Rebirth: I Want to Surf

Before the Internet winter, a large number of international capital came to China like a market.

After 2000, these capitals disappeared without a trace like a bubble, and a few of them persisted, such as IDG and DFJ.

DFJ is an investor in Baidu and has recently become an investor in Kongkong.com.

In this year, there are not many investors to choose from for domestic products, and some famous institutions in later generations have not yet appeared, such as Hillhouse Capital and Capital Today, which were established only in 2005.

When Xiong Xiaoge found De Fengjie, Zhou Yunfan might have played a role. They were very interested in this platform with the weird name "Maiwo".

But when it comes to specific analysis, I feel a headache.

The first is valuation.

There are many methods of valuation, and I won’t talk about it if it’s too complicated. The more commonly used method is the “market-to-sales ratio method.”

That is, to predict the future earnings of the company and how much the stock price can reach after listing, so as to determine the investment amount. So how to predict?

Generally, it is compared with similar products on the basis of revenue.

And so trouble arose.

Counting from the beginning of SARS last year, it has been less than a year now, and the sales of Maiwo Mall have exceeded 10 million. And for the more than ten million yuan, 98% of the share was collected twice in the arena with Joyo.com and the New Year’s gift package.

That is to say, based on normal operations, this mall is a pile of rubbish.

The key is that it is not conventional!

It is living on the brain of Boss Yao, driving a platform alone.

Looking at the comparison of similar products, domestic Dangdang and Joyo, the B2C leader and second child. Dangdang.com had sales of 80 million last year, and Amazon recently intends to acquire Dangdang, offering a price of 150 million US dollars.

That is, its valuation is 1.2 billion yuan, or there may be a premium.

According to this comparison, the valuation of Maiwo Mall is easy, but again, it is not a conventional product!

First, it's not a start-up with a cash-rich boss behind it. Second, it is embedded in a huge community with more than 10 million members.

No one has seen this type of product.

Second, investment institutions cannot predict its development prospects.

No one has ever seen a platform that can sell more than 10 million sales in just two activities. In particular, Yao Yuan and Xiong Xiaoge described a plan for Maike, and they will develop their own brand Balabala in the future.

This makes the community and the mall inseparable, and it is extremely inaccurate to value the mall alone.

"..."

At this moment, the negotiator was thinking about these shitty things, while deducing today's negotiation in his mind.

After a while, he heard footsteps outside, and he was taken aback. You are not a small broken company, why did the big boss talk about it in person?

Hey, Yao Yuan likes to talk in person.

"Mr. Yao!"

"This is the representative of DFJ."

"Hello, hello, please sit down!"

Yao Yuan brewed tea with his own hands, and said with a smile: "It seems that the first round is yours. To be honest, there are other investment institutions approaching me. I always feel unreliable. I still prefer you. I hope there will be a good result. .”

"Of course, in a sense, our goals are the same."

After being polite for a while, I went straight to the point. This kind of negotiation is just data pulling, no nonsense.

"The result of our research is that the first round of investment is 10 million US dollars, accounting for 20% of the shares, and you need to reserve at least 10% of the option pool."

The option pool is a part of the shares reserved for management, senior talents, and ordinary employees. For example, in the future, if a very talented person is recruited, if they ask for shares, they can share them from the option pool.

"Ten million dollars?"

Yao Yuan shook his head and said, "To be presumptuous, I really don't need your 10 million US dollars. Although my e-commerce platform needs money, I can still be self-sufficient for a long time."

"Then what do you mean?"

"At least $30 million."

"Mr. Yao, this is the first round of financing, 30 million is too high."

"I don't think it's high. My mall is supported by the community, and the next step is to convert users. I can't feel the sincerity at your price."

"However, no one has ever done the mall + community model. We are taking a huge risk when we invest in you. If you insist on asking for 30 million yuan, that's fine too. We want 60% of the equity."

"Just because no one has done it, it has real value. Our product is unique. It can be seen from the two activities that community users are willing to spend in the mall."

Tencent once built an e-commerce platform called "Paipai".

In the C2C model, Xiao Ma’s thinking at the time was: I have hundreds of millions of users on QQ, and it’s not easy to start an e-commerce? The result was slapped in the face.

There are many reasons for the failure. In the final analysis, there are two reasons: the QQ users were not converted into e-commerce users, and the platform was rough.

The seller is inconvenient, the buyer is also inconvenient, and the experience is too bad.

Yao Yuan is bluffing at the moment, but he is not bluffing. Maiwo's user positioning is accurate. People who are mixed in the community prefer online shopping more than those who are mixed in QQ. He also attaches importance to user experience and is confident that he can do it.

After several rounds of verbal battles like this, no one convinced anyone.

The negotiating team is leaving, and we will fight again in the future.

In the next few days, the other party kept adjusting the asking price and making all kinds of temptations. Yao Yuan was impatient, and simply said: "Don't always talk about things with Zhuoyou, how much can they sell books and audio-visuals?

Seeing that Amazon has become popular in selling books, they swarmed to learn to sell books. Dangdang has been selling books for several years, and it is still the same virtue, without any flexibility.

Excellence is more watery, I was defeated by me last year, and I boasted that my sales exceeded 100 million, he... TUI!

Lei Jun is not afraid of flashing his tongue. He only dared to brag about 15,000 orders in a single day, and I sold 23,000 Chinese New Year gift packages in one day!

If you just look at the garbage data that doesn't reflect your real strength, with all due respect, I don't think you are professional! "

"..."

With this HE...TUI, I can't help the other party.

Is this an elite or a hooligan?

The most annoying thing about investment institutions is the boss who has money in his hand, who can't feel the thrill of investment at all.

Seeing this, Yao Yuan said again: "Book profits are thin and there is no future. I plan to launch an electronic hypermarket this year, with Zhongguancun as the base, and go all out to attack 3C products.

You are afraid of risks, I understand, but you can make an agreement that you invest part of it first, and I will invest part after I reach a certain sales volume. "

He gave in a step, and the other party went back to discuss it, and he also gave in.

It didn't take long to bring another word: IDG and DFJ invested 200 million yuan, accounting for a total of 20% of the shares, and Commander Yao will reserve 10% of the option pool.

However, this 20% belongs to "convertible redeemable preferred shares", what does it mean?

If the investor feels that the company is developing well, he will formally exchange it for 20% of the shares; if he feels that the company is not optimistic, he will not exchange it, and will ask the company to redeem it—equivalent to a loan.

No one is stupid, it is equivalent to insurance for yourself.

The first round of investment is 200 million RMB, which is very, very much.

Before the second and third rounds of investment, it will be calculated based on the valuation at that time, and there will be more. For example, Alibaba raised $102 million in Series C financing this year.

After signing the contract and waiting for the funds to be in place, it can take one month at the earliest and half a year at the longest.

Anyway, Yao Yuan can finally spend the investor's money!

(besides……)