Cheng Yu smiled, closed the plan, and returned it to Xu Zijun.
"Since Mr. Xu wants me to give a clear opinion, I will tell the truth."
Across the way, the five people suddenly became nervous and stared at Cheng Yu.
"To be honest, based on your plan, I can't see the future of your company."
The five people were stunned. They didn't expect that Cheng Yu's words were simply denying their work.
"There are now more than 20 people in your company. According to your idea, everyone has a share. Of course, the five of you will have more. However, you only have 60% of the shares, barely holding a controlling share. There can't be any surprises in this."
.
The others took a total of 40% of the shares. With such a shareholding structure, how can you let us investors invest with confidence? The shares of the five of you are simply the same. When the time comes, you will each have your own opinion. Once the company makes a decision
How should we resolve differences when there is a disagreement? Should all shareholders be allowed to vote together?
You are a start-up company, and your initial decisions must be focused. Even if they are wrong, you must persist. Therefore, if you want to get investment, my personal suggestion is to adjust the equity structure first."
The five people looked at each other. They didn't realize what problems their current equity situation would cause. They didn't particularly understand what Cheng Yu said.
Guanlu also interrupted at this time: "Before us, your plan should have been shown to other investment companies or investors, right?"
The five people continued to look at each other, and Xu Zijun nodded.
"As expected, those companies or investors have barely given you a chance to meet, right?"
Xu Zijun nodded again, somewhat mechanically.
"The reason is what Mr. Cheng just said. Your equity structure is only suitable for direct acquisition by investors, and is not suitable for accepting venture capital. And your plan directly states that you will not accept acquisitions, only investment. Yes.
So, no one wants to continue talking with you."
Xu Zijun licked his thirsty lips and said, "Then why are you willing..."
Cheng Yu waved his hand and said with a smile: "Because we are about the same age. In the investment industry, there are very few people as young as me and the manager. Generally, people of our age are still doing mergers and acquisitions and reorganizations in their fathers' companies.
I am trying to accumulate experience in similar cases, or I am still looking for my first pot of gold, so how can I have the money to invest in you?"
"What if we insist on not adjusting the equity structure?" Xu Zijun said boldly.
Cheng Yu smiled, shrugged, and said nothing.
Guan Lu, on the other hand, said: "Then we can only regretfully tell you, I'm sorry..."
Xu Zijun was stunned for a moment, and the other four people were also a little impatient. It seemed they didn't expect that they finally got a chance to meet, but were rejected so completely.
Xu Zijun opened his mouth, but no words came out.
It was the boy who was engaged in design just now who spoke up and said, "Actually, you two also want to directly acquire our company, right?"
Cheng Yu laughed loudly, waved his hand and said, "Your name is Liu Dongqiang, right? I can tell you clearly that I don't even have the intention to acquire your company. I don't even have a salary for you, who are over twenty now."
People, I will go to great lengths to build a whole team for you to lead your company to success. The time cost is too high.
We are the most professional in investment, but in business management, we have no interest or energy, and you are not even professional. I will give you some suggestions, are you willing to listen to them?"
The five people looked at each other and gathered together to discuss in a low voice.
After a long time, Liu Dongqiang said: "We will never agree to the acquisition anyway. If Mr. Cheng is just to pave the way for the acquisition, it is not necessary. What we are more curious about is, why does Mr. Cheng think that we don't even have wages?" "Well, the wording I just used is not accurate. To be precise, you can't pay wages."
The five people were stunned, and Liu Dongqiang asked again: "Why would you say that?"
"It's very simple. The reason why your equity is so dispersed is because you promised with equity that all your members can willingly start a business together with the living expenses given by their parents. The word "entrepreneurship" is very beautiful, but business has never been the same.
That’s not how it was created.
When you have no money, you should not think about promising equity in exchange for two or three months of development. Instead, you would rather put the project at hand on hold and go out to negotiate for an investment. Your start starts from
It was wrong from the beginning. I really can’t invest a penny in such a company, and I don’t dare to invest.”
The five of them fell silent. What Cheng Yu said was absolutely correct.
Their company came from the idea of five of them.
Among the five, Xu Zijun and Liu Dongqiang's family conditions were slightly better. Their family gave them tens of thousands of yuan in start-up capital, and they rented an apartment and started working.
Others spent all their savings, mainly scholarships they received during college and money earned from part-time jobs, to join in.
But soon, they discovered that there was a serious shortage of manpower. Even if five people worked overtime every day for sixteen or eighteen hours, it would not help at all.
So, they went back to school, found a group of classmates, and promised shares, thinking that once the product was developed, they would be able to cash it in immediately.
Everyone is a shareholder, so there is no need to pay wages. Otherwise, they may not be able to last even one month.
Even so, they couldn't find any investment in the past three months, and soon they would not even be able to pay the rent. Fortunately, Cheng Yu and Guanlu gave them a chance to meet.
But no one expected that not long after they sat down to talk, the answer they got was still rejection.
Moreover, Cheng Yu actually judged the current situation of their company so accurately.
"Let me assume that now, I invest for you... well, you want three million, and what you can give is 20% of the shares. Your company's valuation has actually reached fifteen million.
Ten thousand......
Okay, let’s not mention this for now. Suppose I give you three million, what are you going to do with it? There are more than 20 shareholders, you must share some money. If you don’t get the investment, you can ask your parents for money.
Once you get it, should you divide it according to your respective shares? How much is appropriate?
First take out half, and each of you turn your shares into cash? After all, do you want to live? Then what? Should a financial department be established? Should there also be several administrative staff? What about the promotion department?
There shouldn’t be much space in the private houses you rent now, right? Rent an office space and simply decorate it. How much of the three million will you have left?
Having already received investment, is there no reason not to pay wages? How to determine the standard of wages? Now Wu Dong hires a clerk, which costs four to five thousand a month, right? You who are engaged in technology and research and development can't
It’s even lower than this. With more than thirty people, 5,800 a month, how many more months can we survive with the remaining money?
Then, the next round of financing? Investors are not cows, and they will not give you money for nothing. I am not saying that even if I give you an angel round today, you can’t even survive the A round, so it should be disbanded.”<
/p>
The five people were completely dumbfounded.
Cheng Yu knocked on the table and said: "There are two ways to go. Either we leave now and you continue to find the next investor. Or you are ready to adjust the equity structure and accept our investment, but now your company has nothing but
The five of you will leave at most two or three key members, and the rest will be disbanded on the spot."