After Zhang Yida and Sun Yutong reached an agreement on joining Pinduoduo, the next topic focused on angel investment.
Valuation! Financing share! These all require a lot of knowledge.
"Well, Yida, just tell me a price! I'm very optimistic about Pinduoduo.
I don’t need to take too many shares, just one or two token points will be enough.”
Sun Yutong knew how to advance and retreat, and spoke first before Zhang Yida could speak first.
“I just founded Pinduoduo in February with an investment of 200 million yuan. Now two months have passed, and there can’t be any big improvement in valuation.
It's mainly about creativity. Creativity is priceless. If Pinduoduo can implement the ideas we just described, we can still expect a market value of tens of billions of dollars.
This idea is valued at 1 billion yuan, Mr. Sun, what do you think?"
Zhang Yida is not as open as a lion. After all, Pinduoduo has only been founded for 2 months. No matter how good the entrepreneurial model and ideas are, they have not yet been tested by the market.
"Okay, then based on this valuation, I will invest 20 million."
Sun Yutong thought for a while and agreed. Judging from Zhang Yida's past successful experience, even if Pinduoduo cannot become the third-level e-commerce company, it can still compete with second-tier e-commerce companies like Jumei, with a net worth of 3 to 5 billion
U.S. dollar valuation.
This investment will definitely not lose money, it just depends on how many times it can be multiplied.
Zhang Yida calculated in his mind that with an investment of 20 million and a post-investment valuation of 1.22 billion, the shareholding was too small, less than 2 points.
"Mr. Sun, no, this share is too small. I still need your strong guidance in the future of Duoduo, which is not worthy of your efforts.
You see, if you invest 50 million, Pinduoduo’s post-investment valuation will reach 1.25 billion, and you will hold 4% of the shares.
Even if Pinduoduo dilutes it through several rounds of financing later, you will still have 12% of the shares after the listing.
Now you only hold one or two points of shares, but after the listing, your shareholding ratio may be in the thousandth percentile."
Zhang Yida really wanted to bind Sun Yutong, a great talent, but the shareholding ratio was too small, so he was very worried.
If Huang Xing pulls this general away, wouldn't that cause trouble for himself?
50 million yuan is a lot for ordinary people. For Sun Yutong, the former Taobao president, it is definitely affordable. At the worst, he can still ask his wife Pang Lei.
"4%? It's not too small, it's quite in line with my expectations." Sun Yutong thought to himself, angel investment usually releases 10%-30% of the share.
But that situation is for ordinary entrepreneurs who have nothing but nothing.
Serially successful entrepreneurs like Zhang Yida invested 200 million in capital when they first founded the company.
Pinduoduo can be said to be born with a golden key in his mouth.
For this kind of project, it is absolutely impossible for angel investors to get 10%-30% of the shares.
My psychological expectation is 3%-5%, so getting 4% is pretty good.
If Pinduoduo can be like Goudong in the future, with a market value of 30 to 40 billion U.S. dollars, even if his 4% shares are diluted to only 2% or even 1% after listing, he will still make hundreds of millions of dollars!
"Okay! Since Yida kindly invites me, I will invest 50 million!" Sun Yutong said with a smile, and then joked:
"Yida, you have to do it well, I have put most of my wealth on you."
"Don't worry, Mr. Sun, I will never let down your trust and support."
Zhang Yida finally felt relieved after seeing Sun Yutong agree to invest 50 million in shares.
50 million, for Pinduoduo, there is no shortage of this amount of funds.
But for Sun Yutong, it is still a lot of money. Especially after he resigned from Taobao, it is a mystery whether his original shares have been recovered.
Even if it's not taken back, it's only a few hundred million.
Having invested 50 million, it can be regarded as being deeply bound to Pinduoduo.
This was Zhang Yida's idea, to tie Sun Yutong firmly to Pinduoduo's chariot and let him make plans behind the scenes.
Sun Yutong still has a good way of operating e-commerce. He counterattacked eBay in three or four years. In his previous life, Pinduoduo also counterattacked Goudong in three or four years.
"Yida, do you think we are talking?"
Shen Beipeng looked at Zhang Yida happily and was also thinking about angel investment.
"Heishang is not in a hurry to raise funds, just wait a few more months! After we burn the more than 200 million, we should have some actual results.
After achieving results and operating model, Black Shirt Capital's entry will help Pinduoduo grow rapidly.
I estimate that with the current development speed of mobile Internet, Pinduoduo will be on the market in less than three years."
Zhang Yida will not take angel investment from Black Shirt Capital now. The several hundred million on his account have not been spent yet, so financing at this time is not cost-effective.
"Okay! Then wait a few months. When raising funds, remember to be the first to call us Black Shirts!"
Shen Beipeng felt that it was a pity that the angel investors did not invest in the shares, and he did not know how many times the A round should be doubled.
However, Zhang Yida has a good relationship with Hei Shi, so there will definitely still be opportunities to get on the bus.
"By the way, how is your DouYu company doing? Does it make videos? Do you need financing?
Heishi has raised too much money in the past two years. If we don’t invest some of it, we will feel uncomfortable!”
Shen Beipeng was rarely humorous. He guessed that DouShi, the other two companies registered by Zhang Yida at the beginning of the year, was not ordinary.
He saw that Pinduoduo’s paid-in capital is 200 million, and Douhu’s paid-in capital is the same 200 million.
They were registered together at the same time, which at least proves that in Zhang Yida’s mind, DouShi is not inferior to DuoDuo, and the two are on par.
"TikTok? It's still early. It's still under research and development. I'll inform you of the financing first."
The development of DouYu is not difficult. The main core lies in algorithm recommendation. In addition to poaching algorithm engineers from Qiandu, Zhang Yida also commissioned an international headhunter to help him find Chinese engineers in Silicon Valley.
DouYu now has about a hundred employees, 70% of whom are engineers.
With the coding of more than 70 engineers, the development of DouYu technology is proceeding very quickly. It is said that the first version will be launched internally for testing in the near future.
As for financing, let’s burn through all the 200 million first and then talk about it.
"Okay, then I won't ask you any more. You have to believe that among all the venture capital companies, Blackshirt Capital is definitely the one most willing to flatter you."
Shen Beipeng has known Zhang Yida for almost two years. Seeing the miracles and investment monuments he has brought to him, he has almost become superstitious about his entrepreneurial ability.
Worried that Zhang Yida would put aside his own financing and quickly play some emotional cards.
Zhang Yida nodded. The cooperation between Blackshirt Capital and him has always been very pleasant. There is no reason not to choose them first.
"By the way, do you have any idea about the second phase of the industrial fund?" Zhang Yida asked Shen Beipeng.
"No problem. The company's decision-makers have already agreed. When the people from Temasek come over the day after tomorrow, we will sign the agreement."
The second phase of the Ruixiang Industry Win-Win Fund focuses on investing in overseas markets. Shen Beipeng also knows that the domestic Internet dividend is about to peak, but there are still many opportunities overseas.
The idea put forward by Zhang Yida was exactly what he wanted, so he quickly convinced the company's management and prepared to invest US$200 million as the LP of the Ruixiang Phase II Industrial Fund.
The next day.
Witnessed by lawyers from both parties, Pinduoduo and Sun Yutong signed an angel investment agreement.
Sun Yutong personally invested 50 million yuan, occupying 4% of Pinduoduo's shares and pushing Pinduoduo's valuation to 1.25 billion yuan.
After the share change, Zhang Yida held 86.4% of the shares and Sun Yutong held 4%. After the original 10% option pool was diluted, 9.6% remained.
The shares still adopt the AB share model. All Zhang Yida holds are B shares, and each share has 20 voting rights.
Investors and option pools are all A-shares, with one share and one vote.
After conducting a simple financial audit on Pinduoduo, it was confirmed that there were no problems, and Sun Yutong's angel investment of 50 million yuan was quickly allocated.
After all the procedures were completed, Sun Tongyu shook hands with Zhang Yida cordially and said, "Mr. Zhang, happy cooperation!"
"Happy cooperation!" Zhang Yida shook hands with him with a smile, and then said: "Mr. Sun, this shareholding ceremony is relatively simple. Please forgive me."
"It's okay. Don't worry about the red tape. It's best to be low-key."
Sun Yutong waved his hand and said he didn't care about this. Pinduoduo wanted to enter the e-commerce industry surrounded by giants. The more low-key and inconspicuous, the greater the chance of success.
…
"Yida, your vision is undoubtedly excellent. China's Internet dividend is about to reach its peak. It is the right time to enter Southeast Asia at this time."
Temasek Investment Director Li Hengbo came here today to sign the Ruixiang Phase II Industrial Fund Investment Agreement on behalf of the company. As soon as he entered Ruixiang's office and sat down, he started to praise it.
"Mr. Li is also very optimistic about the Internet market in Southeast Asia?"
Shen Beipeng was sitting not far away from Zhang Yida and Li Hengbo. He glanced at Li Hengbo and asked.
"I think Temasek, as a local investment company, has a strong say in the development of the Internet market in Southeast Asia."
Shen Beipeng nodded and thought to himself, "That's for sure. You are a Singapore-based investment giant that manages hundreds of billions of dollars in assets. Southeast Asia is almost like your backyard."
Li Hengbo continued to speak:
“Chinese Internet companies were previously founded based on similar companies in the United States.
However, with the development of China's Internet industry in the past two decades, Chinese Internet companies have reached the forefront of the world in terms of application.
Southeast Asia has 11 countries with a population of more than 500 million, and the political situation is generally stable, making it relatively suitable for business development.
According to my observation, many students from Southeast Asia who studied in China have returned to the local area and started to start their own businesses by targeting Chinese Internet companies.
Three Indonesian Internet companies such as Gojek, Tokopedia and Traveloka invested by Yida can compete with China's Didi, Taobao and Ctrip respectively.
Of course, it is not completely in line with the benchmark, and there is a certain degree of local adaptation and adjustment.
For example, Didi taxis mainly use cars, while Gojek uses motorcycles. Because the local economy is not developed enough, people generally use motorcycles to travel.
The Internet development in Southeast Asia has skipped the PC era and directly entered the mobile Internet era.
The social field and search field are controlled by Facebook and Google, which entered Southeast Asia earlier.
But there are many opportunities in other subdivisions, such as e-commerce, games, live broadcasts, electronic payments, taxi hailing, local life O2O, etc.
We may not be able to create great companies like Ahri and Penguin, but we can create ten or twenty companies with a market value of billions or tens of billions of dollars.”
After listening to Li Hengbo's speech, Zhang Yida took over the topic and said: "Hengbo spoke very well, analyzing the current entrepreneurial situation and prospects in Southeast Asia.
In the past few months, Leech Financial and Ali invested in an electronic payment company in India, which has already sounded the clarion call for financial overseas expansion.
Therefore, we at Ruixiang cannot lag behind. The purpose of launching the second phase of the fund is to provide capital support for Ruixiang’s financial overseas expansion.
My initial plan is to set up local subsidiaries if they can, and acquire or invest in those that cannot.
Not limited to financial companies, we can invest in any Internet company that can promote Ruixiang's local business development.
So we chose the Indonesian versions of “Didi” and “Taobao”, as well as “Ctrip”.
We have reached an agreement with these three companies and will jointly establish an electronic payment company, with Indonesia as the base, radiating to the entire Southeast Asia."
"Okay, Blackshirt, there's no problem here, let's sign the contract!"
As soon as Shen Beipeng expressed his stance, Ruixiang, Temasek, and Blackshirt Capital signed the Ruixiang Phase II Industrial Fund Investment Agreement.
Ruixiang invested US$100 million, accounting for 20% of the fund shares, as the fund manager.
Temasek and Blackshirt Capital each invested US$200 million, each occupying 40% of the fund share, as LP limited partners.