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91. Financing

Wang Qiangdong is a student at Guangnan University. He found a part-time job last month and became an application promoter. At first, he was skeptical about this job. Can he make money by promoting mobile applications?

Wang Qiangdong is truly unheard of.

But the other party refused to accept money, cheated with sex, or sold anything. Wang Qiangdong, who was in urgent need of money, finally gave it a try.

"Milk, milk! Interrupt! Damn, what are you doing? Can you paddle more professionally?" the roommate shouted anxiously.

Of course Wang Qiangdong can't. Just kidding, you didn't invite me to play games. I'm waiting for the salary text message.

"Ding!"

When Wang Qiangdong heard the voice, he felt excited, "It's coming, it's coming!"

"Dear user, your current mobile phone bill balance is 18.31 yuan, which is not enough to deduct this month's package fee. Please recharge before the 24th."

"Hey, Dongzi, are you still playing? Wucao, what do you mean by taking your hands off the keyboard?"

Wang Qiangdong is extremely anxious. Why haven't you come yet? He's waiting for Jianghu to help. What time is it?

"Damn it. This Dream Valley promotion can't be a liar, right?"

His heart skipped a beat, and he felt like things were about to go bad. And he thought that sometimes in the company's weekly meetings, the team leader would cheer them up and teach them promotion skills. What should he say, "Join Dream Valley Promotion, and earning 10,000 yuan a month is not a dream."

....."

Wang Qiangdong felt chills in his heart, and then he thought of other eager employees, who looked like they were asking for help, "Oh my God. I visited all the mobile phone stores around the university town during the exam month. I don't have any money, so I will fail the exam again."

It’s a huge loss.”

"Ding!"

"[ICBC] Dear Mr. Wang Qiangdong, your account with the last number 2010 received a payment of 6,218 yuan at 14:00 on July 15, 2010. Summary: Salary payment. Your current account balance is 6,220 yuan."

When Wang Qiangdong saw that his balance had increased from two yuan to more than six thousand, his face suddenly turned from gloomy to clear, "That's awesome, haha."

...

July 21, Beijing.

As soon as Lu Zhou got off the plane, he took a taxi and rushed to Dongcheng.

In the past one or two months, dozens of institutions have inquired from Lu Zhou about the financing situation of Menggu Advertising. However, after hearing Lu Zhou’s valuation intentions, most institutions felt that he was

crazy.

In the current market, there are only three companies that can rank high, namely Menggu, 91 and Wandou. The second group of troops are mostly teams that have followed suit since the emergence of Menggu. The most famous one is Qihoo’s 360 Assistant, followed by Creative Works

Another team called Application Hui was established, and Anzhi, which has a subtle relationship with Shanda, also went online last month.

Most of the domestic capital institutions take Li Guanfu's operations seriously, "Lao Li is helping Wandou find an A round. How can your classmate He De get such a high valuation for the A round?"

Naturally, Lu Zhou didn't take them seriously. This kind of capital is just like falling in love, it's about your own will.

If you talk for a long time and let the other person know what kind of person you are, then you can hit it off immediately. But if you can't even get past the initial impression, then there's probably nothing left to talk about.

A few accepted the offer, but there were many additional terms. Comparing the two, Lu Zhou finally decided to complete the financing of Dream Valley Advertising through Lin Xinhe’s DCM and Rebus.

This financing is on the agenda due to the continuous advancement of Menggu Advertising. Menggu Advertising now has a large amount of cash flow invested in local promotion work, and sooner or later other competitors will also join this craze. Money can never be too tight.

Financing is financing.

The reason for choosing to cooperate with Lin Xinhe is also very simple. First of all, Lin Xinhe contacted him personally and discussed some key points in detail.

So many venture capitalists came to Lu Zhou for inquiries, and this was the only one who contacted him personally. The other party, Zai Xinlang and DCM, have been struggling in the pond of the Chinese Internet since their early years, so getting to know Lin Xinhe has only advantages and no disadvantages.

.

As for Rebus, "Let's add some green onions. Who makes DCM unwilling to invest enough?"

A preliminary verbal agreement has been reached between the three people. Dream Valley Advertising is valued at US$100 million, and 10% of the shares will be raised at US$10 million. DCM will lead the investment with US$9 million, followed by Rebus with US$1 million.

The previous share capital structure of Menggu Advertising was very simple. Initially, Lu Zhou held 85%, Fang Qiang 10% and Phaeton 5%. As the team expanded, Lu Zhou took 10% of his own shares as future options.

Of the pool, 10% is held by Lu Zhou on behalf of the company, and the remaining 75% is still owned by Lu Zhou personally.

After the dilution in the A round, Luzhou’s shares will also become 67.5%.

Lu Zhou came to the capital today to discuss the financing of Dream Valley Advertising with Lin Xinhe and Rebus.

The taxi traveled through the ring roads of Beijing and finally arrived at the location of DCM on Chang'an Street.

Lu Zhou checked the time and saw that it was about an hour earlier than the agreed time.

After he got into the building, he came to the front desk and said, "Hello, I am Lu Zhou. I have an appointment with Mr. Lin Xinhe at three o'clock this afternoon. Could you please confirm it."

The girl at the front desk had a signature smile on her face and said, "Hello. Please wait a moment."

After dialing the internal number and getting Lin Xinhe's approval, the girl led Lu Zhou into the company.

There were not many people in the entire DCM and many seats were empty. Lu Zhou followed the front desk to Lin Xinhe's office, and to Lu Zhou's expectation, Rebus came in person.

Lu Zhou recognized the Monkey King with just one glance. He nodded slightly and said, "Mr. Lin, Mr. Lei."

Seeing that Lu Zhou was a little lively, Rebus also said with a smile, "Young man, you are here early. I also wanted to come in advance and send a message to Lao Lin."

When Lu Zhou heard that Rebus called Lin Xinhe, he understood clearly. It turned out that the two had known each other for a long time, otherwise the million-dollar investment would not have required Rebus to come over in person.

Lin Xinhe also greeted Lu Zhou, "Sit down and talk slowly. Lao Lei is not here to convey the message. Lu Zhou, please take your time."

When Rebus heard that Lin Xinhe had exposed himself, he wagged his fingers and looked at Lin Xinhe with a smile.

Lin Xinhe didn't say anything, "Haha. That's not true. This little thing will make you, Rebus, come to DCM as a guest."

Rebus kept shaking his head. It seemed that Lin Xinhe did not accept the conditions he proposed. This meant "falling out".

"Okay. I'll just tell you this. Lu Zhou, I have a proposal for you to listen to. If it's suitable, let's talk about it. If it's not, just let it go."

Lu Zhou watched the two people's "fight" quietly for less than half a minute, "Mr. Lei, please speak."

"I have no objections to the financing of Menggu Advertising. We can sign the deal today as we discussed in the early stage. As for the setting up of the board of directors, I personally want to fight for a seat. Of course, my equity is far from enough. It depends on Mr. Lu

Don’t give me a chance.”

Lu Zhou watched Rebus say this "bad" thing calmly, and was speechless in his heart. Do you really think I am stupid? Does this Congmiao want to rebel?

After this financing, Menggu Advertising will also set up a board of directors. According to the agreed minimum share capital ratio, Lu Zhou will occupy three seats, Fang Qiang will occupy one seat and DCM will occupy one seat.

It is almost a common practice for the lead investor to have a seat in the A round, and Menggu Advertising’s introduction of DCM as a director also has great benefits.

Because large capital institutions are immersed in this field, directors on the capital side can often provide start-up companies with legal, accounting, financial and other assistance.

If Rebus were replaced, that would be another way of saying it. Changing from five seats to six seats would mean that Lu Zhou’s control would become weaker, and at the same time, the rice phone itself would not be a distribution channel in the future. This part of the business is Hemeng’s business.

There are crossover areas with Google Ads.

Lu Zhou now understood why Lin Xinhe had "fallen out" just now.

Lin Xinhe had contacted him before and knew that he was not a novice, so it was absolutely impossible for him to agree to Rebus's proposal. Naturally, if Rebus wanted to achieve this goal, he could only share a seat with DCM.

"Mr. Lei, why don't you have a chat with Mr. Lin? It's okay for you two to share a seat. As for the transfer ratio, I don't plan to change it."

"Lao Lei, again, no need to talk." Lin Xinhe smiled and stretched out his hand.

Rebus naturally smiled and didn't care. After all, the chance of success was almost zero.
Chapter completed!
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