The next day, Luzhou drove to Zhujiang New City. This was his first time to check out the location of Chuangmeng Fund.

From the establishment to the beginning of operation of the entire fund, Luzhou only made plans in key places, while the rest were completed by Mengguang's senior management and Meng's new team.

As for the reason for choosing Zhujiang New City, it is simple. The fund's personnel system is much "small" compared to Menggu's huge human resources system. Considering transportation and "fashion", it is understandable to choose this.

Today I arrived at Chuangmeng, saying that the investigation was second, and the main thing was to meet "old friends".

After he registered at the front desk, he followed the staff to a conference room. At this time, there was a "training" inside.

All the investment managers of Chuangmeng Fund were from the audience, and some were senior executives of the company who were notified to come to listen to the lecture. They looked a little familiar, such as Pan Feiwen and Wang Zhengye of Orange Melon Peel.

Luzhou found a seat in the last row and sat down.

At this time, Lin Xin and he were sitting on the stage talking.

"We often talk about business and business models. When we receive business plans from startups, entrepreneurs will also talk about some content about business models."

Lin Xin changed the subject, "But in my opinion, many people do not realize a fundamental problem. Equity design is one of the most important business models of a company."

"Here, let's think from two perspectives. For most strategic investors today, the role of equity is to make money. But for entrepreneurs, this role is relatively small, and it represents more of the right to speak and control.

It is not difficult to find that there will be some contradictions in the middle. For example, as investors, we hope that the founding team can come up with a larger option pool, which can effectively motivate members outside the founding team. The founding team may be unwilling to divide too much equity from the perspective of its own interests.

Different founding teams have different approaches. A good equity design should have several important factors.

Under the normal operation of the company, the founding team retains the right to speak for the company.

When the founding team is large, it can take into account the interests of each founder and reduce internal friction costs.

Option incentives can be effective and effectively promote the labor of the lower-level employees.

In the event of poor company operations, shareholders can have effective means to promote changes.

For us, the reality is very complicated, and we need to identify it one by one.”

Lin Xinhe pressed the next page ppt, "Next, there are many things to consider. Here, we use WeChat as a case to discuss related topics."

Off the stage, Lu Zhou smiled when he heard this. He really wanted to know how Lin Xinhe thought about it.

"First of all, let's take a look at the simple development process in WeChat equity design.

In June 2010, Lu Zhou, Cheng Xuyuan and Lu Ming jointly established WeChat with RMB investment. Among them, Lu Zhou held 75% of the shares, Cheng Xuyuan and Lu Ming held 5% each. The actual total investment amount was between 3 million and 4 million.

We can notice that the establishment of WeChat here does not contain the so-called dry stocks or technical stocks. To a certain extent, this can effectively reduce the interest friction between founders.

Cheng Xuyuan and Lu Ming's investment ranged from 150,000 to 200,000, and they also received WeXun's salary during their time in the company. We assume that the investment and salary are about equal. Here we assume another situation.

After one year of operation, WeChat Technology's results were not ideal. Cheng Xuyuan and Lu Ming got back their capital through their salary, while Lu Zhou still bears higher risks due to the lack of other employees in the company's recruitment of other employees.

Luzhou invests higher, accounts for a higher proportion, and has a higher risk. The other two are exactly the opposite.

Of course, a large number of startup teams in the market cannot achieve this situation. For example, there is little start-up capital and cannot be measured in currency. Or the ability between founders is evenly compatible and they have to share shares more evenly."

Lin Xinhe paused, then pressed to the next page.

"Let's talk about a financing provided by dcm for WeChat in November 2010. Here, the founder Lu Zhou was seeking financing in the form of convertible bonds at that time. Why did he have this demand and dcm finally agreed to this plan? Let's discuss it carefully.

Here, time nodes are the most important factor. At this time, WeChat was around the corner of the circle of friends and the official account, and at that time, Penguin WeChat was also chasing.

Under financial pressure, Luzhou chose to raise funds.

Why did Luzhou choose to use convertible bonds to raise funds instead of promoting WeChat to carry out round A financing? The reason is very simple.

At this time, WeChat is in a critical period. Equity financing may be carried out at such a node because the institution does not correctly recognize the value of the current version, resulting in a low valuation. Convertible bonds can avoid such a situation. WeChat Technology borrows money from DCM and then performs equity replacement in round A.

So why do dcm accept such an ‘unequal treaty’? Two, position and risk.

Our organization cannot be sure of the facts that Luzhou believes in.

Therefore, at this critical node, risk control is more important for institutions. Once WeChat fails within the time period at that time, we can directly ask WeChat to repay cash and interest for currency, which will have a slight profit. Once WeChat is successful, although we obtain less equity, the risks we bear will also be smaller."

Lin Xinhe sat down again.

"Although we often invest in venture capital, risks should be considered more. If WeChat failed at that time, we just need to come to collect debts all day long. If WeChat succeeds, we will make less money, and it will not be a loss.

When we look at WeChat, how to evaluate it can be disassembled into several compositions. The potential value of WeChat = new experience - old experience - the cost of replacement.

What Luzhou believes is that the new experience of WeChat is far greater than previous communication products.

What we cannot confirm is how much the user exchange cost is.

Although the two are far apart, they can reach a certain consensus through the design of various models."

Suddenly he noticed the road boat in the back row.

Then, he smiled and said, "Of course, I still admire Mr. Lu's courage in this regard. After all, if DCM chooses to convert bonds instead of converting stocks after Weixun fails, then Weixun needs to bear tens of millions of dollars in debt. Not every founder dares to bet like this. It requires great confidence in its own products, and this is the Qianlima that an investment manager needs to find."

"Okay, let's talk about the rest first. Let's talk about the rest later. Especially taking the recent Mozao as an example, this is also a case that needs to be reviewed carefully."

After saying that, Lin Xinhe also walked backwards. Lu Zhou stood up when he saw the situation and hugged him.

Lu Zhou smiled and said, "Mr. Lin's last sentence, I'll add it temporarily."

Lin Xinhe, "Haha, when I see you, there are so many things I can't talk about behind you. Let's go and talk to my office."

Lu Zhou smiled in his heart. He had been fooling him for more than a year, but he could be considered fooling him.
Chapter completed!