Lu Yunho has no substantial entrepreneurial experience.
Everything he knows and understands about entrepreneurship comes from his own wishful thinking and passion.
He doesn’t understand products, technology, operations, or capital. He’s like a person who doesn’t know how to carry a gun and fight, or even how to pull a trigger. He imagines in his mind every day that he will fight bravely on the battlefield and make achievements. The same, the ideal is very full, but the reality is extremely skinny.
For such people, when things sound nice, they are a bit romantic, but when they say things look bad, they are totally out of tune.
For example, when others are doing things pragmatically, he insists on opening his mouth and shutting up to release satellites. He always feels that if he releases more satellites, he will definitely succeed.
But subsequent entrepreneurial failures have proved to the world that entrepreneurship relies on doing things, not whims and talk.
Because he had no experience and no rules, Lu Yunhao, who was born in Yeluzi, asked Fang Ping for financing needs that he had never seen or heard of before.
Transfer 80% of the shares in exchange for more angel investment.
In entrepreneurial projects, the rapid transfer of large amounts of shares by founders is a minefield that must not be touched. This has been proven through many bloody examples and has become one of the most concerning issues for entrepreneurs around the world.
But Noh Yunho did the opposite.
Giving out 80% directly reduces one's own shares to an extremely dangerous level. This is simply a taboo for entrepreneurship.
But Lu Yunhao doesn't care at all. For him, when eating a meal, he doesn't necessarily have to be full, but he must eat well, eat with pomp and dignity.
Therefore, he is willing to give up a large number of shares, but the premise is that the project must be propped up. There is no big problem in giving away more shares. The key is that the initial start-up capital must be sufficient. Only with more money can we start the project. Make a big fuss and make a big splash.
Fang Ping and the Wall Street giants behind him never thought about taking so many original shares from this project.
In the eyes of people who don’t understand, they may think that the more shares they get, the better. However, Fang Ping knows very well that when investors get shares, it is by no means that the more the better, the more they get, others need to bear the responsibility. responsibilities will be reduced.
The ultimate goal of investors is not to work hard and make money, but to let others work hard and make money for themselves.
It's like opening a coal mine. If you own 80% of the shares, then you are the boss of the coal mine, not an investor. You must personally handle all the affairs of the coal mine. It is impossible to be a hands-off manager.
If you hold 30% of the shares, and there is a major shareholder who holds 70% of the shares personally managing it, then you really don’t have to take care of anything. You can just give the money and go back and wait for dividends.
There are about a hundred people in investment institutions, and they may have invested in thousands of projects. Not to mention letting them manage all of these projects, even letting them manage one would be a headache. Investment institutions themselves are not made for operations.
They are like real estate speculators traveling around the world. They only want to do business of buying and selling. As for the cumbersome process of buying land, building houses and selling, they simply do not want to participate, and they are unable to participate.
Therefore, Fang Ping was a little undecided. Is investing in Lu Yunhao the right thing
However, it was early in the morning in the United States and the big guys on Wall Street had not gotten up, so Fang Ping could not report to Wall Street immediately, so he chatted with Lu Yunhao all afternoon.
In the evening, Fang Ping personally hosted Lu Yunhao for dinner.
At the dinner table, Lu Yunhao kept asking Fang Ping about his investment intention, but Fang Ping did not give him a clear answer. He just said that he needed to communicate with the US headquarters about the relevant matters first, and then inform him of the decision.
As for how long it will take to determine, Fang Ping cannot give a clear answer.
In the normal process, investment needs to first bring the investment project to the investment management meeting within the investment company for a meeting. After the meeting, if the investment intention is confirmed, then the specific terms will be discussed with the investee and back-up procedures will be carried out. In all processes Payment will be made after the departure.
Therefore, it will take more than a week at the earliest.
If it's slow, it may not be possible to get it done in three or two months.
Lu Yunho has always been riding a tiger.
He didn't know whether he should return to Yanjing first and continue working, or wait for news from IDG in the Shanghai stock market.
If he went back without getting a clear result, he felt somewhat unwilling to do so. After all, he had long been prepared for the carp to jump over the dragon's gate. Now he didn't know whether he could jump over the dragon's gate, but he allowed himself to return to that fish pond again. Here, I am naturally unwilling to do so.
However, if you continue to wait here, it will be difficult to get a clear reply for a while. If the time is longer, I will be even more anxious if I have nothing to do here.
At this time, Fang Ping gave him a suggestion. Tomorrow happened to be Friday. Even if Lu Yunhao went back, he would probably miss a day of work. So instead of doing this, it would be better to stay in Shanghai for a few days and go back on Sunday.
After Lu Yunhao thought about it, he agreed. There was really no point in going back tomorrow, so he might as well wait until Sunday.
After dinner, Fang Ping asked Lu Yunhao to arrange for Lu Yunhao to go back to the hotel to rest first, while he himself returned to the office to prepare for a video conference with senior officials in the United States to report on the situation and progress here.
It just so happened that it was already morning in the United States. For capitalists, it was the golden time for the day's work to begin.
During the video conference, Fang Ping told all the big guys on the line about his conversation with Lu Yunhao today.
After learning about Roh Yunho's attitude and thoughts, many Wall Street bosses couldn't help but shake their heads. Some people said: "This Roh Yunho doesn't seem to understand the operation of the company at all. Everything is just based on imagination. If you give him 20 million US dollars, he may not really be able to do it." Something happened."
"Yes." Someone echoed: "How can any founder give capital 80% of the shares in the angel round as soon as he comes up? With this kind of approach, he will be out after two rounds of financing! Who would take the initiative to ask for such investment conditions? ?”
"In my opinion, this guy is just kidding! It's just a fool's errand to expect such a person who doesn't understand capital at all to go against Li Mu!"
A bunch of Wall Street tycoons' words and words have damaged Lu Yunho to no avail.
But at this moment, Kurt, the CEO of IDG Capital, suddenly spoke and said: "Everyone, we all think that Lu Yunhao is a layman in the capital circle, but have you ever thought about it, Li Mu is actually a layman too."
This sentence caused everyone present to fall into silence.
CEO Kurt continued: "If Li Mu was really a person proficient in capital, he would have become involved with us a long time ago. He can help us make money, and we can help him maximize his market value and help him cash out to the greatest extent, waiting for him to get it. Once he has collected enough cash, he should transform himself into a capitalist on Wall Street, not just an entrepreneur in the Internet field. In this way, he can not only continue to dominate the actual business, but also continue to hoard capital in the capital circle. He eventually developed into a top capitalist, but what did he do in the end? He actually regarded us as enemies and wanted to stand against us. Isn't such a person a layman in the capital circle? "
After hearing this, everyone nodded.
Indeed, Li Mu is not a capitalist at all, but even so, he still made Makino Technology and Taobao Technology what they are now.
This proves that a person who works seriously does not have to be proficient in capital operations to get things done.
Kurt continued: "I think that although Lu Yunhao doesn't understand capital, he can at least see the situation clearly and has a certain degree of influence. Since we can't find a more suitable person for a while, we might as well let him He gave it a try. The top priority now is to take action as soon as possible before Li Mu spreads Ele.me across the entire China. Otherwise, if this good opportunity is missed, whoever is asked to do it will probably be in trouble. It can’t possibly succeed!”
A word awakens the dreamer.
Only then did everyone realize that the key now is not to find Lu Yunhao's shortcomings, but to let Lu Yunhao start the business as soon as possible and occupy a hole in the place that Li Mu has not yet touched.
Giving Lu Yunhao 20 million US dollars is not a problem for these Wall Street tycoons. The reason why they are entangled is because their thinking mode has always been loyal to interests. They are worried that throwing 20 million US dollars into it will end up just accompanying the lunatic to remove dirt.
However, it now seems that the most suitable candidate right now is Lu Yunhao. The time is tight and they can no longer think about it any more.
As a result, everyone hurriedly adjusted their thinking and began to formally make subsequent investment plans based on Lu Yunho's situation.
Everyone quickly made a decision to first invest 20 million US dollars in angel investment for Lu Yunhao, accounting for 80% of the shares, so that Lu Yunhao could start the first phase of work as soon as possible.
If Lu Yunho does well in the first stage, everyone will continue to invest in Lu Yunho’s A round in the second stage. At the same time, as a reward, 20% of Lu Yunho’s shares will not be diluted. If Lu Yunho’s performance can still satisfy shareholders, then his shares can be retained until Series B financing.
The reason for taking the initiative to give Lu Yunhao benefits is to ensure that this guy has enough shares in his hands. Otherwise, after a few rounds, if this guy only has single digits left in his hands, he is likely to give up at any time.
The specific investment of 20 million US dollars will be led by IDG to invest 50%, and the remaining 50% will be invested by five other Wall Street investment institutions at a ratio of 10% each, and the following rounds of A, B and C , these six investment institutions will continue to invest in accordance with the ratio of 5:1:1:1:1:1.
There are two ultimate ideal outcomes envisioned by these Wall Street bosses:
The first one is to invest no more than 300 million U.S. dollars in total, and then sell it for no less than 3 billion U.S. dollars. As for whether it is sold to Makino Technology or other companies, it doesn’t matter, the one with the highest price will get it;
The second is to make a cumulative investment of no more than 500 million U.S. dollars, then list on the U.S. stock market with a market value of no less than 5 billion U.S. dollars, raise a billion-dollar investment from the U.S. secondary market, and continue to fight with Li Mu.
(End of chapter)