Book Synopsis
Book Tags
Donation Rankings
Comment
0 Comments
You May Also Like
墨書 Inktalez
It is good that this is just a preliminary discussion about whether cooperation is possible and the prerequisites for collaboration. Without Song Rushi, he can handle things on his own; this means that whether cooperation can happen depends on whether you can show enough sincerity.
Since McGowan, the founder of IDG, has personally stepped in, Jiang Yizhou can sense the determination on the other side.
"I heard you have proposed a new plan? I wonder if you could show it to me?" McGowan did not continue the previous topic but instead shifted to Jiang Yizhou's latest proposal regarding the Social Network plan.
He was quite interested in it and had heard some good reviews from peers.
"Of course, Mr. McGowan, it is my honor!" Jiang Yizhou was confident as he boasted, not at all timid, even though he wasn't sure if the recruitment for those products had been completed.
The reason Jiang Yizhou moved away from simply focusing on growing strong and then selling for a good price to becoming an investor was that he realized that to maximize the profits of the products he created, proposing the Social Network early was a good idea.
The greatest utility of Instant Messaging is that it serves as a powerful user-engagement entry point to the Internet; however, without various content products surrounding it, its value cannot be realized, and it will eventually decline like the original IQ.
Although he was unsure whether such a product could survive in the U.S., how would he know without trying?
Moreover, nothing has been produced yet; with just a plan and perhaps a few PowerPoint presentations, the valuation could potentially double. Why not? As long as he is not the final buyer, investments won't incur losses.
Originally, IQ—a simple software—could sell for 8.7 billion dollars. With his complete Social Network setup, Jiang Yizhou felt that it should at least double in value.
"What an incredible guy! I am now even more inclined to invest in you. I remember you are only 18 years old," McGowan thought that hearing Jiang Yizhou's complete plan confirmed that he had indeed made the right trip.
He and Xiong Xiaoge reviewed the contracts they had previously signed and realized that investing one million dollars at that time was quite a big risk. However, looking back now, it seemed like they had picked up quite a bargain. If Jiang Yizhou's proposed plan is indeed feasible, the entire company's valuation would undoubtedly exceed one hundred million dollars.
The only problem is what to do about the upcoming financing. First, does IDG China need to proportionally increase its 40% stake? Can IDG from the U.S. participate in this round of financing?
However, in the current situation, this guy must be eager to dilute that 40%, having already diluted so much in the first round. Even if it is an unavoidable choice, it does not prevent him from feeling displeased with himself.
If the second round of financing goes through, Jiang Yizhou's shares will drop below 50%, making it difficult for him to develop the company with peace of mind. This is something every investor would want to avoid, as the importance of the founder to a startup is self-evident.
"Listening Qi was initially launched in China; why has it moved to the United States?" McGowan continued to chat with Jiang Yizhou, curiously asking questions.
"Scale. Because in the global Internet market, only the U.S. market is large enough to support social products. The value of social products is proportional to the square of the number of users," Jiang Yizhou calmly explained. "Currently in China, even if every internet user registered for Qi, it would only reach a scale of around 100,000. However, in the U.S., I reached a million in just three months, and it will continue to grow even more each month!"
The three of them became increasingly cheerful as they chatted. In the end, McGowan finally shared his thoughts: "IDG China will sell part of its shares due to performance reasons—5% before financing. This portion of funds will be lent to you using your shares as collateral. At the same time, I hope to obtain 15% of the financing amount, led by IDG—$15 million!"
Jiang Yizhou was shocked by McGowan's generosity. Financing and bonds are two different concepts; both rely on believing that the invested company has profitability and repayment ability. However, bond investors earn far less than those involved in financing, especially for a company like Ailumese, which is almost guaranteed profit.
He roughly calculated that after this financing, he would still hold about 55% of the shares. As for why IDG would use its own 5% to exchange for this leading investment right, he could only speculate—it might indeed be related to performance; IDG China's performance lacks successful investments and exits at present. Even selling 5% of Ailumeisi Company’s shares through collateral would still be an impressive achievement.
It was somewhat presumptuous, but Jiang Yizhou lacked sufficient information sources and could only think this far.
According to McGowan's valuation method, a valuation of $100 million was already a number he was willing to accept because the company truly had no money left. Even without that 5% condition, it was still among the highest offers compared to other venture capitalists.
Is it really good to offer such a high amount directly? Jiang Yizhou felt slightly displeased; it was indeed tempting, but not even fighting for a dollar seemed to bring much enjoyment.
"Mr. McGowan, it's a pleasure to cooperate, but we still need to communicate the details well!" Jiang Yizhou said excitedly as he extended his hand.
McGowan enthusiastically shook Jiang Yizhou's hand, "Of course, I have high hopes for your future; you're worth my investment!"
Xiong Xiaoge was also applauding from the side. Today, he witnessed a company valued at over one hundred million dollars, all thanks to this young man who had just come of age. It made him reflect on whether he was getting old.
...
"You're valued at one hundred million dollars?" Song Rushi was also a bit excited. Being in Silicon Valley, everyone hopes that one day they can soar and become part of those ringing the bell on NASDAQ or the New York Stock Exchange.
With only Jiang Yizhou as the founder, she could very well stand on that stage. No matter what, from being tricked back home by her parents and feeling somewhat disheartened to unexpectedly coming under Jiang Yizhou's wing and managing a company with a bright future, growing together with it made her sigh at the unpredictability of fate.
If she hadn't resigned and returned to the country, she probably wouldn't have encountered such a great opportunity or this eccentric person.
"By the way, take your time talking with them. As long as we secure the funding before the end of March, perhaps the valuation can rise even further!" Jiang Yizhou said casually, sitting comfortably on a single sofa, completely relaxed.
"I understand. I'll get started right away!" She couldn't agree with Jiang Yizhou's suggestion to take it slow because there really wasn't much money in the account. At this rate, they might not even be able to pay salaries by mid-month; things were not as optimistic as Jiang Yizhou imagined.
Comment 0 Comment Count