Mark Zuckerberg is the soul and leader of the entire project, as well as the original initiator and patent holder.
In the Facebook website project, Mark Zuckerberg holds 65%, Saverin holds 25%, Dustin Moskowitz holds 5%, and the remaining 5% is owned by Chris Hughes and Adam.
DeAngelo and the two split equally,
Therefore, Mark Zuckerberg's opinion matters.
He disagreed, everything was a fantasy.
Among the more than 160 network high-tech enterprise projects invested by Red Hat Venture Capital Fund, there are mainly two types of investments: A and B.
Among them, Class B investments account for the vast majority.
Angel round investments range from 10% to 30%, and those exceeding 30% are rare.
Most project founder teams are short-sighted and unwilling to transfer too much of their equity for fear of being taken away from their voice in the company. Angel round financing is only willing to transfer a small part of the equity. This type of investment is generally classified as Class B investment.
For Class B investments;
Red Hat Venture Capital basically invests money and is done with it, with very little follow-up. It relies more on its own strong influence to introduce and drive other investment funds into the project to share risks.
In other words, there will be no strong support and everything will depend on the efforts of the founder team themselves.
The highest priority is Class A investment;
The most striking difference is that Red Hat Venture Capital Fund’s investments account for more than 50%, sometimes even as high as 80% to 90%. Only about 1/5 of the projects enter Class A investment according to priority, and there are only 23 companies in total.
But these 23 companies are all high-tech companies strongly supported by Red Hat Venture Capital. Resources, channels, and funds are openly supplied, just like treating their own sons. Now they are all achieving great results.
Yahoo, Amazon, Google, Tuku, YouTube, graphics websites, etc. are all among them, and they are the most successful cases in Class A investments.
Other companies are almost the best among similar websites in their respective niches, with success rates as high as 70%.
The last type is C-type investment. Red Hat Venture Capital’s angel round ratio is less than 10%, and most of them are between 3% and 8%. They are projects that cast a wide net and are not very sure. Every one is caught.
The investment amount for this kind of project is strictly limited to less than US$500,000 per transaction in order to control investment risks. US$50,000 or US$58,000 is very common.
In Silicon Valley, hundreds of similar companies have invested in them, but they are basically ignored and allowed to fend for themselves in the brutal competition.
basically
Among the hundreds of companies in Category C investments, very few will survive in the end, and there will never be more than 30 companies.
afternoon
The Facebook website project was one of the last projects to be discussed. When the business secretary brought the Zuckerberg founder team into the small conference room, everyone was nervous.
"Please come in, the review committee is waiting for your wonderful presentations, and I wish you good luck!"
"Thank you, sir."
Five future business elites in their 20s walked uneasily into the small conference hall on thick pure wool carpets.
The layout in the small conference hall is like a salon. Members of the review committee sit or stand, chatting leisurely and exchanging their review opinions on the previous projects.
The judges were presided over by the famous Silicon Valley venture capitalists Tian Yuan and Wilkinson. When they saw Zuckerberg and his group of five people walking in awkwardly, they smiled and took the initiative to say hello.
"Hey, relax buddy, we're just chatting, would you like a glass of French wine?"
"Well...if I may, sir, I do feel nervous."
"Hahaha, when we were 20 years old, we didn't have the courage you have now. You are Mr. Zuckerberg, and I am Tian Yuan, the fund manager. Nice to meet you."
Tian Yuan took the initiative to reach out his hand, and Zuckerberg stretched out his hands to hold it with excitement and said;
"I have long heard about your legend of dominating Silicon Valley. You are a Chinese-American investment financier praised by Wall Street as the most valuable discovery vision. You are also known as the 'King of Venture Capital'. It is my honor to receive your teachings."
pleasure."
"These are all rumors and cannot be believed. I am more optimistic about sincere cooperation between us."
Tian Yuan is fair and fair and wears a pair of gold-rimmed glasses. He looks like a gentle middle-aged man, as approachable as a professor in a university.
He is the chairman of the video YouTube website, the executive director and senior vice president of Global Communications, and the manager of Red Hat Venture Capital Fund. He has a long list of dizzying titles.
At the same time, he is also a reputable investor in Silicon Valley, and his reputation is at its peak.
Sequoia Fund once offered extremely high conditions to poach people;
Became a senior partner of Sequoia Fund, with an annual salary of tens of millions of dollars and high dividends, but was decisively rejected by Tianyuan.
Tianyuan holds 23% of the equity of the listed company's video and oil pipeline website, senior management options of Global Communications, worth more than 400 million US dollars, and also holds senior management options of Global Communications, worth hundreds of millions of dollars.
Coupled with his investments in other high-tech network companies over the years, his net worth exceeds US$1.6 billion, and he has already achieved financial freedom.
An annual salary of tens of millions of dollars plus dividends is not enough to make Tianyuan take notice. As for the title of senior partner of Sequoia Fund, it is even more of a joke, far less resounding than the golden name of Global Communications, one of the world's top companies.
Only in the Wang Consortium can Tianyuan feel the warmth of compatriots helping each other, and can find its own true position without getting lost.
To have come this far;
Tianyuan knew in his heart that he was adhering to Chairman Wang Yaocheng's Internet ecological investment philosophy and unswervingly implemented the investment strategy to prevent risks. It was not because of his extraordinary talents or extraordinary investment vision.
According to the chairman’s words;
It's called not drifting, not making moves, not wavering. Keep a clear eye on the path under your feet and move forward, so as not to fall down.
In the small conference hall
The waiters at the Peninsula Store carried silver trays filled with wine glasses and served fine wines to everyone present. This salon-style review meeting made Mark Zuckerberg and others calm down quickly, but their eyes kept turning.
Looking around.
"What are you looking for, Audrey Hepburn in Roman Holiday?"
"Uh...sorry."
Seeing their somewhat embarrassed expressions, Wilkinson couldn't help but laugh and said;
"I know that you are looking for the boss, but you may be disappointed. A big shot like the boss has so many things to do every day, and it is impossible to sit down and chat with everyone all day long.
Let me reveal a little, according to the schedule;
The boss will come over to meet everyone near the end and have a chat.
Are you particularly excited?
Then let's not waste time and finish talking about what needs to be done quickly. Maybe the boss will come early, and we always have to leave plenty of room for it, right?"
Mark Zuckerberg blushed, feeling a little guilty for his immaturity, and said proactively;
"Well... you are very right. I suggest you start now. Please let me introduce the Facebook website project. Our entrepreneurial team is very confident that we will develop it into one of the most interesting social networking sites in the United States.
There are also some genius ideas about marketing and fun, which I think are great.
…”
an hour later
In the presidential suite on the top floor of Peninsula Hotel
Wang Yaocheng's mobile phone received a message from the business secretary downstairs at any time, showing;
The overall valuation of the Facebook website project that was interviewed by the tenth company was US$4 million. The Angel Round founder team was willing to give up 58% of the equity. The two parties had already reached an agreement on this. After the lawyers of both parties reviewed it, the contract was signed and finalized.
This means;
Red Hat Venture Capital Fund invested US$2.32 million and obtained 58% of the equity.
Mark Zuckerberg, the original largest shareholder, held 65%, which was reduced to 27.3% after dilution.
Saverin, the original second largest shareholder, held 25%, which was reduced to 10.5% after dilution.
Dustin Moskowitz, the third largest shareholder, originally held 5%, which was reduced to 2.1% after dilution.
The original fourth-largest shareholders, Chris Hughes and Adam DeAngelo, each held 2.5%, which was reduced to 1.05% after dilution.
After the equity reset, Red Hat Venture Capital Fund became the controlling shareholder and promised to use its rich experience, consortium channels and deep network high-tech capabilities to fully support it.
In this regard, Red Hat Venture Capital has unparalleled experience. Backed by the consortium's huge affiliated enterprise strength, it can easily lift the Facebook website out of the water and gain an advantage in the competition among websites in the social field.
Under negotiation;
Mark Zuckerberg, the main shareholder of Facebook, has applied for an anti-dilution clause, which means that he has the right to choose to use anti-dilution clauses in any round of financing during Facebook's future A, B, and C rounds of financing.
Of course, you only have one chance.
Looking at the information on his phone, Wang Yaocheng grinned happily. He was very satisfied with the result.
Very good!
Finally got this big wallet, everything is OK.
The stronger the consortium is, the smoother the business will be. Many investment opportunities will come to the investor's door for selection, including many good projects with promising prospects.
What the founder team wanted was nothing more than the mentality of hugging one’s thighs and leaning against a big tree to enjoy the shade.
Just like investor Peter Thiel approached Mark Zuckerberg and offered to pay US$500,000 for 10% of the Facebook website. The overall project estimate reached US$5 million, but he was still rejected.
This is not just about having more money. The founder team values the great benefits it can bring to the project in the future.
Undoubtedly, investor Peter Thiel cannot give these things.
But Red Hat Ventures can,
Once the outside world learns that the Facebook website has received Red Hat's Class A investment, the value of the Facebook website project will soar like a rocket. Immediately, countless investors will flock in, crying and giving their money to Mark Zuckerberg.
Keberg, this is the power of Red Hat Ventures in the industry.
Not to mention the valuation of US$4 million, there will be people rushing for US$40 million.
As for Wang Yaocheng, the big boss behind the scenes, no one would think that he would personally be optimistic about a certain project. It is all done by his subordinates.
Since he invested in Alibaba and Google in 1999, the boss king has not made a move for five years. It is difficult to arouse his interest without a billion-dollar merger and acquisition project, not to mention that it is difficult to discern venture capital projects.
Wang Yaocheng walked around twice excitedly in the presidential suite. Ivanka, who was wearing thin pajamas, came out and looked at him in surprise and asked, "Dear, what's wrong with you? Is there anything particularly happy about you?"
Seeing the long-legged beauty Ivanka's charming figure, looming in her pajamas, Wang Yaocheng felt a fire of desire in his heart, and walked over aggressively.
"Uh...ah..." Ivanka exclaimed.
Wang Yaocheng unexpectedly picked up this childlike beauty with plump breasts and strode into the bedroom...