When Mark Zuckerberg discovered that all domain names related to Facebook had been registered by Li Mu, his heart, self-confidence, and even his outlook collapsed at this moment.
Before this moment, Li Mu was a beacon, godfather, and mentor in Mark Zuckerberg's eyes. After this moment, Li Mu was a god in his eyes, a true god.
And Mark Zuckerberg, like the Sun Wukong in the palm of Buddha, cannot escape from the shadow of the god.
Mark Zuckerberg could not have known in his dreams that Li Mu, as a reborn person, had long known his future development path and set up a block to intercept him in advance. It was as if someone had used mind-reading skills to read out the deepest thoughts in his heart. As he thought, Li Mu's shock was simply indescribable.
It took Mark Zuckerberg a long time to recover from the shock. He admired Li Mu in his heart and asked him: "Mr. Li, have you already had the same product plan as me?"
Li Mu nodded unceremoniously and said with a smile: "I have had the idea of Facebook for a long time, but I have never had the time or energy to do it. After all, it is not a project that I am very anxious to start yet, but I I didn’t expect that the two of us would actually think of going together. Since you also have this idea, I can safely and boldly leave this project to you."
It was originally Mark Zuckerberg's original project. In Li Mu's words, it meant that it became his original project, and then he authorized the project to Mark Zuckerberg.
Mark Zuckerberg did not feel anything unusual. On the contrary, he was extremely moved by Li Mu's generosity.
Because, for Mark Zuckerberg, his only advantage is his product conception. However, Li Mu made him mistakenly believe that his only advantage was worthless in front of Li Mu. Li Mu was rich and wealthy. With a team, resources, and Facebook's product ideas, in this case, Li Mu could develop it himself. There was no need to hand over the project to a young guy like himself.
However, even though Li Mu could do it by himself, he gave this project to Mark Zuckerberg. This made Mark Zuckerberg feel like he would die for his confidant. At the moment, he just wanted to I tried my best to make the Facebook project a success to repay Li Mu for his generosity to me.
So, Mark Zuckerberg said extremely solemnly: "Mr. Li, if you really entrust me with this project, I will do my best to make it the best it can be!"
Li Mu nodded: "OK, you will be fully responsible for the Facebook project from now on!"
After saying that, Li Mu made his offer and said: "I still invest US$5 million according to the valuation I gave you before, accounting for 49% of Facebook's shares. However, I have another request, that is, I want to use my External funds will hold 10% of the shares. Similarly, my external foundation will invest US$1.02 million based on the valuation, and the remaining 41% of the shares will be owned by you personally."
Mark Zuckerberg was dumbfounded and looked at Li Mu dumbfounded: "Mr. Li, this is your project, your money and your domain name. Why can I get such a high share..."
At this time, Mark Zuckerberg's pride and confidence have basically completely surrendered to Li Mu. He no longer regards himself as an entrepreneur who uses ideas to attract investment, so 41% of the shares are for him To me, the height is a bit scary.
Li Mu estimated that if he proposed to reduce Mark Zuckerberg's shares to less than 30% at this time, he would agree without hesitation.
But Li Mu didn't do that.
He does not want to exploit the shares from Mark Zuckerberg, he just hopes that he can have enough control over the future of Facebook, so as to ensure that Facebook will become his next super product in the future.
Mark Zuckerberg initially did not dare to accept the 41% share offered by Li Mu, but because Li Mu was determined not to reduce his share in any way, Mark Zuckerberg gratefully agreed to Li Mu's offer.
Later, Li Mu began to have more in-depth discussions with Mark Zuckerberg.
In addition to the distribution of shares, Li Mu, as an investor, has many other needs, including how to ensure that Mark Zuckerberg is tied to the project, and how to ensure Mark Zuckerberg’s actual interests.
First of all, Mark Zuckerberg, as the leader of the project, must promise not to voluntarily leave the Facebook project within five years, and his 41% shares will be redeemed in installments over five years and sixty months.
In other words, for every month he stays in the Facebook project, Mark Zuckerberg can get 0.68% of the shares. If he wants to leave after working for ten months, the actual shares he gets are only 6.8%;
Secondly, if Mark Zuckerberg wants to leave Facebook before the expiration of five years, the shares he actually received cannot be freely exercised. Li Mu personally and the funds established by Li Mu's three companies have the right of first refusal, and the purchase price is based on Valuation calculation for the most recent financing;
For example, if Mark Zuckerberg only stayed for ten months and wanted to leave, and the company did not conduct a new round of financing in these ten months, the actual shares he received were 6.8%, then this 6.8% He will be cashed out based on the initial valuation of US$10.2 million. Mark Zuckerberg can actually only get nearly US$700,000, and all other shares will be taken back by the company;
Thirdly, Mark Zuckerberg can get all 41% of the shares after the expiration of five years. If there is financing dilution, his 41% will also be diluted year-on-year;
Finally, if Mark Zuckerberg wants to leave Facebook after getting all the shares, and Facebook has not yet been listed at the time, his shares will still be acquired first by Li Mu and Li Mu’s fund, and the price will still be based on the latest financing estimate. value to calculate;
If Facebook had been listed at that time, the shares held by Mark Zuckerberg could be freely exercised in the market. However, as a shareholder, he is responsible for the overall development of the company, so his shares cannot be reduced and cashed out at once. In order to avoid any impact on the company's stock price, he will reduce his holdings in five years, and can reduce his holdings by 20% each year. Of course, he can also choose to continue holding without reducing his holdings.
The set of rules for acquiring, cashing out and reducing shareholdings that Li Mu formulated for Mark Zuckerberg are basically in line with the rules of the entire capital market, and for most capitalists, Li Mu’s plan is very fair and benevolent. , ensuring that Mark Zuckerberg can get all the shares as long as he stays at Makino Technology for five years, and also ensures that he can get the rewards he deserves if he leaves at any time.
Investors who can do this are very rare. In the seemingly sophisticated Internet industry, there are no less scams and deceptions than in other industries. Even in this industry, integrity and character are trampled even more thoroughly.
In the history of the Internet, countless successful bosses have the "stain" of being unworthy of their partners. When they start a business together, they are all good brothers. Once the business is successful, everyone will immediately draw their swords to meet each other. In this industry, once When seeing money, human nature is immediately exposed.
Some people go back on their word, some cheat, some betray their promises, and some even cheat and stab people in the back. Nasty things are commonplace in the Internet industry. In almost every successful project, there are core members. Profits were sacrificed, exploited, and mistreated.
The phenomenon of one person succeeding and succeeding forever is very common in the Internet capital circle. Whether it is Steve Jobs or Mark Zuckerberg, their development history will inevitably have such stains. Li Mu is relatively a leader in the Internet industry. He is a gentleman here, and all those who cooperate with him will definitely get the rewards they deserve as long as they work diligently as required.
Mark Zuckerberg almost immediately agreed to a series of requests from Li Mu.
For him, being able to get such a share and such treatment for such a project is a pie-in-the-sky blessing, so he has no objections to Li Mu's offer.
Li Mu then immediately asked Li Ziwei to contact Ding Zhenglin, his capital expert, and asked him to establish an investment fund in China as soon as possible. Makino Technology, Taobao, and Alipay jointly invested one billion yuan in a 4:3:3 manner. In the future, I will invest in the Internet industry, and my first investment project will be Facebook.
At the same time, Li Mu asked Lin Qingya to arrange for someone to register the US Facebook company with Mark Zuckerberg. As long as the company was successfully registered, Li Mu would immediately inject capital into the company.
After Li Mu neatly arranged all the matters, Mark Zuckerberg asked Li Mu: "Mr. Li, do you think it is necessary for me to take a leave of absence from school immediately?"
Li Mu shook his head and said: "Don't be in a hurry to drop out of school. Don't forget your positioning for Facebook's development. You should start from colleges and universities in the early stage. If you have already left college, you will lose your best promotion status, so I suggest you stay at Harvard and do a good job in the first phase of Facebook. After the first phase is completed, if the time is right, you can take a leave of absence and devote yourself to the Internet industry."
Mark Zuckerberg immediately agreed: "I listen to you!"
Li Mu waved his hand and said: "Once the project starts, all the plans, rhythm, and budget will be determined by you. After you make the decision, you only need to give me a plan and let me know your plan. Unless it is a last resort, I will not will make any interference in your plan; in addition, if additional investment is needed and you do not have enough cash to inject capital, you can lead the company to raise funds, and then you will treat me as an investor and write down the Business-Plan, Write down your valuation and financing goals, and when the time comes, I will arrange for professional personnel to come in to do financing due diligence, which will be carried out completely in accordance with the formal financing process."
Facebook is an extremely large project, and US$6.02 million cannot push this project too far, so it is bound to carry out rounds of financing, diluting its equity to obtain cash, while improving performance and increasing market value.
Since it is necessary to raise funds, whether Li Mu invests himself or external capital invests, shareholders will have to dilute their equity. But if Li Mu invests himself, his own equity can avoid being diluted. On the contrary, it can also be done through Mark Zuckerberg. Reasonable dilution of equity and increase the share of equity actually controlled by oneself, why not
Moreover, on the road of corporate capital development, the earlier you get started, the greater the benefits.
(End of chapter)