Chapter three hundred and fourteen Zhang Yida has a way of making money
"China's first pet unicorn was discovered by Penguin himself. It adds another glory to the successful investment case of Penguin Industry Win-win Fund.
Isn’t this delicious?”
Ren Yu laughed, "I don't know if it smells good or not! If I were to be stabbed like this by you, I'd be afraid I'd have to take the blame and resign if I go back."
“It’s really not a big deal, Petnet will definitely be a tens of billions of dollars super unicorn in the future.
You've also looked at the business fundamentals. Do you think the business growth curve looks good or not?
To describe it in one sentence, that is: all the way up, straight to the sky!
I dare to conclude that except for Huimin Bicycle and Pinduoduo, none of the unicorn companies established in recent years have grown so fast.
Moreover, we are now also deploying upstream of the industry chain. We will invest heavily in integrating the two sub-sectors of pet food and pet medical care.
In the future, Pate.com... may be renamed Pate Holdings and will cover three subdivisions: pet e-commerce, medical care, and food.
E-commerce business can sell pet food and make pet clinic appointments; pet hospitals can sell pet food and help e-commerce websites with offline advertising.
The three major businesses can form an industrial closed loop and complement each other.
The pet market will grow into a 200 billion-level consumer market in the next few years. Pate Holdings can only capture 5% of the market and generate tens of billions of revenue a year.
This industry has very high profit margins, with revenue in the tens of billions and net profits of two to three billion being normal.
Multiply that by a price-to-earnings ratio of 30 times, and a company with a market value of tens of billions of dollars is born.”
"Okay," Ren Yu waved his hand, "Yida, don't try to criticize me. The pre-money valuation of US$1 billion is indeed a bit high, but I still agree with US$700 million."
“Otherwise, Ruixiang Industrial Fund will lead the investment, and Penguin Industrial Fund will follow.
Let’s invest more, US$200 million, and you can follow suit by investing US$50 million.”
Ren Yu smiled and said: "This has nothing to do with share. Also, Yida, you have done so many related transactions with Ruixiang Industrial Fund.
They are investing in DouShi and acquiring Bilibili. Do the chaebols in Southeast Asia have no objections?"
"No objection!" Zhang Yida spread his hands and said with an innocent face: "They think this is normal! They are all high-quality companies, so what objections can they have?
If they have any objections, we won’t let them play in the next phase of the fund.”
A faint smile flashed across Ren Yu's face. He didn't believe those plutocrats were so easy to talk to. Zhang Yida must be under tremendous pressure.
"Sign a performance commitment! Calculate the current year's GMV at the end of the year. If it does not reach 11 billion, the valuation will be recalculated based on the actual completed GMV."
Zhang Yida smiled and nodded, "That's no problem. Wouldn't it be great if such a good plan had been brought out earlier?"
Ren Yu was also speechless about Zhang Yida's behavior of being obedient despite getting an advantage. He said: "That's you. If anyone else, Penguin would never give such good conditions."
Zhang Yida pursed his lips and smiled, acquiescing.
When entrepreneurs negotiate financing with investors, the founder is usually the weaker party.
Of course, there are exceptions.
In the previous life, DJI held an unprecedented financing auction in 2018 and called a large number of venture capital investors. To be qualified to invest in me, investors must subscribe for a certain proportion of Class D shares, which are like "interest-free bonds", in order to obtain Class B shares.
Stock investment qualifications.
The conditions are quite harsh, but hundreds of venture capital firms have submitted deposit and bidding applications.
The specific results have not been announced, but it is said that at least 1.61 yuan of interest-free bonds were purchased to obtain a 1 yuan investment share of Class B shares.
These interest-free loans can be converted into equity when DJI goes public, or they can wait for repayment by DJI.
Anyway, it was so strong that it severely undermined the prestige of investors.
The unsuccessful venture capitalists clamored to ban DJI in the industry. This behavior insults the entire venture capital circle and lacks the spirit of contract.
But this kind of venting is okay. Who in the finance industry can’t get along with money?
DJI’s strength is also based on its leading advantage in the global drone market.
Petnet obviously does not have this advantage, and it is not a black technology.
Penguin asked Pate.com to recalculate its valuation based on the actual GMV achieved this year if it did not reach 11 billion GMV this year. This is a relatively fair condition.
This fairness is also based on the fact that Zhang Yida is a serially successful entrepreneur.
If I had just started my business in 2013, I'm afraid the gambling agreement would have been harsh.
If it reaches 11 billion GMV, the bet is completed; if it does not reach 11 billion GMV, the valuation will be reduced to US$500 million, and the founder will compensate investors for their shares.
Investors also make decisions based on who they choose, whether it’s a founder who has received venture capital investment for the first time or a serially successful entrepreneur.
The two are different in the minds of investors. The former is a bit risky, and the stricter conditions are to protect their own interests.
The latter is a veteran, not easy to fool, and has become famous. He has no shortage of funds and resources. He is qualified to bargain.
"You want to invest US$100 million?" Zhang Yida was a little surprised.
"What? Isn't it possible?"
Ren Yu looked at Zhang Yida playfully, "How about we invest less, 50 million?"
"100 million is just 100 million. The Penguin family has a big business. If the investment is too small, it will lose face if we talk about it."
Ren Yu nodded, "I think so too."
Zhang Yida doesn't believe these nonsense. I guess Penguin has also noticed Gaoling Capital's activities in the pet market.
Ren Yu believed in Zhang Yida. From Ruixiang to Huimin Travel to Pinduoduo, Zhang Yida never let him down.
He led three investments of Penguin Industry Fund, each of which received very good book returns.
…
"As expected of Zhang Yida, this move is very fast!"
Zhang Sanshi looked at the text message submitted by his assistant. Pate.com was going to launch Series C financing, and they also invited Penguin to help.
"If you reply to Pate.com, just say that we agreed and let them go."
The assistant asked: "Mr. Zhang, don't we follow the investment?"
"If you don't follow the investment, let him go!"
Zhang Sanshi added, "Sooner or later it will all be ours anyway."
The assistant felt a little confused. Hasn't the boss been planning the pet market?
How could a fish as big as Petnet be let go so lightly?
With doubts, the assistant went to reply to Pate.com.
…
"Here it comes! It's here! The first unicorn in China's pet market"
"Breaking news! US$250 million in Series C financing, Pet.com promoted to unicorn"
"The entrepreneurial track ignored by the public turns out to contain a market worth hundreds of billions"
"Penguin Series Adds New Member, Zhang Yida's 10th Unicorn Company"
…
With the completion of Series C financing of US$250 million by Petnet, the post-money valuation has risen to US$1.25 billion.
The outside world cast curious glances! Press releases were quickly released.
No one thought that there would be such a good entrepreneurial opportunity in the pet market. Most people think that to start a business, you have to do the most popular and top-notch Internet finance in the past two years, live broadcast, short video, shared bicycles...
As a result, a unicorn emerged from the pet market.
Prior to this, Petnet had also received three rounds of financing, including Pre-A, A, and B, but the amount was not particularly large.
In terms of the booming venture capital market in the past two years, it is completely inadequate.
But as soon as Pet.com completed a large amount of Series C financing and entered the ranks of unicorns, it immediately stood in the spotlight and was observed with a magnifying glass.
The outside world does not understand the development trajectory of Petnet, but an article on Huxiu.com unveiled the mystery for them.
"From financial tycoon to pet industry tycoon, there is a "way" to make money Zhang Yida".
In April 2014, Lu Fenghai, who had failed many times in entrepreneurship, was recommended by his former angel investor Xu Xiaoming to Zhang Yida, who was running Ruixiang...
Zhang Yida was born in a relatively wealthy family in Chengdu. His parents ran a pig feed factory, and later transformed into a dog food factory, and also created a very Western brand "Dogfude"...
From establishing an animal protection organization to selling dog food live on "Six Horses of Zhaoling", Zhang Yida is so experienced that he hardly looks like a young man.
While Wang Keke in another family was still wearing an Apple watch and drinking Evian mineral water, Zhaoling Liujun was already helping his owner make money every day.
Seeing this, you may know the difference between you and Zhang Yida.
Ruixiang Jinke is valued at US$30 billion, Huimin Travel is US$6 billion, Green is US$1.25 billion, Pinduoduo is US$4.2 billion, and DouShi is US$7 billion.
The market value of Yimin Wangjin is US$6 billion, Ruimin Financial Management is US$1 billion, Yimin Wealth is US$2 billion, and Yimin Loan is US$1.5 billion.
Together with Pate.com, which is valued at US$1.25 billion, Zhang Yida has ushered in his 10th unicorn.
Fintech, shared travel, social e-commerce, short video, P2P, supply chain finance, wealth management, consumption installment, plus pet e-commerce.
Let's take stock. Zhang Yida has been involved in two major fields, Internet and finance, and nine subdivisions.
The combined valuation or market capitalization of the 10 unicorns is US$60.2 billion!
Because these companies are all VIE structures, we don’t know Zhang Yida’s shareholding ratio in the other nine unicorn companies except Yimin Wangjin, which has been listed.
Assuming that Zhang Yida’s shareholding ratio in the other nine unicorns is as high as that of Yimin Wangjin, which holds 47.51% of the shares, then Zhang Yida’s worth will reach US$28.6 billion!
Even if it does not reach 47.51%, only one-third, holding 15.84% of the shares, its worth will reach US$9.5 billion.
His net worth in Forbes' 2015 list was US$2.6 billion, ranking 75th in China.
I think the editor at Forbes should reflect on himself. He was seriously negligent in his work.
Zhang Yida is also a very caring young rich man who focuses on charity.
Every year, 5 million yuan is given to the animal protection organization it established to use as operating funds for sheltering stray cats and dogs.
We can often see caring people wearing vests and carrying "Dogfud" brand dog food with a conspicuous logo on Weibo, TikTok and other social networking and video websites to feed stray cats and dogs.
It has to be said that in addition to being very good at starting a business and accumulating wealth, Zhang Yida is also very keen on promoting public welfare activities.
Zhang Yida also owns two companies, which are not well-known in the industry.
One is Huinong Loan Company, which pays farmers an annual interest rate of 24%. It is said that it lends more than several billion yuan a year.
Another Dogford Network Technology company has the same name as the Dogford brand dog food founded by his father.
Dogford Network Technology has two major business segments. One is online dog food stores opened on e-commerce platforms such as Taobao, and the other is Daya Media, which has recently become popular on the Internet.
Daya Media is an M agency that has signed a series of human and dog anchors including Zhaoling Liujun.
The recently popular dog live broadcast selling dog food on the Internet was created by Daya Media.
I believe many people are wondering whether Huinongdai and Dogfud Network Technology will become Zhang Yida’s eleventh or twelve unicorn companies.
The author, like everyone, is also looking forward to this!