"I don't think you are an outsider. Let me tell you straight. Our company has been losing money so far. We really need funds to invest in the company, but we also have to bear a lot of risks. Why did you choose to come in at this time?"
Ye Shanshan smiled faintly and replied: "It seems you don't understand the capital market very well."
I scratched the back of my head in embarrassment. To be honest, I really don’t understand. Even why Jianghe invested 100 million in me without any scruples. I still can’t understand his operation.
Ye Shanshan paused and then said to me: "I'll give you a real example, and you should understand."
I changed my sitting position and listened carefully.
"It was also very difficult for our group at the beginning. I heard from my father that it took five consecutive years of losses before it gradually became profitable, including Jangho Group. In fact, I know this company very well. They also lost hundreds of millions before, and there are many that you are familiar with.
Well-known companies have actually not yet made a profit."
After Ye Shanshan paused, she continued: "Although they are all losing money, the shareholders of all their companies are worth over 100 million, including Jiang He. Although his group has lost tens of billions, he still has a net worth of over 10 billion.
Project investors also make a lot of money, do you know why?"
I shook my head and replied with a smile: "If I knew, I wouldn't be played around by capital."
"To put it simply, what investors earn is the equity premium, not the dividends from your company, including the angel investment Jianghe gave you. Do you think he really cares about the dividends?"
I said nothing and continued to listen to her.
"In venture capital, the purpose of venture capital is to raise your valuation, and then you can convert the money into equity premium and price-earning ratio. If you can cash out in the secondary market, that's the best. If you can't wait, just do it.
To put it simply, when exiting the primary market, no investor is there to earn dividends."
The more I listened, the more confused I became, and at the same time I also felt the gap between myself and them.
I have always felt that I can get what I want by working down-to-earth, but those who really make money in this society are actually playing with capital.
Seeing my confused look, Ye Shanshan said to me patiently: "Actually, An Lan knows these things better than me. You don't have to worry. I'll give you another example and you'll understand."
I nodded and continued to listen carefully.
"Suppose there is a project, angel investors invest 5 million in you, and you transfer 10% of the equity, the market value of your company is 50 million. At this time, the investors will not benefit. If there are other investors in the next round
If you invest 50 million, you sell 20% of the equity, and the market value of your company is 250 million. However, at this time, the angel investor's 10% equity premium has reached 25 million, a full five times increase.
."
Speaking of this, Ye Shanshan took a sip of water and continued: "When it comes to round B, you get another 500 million investment, and you sell 20% of the equity. At this time, your company's market value becomes
2.5 billion. The original angel investors paid a premium of 250 million, and it increased fifty times. Whether it is the C round or the D round, it will be analogized in this way."
I listened very carefully, even more seriously than when I took the college entrance examination.
I also admit that I am not a fool. After listening to Ye Shanshan’s two examples, I finally understood that this is a capital game.
Ye Shanshan asked me at this time: "Now you should understand why some companies clearly seem to be losing money, but their shareholders are making a lot of money, right?"
I smiled and said: "I understand, to put it bluntly, it's all the money you make from the next investor, right?"
Ye Shanshan was amused by me and said: "You can understand it this way, of course, provided that your company has the ability to create value."
"Then do you think our company has this capability?"
"At present, it seems that it is possible, especially your logistics base. Once it is operational, I believe someone will take the initiative to contact you."
After a slight pause, Ye Shanshan added: "Also, I would like to remind you that if you want to raise funds, do not use products and profit dividends to attract investors. What they need are valuable projects. And valuable projects need to have four characteristics
Elements: First, the market space must be large; second, the user group coverage must be large; third, the ability to fission and support must be available; fourth, there must be a business model that can be implemented.”
I nodded heavily and replied: "I understand, so the reason why Jianghe gave me angel investment before was actually because of my idea of this logistics base, right?"
"You can also think so. In fact, there are many Internet celebrity companies, large and small, that no longer have the ability to support, and there is no business model that can be implemented. It is precisely because you combine the Internet with traditional e-commerce that people can see it.
market space.”
I now fully understand what is going on. Listening to your words is worth ten years of reading!
I smiled and said, "Ms. Ye, you must have been a very capable investor before, right?"
Ye Shanshan shook her head and smiled: "Actually, I just inherited the family business. It was all worked hard by the older generation. An Lan actually understands this better than me."
I smiled and said, "But she never told me this."
"It's understandable. When I was with Ruirui's father, I didn't talk to him about business matters, and he wasn't interested either."
After saying that, Ye Shanshan stood up and said to me: "Okay, let's stop talking here. When you go back and notify Jiang He, we will discuss the stock purchase in detail. Go to bed early and good night."
Back on the bed in my room, I habitually lit a cigarette before going to bed, and then tried to digest what Ye Shanshan had just said to me.
I feel that what I should do now is not to attract investment, but to do a good job in the things at hand. First of all, I must do a good job in the Internet celebrity business department. Only with stable resources can we develop the logistics base.
Only then will I have the opportunity to build my own brand, and then a complete industry chain will be formed.
Thinking of these, the blood in my heart boils again, and I can even meet the future.
I got up early the next morning. After having breakfast together, Ye Shanshan and I took Ruirui to school.
We changed into parent-child clothes, and we really looked like a family of three.
The events at the sports meeting are all related to personal interaction, including tug-of-war, relay running, three-person and four-legged events, etc.
The sports meeting is also very exciting. The school holds this in-person sports meeting to increase the relationship between children and their parents. It doesn’t matter whether they win or lose, but the children are very competitive.
However, because it is a parent-child interactive activity, there are no prizes. The most important thing is the talent show at the end. I heard that there are prizes.
But we didn't prepare any talents. The parents of other children prepared some, some sang, some danced, and some performed skits.
At this time, a little girl came to Ruirui and asked: "Liu Rui, when are you and your parents going to perform? What show have you prepared?"
Ruirui looked at me awkwardly and then at Ye Shanshan. Ye Shanshan and I also looked at each other.
Ruirui then shook her head at the classmate and said, "We are not preparing for a talent show."
A boy next to him heard this and echoed: "Liu Rui, your parents don't know anything, right? Oh, that's really embarrassing."
I looked at the boy who spoke, but I couldn't resist.
Ruirui also lowered her head in disappointment, but at this moment Ye Shanshan suddenly said: "Who said we don't have a talent show? We are ready."