Reinventing the Millennium

Just when Yike was making gratifying breakthroughs in the domestic market, Fang Zhuo from New York encountered two problems that troubled him.

The process of finding a shell and setting up a private equity fund was very fast, and all procedures were completed at the end of December.

The business scope is CDO and CDS of Chinese concept stocks and subprime loans. The former is a very detailed field at present, because there are only a few Chinese concept stocks on Nasdaq, while the latter needs to be treated with caution and will not be launched immediately. .

Therefore, this fund, whose name is abbreviated as MIGA, is considered a private equity fund.

Fang Zhuo named the fund without much discussion. Its full name is Make Investment Great Again, which means "make investment great again."

Kong Yu was a little confused about this, why add Again? How come again? I have no previous investment experience.

Fang Zhuo's explanation is - I am the boss, listen to me.

Kong Yu was relieved. MIGA was better than MIG in terms of pronunciation. The former could be transliterated into MIG, while the latter could not even be spelled in pinyin. Good job, boss.

However, as an investor, Li Xinyue learned that a stock to be bought was NetEase when she was concerned about fund investment. After a simple check, she raised a question: "Mr. Fang, isn't NetEase suspended? Buy it. What’s the reason?”

Only then did President Fang Da of Mega Fund know that the NetEase stock he had chosen was suspended from trading on Nasdaq, and it had been suspended for five fucking months...

Fang Zhuo's back was sweating at that time. He was so busy every day that he really didn't notice this detail.

Fortunately, the CEO, who has rich experience, remained calm. He started talking about the reasons why the fund would buy this stock, starting from the impact of the Internet bubble and the development of the domestic industry. Finally, he expressed a rather tough attitude that he must believe in his own professionalism.

Li Xinyue went from being half-confident and half-doubtful to 0.80% confident and 0.2% doubtful, and then her eyes filled with wisdom after understanding, all of which were seen by Kong Yu.

Kong Yu is a project manager from the domestic 3i Group. In China, a land with a weak venture capital foundation, he is usually responsible for analyzing whether specific companies are worthy of investment. In the past few days, he has followed the process of foreign private equity and has a profound understanding of it. Fang Zhuo is a more layman than himself.

It seems that in the eyes of this CEO, as long as he points out the direction, the people below can just sit back and make money by buying.

Unfortunately, the only investors raised can still maintain trust.

What's all this about?

On the other hand, Fang Zhuo was very satisfied with Kong Yu, who said that he needed to learn a lot, and he was quite good at popularizing certain professional terms.

"Mr. Kong, why do you think NetEase has suspended trading?" Fang Zhuo waited until the investors who questioned him left, then he became worried.

"Mr. Fang, I thought you knew...I thought you meant to wait until it resumes trading before buying...NetEase was suspended because of problems with its financial report." Although Kong Yu's last job was Regarding early-stage investment in start-up companies, you can also simply know the situation of several domestic companies going public in the United States.

"Then when can trading resume?" Fang Zhuo was worried.

Kong Yu was silent.

After a while, he cautiously asked: "NetEase's situation looks very bad, Mr. Fang, should we consider other stocks? NetEase's stock price before the suspension seemed to be less than 1 US dollar, and it is likely to be delisted by Nasdaq. The risk is high, so I’m afraid it’s not the right time to buy it now.”

Delisting means that the stock is terminated from listing.

"It's less than 1 US dollar. It's so cheap." Fang Zhuo had only this emotion. As for whether to delist or not, he was sure that the risk was very low. If there really was a butterfly effect affecting this place, he would just accept it.

Kong Yu quickly found the specific data. NetEase's stock price is now US$0.68. Its listing price last year was US$15.5, which has dropped so much that it has lost its pants.

According to Nasdaq regulations, if a company's stock price falls below $1 for 30 consecutive trading days, it will receive a 90-day warning period. If it fails to increase its stock price to $1 for 10 consecutive trading days during this period, Above USD, the company will be delisted.

"Then let's wait for NetEase to resume trading. I guess Ding Lei should be worried because it's less than $1, so it's just a favor for him." Fang Zhuo made the decision without hesitation.

With the current situation of NetEase's stock, the money from Miga Fund can easily increase the stock price.

The total market value of NetEase on Nasdaq is just over 20 million U.S. dollars... The 10 million U.S. dollars raised by a grassroots team like Miga Fund is enough to buy half of NetEase.

Of course, enough to buy and whether you can buy it are two different questions.

Generally speaking, NetEase stock is the epitome of several Chinese concept stocks currently listed in the United States, and it could not be worse.

——As a Chinese, how could Fang Zhuo sit back and watch this situation? Of course, he generously donated money to help.

Kong Yu feels that this reason is more reliable than the boss's optimism about the increase in stock price.

Soon, on the last day of 2001, the Nasdaq Stock Exchange Management Committee announced that NetEase stock trading would resume at 10 a.m. Eastern Time on January 2, 2002.

Kong Yu felt bad when he heard the news.

Fang Zhuo is very happy. The trouble of not being able to buy NetEase stocks will be solved in two days. Isn't this God's will? Oh no, isn't this God's will? God is letting me buy stocks on Nasdaq.

"Mr. Fang, do you really want to buy NetEase at this time?" Kong Yu expressed his views tactfully.

"Really, there is nothing to hesitate. Although I don't understand the stock market or operations, I know value investing. This is what we have to do." Fang Zhuo had another good reason, "Portals such as NetEase and Sohu are very popular in the market. There is considerable value in the country, but this has been ignored by Americans. At US$0.68, it is simply a waste of money.”

Kong Yu felt that he had done his best, so he had no choice but to start making preparations to buy after the resumption of trading in accordance with the boss's "value investment" intention.

In the blink of an eye, two days later, Netease resumed trading on time at 10 a.m. and tradable shares could be traded again.

January 2 was the MIGA Fund's first move, targeting NetEase, one of China's four major portals, whose stock price had been suspended for more than five months at US$0.68.

At the end of the day, NetEase's stock price opened at $0.68, with a maximum of $0.92 and a minimum of $0.66. The trading volume was 125,000 shares, and it closed at $0.84, an increase of 23.53% from the previous trading day's closing price.

The price of NetEase's stock is too low, and even a slight fluctuation can be called a big rise.

Although the MIGA fund is newly established, most of the people it recruits are new people. However, even interns can complete the operation with money to buy stocks, so everyone is not in a hurry to increase the investment quickly to avoid increasing costs.

In the following days, the trading volume of NetEase's shares was around 150,000 shares, but even so, its stock price quickly rose to above US$1 and remained stable.

As of January 15, MIGA Fund had spent US$1.8 million to buy 1.52 million shares of NetEase, accounting for 5.05% of NetEase's total share capital.

It was on this day that Kong Yu had to find Fang Zhuo, who had been in contact with IDG America for two consecutive days, and report a piece of news to him.

"Mr. Fang, uh, NetEase's stock fluctuated a bit yesterday. Our buying volume was a little bit more and it hit the 5% mark. We need to notify the U.S. Securities and Exchange Commission and NetEase to make an announcement."

According to Nasdaq's requirements, the exchange and listed companies must be notified if the purchase of more than 5% of the circulating shares is purchased. At the same time, notification must continue for every additional 1%.

"Announcement, needless to say our specific situation, is that MIGA Fund has become a shareholder of NetEase, and we are helping it increase its stock price. It is not a hostile takeover." Fang Zhuo is very calm about this matter. MIGA Fund is registered in the Cayman Islands , passing two Xiangjiang companies in the middle.

Because the Cayman Islands does not register director and shareholder information, it is difficult to identify the owners of offshore companies and the relationship between the company and foreign trade companies. Of course, this is not absolute.

"Then should we continue to buy? NetEase's price is still rising." Kong Yu asked.

"Buy, buy as much as you can. NetEase has a total of 15% of its outstanding shares. How much can you spend?" Fang Zhuo gave instructions.

Kong Yu nodded in understanding.

According to this trend, NetEase, one of the four major portals in China, will receive File notices from the American MIGA private equity fund every two days.

In fact, with only the current 5.05%, it has become the top ten shareholders of NetEase, and information must be disclosed in the annual report.

After these days of buying operations, Kong Yu was already wondering whether his boss had communicated with NetEase Ding Lei, or whether there was some insider trading. Otherwise, how could he buy so mindlessly?

Would a person like Mr. Fang, who is not afraid of gasoline, is willing to invest in venture capital, and works hard to build a business, be so clueless?

If the answer is no, then he must have a deep-seated reason for doing what he does.

Kong Yu thought he could already guess the reason.

Therefore, he quietly bought some NetEase shares yesterday, just to test whether his boss had any brains.

"Let's see how the situation is at NetEase. Please give me a report on your recent operations. In two days, you can buy Sohu at the same time." The brainless Fang Zhuo issued a new task.

Kong Yu made a joke: "Mr. Fang, are you going to buy all the major domestic portals? When you get off the plane back home, will all the chairman of these companies pick you up?"

"No, Sina won't buy it, it's in chaos now." Fang Zhuo shook his head, frowned, and sighed, "The boss of the company cannot act like a fool, otherwise the founder Wang Zhidong who was expelled from Sina is the most vivid example. "

Kong Yu knew that his boss had been in contact with IDG America in the past two days, and he was moved and asked: "Is there any problem with IDG?"

Fang Zhuoyan said concisely and concisely: "The lion opens its mouth."

Kong Yu guessed something about the situation, but when he saw that his boss had no intention of talking further, he didn't ask further questions. He just talked about the financial status of the MIGA fund and left.

He took the elevator to the downstairs of the hotel and happened to meet Pan Ben who was in a hurry. He said hello and looked at the other person's face without saying much. Now, he has completed three consecutive jumps from VC to enterprise to PE...

Although the process of this jump is a bit strange, the work tasks are indeed completely different from before.

Pan Ben also didn't talk to Kong Yu. He knew that this man was helping Mr. Fang deal with stocks, and he didn't want to deal with this anymore.

"Mr. Fang, how are you?" Pan Ben saw Fang Zhuo with a solemn face and asked about his second meeting with Miller at IDG headquarters.

He went along with her during the first appointment, but things didn't go smoothly at that time. This second time didn't seem to go well either.

Fang Zhuo shook his head: "IDG wants to take too many shares. They are really rich. They want to take 30% directly in this round. Do they want me to be easy to talk to?"

Pan Ben frowned.

Fang Zhuo smiled half-heartedly and continued: "IDG China already holds 13% of the shares of Yike Technology. IDG America wants 30% of the entire Series A, and also sets up an option pool. What do you IDG want to do?"

Pan Ben felt that he had suffered an unreasonable disaster. Mr. Fang, Mr. Fang, you and I are "we". We shouldn't have a tacit understanding.

He felt that Xiong Xiaoge was kind to him, so he still said: "Mr. Xiong is more independent, and he shouldn't be rushing to control the stock..."

"Mr. Xiong is a man who has learned from past mistakes." Fang Zhuo raised the corners of his mouth, but there was no smile in his eyes.

Don't look at the fact that I flew from Beijing to Shanghai to attend a banquet, and don't look at the senior executives of IDG who were invited from Xiangjiang to participate in the company meeting. When the critical moment comes, how can the venture capital BOSS who has had a history of forced marriage be easily trusted?

Sina's Wang Zhidong was happy at first, but later left Sina in embarrassment.

From the perspective of an ordinary person, Wang Zhidong still has wealth and freedom even after leaving Sina, but from the perspective of the company president, his career is undoubtedly a failure.

Fang Zhuo has every reason to consider the issue of controlling stake. Even if the A round does not reach the line according to the requirements of IDG America and Xiong Xiaoge, what about the subsequent B round? If IDG joins forces with other companies to seize power again...

Then Xiong Xiaoge, who had suffered a loss once, still had to prepare everything before standing in front of him?

The other party will then be able to say, "The one who laughs best is the one who laughs last."

Fang Zhuo could already imagine this scene.

"Mr. Pan, you didn't tell Mr. Xiong about my specific contact with Miller, did you?" Fang Zhuo remembered his previous instructions and wondered how well they were implemented.

Pan Ben shook his head repeatedly: "I just don't know if Mr. Xiong has contacted Miller."

"Everyone is so busy, so they may not contact each other. Isn't it called independence? Moreover, I contacted Miller earlier than the agreed time." Fang Zhuo's thoughts surged. IDG's resources can be used once agreed, but The equity issue is really a big deal, and it seems that we still need to consider bringing in multiple venture capital investors.

But other companies don't have the endorsement of China District like IDG. If they want to talk, they still have to show their achievements.

In this way, it still comes down to sales.

Fang Zhuo controlled his emotions and looked at the matter objectively.

…

NetEase office in China.

first day.

"Mr. Ding, Mr. Ding, our stock price has risen!"

the next day.

"Mr. Ding, Mr. Ding, our stock price has risen again!"

The third day.

"Uh, Mr. Ding, there is an American MIGA private equity fund that is continuing to drive up our stock price!"

Day N.

"Well, Mr. Ding, MIGA Fund announced that it has become our top ten shareholders... and sent us a letter..."

Ding Lei went from joy to surprise to confusion to shock.

"What does this private equity company want to do? It's not like it wants to take over NetEase in a hostile manner, right? It's naive!"