Eric was obviously stunned when he heard Edward's words. He asked in confusion, "Why is this?" Edward pointed to a part of the agreement and said to Eric, "What Mr. Mu Chenhao transferred to you is just The right to vote on policies in the daily management of the company is not all management rights, and he retains the right to transfer shares and the right to sign contracts independently. In this case, you have no right to substitute
Mr. Mu Chenhao made the decision to dilute his shares. "
Edward then continued, "In other words, if you want to use 20% of the equity in exchange for an investment of US$15 million, you must either obtain Mr. Mu Chenhao's signature authorization first, or the three of you transfer a total of 20% of the shares to us."
"Furthermore," Edward paused, took a sip of the coffee on the table, and continued, "Based on what you just explained, it's hard for me to believe that the valuation of Genesis Network will exceed US$75 million before Series B financing. Obtaining enough profit points in the mass consumer market is the most fatal problem. Currently, our valuation of Genesis Network will not exceed US$35 million.
In other words, US$7 million, 20% of the shares, is an appropriate number. "
After listening to Edward's narration, Eric seemed very frustrated, but he continued to fight, "Sir, I think Mr. Mu Chenhao will agree to this financing plan, and although Chuangshi Network does not have a mass market Profit model, but that doesn’t mean there won’t be one in the future!”
Edward smiled and then said, "Eric, Sequoia Capital's investment strategy is very simple. My teacher is an investment wizard. He once said a sentence, that is, 'Bet on the track, not the driver.' My investment strategy is 'people-oriented'!"
Seeing Eric's puzzled look, Edward explained, "The world is now different from 20 years ago. The track is important, but the driver himself cannot be ignored. Through the communication with you just now, although You occupy the first mover position in the current software market, but your operational ideas seem not clear enough if something like this happens.
competitors, I think you will be in a big crisis.
Eric wanted to refute, but Edward waved his hand to stop him. He continued,
"Sorry, this is what I have to point out! And your attitude towards investors also makes me feel unfriendly. So I'm sorry, even if it is an investment of 7 million US dollars, we still have to carefully consider it for a period of time."
Eric opened his mouth, but nothing came out. He only felt bitter in his mouth.
Goldipuck watched with cold eyes and sighed in his heart, but still didn't say anything. He knew that Eric's character was very conceited. If Mu Chenhao's problem was mentioned again at this time, Eric would definitely become angry.
Edward softened his tone and then said, "I can give you three more days to sort out your thoughts. I'm going to New York in three days. So before that, you have to make a complete business plan. and give me a feasible plan.”
Looking at the dejected Eric, Edward shook his head, then walked out of the Genesis Network's base and got into his Mercedes-Benz S600.
After Edward left, Eric suddenly said angrily, "We were all deceived by that guy Mu Chenhao!"
Goldi Park dissuaded, "Eric, Mr. Mu Chenhao's representative, reminded us that there were similar clauses in the agreement, but none of us noticed it."
Eric still said angrily, "If you had been more alert, how could we have been fooled like this!"
Goldi Park and the other founder suddenly changed their expressions and said, "Eric, it is your decision to accept Mu Chenhao's investment. And I also reminded you to discuss the visit of Sequoia Capital with Mu Chenhao. For a moment, you don’t agree with it either.”
Goldi Park felt that he had really had enough. Eric was always like this, blaming others every time something went wrong, but never reflecting on himself, and always liked to put all the blame on others.
Seeing the two partners with angry faces, Eric finally restrained himself a little. The other founder was named Hassan. He was the one who usually talked the least. He was focused on writing programs. Now even Hassan started to treat him. He was dissatisfied, which made Eric feel frustrated and scared.
Eric suddenly thought that he currently only has 20% of the shares in Genesis Network. If Gordi Park and Hassan join forces, they can completely squeeze him out.
So Eric put on a forced smile and apologized, "I'm sorry, I was wrong, I didn't mean it."
Goldi Park then softened his expression, "Eric, Edward said there is a problem with our attitude towards investors. He is probably talking about your exclusion of Mu Chenhao, so we can't delay it any longer. We must Tell Mu Chenhao about Sequoia Capital and discuss it with him."
Eric was very helpless, but had no choice but to say, "Okay, please contact him."
Goldi Park glanced at Eric, turned and left, heading towards his office.
On the other side, Xia Qingkong, who was driving, saw Mu Chenhao in the passenger seat with a half-smiling expression after answering the phone, so he asked curiously, "What's wrong?"
Mu Chenhao smiled and then said, "Nothing. The founders of Sequoia Capital and Genesis Network met and discussed the issue of venture capital."
Xia Qingkong suddenly became energetic, "That's a good thing, how much do they plan to pay?"
Mu Chenhao said calmly, "It doesn't matter how much they offer. From what Goldi Park said, Eric seems to want to leave us alone and talk to Sequoia Capital alone, but he failed."
Xia Qingkong said with some surprise, "How could he do this? Although you gave up part of your voting rights to them, you should have informed them anyway." Mu Chenhao said with a smile, "It's okay, I reserved the right to negotiate alone. And equity lien, he cannot dilute my shares without my consent. I guess Sequoia Capital also discovered this in the morning, so the negotiation ended in vain. The think tank reminded me of these two points at the beginning, so it was a good help.
How important are hands. "
Xia Qingkong still looked indignant, "This Eric is nothing. He was desperate at that time and you helped him, but now he wants to get rid of you."
Mu Chenhao stretched, looked at Xia Qingkong tenderly, and then continued, "It's normal. After all, this round of financing is almost tens of millions of dollars, and the valuation has reached 100 million dollars so quickly. It's tempting." It's too big." Xia Qingkong was shocked. She didn't pay attention to a small pothole in the road and ran over it. The car bumped violently. Then she quickly concentrated on looking at the road, but still said, "The valuation has exceeded 100 million US dollars? Is it such an exaggeration? I heard it’s just a piece of software!”