"What are you doing? I just want you to introduce me to Senior Brother Dongfang Yu. I would like to discuss cooperation with him."
Zhang Yida said with some embarrassment that he knew that Xu Xiaoming and Brother Dongfang Yu had a very unhappy time when they jointly founded New Western Company.
I heard that once Dongfang Yu learned that Xu Xiaoming was leading his employees to carry out a "revolution" and opposed his reforms, so he directly had Xu Xiaoming's office occupied.
When Xu Xiaoming went to work, he was almost speechless when he saw someone else sitting in his office.
In short, the two had various contradictions and conflicts when they were in the company.
In the end, Xu Xiaoming was kicked out of New Western Company and founded Zhenke Fund.
However, although Zhang Yida and Dongfang Yu are schoolmates, they have never met each other and do not even have contact information.
So I had to bite the bullet and ask Xu Xiaoming for help.
After hearing what Zhang Yida said, Xu Xiaoming on the other side of the phone didn't say anything for a long time. He smashed his mouth and then slowly said: "Okay, what do you mean? I'll help you."
Zhang Yida said: "I founded a venture capital fund called Huayi Capital. It has invested in two projects, Toutiao and Didi, and is now looking for LP investors."
Xu Xiaoming said sincerely: "Yida! Your company is getting bigger and bigger now, but the things you need to deal with are becoming more and more complex.
Now Ruixiang is still starting a business, but you have distracted yourself and set up a venture capital fund halfway. I don’t know what to say about you. You are sacrificing your own foundation to seek the end!"
Zhang Yida hurriedly said: "I want to explain here that Huayi Capital was founded by Lei Dongming and I. He will leave his job to manage Huayi Capital, while my career focus is still on Ruixiang."
Upon hearing this, Xu Xiaoming looked slightly better and said, "Okay! I'll contact him and arrange a meeting for you. Whether you can succeed or not depends on you. I can't help you with anything else. I'll let him speak.
It doesn’t work in front of me.”
Zhang Yida hurriedly thanked him: "Thank you, Teacher Xu. I'll be fine if you can introduce me to me. I'll do the rest myself."
After Xu Xiaoming asked a few more questions about Toutiao and Didi, he hung up the phone.
Then Zhang Yida dialed Zhou Chengdong's phone number again.
"Teacher Zhou, it's me, Zhang Yida. I would like to ask if you know Senior Brother Robin Li?"
"Oh, we met once, but we're not familiar with each other, right?"
"Can you help me contact him through the alumni association? OK, thank you very much, Teacher Zhou."
Zhou Chengdong smiled and said: "You haven't visited me for a long time recently. Have you forgotten me, old man?"
Zhang Yida laughed and said: "How can you? Isn't it too busy? Ruixiang is preparing for Series B financing recently, and there are too many things that need to be dealt with."
After chatting with Zhou Chengdong for a few more minutes, he hung up the phone.
The next day.
In the office of the chairman of New Western Education Company.
Looking at Dongfang Yu, who was about fifty years old and wearing a pair of black-rimmed glasses, he looked a bit like a university teacher. Zhang Yida and Lei Dongming first introduced their purpose of visit, then took a sip of tea and waited for his answer.
Dongfang Yu was silent for a moment and did not reply immediately, but smiled and said:
"I heard from Lao Xu, Junior Brother Zhang, your business has been valued at one billion US dollars, isn't it? It's really amazing. We were still studying in school at your age and were full of confusion about the future."
Zhang Yida thought to himself that you were so confused. He probably thought that the university would open training courses outside to make money.
Zhang Yida responded humbly: "Brother Dongfang, thank you for the award. Your conditions were different at that time. I caught up with the good entrepreneurial era. I had venture capital support when I started my business. Otherwise, the company would probably still have to suffer from mass entrepreneurship and innovation."
The center is building up strength little by little.”
Dongfang Yu nodded, this is the truth. There was no venture capital when he started his own business. He just made money slowly from student to student. It took more than ten years to build the company.
Going public was full of blood and tears along the way!
Nowadays, when children start a business, the journey is filled with flowers and applause. At that time, I just held a training class during my extracurricular time, and was punished by the school. The whole school notified the school for criticism. This made me lose face, and I had no choice but to resign.
After retracting his thoughts, Dongfang Yu returned to the topic: "What projects has your venture capital fund currently invested in? Please introduce the investment threshold, closing period, and management fees."
Zhang Yida began to introduce: “We are currently involved in Toutiao and Didi’s Series C and Series C+ investments.
Since it is a US dollar fund, the starting investment threshold is US$1 million.
3+2 model, 3-year duration and 2-year extension period.
Fund fees are composed of two parts. The annual fixed management fee is 2% of the fund share.
The annual compound return rate of the fund is higher than 8%, and 20% of the fund income is charged as performance compensation.
The annual compound return rate of the fund is higher than 16%, and a performance fee of 25% of the fund income is charged.
The annual compound return rate of the fund is higher than 24%, and a performance fee of 30% of the fund income is charged.
…
The fund's annual compound return rate is higher than 56%, and 50% of the fund's income will be charged as performance compensation.
Taking the return rate of 56% as an example, the fifth power of 1.56 is 9.24. The five-year fund income together with the principal reaches 9.24 times the investment principal. After deducting the principal, we charge 50% of the fund income as performance remuneration.
Calculated based on a guaranteed rate of return of 8%, the fifth power of 1.08 is 1.46. The five-year fund income together with the principal reaches 1.46 times the principal. After deducting the principal, 20% of the fund income is collected as performance compensation.
The principal amount will not reach 1.46 times in 5 years, the growth of US$1 million will not reach US$1.46 million, and no performance compensation will be charged.”
Although it was a bit confusing, Dongfang Yu still understood it.
Invest US$1 million and receive a fixed management fee of US$20,000 per year.
If you cannot earn 0.46 times your principal, which is US$460,000, in 5 years, you will not receive performance compensation.
If you earn 8.24 times the income in 5 years, which is 8.24 million US dollars, you will receive 50% performance compensation. The venture capital institution will get 4.12 million US dollars, and the investors will get 4.12 million US dollars.
Dongfang Yu feels that this rate is not outrageous. After all, it is an annual compound rate of return, which is compound interest, not simple interest.
Buffett's annual compound return is only 21%. That's 56%, which is simply earth-shattering.
Dongfang Yu joked: "Do you think your Huayi Capital's annual compound return rate is expected to reach 56%?"
Zhang Yida looked at Dongfang Yu and said with a smile: "I invested in both Toutiao and Didi at a valuation of about US$1 billion. When they reach a valuation of US$10 billion, they will be able to achieve a compound annual return rate of 56%."
Dongfang Yu laughed. It has been eight years since his New Western Education was listed and its market value is only a few billion US dollars. A market value of US$10 billion is not easy.
Dongfang Yu pondered for a moment and then said: "Let's do this! Junior Brother Zhang, I invest 1 million US dollars in your Huayi Capital, which can be regarded as a little support from the senior senior. Work hard!"
Zhang Yida felt a little sad in his heart. He still lacked qualifications! It was a bit difficult to find LP investors. No, only a senior with a net worth of more than one billion US dollars was willing to give 1 million US dollars to test the waters.
Zhang Yida pretended to be happy and said: "Thank you, senior senior, for your support. I will try my best to make the fund good."
Then, Zhang Yida went to Qiandu to visit Brother Robin Li.
Robin Lee is already in his forties, but he is still very handsome and charming, like a middle-aged uncle.
When the alumni association recommended a junior fellow student who was considered a young talent and wanted to visit him, he did not refuse and expressed his welcome.
Zhang Yida came to Robin Li's office, briefly explained his purpose, and then introduced Huayi Capital.
Robin Li spent several years on Wall Street when he was young. Qiandu also received venture capital investment and was very familiar with venture capital.
He said directly: "Junior Brother Yida, venture capital is a high-return and high-risk industry, and it requires a lot of experience to operate well.
You need to understand technology, management, business models, and capital operations. You also need to be able to look at people and projects.
Vision, experience, and ability are all indispensable.
As far as I know, Ruixiang has only been founded for less than a year. Unless you take Ruixiang public, you currently cannot let me invest my funds in you with confidence."
Zhang Yida is not angry either. He knows that Robin Li has lived overseas for many years and speaks in a Western style, and is relatively straightforward.
Zhang Yida began to analyze the business models of Didi and Toutiao and describe their future development prospects.
After Robin Li listened, his attitude was much better than before. He replied:
"Your analysis makes sense. After hearing what you said, I also think the development prospects of these two companies are very good. However, you are really only a newcomer in the venture capital industry, and I cannot give you too much investment.
.”
Zhang Yida was a little disappointed, and his repeated setbacks really hurt his self-confidence.
Seeing that Zhang Yida was a little disappointed, Robin Li comforted him: "Don't feel disappointed either, nothing is achieved overnight. You are still young, and I was far behind you when I was your age."
Zhang Yida waved his hands repeatedly. This was a big boss and he couldn't deserve such high praise. He hurriedly said: "Brother, I understand all this, and I still appreciate your support."
Robin Li smiled and said: "I admire your vision and ability. The only thing you lack is experience. This time I will invest 2 million US dollars in you. Don't be too small. No matter how much the final income of these 2 million US dollars is.
As long as you take Ruixiang public, if you still want to be a venture capital investor, I will invest you US$10 million."
These words made Zhang Yida a little touched, and he was not so disappointed. After all, this was a kind of good opinion of himself!
After bidding farewell to Robin Li, Zhang Yida returned to the office rented by Huayi Capital to discuss countermeasures with Lei Dongming.
The two tycoons invested a combined US$3 million, which was still far from their ideal US$137.5 million. It was not even a fraction.
After thinking about it, Lei Dongming said: "In this case, I will go to Souli Changyou to find my former colleagues, and I can also try Charles Zhang. I hope I can raise more!"
After Zhang Yida thought for a moment, he raised his eyelids and looked at Lei Dongming. I thought of a way.
"What can be done?" Lei Dongming asked.
Zhang Yida smiled confidently and said:
“Let Yimin Wealth and other third-party wealth management companies sell on behalf of you.”
"Ah? Isn't this going on all the time?" Lei Dongming asked doubtfully.
Zhang Yida glanced at him, looked away, and said:
"Let them let it out. Both Dongfang Yu and Robin Li invested in our fund."
"This is not good! What should I do if the boss is angry? Besides, this will reveal the customer's privacy!"
Lei Dongming said with a slight frown.
"I can't care about that much anymore. Let's collect more than 100 million first and then talk about it. If you are really angry, I will come to apologize in person!" Zhang Yida said helplessly.
"Then let's do this! It's all private equity, and it's promoted in private places. Just let their wealth management institutions pay attention when they preach to their customers!"
Lei Dongming gave suggestions.
Zhang Yida nodded slightly, thinking that he would never go out to raise funds in person again. If he had no money, he would not invest. Anyway, all the big fish in recent years have been caught. If you miss the small fish and shrimps, just miss it!