There are only two companies on the entire 22nd floor. Huayi Capital and another private equity fund each rented half a floor.
Since Lei Dongming devoted himself to the management of Huayi Capital, he immediately started to build and improve the team. Now Huayi Capital has a professional investment team of more than 30 people.
In Lei Dongming's managing partner's office, Lei Dongming explained to Zhang Yida:
"Huayi Capital currently has a team of more than 30 people. It may seem like a small number of people, but they all follow the elite route. It is better to have fewer people than too many.
The company is divided into five major departments: investment, operations, risk control, finance, and comprehensive departments.
The investment department has 9 industry analysts and 3 investment managers. The specific work includes: project screening, due diligence, investment model design, relevant document preparation, project negotiation, project management, project exit, etc.
The operation department has 6 financing managers, 3 project planning managers, and 6 marketing managers. The specific work contents are: implementing financing road shows, planning fund promotion plans, fund marketing and market development.
The risk control department has three risk control managers who are responsible for assisting the investment manager in conducting due diligence and conducting investment value analysis based on relevant financial data, including corporate valuation, investment return, and ultimately providing project risk assessment opinions.
The finance department has 4 financial officers, who are responsible for participating in the company's financing plan and fund scheduling and management; as well as calculating and disbursing the company's internal employee salaries.
The comprehensive department includes 3 personnel administrators and 3 drivers. They are responsible for the recruitment of company personnel, attendance, as well as vehicle scheduling and maintenance."
"Okay, you can make up your mind on this matter!" Zhang Yida said nonchalantly. Lei Dongming worked in an investment bank and also served as the chief financial officer of a start-up company. He is an expert in venture capital.
Moreover, the shares of Huayi Capital are divided between 66.7% and 33.3%. It is a company founded by the two of them. The relationship between everyone is not like that of superiors and subordinates in Ruixiang. Now they are all equal.
So Zhang Yida has nothing to say. Lei Dongming, the venture capital investor, is indeed much more professional than him.
"I have recruited more people for marketing positions, but our current fundraising capabilities are still a little weak. We allocated US$60 million to Didi and Toutiao in March, and will allocate a second phase of US$60 million next month."
Having said this, Lei Dongming looked a little serious, scratched his head and frowned:
“Currently, in addition to the US$60 million allocated in March, we have raised another US$70 million. But after disbursing the US$60 million next month, we will only have US$10 million left.
US$10 million cannot support investment in several projects. We cannot afford to invest in mid- to late-stage projects, so we can only invest in early-stage projects.
At present, the direction of our fund is still unclear. Is it mainly focused on the early stage or the mid-to-late stage?
Which industries do you focus on investing in?”
Zhang Yida frowned when he heard these words, because the fund is not well-known enough. People raised hundreds of millions of dollars in one or two months and immediately overraised. Huayi Capital found it difficult to raise 100 million in two months.
Moreover, the fundraising cost is not small, and the annual 2% management fee is directly transferred to third-party wealth management companies such as Yimin Wealth and Noah as agency commissions.
After withdrawing his thoughts, Zhang Yida suggested:
“Let’s split it into two funds! One USD fund, mainly engaged in mid- to late-stage projects; one RMB fund, focused on angel rounds and A rounds.
In terms of other investment directions, my opinion is to focus on five directions: technology/media, medical and health, education and training, consumer goods/services, and industrial technology.”
Lei Dongming thought for nearly a minute and then said:
"This is a good suggestion!
With two funds, we can basically cover projects from early to mid- to late-stage.
The advantage is that good projects will not be missed, but the disadvantage is that the level of investment is very high.
And you have to have strong funds!”
Having said this, he glanced at Zhang Yida, who replied directly:
“Finance is slowly being figured out, and the framework is being built first.
Didi and Toutiao, which invested this year, should be star projects next year.
By then Huayi Capital will no longer be an unknown newcomer to the industry.
You have invested in a good project and helped investors make money, but are you still worried that there will be no funds to enter?"
Lei Dongming smiled. He thought Zhang Yida was too optimistic, and then said:
“In terms of investment direction, I still think it’s too broad.
Five fingers must be gathered into a fist to be powerful when punched."
"In your opinion, do you think five investment directions are too many? Then do you think it is more appropriate to focus on a few directions?"
Zhang Yida felt that the directions he chose were all popular directions for future generations, not bad! He wanted to hear what Lei Dongming had to say.
Lei Dongming heard the thorn in Zhang Yida's words, shook his head and laughed:
“These five directions are all very good, but I just feel that our current fund size is still too small and we should not spread our energy too thinly.
Moreover, our current three investment managers and three groups of industry analysts all focus on the fields of technology media, industrial technology, and consumer services.
At present, we have not recruited suitable investment managers and analysts in the medical health and education and training industries.
Let’s focus on three directions first. When the fund scale is expanded later, we will cover the medical and education industries!”
Zhang Yida feels that what Lei Dongming said makes sense. After all, he has not been reborn, and he does not know how great the two projects currently invested by Huayi Capital will be in the future.
Therefore, my style of conduct is inevitably a bit conservative. I feel that it is difficult to raise funds, so I need to take a smaller pace in order to move forward steadily.
Zhang Yida will not argue with him, and everything will be clear next year.
He took a long breath and asked:
"How's it going with the magnesium group?"
Speaking of Magnesium Group, Lei Dongming became interested. Now Magnesium Group’s position as the leader in group buying has basically been secured. The situation has become clear. If you invest, you will make money.
Zhang Yida asked him to contact the investigation team a few months ago, and now the results have been obtained.
Lei Dongming said with excitement:
"This month Magnesium Group will launch Series C financing, with a goal of raising US$300 million and a valuation of US$3 billion.
Ahri is preparing to lead the investment, with participation from Blackshirt Capital and General Atlantic Investments.
I also sent my investment letter of intent, but we haven’t received a reply yet.”
Zhang Yida nodded. The magnesium ball has now become his obsession. It would be fun if the three little giants get together!
Moreover, Huayi Capital has invested in three small giants, and they are all in the C round, which makes it even more legendary.
It will be of great help to Huayi Capital’s future fundraising efforts!
…
Two days later, Lei Dongming called Zhang Yida and said dejectedly:
“Magnesium Group rejected our request for investment!”
"What's going on?" Zhang Yida had almost guessed the reason. It was probably pressure from the giant, but he still asked.
"Ali was their shareholder before, but Ahli disagreed. Moreover, several other institutions participating in this round of investment also disagreed and jointly excluded us." Lei Dongming said with some disappointment. What he thought was a sure thing had another setback.
"Haha, I knew it wouldn't be that easy." Zhang Yida sneered and asked Lei Dongming to take the lead just to explore the way. He had backup options.
Comforting Lei Dongming said:
"Don't worry! They blocked our investment, but we still decided to invest.
You make an appointment with Huang Xin, and we can talk to him alone."
"What's the reason for asking him out?" Lei Dongming asked.
"Just tell him that Huayi Capital is very optimistic about him leading the magnesium group. As long as Huayi Capital becomes a shareholder, we are willing to hand over all the voting rights we have obtained to him."
Zhang Yida knows these founders very well, and everyone loves and fears venture capital.
Lei Dongming understood, and followed the instructions taught by Zhang Yida and called Huang Xin. Huang Xin was indeed interested, and the three of them made an appointment to sit down together in the evening to discuss the matter in depth.
night.
Zhang Yida and Lei Dongming were invited to a high-end hotel and met Huang Xin in the private room, who had been waiting for a long time.
The original appointment was to meet at 8 o'clock, but Huang Xin came half an hour early.
This small detail can actually show Huang Xin's attitude. Zhang Yida and Lei Dongming looked at each other, and the smiles on their faces became thicker.
Huang Xin had a crew cut, and his hair was slightly bald. He probably used his brain too much in business competition. Putting on the glasses on his nose, Huang Xin got straight to the point:
“What the two of you said on the phone was that as long as I agree to let Huayi Capital enter, I will give the voting rights I received to the management team of Magnesium Group.
I don’t know if I understand it correctly?”
“Yes, Huayi Capital is very optimistic about Mr. Huang, and also very optimistic about Magnesium Group.
We believe that under your leadership, the Magnesium Group will reach a higher peak. We wouldn’t trust anyone else to lead it.
Therefore, we are willing to give all voting rights to your management and sign a concerted action agreement."
Zhang Yida is still very optimistic about Boss Huang. This ruthless man who emerged from the Thousand Regiments War will also drive away giants in the future. If you have enough business skills, you will definitely become a great player!
"Okay, I can agree to Huayi Capital's investment. But the share will not be too large, up to 50 million."
Huang Xin also replied happily.
Zhang Yida felt that it was a bit lacking, but after thinking about it, there were also Ali and Heishi in this investment. The competition was too great. No matter how hard Fei worked, he couldn't grab much of the share. After all, Huayi's foundation was still too weak.
He nodded and said, "Okay, just 50 million shares."
After three rounds of drinking, the three of them became much closer.
Zhang Yida smiled and said:
"Brother Huang Xin, Magnesium Group's future achievements are limitless! It is very possible to achieve a valuation of hundreds of billions of dollars."
Huang Xin laughed, looked at Zhang Yida and said:
"Why don't you talk about Rui Xiangnan? It was established three years later than Magnesium Group, and its valuation is comparable to ours. It will definitely become a giant in the future!"
"Giant? I guess BAT will not give us this opportunity.
When a new emperor ascends the throne, he must stand on the corpse of the old king.
In fact, when we have developed to the stage like you and I, we have already been targeted by giants."
Zhang Yida's face turned red and he said drunkenly.
Huang Xin nodded and didn't say anything else. After all, he wasn't young anymore, and Ahri was still a shareholder, so he wouldn't say anything more about it.
He felt that Zhang Yida's pattern was broken.
Zhang Yida had an idea in his mind, so he smiled and said:
"You say, how about we unite Toutiao and Didi, and the four companies form a justice alliance? Let's fight against the evil giant together."