Chapter 37 Yimin Fortune raised $25 million in Series A financing
Blackshirt Capital led the investment with US$20 million, and Zhenke Fund followed with an investment of US$5 million, for a total of US$25 million in Series A investment in Yimin Investment (Yimin Wealth). The financing conference was successfully held.
The press conference was held in a luxurious five-star hotel in Wudaokou, which cost a lot of money. In addition to dozens of financial media, the attendees also invited hundreds of local users in Beijing who had registered to invest in the Yimin Wealth APP.
Of course, the most eye-catching people at the meeting were Fan Hongyang and Ding Siyao, who were all dressed up.
Especially Ding Siyao, the "22-year-old beautiful CEO" is still very gimmick, attracting all kinds of media to pursue interviews.
As the COO, Fan Hongyang, an old man, also served as Ali's mid-level operations director, and his popularity is far less than that of Ding Siyao.
Zhang Yida was sitting in the first row of the audience. His role today was that of an angel investor.
Together with Ding, Fan and Black Shirt Capital, Zhenke Fund’s four parties discussed the unified external caliber: “He, Zhang Yida, invested 6 million in Yimin Wealth in an angel round more than a month ago.”
Black Shirt had a little objection, but they thought they had signed the bet, and no matter what the consequences were, they would be invincible, so they didn't go into details further.
As for Ding Siyao's title of "Mutual Gold Beauty CEO", it was the result of their many discussions.
Because it was inconvenient for Zhang Yida to show up, he decided to arrange for Ding Siyao or Fan Hongyang to serve as CEO.
Ding Siyao is a 22-year-old recent college graduate majoring in finance and a beauty. As a CEO, she is naturally topical.
We should take advantage of this press conference to stir up buzz and increase the visibility of Yimin Wealth.
Now is the era of personal marketing. Chen Ou started this trend, and Jumei has also achieved good exposure and publicity.
"Hello, Mr. Ding, what prompted you to start a business right after graduating from university? And you chose the field of Internet finance?"
Entering the reporter's Q&A session, a reporter raised the microphone in his hand and asked.
Ding Siyao smiled sweetly and replied cheerfully:
“I joined a credit company as a credit salesperson right after graduating from college, and within four months I became the company’s top salesperson.
While working in a credit company, I learned about the current situation of the domestic credit industry and believed that it was a golden industry full of opportunities.
People have strong demand for credit, and the next few years will be a period of rapid development of consumer finance.
And I happened to have graduated from a university of finance and economics, and my major was in the same field, so I plunged into the field of Internet finance without hesitation and became one of the thousands of entrepreneurs."
Another reporter asked:
"Mr. Ding, you mentioned before that you have just graduated half a year ago, and your salary income will not be too much. So where did the first pot of gold for your business come from? Is it supported by your family?"
The question was a little more pointed, and it also brought out the opinions of many people present. Everyone thought this was another daughter of a wealthy family.
Ding Siyao flipped up her hair, glanced at Zhang Yida who was sitting in the audience, bit her lower lip lightly, and replied after thinking for two seconds:
"Yes, I have only been working for half a year, so naturally I have no savings to support my business.
Later, we met our angel investor, Mr. Zhang Yida, Chairman of Ruixiang Financial Technology Group. He invested 6 million yuan in angel investment for us, which enabled our entrepreneurial idea to be implemented.
Here, I would like to thank Mr. Zhang again for his trust and support!
What about family support? That’s almost impossible.
My family comes from a rural area in Sichuan Province, and I have a younger brother who is in junior high school. My parents also have a heavy family burden, and I will not increase their financial burden just because I want to start a business!"
…
Next it was Fan Hongyang’s turn to answer questions.
The reporter asked: "Excuse me, Mr. Fan, P2P fraud incidents are frequently occurring now. How does Yimin Wealth view such incidents? And how to improve the security of user funds?"
Fan Hongyang said maturely and solemnly:
"Here, I first want to give an explanation and appeal.
P2P investment is risky, and user investment platforms must do a good job in risk control.
At the same time, we call on everyone not to be greedy for high interest rates, but to choose a large platform that has obtained venture capital investment.
This is because venture capital institutions will conduct due diligence before investing and confirm that there are no problems with the company before they formally invest.
It is equivalent to a venture capital institution checking users in advance, and companies that can obtain venture capital can withstand investigation.
In addition, we will implement many measures to improve the security of user funds.
First of all, we will sign an agreement with the insurance company to insure each user's capital security insurance. If the funds are misappropriated, they can be compensated. This will protect the safety of users' funds.
In addition, Yimin Wealth will also strictly follow the principle of funds entering and exiting with the same card to avoid the risk of users accidentally revealing their account passwords.
The money that users recharge into the platform can only be withdrawn back to the bank card they recharged.
Finally, Yimin Wealth will disclose operational information data in real time on the official website.
That is, the number of registered users, the number of investment users, the number of user investments, total user transaction volume, loan balances and other operating information will be disclosed in real time for the majority of users to review and supervise."
Many investors present in the audience were very interested. Yimin Wealth also launched fund security insurance and disclosed operating information, which was the first in the industry.
Many P2P operations are now opaque, and transaction data will not be made public.
Yimin Wealth still dares to make it public like this, which shows that the company's operations are still very transparent and candid. You can try to increase your investment in the future. Many users think so.
Next, the reporter asked some more questions, and Fan Hongyang also answered them one by one.
Finally, with thunderous applause from the audience, the press conference came to a successful conclusion.
Zhang Yida walked out of the venue and was surrounded by several reporters.
A reporter enthusiastically interviewed:
"Director Zhang, have you become an angel investor now? Will you invest in more projects in the future? Are you only investing in Internet financial projects?"
Zhang Yida thought for a while. Since reporters asked this question, it would be good to advertise. So he replied:
"Yes, I am now an angel investor. Mainly influenced by teacher Xu Xiaoming. I hope to help more entrepreneurs realize their dreams.
In the future, I will increase investment and invest in more projects. Entrepreneurs with financing needs are also welcome to contact me.
At present, we are mainly investing in the financial industry, and we will expand to other industries in the future!”
Several other reporters also asked questions such as "When will Ruixiang Technology's Series B financing be raised?" "When will Ruixiang Technology's user base exceed 50 million?" Zhang Yida also responded to them one by one.
Zhang Yida is still very patient with media reporters. He can't afford to offend these people! Especially those who are engaged in finance, they are most afraid of blackmail!
When will I send you an article like "Ruixiang is about to run away, Yimin Wealth has suffered huge losses and is about to close down". Users are rushing to withdraw funds, which would be fatal if it causes a run on you. Many P2Ps will suffer in the future.
Too painful.
The US$25 million in financing arrived quickly, on the second day of the press conference, which was converted into RMB 152.5 million.
With this money, we first filled the hole of more than 4 million that the company had misappropriated for promotion.
Then we began to expand personnel, poach risk control talents from major banks, build Yimin Wealth’s own risk control team, and develop a credit risk control system.
In addition, we are also working hard on the capital side to prepare to further expand the user scale and transaction scale. The set goal is to increase the transaction volume by 100 million every month based on the previous month.
According to Zhang Yida's previous calculations, in fact, it is enough to increase the amount by 50 million every month, but the goal must be set higher! How can you tap the potential without forcing yourself? In addition, Zhang Yida also wants to exceed the bet and get another 25 million US dollars.
Woolen cloth.
As for the cooperative promotion with Ruixiang Technology, the cooperation plan has also been changed.
Previously, the cooperative promotion required a user to invest 100 yuan per month, and the fee was 50 yuan.
Now changed to:
The monthly investment is 1,000 yuan, and the fee is 100 yuan.
An investment of 1,000 yuan is required for three months, and the fee is 200 yuan.
A monthly investment of RMB 10,000 is required, and the fee is RMB 300.
A three-month bid of 10,000 yuan is invested, and the fee is 500 yuan.
This cooperation model has basically changed from CPA head count to CPS sales volume payment.
For Yimin Wealth, this cooperation model will further reduce user acquisition costs and can also quickly increase the transaction volume and scale of the platform.
It is also a new attempt and innovation for Ruixiang Technology.
At present, many advertisers have complained about CPA. They spend a lot of money, and the transaction volume and scale of the platform have not increased. Just to obtain a user number requires the P2P platform to continue to track customers to complete further conversions.
In addition, many users have been cultivating it for a while and are no longer unfamiliar with P2P. Many people have chosen to increase their investment a second time after their initial investment expired.
Therefore, on the basis of retaining the original CPA promotion, Ruixiang Technology launched CPS large-amount promotion business.
After successful development, it will also bring greater revenue to Ruixiang Technology.
While Yimin Wealth is increasing advertising on Ruixiang Technology, it is also further improving its operations department.
For the current 100,000 users, the potential can be further explored.
Two directions:
First, let the 80% of users who have only invested 100 yuan continue to increase their investment.
Second, launch various invitation-to-friend activities on the Yimin Wealth APP, allowing these 100,000 users to get rewards and invite friends to register for investment.
Therefore, after improving the operations department, Zhang Yida told Fan Hongyang to increase the revitalization and redevelopment of existing users.
Fan Hongyang is worthy of being a middle-level employee from a large factory. He led the operations department to design a lot of attractive copywriting and activities, and the customer conversion rate increased significantly.
On the Yimin Wealth side, the transaction volume of the platform has also been rising steadily, and the growth rate is gratifying.
The result before Series A financing was 89.98 million in transaction volume on the 10th day after launch.
Now that it has been online for one month, the transaction volume has reached 500 million.
Although most of the bids are still in January and March, the company's capital flow has been increasing positively.
Therefore, after setting aside 100 million funds as user cash withdrawal funds, the remaining 400 million were used as cooperative lending funds and sent to more than a dozen cooperative small loan companies.
The user funds due next month are estimated to be 350 million, and the conversion rate is estimated to be half. Half of the users, which is 175 million, will not withdraw and will choose to continue investing again, so Yimin Wealth does not need to worry about this part of the funds.
But if you choose to withdraw the other half of 175 million, you will need to use the 100 million unloaned funds. The remaining 75 million will depend on users who recharge next month to pay the previous batch of withdrawals.
This kind of behavior is actually like walking a tightrope. If you accidentally break the capital chain, it will be terrible.
But generally, it's okay. Professional finance staff have done accurate calculations of capital inflows and outflows, and sufficient reserves will be kept at any time based on the actual situation.
Don’t keep too much reserve fund. Leaving too much will result in too little loan funds and reduced income. For the enterprise, the benefits will not be maximized.
If you leave too little, the user will not be able to cash out enough to redeem it, which will lead to a thunderstorm with fatal consequences.
In the early stage, the platform did not have enough data support and was trying to cross the river by feeling the stones. It would rather keep more reserves than lend more.
After the platform develops for a period of time, it will have a grasp of the rules and data for the monthly inflow and outflow of funds, and then establish a mathematical model. Basically, it can take into account the balance between reserve funds and loan funds. Interests can also be
Maximize it.
Because he still has about 150 million in venture capital, Zhang Yida dared to let them lend out 400 million in the first month, leaving only 100 million in reserve.
250 million is not enough, unless all the 350 million due next month are withdrawn.
Even if all is withdrawn, as long as 100 million new funds can be raised next month, it will be enough.