"Yida! This is another project created by you!" Xu Xiaoming was sitting in the conference room of Pate.com, smiling like a Maitreya Buddha.
Shen Beipeng on the side also sighed: "It's really tortuous."
Zhang Yida smiled and said: "I invited two teachers here just to give you some suggestions! The domestic pet market still has great development prospects."
"Do you want us to invest again?" Xu Xiaoming revealed the truth in one sentence.
Zhang Yida chuckled, gave a thumbs up, and praised: "Teacher Xu really has a sharp eye."
Zhang Yida then handed over two operating reports, one each for Xu and Shen.
After the two looked at each other for a while, Xu Xiaoming took the lead and said:
“Pet e-commerce + pet O2O + pet social networking, a good idea.
The promotion results are also good! Within 3 months of its launch, it has registered 100,000 members, and its e-commerce GMV has exceeded 10 million. O2O services have attracted more than 500 merchants, with more than 50,000 orders and GMV exceeding 5 million."
"Compared with your past results, they are still a little behind!" Shen Beipeng interjected.
Zhang Yida nodded, and then said: "The pet market is a bit niche after all. And we don't have enough funds in the early stage. 5.5 million funds are just enough to build the basic framework of the platform."
"The ceiling for e-commerce in this vertical field is a bit low. The limit is only one billion US dollars. What do you think?"
Shen Beipeng spoke more directly, and almost pointed at Zhang Yida's nose and said: You are not doing your job properly, you are just making a fool of yourself with a small plate worth 1 billion US dollars!
Zhang Yida was not angry, folded his hands on his chest, and slowly expressed his opinion:
"At present, the pet market is indeed a niche market. But as my country's population ages, there are more and more empty-nesters. There are also more and more young and unmarried people in cities.
There are more and more lonely people, and there will be more and more people raising pets. The pet market will definitely usher in a big explosion in the future.
Pate.com is a pet service company, so it can also enjoy this wave of growth dividends.
Within three to four years, it will definitely reach a scale of 1 billion US dollars.
Investing in Pate.com, the return on investment may not be particularly high. But the future prospects are clear. Why not get an IPO easily?”
Xu Xiaoming felt it made sense, looked at Shen Beipeng and said:
"Old Shen, I think you have inflated your fortune after becoming a top investor. Isn't 1 billion US dollars money?
I think the Yida project is very good. If you don’t vote for it, I will vote for it alone!”
Shen Beipeng was also happy. He spread his hands to show his innocence and said with a wry smile:
"Did I say not to invest? I just said it very honestly. This pet e-commerce company definitely cannot compare with a full-category e-commerce company like Ali. There is limited room for growth."
"Tsk, vertical segmentation is great! Look at Jumei, it doesn't have a market value of billions of dollars right now!"
Xu Xiaoming was a little proud. Jumei could be regarded as a successful investment for him, with a return of more than a thousand times.
Shen Beipeng was too lazy to talk to him, looked directly at Zhang Yida and asked:
"Let's talk about valuation. If it's not expensive, invest. If it's too expensive, you won't make any money."
Zhang Yida raised his right hand and spread all five fingers.
"50 million yuan, right? Then we in black shirt will vote." Shen Beipeng spoke first.
"Ahem, the unit is wrong, it's a beautiful knife!" Zhang Yida smiled awkwardly.
"50 million U.S. dollars. Yida, this is a bit expensive! Look, you just invested more than 5 million U.S. dollars 3 months ago, and now the valuation is 50 million yuan, which has increased 10 times!"
Xu Xiaoming couldn't help but say that after all, the ceiling of pet e-commerce is too low and the story imagination is limited. Zhang Yida's two previous financial projects were given high premiums because the stories were very touching! There is a lot of room for imagination in development.
"Hey, Teacher Xu, let's take a look at Pate.com's financial report. In three months, in addition to more than 1 million yuan in salary, the other more than 3 million yuan was spent on promotion.
If you give me 100 million for promotion, I can increase this operating data dozens of times in one year."
Zhang Yida began to describe the future prospects to Xu Xiaoming and told him that investment would definitely make money without losing money.
"Yida, the valuation of US$50 million is really too high. I think US$10-20 million is more reasonable..."
Xu Xiaoming began to bargain with Zhang Yida.
Shen Beipeng couldn't stand it anymore and said directly:
"Calculate it according to the GMV valuation method!
P/GMV, that is, market value/total turnover, this number is generally 0.6.
The total transaction volume of Pate.com in three months is 15 million, which is 60 million in one year. The valuation should be around 36 million.
Considering Yida's past achievements, we will give you a premium of 14 million.
The pre-money valuation of 50 million is very reasonable!”
Zhang Yida pursed his lips and said:
"Teacher Shen, your calculation is wrong.
Let’s talk about GMV first. Our total sales in the first, second and third months were 1 million, 3 million and 11 million respectively, maintaining a monthly growth rate of 300% month-on-month.
If we grow at this rate, our GMV in the next year will be at least over 1 billion.
The valuation of RMB 600 million is not too much!"
"You all know that it is the next year, and what we are discussing now is the present." Shen Beipeng looked at Zhang Yida and said seriously.
"But the estimated GMV is only 60 million per year, which is too little. After three months, Petnet's monthly transaction volume will reach 60 million."
Zhang Yida was very unconvinced. He would definitely not accept the valuation of 50 million.
"Okay, Yida, we don't mean to make things difficult for you. But the results of your three-month operation of Pate.com are really not that impressive. Otherwise, let's raise less money first and raise a Pre-A round! "
Xu Xiaoming knew that everyone might have big differences on the valuation issue and it would be difficult to reach a consensus for the time being, so he proposed a new plan.
"The Pre-A round is good. After you get the financing, if you operate for another three months, if the growth rate is still the same as the current 300% month-on-month growth, then the A round will give you a high valuation."
Shen Beipeng also expressed his opinion, believing that we should first do a round of pre-Series A financing to try out our skills.
Zhang Yida also knew that it was unrealistic to ask them to approve a valuation of tens of millions of dollars right away, so he nodded and said:
"Okay, you can do a round of Pre-A round of financing first, but the pre-money valuation must be based on a valuation of 100 million, and I will only raise 10 million."
Xu Xiaoming and Shen Beipeng looked at each other, and Shen Beipeng spoke:
"We can agree to your conditions, but you also have to make some concessions. We will finance the 10 million based on a pre-money valuation of 90 million yuan and a post-money valuation of 100 million yuan."
Zhang Yida thought for a few seconds and replied: "Okay!"
Lu Fenghai was called, and Zhang Yida signed the Pre-A round financing agreement with him.
Blackshirt Capital invested 6 million and Zhenke Fund invested 4 million, making a total investment of 10 million in Pate.com.
At the same time, a 10% option pool has been reserved for the future introduction of talents. The option pool is diluted from the equity interests of Zhang Yida and Lu Fenghai.
The final share changes were:
Zhang Yida:72.9%
Lu Fenghai:8.1%
Option pool: 9%
Blackshirt Capital: 6%
Zhenke Fund: 4%
The next day after the agreement was signed, two major venture capital funds came over with 10 million funds.
Zhang Yida said to Lu Fenghai:
"Actually, the two funds are still very optimistic about us, but our data is still a bit poor. They want to buy shares at a lower price and earn higher returns."
Lu Fenghai said with a smile:
"With these 10 million yuan, we don't have to worry about funding for the next six months. I am confident that the monthly transaction volume will reach more than 30 million yuan in 6 months."
Zhang Yida shook his head. If he did this, the day lily would be cold. He expressed his thoughts:
"We must spend these 10 million in three months. Don't save, because that makes no sense at all.
What they want to see now is our growth rate and cash burn efficiency.
Therefore, we must spend these 10 million wisely, leaving 2 million as salary, and the other 8 million will be used to burn advertising and promote growth.
The turnover in the next three months must reach 20 million, 40 million, and 80 million respectively.
We must keep doubling the growth rate. In this way, we can have a say in negotiations during Series A financing."
Lu Fenghai frowned and said:
"It is not difficult to achieve 20 million in August. It may be a little difficult to achieve 40 million in September, but there is still hope. If you want to achieve 80 million in October, it can be called a hell-level difficulty."
"I know that it is really difficult to maintain a high growth rate as the magnitude increases. However, only if we achieve this result can we prove our value to investors."
Zhang Yida took a long breath, patted Lu Fenghai on the shoulder, and said:
"Let's work hard together! If we achieve this goal, I will ask for a valuation of 1 billion in Series A financing."
"Haha, the investors haven't raised the table yet!" Lu Fenghai felt that Zhang Yida's appetite was too big, and the valuation of the next round of financing would increase 10 times.
"Don't worry, as long as we really achieve this goal, they will see the value in it." Zhang Yida has had a lot of dealings with investors, and he knows very well what indicators of the project they value most. The first is the growth rate.
Lu Fenghai nodded and said:
"Next, if we expand to a few more cities, we still have a chance to achieve our goals."
"Do your best! Ruixiang and Yimin will also help you with promotion. Prepare more e-commerce shopping coupons and O2O service discount coupons. Then I will arrange for Ruixiang and Yimin to cooperate with Pate.com
Hold some events.”
Zhang Yida also made suggestions, saying that in order for Pate.com to achieve its goals, he was prepared to use all kinds of resources.
"Isn't this not good?" Lu Fenghai touched the back of his head, feeling a little embarrassed.
"What's wrong? It's really bad if you can't achieve your goals. When Pate.com conducts activities, it takes all the profits and turns them into coupons.
For Yimin and Ruixiang, they can also give back to users through this joint activity.
I'm wondering if Yimin and Ruixiang are taking too much advantage. We need to let them use the money to buy a batch of coupons."
Zhang Yida felt that it was necessary to give Petnet some blood, otherwise it would be difficult to complete the task.
Lu Fenghai was speechless by Zhang Yida's saucy manipulation and said:
"Brother, don't. We are already relying on the huge traffic of Yimin and Ruixiang to help us promote new users. If we ask them to pay, it is a related transaction. It will not have a good impact on you, the major shareholder."
Zhang Yida shrugged and said it didn't matter.
Actually, I was just joking! Don't take it too seriously. Zhang Yida said secretly in his heart.