daughter has a boyfriend, and she will start a joint venture with the milk tea girl to sell "tender green tea" in the future.

Of course she was not "finding out her son-in-law", but was observing Xia Jingxing's expression, trying to read out one or two useful information.

Starting from a hot pot restaurant with three tables, she has become a well-known rich man in the region with a net worth of hundreds of millions, and she has very rich business experience.

Although I don’t know much about the gameplay of venture capital, I also know that it has something in common with traditional business. Shopping around is an eternal business foundation to prevent assets from being sold cheaply and being taken advantage of by capital.

You can say that she has too many eyes and old ideas, but this is also her way of surviving in the intrigue business.

Xia Jingxing smiled and looked at the shrewd old aunt sitting next to him. He more or less guessed the true thoughts of this businesswoman. She wanted to introduce venture capital and go public to achieve the effect of skyrocketing her net worth. At the same time, she was very cautious for fear of being scammed.

He felt normal and understood.

However, the other party still has courage, because many traditional entrepreneurs are very resistant to venture capital, and even unwilling to contact them.

Especially after some capital expelled founders, traditional entrepreneurs have become more respectful of capital.

Xia Jingxing picked up the teacup on the table without haste, took a sip, and said calmly: "Since Sequoia has been in contact with Mr. He, you should also know some investment rules, right?"

He Yonghui smiled slightly, "It's just a few words, and it's not very clear.

Unlike your young people, our generation basically has no knowledge, culture, or finance.

Mr. Xia, can you give me some advice? "

In fact, Shen Beipeng told her about various investment rules,

An investment draft was also presented.

It's just that she was more cautious, and wanted to listen to Xia Jingxing again, compare the two, and see if there was anything tricky in the middle.

No woman who can make her career bigger is simple.

Xia Jingxing nodded, "Okay, then let me introduce you briefly."

"If we invest 50 million yuan in Little Swan according to the pre-money valuation of 100 million yuan, accounting for one-third of the shares.

Little Swan can use the 50 million yuan to open 10 new branches to increase the revenue of the company.

And how long will it take for the 10 branches to recover the investment cost and even distribute dividends to shareholders? "

He Yonghui smiled, "It takes at least a few years to make money.

The hotpot industry has low barriers to entry and high competition. Take the Sichuan-Chongqing region as an example. If you walk a few steps on the street, you can see a hot pot restaurant, which is as numerous as a cow's hair.

If you want to make money, you must first have good taste, so that you will have repeat customers. And the location can’t be bad, especially for some big stores, they must be opened in places with a lot of traffic, but the rent cost and labor cost will also rise accordingly..."

Xia Jingxing listened to the old aunt's unpretentious business experience, smiled and nodded, "So, the traditional way of investing in shares and dividends is not the way we venture capital.

What we really want to play is..."

Xia Jingxing looked at He Yonghui with a smile, "Expand the game!"

"For example, if I invest 50 million in you this year, you will open 10 stores; next year, I will invest 500 million in you, and you will open 100 stores; the year after...

But this is not a casual game. We need to look at financial reports and some operating indicators. "

He Yonghui frowned, "Mr. Xia, isn't it too radical to open a store? Are you in a hurry to open a new store before the cost has been recovered?

If there is any problem, the loss will be a terrible figure. "

Xia Jingxing felt that he and He Yonghui were not on the same channel. The other party was a conservative traditional entrepreneur who paid attention to every step of the way, while their venture capitalists liked to read the "exponential growth" report the most.

Sighing slightly in his heart, Xia Jingxing continued to teach the old aunt.

"It is normal to have losses, and venture capital capital can also accept short-term losses."

Xia Jingxing said with a smile, "However, losses must come from efficiency and meaning."

He Yonghui looked puzzled.

Her husband Liao Changguang, Yin Mingshan and his son felt as if they were listening to a scripture, and their eyes became more and more puzzled.

Xia Jingxing explained slowly: "The loss is due to the scale effect, is it understandable now?

The cost of food materials, rent bargaining power, supply chain system, etc., can all be improved as the scale of the enterprise expands.

For example, if one ton of beef and one hundred tons of beef are purchased each year, can the unit price be the same?

If I have a thousand stores and I am a well-known catering brand in the country, will the commercial complex reject a business like me that brings its own customers? It's not too much for me to ask for a few months of rent reduction, or some rent discounts, right?

When stores are distributed all over the country and a large logistics network is established, the cost of shipping goods can also be reduced. "

Now everyone including He Yonghui understood and nodded.

Xia Jingxing said again: "Investment is not guaranteed every year, venture capital depends on the financial report to see whether the funds have been spent.

If losses have been narrowing over time, it means that the harvest season is not far away, and we will continue to raise.

If the effect is not ideal, stop and step up adjustments until the ideal state is reached, then resume expansion. "

He Yonghui asked: "It means to spend money first to build up the scale and market, slowly control the cost, and then slowly make profits?"

Xia Jingxing nodded, "It's such a general direction, but the detailed plan needs to be continuously optimized."

He Yonghui was very interested in what Xia Jingxing said, and asked, "Then what details should be optimized?"

Xia Jingxing smiled, "This involves the second benefit that venture capital institutions can bring besides money. Our industry is called post-investment management, which is also called empowerment.

Taking Vision Capital as an example, we have cooperated with well-known headhunting companies at home and abroad, and can provide credit endorsement for the invested companies and help find the most suitable talents.

For example, Little Swan is a hot pot maker. We can recruit executives from the industry-leading hot pot brand "Little Sheep", and we can also recruit executives from KFC and McDonald's in China.

Even in the future, if Little Swan wants to expand overseas, we will recruit catering talents from any city for you. "

He Yonghui said with a "hehehe" smile, "It is not an easy task to recruit so many people at once to integrate into the company and exert their combat effectiveness."

Xia Jingxing smiled, and the other party got the point. Haidilao's establishment of a "corporate university" to train talents internally is a good solution.

When low-level employees receive training and promotion opportunities, they will not only have a sense of belonging to the company, but also be familiar with the working environment, and there will be no problem of adaptation or integration difficulties.

Corporate university is something that major companies will play badly in the future. It is still new and not many companies use it.

Xia Jingxing didn't want to reveal it for the time being, after all, the matter of investing in Little Swan hadn't even been written off yet, so it's normal to have some reservations.

"Management matters are indeed the top priority, so we will wait until we find the most suitable solution before starting large-scale expansion, otherwise it will be easy to be in a hurry and lose the chain in the talent supply chain."

Speaking of this, Xia Jingxing paused, "Also, I have something to declare.

After the entry of venture capital, many management matters need to be regulated, such as nepotism, entrepreneurial veterans with little ability but in high positions, etc., which must be eliminated and adjusted.

Of course, I am not saying that Little Swan must have this problem, if there is, it will be corrected, and if there is no, it will be encouraged.

In short, large sums of money are poured in, not indiscriminately.

This is like filling up an airplane with fuel. Before taking off, it is necessary to check whether each component is functioning normally and whether it meets the conditions for safe takeoff. "

He Yonghui was silent. She basically understood that everything was in line with the indicators and the performance and financial reports.

But if all performance-only theory is based on cold numbers, will there be a lack of humanistic care and no cohesion within the company?

Xia Jingxing continued: "Post-investment management, besides what I just mentioned, there are many more.

For example, Dianping, we can recommend Little Swan to establish in-depth cooperation with this review website, and bring very considerable customer traffic to Little Swan through Internet advertising;

Tudou.com, Little Swan can also get a good location and cheap advertising space on this video website. Little Swan can shoot a few food advertisement videos and put them on to enhance the company's reputation.

In short, the resources held by Vision Capital are extremely rich.

In the venture capital industry, I am not boasting, there are very few people with stronger resources than us. "

He Yonghui smiled, "President Xia, I understand, I now fully understand the role of venture capital.

But you don't plan to pay dividends, and even allow short-term losses for the company. How do you make money? "

Xia Jingxing smiled "haha", "Helping companies establish a correct business model, scale up, become profitable, and then go public, we sell stocks in the secondary market, this is our logic of making money.

Capital is all about profit, and we are not helping the invested companies for free. What we want is to make the cake bigger and then share our piece.

Otherwise, if we invest 50 million, 500 million, and expect dividends to return to capital and make money, then we have to wait until the year of the monkey?

All we want is fast in and fast out. Time is money for us.

And the founder will not lose anything, dilute part of the equity, but can get a listed company with a larger scale and a more complete business model. "

Xia Jingxing looked at the couple solemnly, and said with a hint of bewilderment in his voice, "The founder's net worth will even increase tenfold or a hundredfold!"

He Yonghui and her husband looked at each other, and they both saw the emotion in each other's eyes.

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