Reborn as a tycoon in Hong Kong

July 23rd is another Monday.

Lin Baicheng came to Apple again.

In addition to the original shareholders and directors, the new shareholders who came to Apple this time also came to participate in the financing. The purpose of being here at Apple today is to sign the relevant agreements and contracts for share financing.

It has only been about ten days since the last time Apple held a board meeting to decide on financing. Apple has negotiated the financing. On the contrary, New Century Software, which decided to raise financing earlier, is still negotiating on the company's valuation.

The reason for this is because Apple hopes to obtain funds earlier, invest the funds in the development of the company, and try to grow as much as possible before IBM officially enters the personal computer market, so Apple does not have so much time to waffle.

New Century Software Company is different. It is not short of money at present. The early research and development of database software and personal computer operating systems can be fully supported by New Century Software Company's current funds. Therefore, it is not so anxious about financing and can turn the company into a new one. A higher valuation is a point, it only has advantages and no disadvantages.

Today, all Apple shareholders came with lawyers or teams to complete the share changes.

This time, Apple raised 10% of its shares, and all original shareholders diluted their corresponding shares in proportion. No one chooses to sell more shares, and no one chooses to invest funds to avoid having their shares diluted.

Before this financing, Lin Baicheng held 27% of Apple's shares, Steve Jobs held 26.18%, Steve Wozniak held 21.42%, and Mike Markkula held 5.4%. , Goldman Sachs holds 10% of the shares, Elephant Capital and Logan Rockefeller each hold 5% of the shares.

With this financing of 10% shares, all original shareholders will have their shares diluted by 10%, which means that Lin Baicheng holds 24.3% of the shares, Steve Jobs holds 23.562% of the shares, and Steve Wozniak holds 19.278%. Shares, Mike Makkula holds 4.86% of the shares, Goldman Sachs holds 9% of the shares, Elephant Capital and Logan Rockefeller each hold 4.5% of the shares, accounting for 90% of the company's total shares.

The remaining 10% of the financing shares were taken by four institutions, with Goldman Sachs leading the investment with 5%, Hutchison Whampoa taking 3%, Pioneer Technology Ventures taking 1%, and Sequoia Capital taking the rest. 1% share.

Although Lin Baicheng was diluted by 2.7% of his shares this time, half of the 3% share obtained by Hutchison Whampoa belongs to him. Pioneer Technology Venture Capital Company is his sole proprietorship, which means he received 2.5% of the shares. Not much is diluted.

Lin Baicheng still prefers that Apple can grow and develop in the competition with IBM, or at least survive, occupy a certain market, and avoid losing money on this investment.

Of course, if Lin Baicheng really makes a mistake in his judgment, there is nothing he can do about it. After all, the butterfly effect caused by his rebirth will only get bigger and bigger, and it is normal for some companies' futures to be changed. However, although he is not sure that Apple will succeed, even if his judgment is wrong, he can afford the corresponding losses.

After this financing, Goldman Sachs' shareholding increased to 14%, making it the fourth largest shareholder of Apple.

This time, Apple raised $250 million in market capitalization, raising 10% of its shares to obtain $25 million in development funds.

The last time Apple's pre-financing valuation was US$95 million, it raised US$19 million for 20% of its shares, and its post-financing valuation was US$110 million.

In just six months, Apple's pre-financing market capitalization has more than doubled to US$250 million, mainly because Apple's personal computer sales have been increasing and its performance is getting better and better.

However, Apple’s current valuation of US$250 million is actually not high. On the contrary, it is a little underestimated. This is mainly because IBM is about to enter the personal computer market to compete with Apple. With such a strong competitor, capital will not be attracted by it. It is normal for the market to be optimistic.

New Century Software Company, which is also financing, has a higher valuation than Apple. The reason for this is because New Century Software Company has no competitors and has basically occupied the market and achieved a monopoly position, so it will be valued at a normal valuation. Based on the above, a certain overvaluation is given because the risk of investing in this company is smaller.

Apple is different. With IBM as a competitor, it is quite possible that it cannot compete with IBM. It is hard to predict its future development prospects. Therefore, the current performance cannot bring about the high valuation it deserves. Instead, it will be underestimated by the market.

At a pre-financing valuation of US$250 million, Hutchison Whampoa spent US$7.5 million to acquire 3% of the shares, while Pioneer Technology Venture Capital spent US$2.5 million.

After the financing, Apple, which had an extra US$25 million in cash, was valued at US$275 million. However, shareholders and management would only say that Apple's valuation had reached US$300 million.

In this way, the stronger Apple is, the more attractive it will be to talented people. At the same time, it will have more status when dealing with other companies, and it will be able to get more money when negotiating loans with banks.

If Apple is really valued at US$300 million, Lin Baicheng's 24.3% stake is equivalent to US$72.9 million, while his investment is only a little over US$5 million, and the profit has exceeded the cost ten times.

It's a pity. Let's not talk about whether Lin Baicheng is willing to sell his shares at the current valuation. If he really wants to sell so many shares, it is very likely that no institution will take over. Even if an institution does take over, he will definitely sell them at a discount. It would be good if the takeover agency can take over the business at 30% to 30% off the valuation.

Therefore, if you really want to monetize your shares without being discounted, you have to let Apple go public. Moreover, Apple's market value will be higher by then, and the profits Lin Baicheng can earn will also be higher.

"Dear shareholders, our management has booked a hotel and decided to hold a celebration party tonight for the successful financing of our company. I hope everyone has time to attend."

After signing the agreement and contract, Jobs said to all shareholders.

The director representing Goldman Sachs heard this and said, "It's time to celebrate. I will attend on time."

The director of Elephant Capital also said: "This is a good thing."

"Alan, do you have time to attend the party tonight?"

Jobs looked at Lin Baicheng, who was silent. Of course, he would not ignore the company's major shareholder.

Lin Baicheng smiled and nodded: "Of course I have time, there's no problem with me."

"me too."

Logan Rockefeller came to Apple in person today. He has invested a lot in Apple. He will definitely take time to come over when the company officially raises funds.

The remaining shareholders also said one by one that they would go to the party in the evening if they had time.

It's still daytime, so everyone leaves Apple first.

When Lin Baicheng left, he left with Cheng Yufeng. Yes, the person in charge of coming to the United States to discuss financing this time was the vice president Cheng Yufeng. In addition to the need for a high-status person in charge because the financing funds are not low, it is also because Watsons is about to open a branch in the United States and its first supermarket in Los Angeles, so Cheng Yufeng came to do this in person, and it happened to be that he came to the United States. The financing matters were also taken care of here.

As for Pioneer Technology Venture Capital Company, as the manager, Aige Dema did not know that Lin Baicheng was the boss of this company, so it was impossible for him to leave with Lin Baicheng, and Lin Baicheng would not tell the other party the truth.

Because they had to attend a party in the evening, Lin Baicheng and the others temporarily booked a hotel and went to the hotel to rest.

In the evening, Lin Baicheng and Cheng Yufeng went to the hotel booked by Jobs and others to attend tonight's celebration party.

In addition to Apple's management and outstanding talents, those attending the party tonight also include Lin Baicheng and other shareholders, as well as accessories merchants who have in-depth cooperation with Apple. The friendly merchants specially sent people to attend the party to maintain the relationship between the two parties.

After the party officially started, the management headed by Jobs first said a few words, and then everyone went about their own business, drinking and chatting.

This is a more formal business party, not a party for Hollywood stars, so there are no models, no flour, everyone is a successful person, and the chat is very serious.

"Hello Alan, I'm Don Valentine, here's my business card, nice to meet you."

When Lin Baicheng and Cheng Yufeng separated, Don Valentine from Sequoia Capital took the initiative to find him and handed him his business card.

"Nice to meet you, Mr. Valentine."

Lin Baicheng, who took the business card, also took out the business card and handed it over.

Even if Lin Baicheng was just an ordinary person in his previous life, he had heard of the famous Sequoia Capital, but he only found out today that Don Valentine was the founder of Sequoia Capital. After all, he was just an ordinary person in his previous life. No matter how famous Sequoia Capital is, it has nothing to do with him. It is impossible to know specifically who the founder of Sequoia Capital is.

"Alan, you invested in Apple in the angel round, and you even invested at a premium. Your vision is much better than mine. It's really amazing."

Don Valentine praised it, but actually, he came into contact with Apple earlier than Lin Baicheng, because he met Steve Jobs before Apple was established.

Jobs first worked for Atari. In 1976, he left Atari and decided to start his own company. However, he had no money, so he relied on Atari founder Nolan Bushnell to help introduce him to Don of Sequoia Capital. Valentine, but Don Valentine did not invest money at that time, but helped Jobs introduce others, thereby missing out on the initial investment.

Faced with the compliment, Lin Baicheng smiled and said: "Mr. Valentin was able to judge Apple with a normal heart and invest in Apple again with more funds even when he missed it at the beginning. This kind of mentality is what a good investor should have." , and this is where I should learn from you, Mr. Valentine.”

"Well, in the final analysis, I still don't have enough vision. Otherwise, who wouldn't want to get more shares with less capital, don't you think so, Allen?"

Don Valentine shook his head. In fact, he didn't have much regret, just some emotion. In his investment career over the years, this was not the first time that he had missed out on investment from Apple. If he had regretted or complained every time, his mentality would have collapsed long ago.

"That's true."

Lin Baicheng nodded in agreement.

After just a few chats, Don Valentine immediately said: "Alan, you are the chairman of New Century Software Company, right?"

"good."

Lin Baicheng nodded, but he couldn't help but wonder if Don Valentine was chatting with him about the financing of New Century Software Company.

"New Century Software is currently raising funds, and its valuation is higher than Apple. I would like to congratulate you here, Allen."

Don Valentine said, raising his glass.

"Thanks."

Lin Baicheng raised his glass in response and took a sip of wine.

After taking a sip of wine, Don Valentine continued: "Allen, Sequoia Capital is also very optimistic about New Century Software Company and wants to participate in the financing. However, Sequoia Capital is incomparable to Goldman Sachs and Citigroup, and they know It’s a bit late for financing, so I wonder if you can be accommodating?”

Some companies that are promising in the capital market sometimes cannot participate in financing only if they have money. They also need some relationships, and it is best to find relationships with the actual controller of the company.

"Of course, I would like to see more institutions participating in financing, the better."

Lin Baicheng smiled and agreed without thinking. The more institutions that want to participate in financing, the more bargaining space New Century Software Company will have, and the higher the valuation of financing may be, so he welcomes the participation of Sequoia Capital. In this financing capital game.

"Thank you Alan, and I'd like to ask you to say hello then."

Seeing Lin Baicheng readily agree, Don Valentine couldn't help but smile on his face. He could guess what Lin Baicheng was thinking, which was why he asked Lin Baicheng for help. However, whether Sequoia Capital's participation would increase the valuation of New Century Software Company was not among his considerations. After all, Sequoia Capital had previously He did not participate in financing negotiations, and he also had a bottom line in his mind. Once the valuation of New Century Software Company exceeded his psychological limit, Sequoia Capital would simply not participate in financing and lose some manpower.

Lin Baicheng responded: "I will talk to Isabella, the manager of New Century Software Company, about this tomorrow. Then you can just go to the company directly."

"Thanks!"

Don Valentine thanked him again.

After talking about this matter, Lin Baicheng and Don Valentine talked about something else. They have views on the U.S. economy, some insights on investment, and which industries and companies they think have greater potential, etc.

In the middle, Logan Rockefeller also joined in the discussion, and the three chatted for a long time.

Lin Baicheng not only chatted with the two of them, but also chatted with others. He also chatted with Jobs and Steve for a long time.

After this second round of financing, Steve Jobs and his management have held less than 50% of Apple's shares and no longer have 100% control over the company. Now it is just because of the dispersion of shares and the shareholders' disapproval of the management. Trust, management controls the company.

Let’s not talk about whether Apple will have a third round of financing. When Apple goes public, the shares of each shareholder will be diluted again. At that time, the proportion of management’s shareholding will only be lower, not to mention that after the listing, Steve Jobs Others will definitely sell some of their shares to improve their lives.

Therefore, Jobs and others must win over other shareholders and gain the support of major shareholders. Among them, Lin Baicheng is the key target of Jobs and others. Although he was a little wary of Lin Baicheng, after all, Lin Baicheng's shareholding ratio was not low, but after more than a year, Lin Baicheng did not interfere in Apple's operations, and he gained some trust from Steve Jobs and other management.

No management would not welcome such shareholders who only take shares and do not interfere in the company's operations. They wish that the more such shareholders the better, and the relationship must be maintained so that such shareholders can always support them.

Faced with overt or covert attempts to win over, Lin Baicheng certainly expressed his support for Jobs and the others. Anyway, he really had no intention of controlling Apple, unless he wanted the company's development to be restricted by the ceiling.

As for Apple, which has ceiling restrictions, it is not worth Lin Baicheng's efforts to gain control. Instead of doing this, he might as well start a new company by himself.