It's not unusual for Song Liang to know that Li Mu is building a website. After all, Yiting.com's early capital was earned from the four people from Simple Plan. Based on Song Liang's relationship with them, this matter is not a secret at all.
Li Mu did not hide this, nodded and said with a smile: "In July and August, I set up a music listening website, and then I set up a post bar some time ago."
Song Liang said: "I heard that these two websites are very popular now and have a lot of traffic?"
Li Mu said: "It's not bad, but the current traffic is far from reaching my goal."
Song Liang asked: "When the website develops to a certain extent, the cost you need to invest should also become very large, right?"
Li Mu said: "Yes, after reaching a certain level, investment in all aspects will increase exponentially. For a small website, the initial investment in server and bandwidth is only a few thousand yuan a year, but if it develops quickly, the cost of this alone will , even millions a year may not be able to stop it.”
Li Mu thought about future video websites. They would have to pay huge costs for server space and bandwidth in the future. This cost is so huge that it is almost unimaginable for today's Internet companies.
Song Liang asked Li Mu: "Then the further you go, the more difficult it will be for you to support yourself, right?"
Li Mu nodded and said, "I'm already feeling overwhelmed now, so I'm already preparing to talk about financing."
Feeling that Song Liang seemed to be very interested in this matter, Li Mu asked tentatively: "Brother Liang, if I talk about Series A financing, and a big company will lead the investment, would you be interested in joining the investment to have a little fun? "
Song Liang's eyes lit up and he asked, "Are you willing to let your brother come in to dilute your shares?"
Li Mu feels that people like Song Liang are very good at his temper, and he has vision and ideas, and he also helps him a lot. If the two of them can reach a community of interests in the future, they will be able to accomplish many things that he cannot do alone. Therefore, he also intended to let Song Liang participate in the business of Yiting.com and Tieba.
Besides, I have always been eyeing the future real estate development in Yanjing, Shanghai and even Yangcheng and Shenzhen. However, I don’t know shit about real estate. However, if Song Liang is here and the two of them work together, they may be able to have a few sips of porridge in the future real estate field. Grab two more steamed buns, so diluting your own shares at this time and letting Song Liang participate is undoubtedly a good thing with all benefits and no harm.
So, Li Mu extended his olive branch: "Brother Liang, to be honest, originally I was only prepared to dilute 10% of the capital in the A round of shares, but if you are really optimistic about this and are interested, I can provide you with the A round." You prepare five points of shares, and when the time comes, you will follow the investment behind the capital and enjoy the same treatment as the capital that leads the investment."
Equal treatment means that when investing, you will enjoy the same valuation, cash out, increase or decrease of holdings, etc.
For example, when Li Mu chooses the capital side, he will give a certain preference based on the strength of the capital side's resources.
For example, if a company with resources like Baidu invests in itself, I can give them a 30% discount on the psychological price, because their resources are strong and can make the business of Yiting.com and Tieba develop faster. However, if For ordinary investment banks, Li Mu would not give them discounts, and would even raise their prices, such as giving them a 1.3 times factor.
If Li Mu talks about Baidu's Series A, Baidu will definitely be able to get a lower price, but if there are other investors who participate in the investment, they won't get such good treatment. However, generally speaking, those who follow the investment have no expectations for the project. If there is hope and they see a big company leading the investment, even if they do not get the same treatment as the leading investment company, they will still choose to follow the investment and strive for a better future.
The treatment Li Mu gave Song Liang was that he could also enjoy the conditions of leading the investment, and he was treated equally. This can be said to be a great discount.
Although Song Liang is not involved in the Internet, he knows a lot about financing and investment. As soon as Li Mu said these words, he knew in his heart that this brother was not in vain. Although the shares sounded like only 5%, he didn't understand the Internet at all. It’s already very good for people who want to make a career out of it.
So, Song Liang said: "Brother, don't regret it. Brother, I am really interested in the Internet, but I just don't know how to get in. If you are really willing to dilute 5 points of your shares to me, I will take it without hesitation." Caught?"
Li Mu smiled slightly: "Brother Liang, since I said it, I will definitely not regret it. Moreover, this is the A round. If it reaches the B round and the valuation increases, and you want to cash out and leave, I will communicate with the investors and give you priority. Cash out; if you want to invest more in round B, I will give you the same treatment when the time comes, and we will negotiate the specific points at that time."
Li Mu's words were equivalent to giving Song Liang a guarantee.
Series A came in with a valuation of tens of millions. When the valuation of Series B increased several times, or even more than ten times, if Song Liang wanted to leave, Li Mu would definitely help and let him transfer the shares directly to the investors of Series B. , guaranteeing that he can withdraw all the principal and profits.
When Song Liang heard this, he was amazed at Li Mu. How could this guy have such an in-depth understanding of capital at such a young age? If it wasn't face to face, I would have thought I was chatting with a venture capitalist in his thirties or forties.
However, Li Mu's words also made Song Liang very happy, and he immediately said: "Brother, then I won't be polite to you! When you talk about the A round, I will directly follow the investment in my own name!"
"Okay!" Li Mu smiled slightly. It was obvious to both of them that Li Mu wanted Song Liang to get in the car, and Song Liang himself also wanted to get in the car. Then they hit it off and got in the car together to enjoy the scenery.
Song Liang's mentality at this time was not to see the scenery, he just wanted to get on Li Mu's train. No matter whether the train would make money in the end, he didn't care. He just felt that he should be tied to Li Mu in terms of interests. This will open up more possibilities for the two of them in the future.
Thinking of this, Song Liang said again: "Brother, I have acquired a new piece of land, less than three kilometers southeast of the city. Have you heard of the Three Archways?"
Li Mu nodded. Sanpailou is not famous yet. It will become a new residential area in Haizhou in the future. With the future development of the city, the urban area will continue to develop toward the southeast. In the next few years, it will become the most expensive place in Haizhou. The place.
Song Liang said: "This land will start construction early next year. There are many shareholders, so I won't introduce them to you one by one. However, brother, I am the major shareholder. If you are interested, I will personally give you five points. You see how?"
Li Mu said: "Brother Liang, one of your real estate developments can easily cost hundreds of millions. Five sites will cost at least several million. I'm afraid I can't afford it!"
Song Liang smiled slightly: "That's the total cost you mentioned. The start-up capital is not that high, tens of millions is enough. The rest depends on bank loans and internal pre-sales."
Li Mu asked in confusion: "Internal pre-sale?"
"Yes." Song Liang said with a smile: "There are many shareholders in a real estate project, and there are many people who want to participate in the project with money but cannot participate. After our project is launched, in order to withdraw funds as soon as possible, we will allocate a certain proportion of housing Pre-sale to these people is also to get the funds back as soon as possible.”
Li Mu nodded and said with a smile: "Thank you Brother Liang for your kindness, but I don't dare to be too specific now. Let's keep it for me first. If I can afford it then, I will come to Brother Liang." You mix it up here."
Song Liang laughed and said, "No problem, I can lend it to you if you don't have enough cash."
Since the two of them had similar ideas and both hoped to have certain interests tied to each other, they had a particularly enjoyable meal.
Li Mu thought that his Yiting.com and Tieba were still personal in nature, and when the A round was discussed, they would definitely have to be corporatized. Instead of trying to catch someone blind, it would be better to get this done first, so he planned to take time to return to Yanjing to register a company. Let’s talk about the company.
However, the industrial and commercial departments are also on holiday now, and registration will have to wait until after the National Day. However, you can go to Yanjing to find a specialized agency for help, which can save a lot of trouble.
Song Liang has always been curious about Li Mu's own psychological expectations for the valuation of Yiting.com and Tieba. Li Mu said lightly: "Depending on different investors, the valuation should be between 50 and 80 million, no problem."
Song Liang was completely stunned: "So high?"
Li Mu nodded: "This valuation is actually not too high."
With the current development momentum of Tieba, if it carries out Series A financing in October or November, then with its millions of registered users and millions of daily active users, it can get a valuation of at least tens of millions. Internet estimates Value inherently has a lot of room for redundancy, because the Internet has never looked at current profitability, but future development prospects. To put it simply, it can be said in two words: "concept."
In the future, a website of the size of Kaixin.com will be able to raise millions of dollars in Series A financing. This means that the valuation in Series A will inevitably reach tens of millions of dollars. In Series B, it will raise 2,000 US dollars. Ten thousand US dollars, with a valuation of over 100 million US dollars. In other words, in just a few months from round A to round B, the valuation has increased several times or even higher, which shows the importance of the concept.
When Xiaonei.com was popular, its valuation was one day at a time, and it could scare people to death when it was high. However, like Kaixin.com, it was a hot commodity that would come to an end in a few years, but music listening will still be popular for at least five years in the future. By eight years, Tieba will be popular for fifteen to twenty years. When these two major products are launched, even if they are just prototypes, discerning investors will give a very high valuation.
Song Liang was obviously frightened by this valuation. He couldn't convince himself to believe in the feasibility of this valuation, but he didn't care too much. Anyway, as long as there was capital to lead the investment, he would definitely follow the investment. He didn't understand the Internet, but The capital side must understand. What's more, he believes in Li Mu. Even if he invests millions in him, he will not frown.
(End of chapter)