(ps: Some minor modifications have been made to the content of this chapter)

[Big! Bluestar Technology, the startup company to which bluespae website, has just completed a pre-a round of financing of 77 million, with a valuation of 1.1 billion!!!] "Internet Reference News"

[The cold winter has passed? Since the Internet entered the cold winter, it has appeared for the first time that it has a startup with a valuation of over 1 billion!] "Invest today"

[The social networking website rookie bluespae website received a pre-a round of financing of 77 million yuan. This round of financing was initiated and led by Tengxun, followed by SoftBank Capital, Idg, and venture capital funds.] "Financial News"

[The strongest founder in history was born, the founder of the pre-a round of financing of bluespae website made capital willingly accept the almost impossible harsh conditions, almost legendary financing cases!] "Soujiang.com"

[Bluespae website received 77 million yuan in financing and is valued at 1.1 billion yuan. Founder Luo Sheng, a student at Fuda University, is a rising star in the Internet industry!] "Science and Technology Daily"

After the news of Bluestar Technology completing its pre-a round of financing came out, the company became popular in the industry and Luo Sheng became popular.

The founder is a college student with a valuation of 1.1 billion yuan. It was the first valuation company of 1 billion yuan after the Internet bubble. These entries have attracted much attention from Luo Sheng and Bluestar Technology.

This financing is a critical date for the Internet industry, and more and more industry insiders, especially entrepreneurs, have seen hope.

The cold winter may really have passed, and the Internet is about to usher in a new stage of vigorous development.

...

With the completion of this pre-a round of financing, the company officially set up an option pool reservation. After receiving this financing, Luo Sheng did not immediately consider expansion. The problem he wants to solve most now is the company's operation and management.

Simply put, it is human.

If this problem is not solved, once it enters the fast lane of rapid development, the company will inevitably experience chaos in its business management.

Next, the company will truly get on the right track of development, and the subsequent employee recruitment expansion will be aimed at adults, and the company's current dormitory culture must be removed.

Development has entered a new stage and must also enter a new management method.

It’s not enough to just shout slogans. The current startup teams are basically all current students and fresh graduates. The enthusiasm is naturally high, but without a good incentive mechanism, this enthusiasm will not last for too long, especially as the company expands and recruits adults.

After completing the pre-a round of financing, the company's option pool reservation has been set, but it is really a waste of time to use it effectively and how to use equity incentives reasonably.

Obviously, the company urgently needs a professional legal professional now. Although Luo Sheng also knows a little legal matter, this is not his expertise.

For this reason, he called his mother for help.

Luo Sheng's mother was engaged in this major and was a top elite in the industry. At that moment, he had an idea that he would invite his mother to the company to serve as chief legal officer clo, but he gave up without thinking too much. This was no different from asking a Buddha to press himself under the Five Fingers Mountain.

In the end, Luo Sheng's mother recommended him a professional legal professional, who was also her most proud student.

Luo Sheng was overjoyed that his mother's professional abilities would definitely not cheat her son, but Luo Sheng's mother asked for an annual salary of 3 million yuan and 1% of the company's equity for the person he recommended.

Luo Sheng was also surprised that the mother who played the guest agent would actually offer such a high price, but it was another matter after learning about the other party's resume.

The people my mother recommended for him were high-end talents who were proficient in legal affairs and foreign-related legal affairs, and were proficient in finance and auditing business. Due to personal reasons, he also refused the olive branch invited by Goldman Sachs Group on Wall Street for a million-dollar high salary. You should know that Wall Street is generally very good at attracting Asians. On the one hand, it is a business problem and a strength problem. Overall, Europeans and Americans are better at playing finance than Asians.

Goldman Sachs is a company that countless job seekers in the financial industry dream of entering. Tens of thousands of people apply for internship positions every year, and the admission percentage rate is single digits.

If you are proficient in multiple fields, this treatment is not an exaggeration. Especially in the finance field, Luo Sheng will no longer be involved in the financial field. However, the US still needs to do the subprime mortgage crisis in 2007, which just needs the assistance of elite financial talents.

Luo Sheng waited for three days while expecting, and the parties finally arrived in Shencheng and met successfully.

...

This morning.

Luo Sheng went to meet at the agreed location. In a cafe, he already knew the name of the person involved, Qin Weimu, who was a woman.

When Luo Sheng learned that the person his mother recommended to him was a woman of about the same age, he thought about something more for a while.

After meeting, Luo Sheng was quite surprised. Qin Weimu is a good-looking urban beauty with long hair, red lips without any touch, intellectual and full of royal sister style.

At this moment, both sides were sitting opposite each other in a private room.

Luo Sheng looked at the beautiful lawyer sitting in front of him and smiled: "Weimu should be taken from Tao Yuanming's "Reading the Classic of Mountains and Seas·The Tenth", Jingwei holds Weimu and will fill the sea with it. Jingwei fills the sea, Weimu, a good name!"

Qin Weimuxian held his jaw and stared at the man in front of him who was three years younger than him and who might have become his boss, and said, "I'm ready. Now I can have an interview and an exam?"

Hearing this, Luo Sheng shook his head and smiled, "Forget the interview and assessment, you can trust my mother. If you leave the original law firm and run to my startup company, I have no reason not to believe it. Could it be that my mother will cheat me? From now on, you will be the chief legal officer of the company."

Qin Weimu smiled pursed her lips, and after a while, she couldn't help but smile: "Actually, I didn't know before this. I didn't expect that Teacher Li would recommend me to work at her son's company. Blue Star Technology is very famous in the Internet industry recently, and I have heard of it."

Luo Sheng smiled and said nothing. After a while, Qin Weimu added with a slight confidence: "You can consult me ​​for any questions related to legal issues, whether it is domestic, North American or EU countries. It also includes financial audit issues and financial issues."

Luo Sheng stared at the beautiful lawyer lady in front of her in surprise. Her words showed strong confidence in her profession. Obviously, she also trusted Luo Sheng's mother very much.

After a while, Luo Sheng nodded, thought for a while and said, "The company has completed a new round of financing and reserved an option pool. The company has also entered a new round of development from the initial stage. It can be said that you are the first employee with experience in Blue Star Technology. In addition to you, the other twenty employees are either fresh graduates or current students. They were previously flat and loose management, but the new stage is obviously not suitable for this management method."

Qin Weimu nodded slightly and listened carefully to what he said.

Luo Sheng continued: "As we recruit more and more adult employees with work experience in the future, how to keep the entire team focused and striving with centripetal force and struggle is very critical. This is the most concerned and nerve-wracking issue I have recently. I think equity incentives are the best way, and I have also decided to provide equity incentives in the company, but the question is, how to do equity incentives? Is it appropriate to give it to employees or sell it to employees?"

After talking about these questions, Luo Sheng looked at the lawyer in front of him and asked her to take charge of the staff and analyze it so that she could make decisions.

"Sell!"

Qin Weimu said without hesitation.

Luo Sheng couldn't help but be stunned for a while, then looked at her, and Qin Weimu continued: "You must implement equity incentives and must not give them to employees. Otherwise, no matter how excellent your company's management is, no matter how outstanding you are, the probability of Blue Star Technology failure will have already occupied 50% in advance. I can say so with confidence."

"Continue, listen carefully." Luo Sheng looked at her and waited for the following words.

Qin Weimu quickly organized what he wanted to say, and after a moment he came in an orderly manner:

"Equity incentives must be sold, because if you give them for free, they will not cherish them. The purpose of equity incentives is to let employees share the benefits and risks with the company like shareholders. If you give them the equity, they will share the benefits with the company. If the company develops well, they will share the risks with you. If the company develops poorly, they will not share the risks with you."

"It is easy to do equity incentive plans, and you can give it as much as you want. But the difficulty is to sell equity to employees. From the perspective of human nature and psychology, no matter what price you sell it to employees, they will feel it high. Therefore, if you want to do a good job of equity incentives, you must meet six core elements, either of which is indispensable, namely: equity pricing, setting upper limit, waiting period, immediate incentive, a sense of security and deep trapping."

Luo Sheng couldn't help but feel excited. He decided to do equity incentives but he didn't think so clearly. As expected, he was a professional. Luo Sheng immediately said: "Please talk about these six core elements in detail."

Qin Weimu took a sip of coffee, put it down, glanced at Luo Sheng, and after a moment, he said, "The first priority in doing equity incentives is pricing. Take the case I have taken over as an example. A company boss once also wanted to implement equity incentives. He sold 10% of the company's equity to employees at a 50% discount at a normal valuation, but no one bought it. I am not surprised at all, because the employees will first wonder if there is something wrong with the company and the boss wants to trap them?"

"The boss finally doubted his life, why didn't he buy a single employee? Is there really something wrong with the company? He was a little self-doubted. Later, he went to my law firm and happened to consult and entrust me. I took on this case."

Luo Sheng interrupted curiously: "How did you do it?"

Qin Wei Muyan smiled and said bluntly: "I took this case and first looked at his business operations and financial status. The next thing I did was to help him find an investment institution to invest 10 million, accounting for 10% of the equity, with a valuation of 100 million yuan. The purpose of doing this was to price the company's equity. At this time, it was 6 million yuan, and the employees rushed to buy it."

"At the same time, I also gave a lecture to the employees of the company, explaining the equity incentives clearly, what advantages, disadvantages, and benefits."

Luo Sheng said: "So, my company has completed the pricing, and the pre-a round of financing has just been completed."

Qin Weimu's head lightly tapped and continued: "The second factor is to set the upper limit. Equity incentives cannot make employees buy as much as they want, such as the maximum purchase of 5% at the vice president level, the maximum purchase of 3% at the director level, the maximum purchase of 1% at the manager level, etc. A weight coefficient is made based on the employee's service life, position, performance, contribution, etc., and the maximum purchase of statistic is stipulated."

"The third element is the waiting period. The so-called waiting period is also a test period for employees. You must not give a certain employee 3% or 5% of the equity as soon as you start. You must give him a waiting period and a test period. The more you wait, the more you expect. You can also pass this stage to test and evaluate what value and contribution he has made to the company."

"Many times you will find that the employee is waiting and waiting, because he feels that the waiting period set by the boss is to draw a big pie for him. Therefore, the intermediate stage needs to let him taste real sweetness, which is the fourth element."

"The fourth element is to set up an immediate incentive. What should I do? Simple, use dividend rights to incentivize. When setting options for employees, you must combine dividend rights. Although the shares are still options, at least you can get dividends, so employees will not think that you are giving them a big pie."

Qin Weimu paused for a while when he said this, took a sip of coffee and continued to replenish:

"The fifth element is a sense of security. Many companies fail in equity incentives in the end because of the boss's verbal promises, especially when drinking some wine at the dinner table. How could employees believe your promises? Not only would they not work hard because of your verbal promises, but they would also doubt your true nature of fulfilling your contract."

"So, when enterprises are giving equity incentives to employees, they must give them a sense of security, that is, legal protection. That is, they must sign a complete legal document for equity incentives. At least they must formulate an equity incentive plan and have an equity incentive agreement signed together. Many companies have only two pages of equity incentive agreements. Can this give employees a sense of security? Obviously not, it is like buying a house and the developer gives you a two pages of real estate contract. Do you dare to buy it?"

Luo Sheng shook his head, surely he would not buy it, and then subconsciously asked: "How to do it?"

Qin Weimu replied: "What should I do if an employee is promoted? What should I do if a demotion? What should I do if a divorce? What should I do if an employee is injured? What should I do if I leave? All situations such as employee entry, withdrawal, promotion, and demotion should be considered and written into the agreement, exhausting all possible possibilities. If there is only a pitiful two pages, what should I do if there is a problem in the end? The final right to explain is not owned by the company? The employee is still a vulnerable group and has no sense of security."

"So, there must be complete legal documents in equity incentives and sign the equity incentive agreement. When I officially start work, I can draw up a complete contract document for you for review."

"The last element is deep trapping. That is, to trap employees step by step, and to pay money, time, feelings, etc. in the company. Don't underestimate the little money the employees spend. For example, equity incentives make employees spend hundreds of thousands, hundreds of thousands, and tens of thousands to buy equity in Blue Star Technology. After spending this money, their mentality will change."

Finally, Qin Weimu said concisely: "Because who has the money will care about it."

Hearing this, Luo Sheng looked at her in surprise, and nodded silently in his heart. Being able to say these words means that Qin Weimu has no subjective prejudice, because she directly obtained the distribution of 1% of the equity by joining Blue Star Technology, but said that she could not directly give shares, but insisted on selling.

From this we can see that Qin Weimu's professional ethics is worthy of recognition. He will not say something against his will just because he is a vested interest. Public is public, and private is private.

Luo Sheng immediately felt that the talent recommended by his mother was indeed reliable.

...
Chapter completed!