As Huimin Bicycle has entered the four major first-tier cities, the concept of shared bicycles has become more and more popular.
Capital investors from all walks of life came to the door one after another offering to invest, but Zhang Yida politely declined them all.
Although he declined capital from all sources, Zhang Yida did not want to push them to his competitors. He said that the next round of financing would be launched at the end of December, and investors from all walks of life were welcome to participate again at that time.
Shared bicycles are a new track. If some organizations have not invested in Huimin Bikes, they will definitely settle for second best and invest in other shared bicycles.
Nothing can be done to change this situation. In the future, Huimin Bicycle will have no choice but to compete with competitors backed by venture capital.
As of now, more than a dozen bicycle companies have emerged across the country.
Zhang Yida looked at the information handed over by the business intelligence department, "Xiao Ming Bicycle", "Xiaolan Bicycle", "Baimo Bicycle"...
There are all kinds of monsters and monsters appearing, but motorcycles and motorcycles deserve more attention, while the others are just cannon fodder.
As for the future big winner, Hello Bicycle has not yet appeared, and Leech Financial has not yet given him a buff.
The time window is very short. It is expected that large-scale shared bicycle brands will be launched in November and December. However, Huimin Bicycle also has advantages at present. It is the largest in scale and is the leading player in the market.
After looking through the operating data, as of October 25th, Huimin Bicycle currently operates a total of 120,000 bicycles in four cities: Beijing, Shanghai, Yangcheng, and Pengcheng, with more than 1 million registered users and more than 500,000 daily active users.
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Market saturation is far from enough. A later survey report stated that Beijing needs 430,000 bicycles, which is equivalent to one shared bicycle for 50 people in the city.
At present, Huimin Bicycle has only 30,000 bicycles in Beijing, which is only a fraction. Not even a single bicycle has been put into use in second- and third-tier cities.
There is no point in being impatient, it takes time to develop. Zhang Yida leaned on the sofa and took a long breath.
I have been under too much pressure at work during this period. I gave 5 speeches at Pate.com and inspected shared bicycle operation centers in various places. I was mentally exhausted.
However, all the efforts are worth it. Pate.com’s transaction volume this month has exceeded 80 million. Next, it is time to consider Series A financing.
Huimin Bicycle's various operation sub-centers are also under construction in an orderly manner, and everything is developing in a good direction.
…
Fu Weiwei is also very exhausted mentally. The development of smart car locks is not easy. Now the team has been overcoming this problem.
Someone suggested:
"How about we find a smart hardware equipment manufacturer and buy a set?"
Fu Weiwei was also very tempted, but it would cost at least several million to buy a solution. The total funds of Baimo Bicycle were only 10 million, and they were all spent here, so there would be no money to build a car...
In desperation, Fu Weiwei could only call Li Bing for help.
"In this way, I will invest another 10 million in you. It can be regarded as Pre-A round of financing! We can walk on two legs and continue to develop equipment locks. We will also develop external purchase hardware solutions.
We can’t put it off any longer, or we’ll run out of time.”
Li Bing said on the phone that although he was busy setting up Weilan Auto, he had also been paying attention to the shared bicycle industry.
At present, many shared bicycle companies have been established on the market, and they all want to enter this industry. Under such circumstances, Baimo Bicycle must speed up its progress, and there will be no hope of delaying it any longer.
"How much do the shares need to be diluted?" Fu Weiwei was very happy when she heard that Li Bing was willing to invest another 10 million, and she was also very concerned about the shareholding ratio.
"Let me think about it..." Li Bing began to think. It turned out that Fu Weiwei held 60% of the shares in Mobike and he held 40%.
This share ratio may seem unfair, but it actually has a profound meaning.
From a rational perspective, Fu Weiwei and her team are the actual controllers of the company, while Li Bing is the angel investor.
If the angel investors hold a higher proportion of shares than the founding team, then the project will be scrapped. It is possible that subsequent venture capital will abandon investment due to issues with the actual controller.
"Let's do this! Include me in the founding team. I will invest another 10 million and increase the shareholding to 49%. You will take 51% and the controlling stake will remain unchanged.
If it develops well in the later period, your founding team will buy back 20% of my shares."
Li Bing quickly figured out a way to include himself in the founding team and not to regard him as an angel investor. Later, he would sell part of the shares to recover the investment funds, and the income would be guaranteed during droughts and floods, and it would not affect Baimo Bicycle's refinancing.
"Okay! It's no problem. It's just that you contributed 20 million to only hold 49% of the shares. I feel a little sorry.
Why don't you take the controlling stake? It'll be fine if I take less shares."
Fu Weiwei is a media reporter, and her eloquence is very good, and she always gives in on the phone.
Li Bing interrupted:
"Don't let it go, let it go. It's arranged like this, you will be the controlling shareholder. You will still be at the helm of BIMBO in the future, so you must be the controlling shareholder.
I put all my energy into Weilan Auto, and I don’t have any more energy to manage Baimo Bicycle.”
Fu Weiwei saw that Li Bing's tone on the phone was very firm and did not seem to be hypocritical, so she agreed.
With the 10 million allocated by Li Bingxin, Baimo Bicycle found an old smart hardware manufacturer to carry out joint research and development on smart locks for shared bicycles.
With the help of new external forces, the research and development progress of Baimo Bicycle has suddenly improved. It is expected that the prototype of the bicycle will be ready in the short term and delivered to the foundry for mass production.
Bicycle companies such as Xiaoming and Xiaolan are much more rude. Smart car locks are too advanced. Just make mechanical locks and Bluetooth locks.
Mechanical locks are the type of FOF in the previous life. Users can unlock the lock by scanning the QR code, obtaining the password through the mobile phone software, and manually turning the dial.
There is no technical point. It is a traditional combination lock, and it is a dial type. After use, people need to manually disrupt the combination dial, otherwise it can be considered that it is always open.
The Bluetooth lock connects to the user's mobile phone via Bluetooth, and uses the user's mobile phone's network and GPS to achieve data transmission and positioning.
The unlocking rate of ordinary Bluetooth locks is not very high. But it is a very cheap solution. The most important thing about Bluetooth is power consumption and compatibility. For shared cars, compatibility is actually the most important.
Shared bicycles need to be compatible with thousands of mobile phones, and poor compatibility is a big problem.
But for several shared bicycle companies that want to go public immediately, they can't worry about so much. The truth is to seize the market first.
If there is a market, financing will come in, and the shortcomings in research and development will be filled slowly.
…
Huayi Capital finally raised US$100 million in the second phase of fundraising. Lei Dongming was so happy that he hurriedly called Zhang Yida to discuss the industrial fund.
“Ruixiang invested US$100 million, Yimin invested US$50 million, Huayi Capital invested US$100 million, and Blackshirt Capital and Zhenke Fund jointly invested another US$50 million.
An industrial M&A fund with a total amount of US$300 million has been formed!”
Lei Dongming twirled his fingers and began to count for Zhang Yida.
"Yes, yes. This fund mainly focuses on upstream and downstream investments in Ruixiang and Yimin!"
Zhang Yida looked at Lei Dongming with a smile and said.
"It doesn't matter! As long as you can make money, you can invest in whoever you invest in!"
Lei Dongming is very open-minded, and it would be a good move to cooperate with Ruixiang and Yimin in investing.
Zhang Yida is very good at running a business, and he is also keen on investment. You are right to hug him.
After the funds from both parties were in place, Zhang Yida called again to invite Shen Beipeng and Xu Xiaoming out for tea.
In a high-end club, Zhang Yida and Lei Dongming met the two of them.
After Shen Beipeng took a sip of tea, he stared at Zhang Yida and said, "Ruixiang is interested in launching an industrial fund?"
Zhang Yida nodded and said: "The moment has come when we must launch it. My positioning of Ruixiang in the future is a platform and an ecology.
The B-side is a treasure that we need to discover slowly.
Take Mung Bean Credit as an example. I position it as commercial credit, not just financial credit.
With the introduction of the concept of shared bicycles, the sharing economy will usher in an explosion in the future.
Shared cars, shared electric cars, shared power banks, etc. will all appear.
But this sharing economy has a pain point, which is that renting requires a deposit.
The emergence of Mung Bean Credit is to eliminate this distrust and eliminate deposits.
Therefore, a steady stream of companies are needed to cooperate with Mung Bean Credit.
And Ruixiang will also attract such a group of small partners around it by investing in new economy companies."
Shen Beipeng took a deep look at Zhang Yida. He was young and ambitious!
But this is a good thing for Blackshirt Capital. The brighter the future prospects of Ruixiang, the more successful Blackshirt's investment will be and the higher the return will be.
"Okay, 50 million US dollars, right! Blackshirt Capital can all be paid out." Shen Beipeng waved his hand, ready to agree to Zhang Yida's request.
"This can't work! Old Shen, please leave some share for me!" Xu Xiaoming was not happy. I distributed the share before I said anything.
Shen Beipeng looked at Xu Xiaoming with a smile and said:
"Then I'll give you 10 million shares!"
Xu Xiaoming wanted to order more, but considering that the scale of Zhenke Fund was still too small, it would not be able to absorb even more shares. He had no choice but to nod his head in approval.
The four parties drafted a contract and initiated the establishment of the Ruixiang Industry Win-Win Fund.
The total size of the fund is US$300 million, with Ruixiang investing 100 million, taking the dominant position, and the naming rights were also given to Ruixiang.
The fund period is 5+2 years, with a 5-year lock-in period and a 2-year exit period. The maximum time to consider liquidating the investment project is 2021.
Several investment directions have been initially selected, focusing on high technology and consumer services, supplemented by education, medical care, and industrial technology.
The investment intention has been reached, but there is still a lot of preparation work to be done next.
The first is team building. Several LPs have to send some professional investment talents to the Ruixiang Industry Win-Win Fund. Although Ruixiang occupies a dominant position, several other institutions also have the right to supervise the fund. It is a multi-party co-management model.
Zhang Yida has no objection to this. There is a shortage of talents and the more the better.
In addition, when the fund is established, it is necessary to hold a high-quality founding meeting. To build a reputation, it will get twice the result with half the effort for subsequent investments.
Zhang Yida had no reason to object to this. In this way, all parties basically reached a consensus on the establishment of the fund.