My rebirth is different

Page 668

With the scale and development trend of Facebook, it should be relatively easy to reach a market value of more than 100 billion when it goes public, after a reasonable hype and momentum.

Then the income of listed underwriters is very considerable. If it is underwriting, the income will be [-]% to [-]%!

It is a bit exaggerated to say that the money is taken for nothing, but in fact it does not require the bank to pay too much energy, because the customers they sell stocks are themselves the big customers of their bank.

…………

It is still the large conference room on the top floor of Building No. [-]. Yu Wenfei, Cai Congxin, and Xue Chunhe are representatives of Facebook’s existing shareholders. Merrill Lynch, HSBC and other company representatives.

This time it was an intentional contact. Obviously, there will not be so many companies that have really entered the "finals".

"Everyone, first of all, thank you for your trust and support for Facebook. Before Facebook's listing, this is the last financing. That is to say, after this financing is over, we will immediately start the listing process. The goal is NASDA America. Gram! Next, I will first inform you about the key data of Facebook in the latest stage..."

Cai Congxin was the host of the meeting and took the lead in speaking.

After explaining the key data of Facebook, he signaled the secretary to send the relevant information to the representatives in the conference room.

All the data mentioned here, as well as written materials, are guaranteed to be 100% true and cannot be mixed with water.

Because these things will also be an important basis for various investment banks to value Facebook. After they really decide to invest, they will also conduct strict due diligence.

If the data provided by Facebook is found to be falsified, it will be a big deal.

Before coming here, each investment bank must have done the function, and now it is just to confirm with the data provided by Facebook itself.

"As for the valuation of Facebook, our board of directors considers it in this way. It starts with 50 billion US dollars, and everyone will bid for it. In the end, we will only introduce two new partners. Therefore, please be cautious about quoting. Also, Facebook Net will issue up to 3000 million additional shares and distribute them to new partners." Cai Congxin added again.

Facebook now has a total of [-] million shares, and the share structure is like this.

After the last redistribution, Yu Wenfei continued to hold 900 million Class B shares of Facebook through Star Technology, and became the largest shareholder with an absolute controlling stake.

There are 1000 million Class A shares in the newly established employee share incentive pool.

Softbank got 900 million shares, and Jiaoda Venture Capital got 100 million shares.

In addition, Cai Congxin has 100 million shares. According to his work performance, before the company goes public, he can still get 400 million equity incentives.

This time, by issuing another 3000 million shares, Facebook will have a share capital of 3000 million, and the shareholding ratio of the original shareholders will be diluted. This is also impossible.

When Facebook actually goes public, the shares will be diluted once more.

Therefore, for many Internet start-up companies, when they actually go public, the founders may only hold a few percent of the shares.

In only a very small number of companies, the founders can always control the real power of the company. In most companies, the founders will not even wait for the company to go public, and the founders will start to fade out of the company's management, and some will even be kicked out of the company.

…………

After listening to Cai Congxin's quotation, there was a slight commotion in the meeting room. Bidding is a relatively rare financing method.

Under normal circumstances, it is the company that asks for venture capital. How can there be such a group of investment banks begging the company to accept their checks.

This is Facebook, and it is impossible for another company to appear.

There is no way, who makes Facebook so prosperous now, not only all kinds of data have blinded everyone's eyes, but now, this company has also been affirmed and supported by the above.

In mainland China, everyone understands what it means.

Chapter 570

After Cai Congxin announced the financing conditions of Facebook, the VC representatives present had mixed reactions.

Facebook is not the sun. Naturally, it is impossible for everyone to revolve around it, and it is impossible for all VCs to trust it without a doubt.

The representative of Temasek raised a question, "I would like to ask Mr. Cai, although Facebook's valuation of 50 billion, in my opinion, has a valuation basis, but for our investors, the risk is already very high. Your country is currently listed. The three Internet companies with the highest market capitalization are Sina with a market capitalization of 36 billion U.S. dollars, Sohu with a market capitalization of 25 billion U.S. dollars, and NetEase with a market capitalization of only 21 billion U.S. dollars. In fact, it can be said that Facebook’s last financing of 40 billion U.S. dollars is already considered a mainland Internet company There is a ceiling on the valuation. It is still unknown whether Facebook can exceed 40 billion US dollars after it goes public. This time, your company raised an asking price of 50 billion US dollars, and it is the starting price. Is this..."

Although it was not stated explicitly, the meaning of distrust has been clearly revealed.

This is also understandable. Financing is what it is.Investors hope to keep the valuation as low as possible, because they can get more shares with less money.As for the invested company, they hope that the higher the valuation, the better!In that way, you can pay less for shares and get more money.

This is the process of a game, until a number acceptable to both parties is reached, then the cooperation will be happy.

The views expressed by representatives of Temasek also represent the meaning of some VCs, and many people expressed their agreement.

Sequoia Capital even raised a new question, which is more acute.

"Mr. Cai, the scale of Facebook has indeed become the leading social networking site in mainland China. The number of registered users and the number of daily active users are unmatched. This is admirable. But what I want to know is that so far, Facebook has no Seeing a clear profit model. No... Maybe it should be said that Facebook has never made a profit at all! The three portals that Mr. Li of Temasek just exemplified have shown good profitability , according to the financial report, the revenue in the first quarter showed an upward trend. Among them, Sina hit a record high of 3190 million US dollars in revenue, with a net profit of 1170 million US dollars; Sohu’s revenue was 2210 million US dollars; , the net profit per share is as high as US$1770. Regarding this question, how does your company think about it.”

For this problem, perhaps in the entire conference room, only Mr. Liu from Modu International Trust Investment does not care, because their investment in Facebook has more political significance than investment significance, so it does not matter to him whether Facebook is profitable or not , As long as you can have a certain voice on Facebook and maintain Facebook's "political correctness", this is enough.

In order to achieve this goal, it is not a bad idea to spend more money.

But all other VCs are very concerned about this issue.

Everyone says that VCs are too tolerant of Internet companies, allowing these companies to lose money for many years in a row, and even some Internet companies have been listed for more than ten years and still maintain continuous losses, such as Amazon...

However, no one is a fool, not even VCs!On the contrary, those who can do VC are obviously the elite among the elite, the truly smart people.

There must be a limit to everything. The reason why VCs can tolerate continuous losses in the Internet companies they invest in is because they believe that this company will make a lot of money in the future.

In other words, temporary losses are okay, but you have to come up with a clear and convincing profit model!

For example, when financing, you can tell the VC that the development plan of my company is like this. For three or five years, it is necessary to maintain a state of continuous investment and no revenue.However, the profit point of the company lies in this place. As long as the number of users reaches a certain level, the company will turn losses into profits.

As long as your plan is indeed executable and the profit growth point can be seen, then VC will trust you and will not hesitate to invest huge sums.

The current Facebook has not given a clear and convincing profit model.

If you want to ask why Sun Zhengyi didn't ask these things when SoftBank Capital became a shareholder for the first time?

Perhaps it can only be explained by Sun Zhengyi’s vicious vision and unique style of doing things. Around 2000, he made many large-scale investments, all of which were made when the target company had no future at all. And it's a lot of money when you make a move.

This is how SoftBank Capital became so successful later.

When investing in Facebook, Sun Zhengyi said that he was investing for Yu Wenfei!

Of course, he can do this, but other VCs are not like this. Like Temasek, Sequoia Capital, etc., they are very cautious in investing, and they would rather not invest than take too much risk.

…………

Cai Congxin and Yu Wenfei ignored and smiled, they had already considered this issue and were prepared.

How does Facebook make money, and what will it rely on to convert traffic in the future? This problem must always be faced.

Even if this investment does not answer this question, when the company goes public, it still needs to be explained to investors, otherwise, who will sell the stock to?

If the Facebook game hadn’t been spun off, perhaps the VCs present wouldn’t have raised this question at all, because Internet companies have turned their game business into cash, which has obviously become a trend in the past two years, especially in the domestic Internet circle.

NetEase is engaged in games, Tencent is also preparing a game department with great fanfare, and even Sohu and Sina are just around the corner.