Rebirth 2004: I can make money by writing.

Venture capital wants to invest in the mundane world?

Renjian Yanhuo can be said to be a dark horse in the catering market, developing rapidly and attracting much attention.

When Hao Qiang heard that a venture capital firm wanted to invest, he couldn't help but feel excited.

but,

Renjian Fireworks Company is in good operating condition and has sufficient funds, and does not need to introduce external investors for the time being.

Generally speaking, there are two situations that attract venture capital.

First, the company faces a shortage of funds and needs external financial support to promote development or cope with financial risks or crises;

Second, the company hopes to introduce strategic partners and leverage their resource advantages to accelerate the company's growth.

But for now, Renjian Yanhuo does not need to seek external help for this funding.

As for resources, the company needs them, but the time is not right yet.

Introducing venture capital now is equivalent to giving most of the profits to others.

Hao Qiang remains clear-headed about this, but is also cautious about venture capital proposals.

However, he still planned to meet her to see how much people valued Renjian Fireworks.

"Sister Qiu, I'll be there in half an hour. Please ask the venture capitalists to wait in the conference room. Also ask Manager Jiang to wait."

Hao Qiang replied to the human resources manager Qiu Xueya.

Ten minutes later, Hao Qiang drove to Tiansheng Building, met Jiang Ying, and talked to her about venture capital.

Jiang Ying was familiar with this area, and she suggested, "Boss, I think we don't lack funds right now. We are in a period of rapid development, so there is no need to introduce venture capital.

Of course, if it is debt financing, it is something you can consider.

However, venture capitalists are likely not happy about this, as they are targeting our company’s shares.”

Jiang Ying knew that her boss was using the funds for other investments and had told her so, so she worked hard to raise funds for her boss.

Compared with equity financing, debt financing generally does not bring about control issues for the company.

Creditors are only concerned with the payment of interest and principal and do not participate in the company's daily operating decisions, which is equivalent to paying interest on a bank loan.

Of course, bank credit loans are also one of the main forms of debt financing.

Hearing this, Hao Qiang said with a hint of worry, "Are there any risks?"

Jiang Ying said, "Yes, there are some. In certain circumstances, creditors may intervene in the operations of a business. Boss, you might not like that. It all depends on the venture capital side."

"I don't like outsiders telling the company what to do. It's tiring to take their money." Hao Qiang nodded. "Let's meet first. They may not be happy about it.

Let’s go and meet him together.”

After finishing speaking, Hao Qiang walked towards the conference room, followed by Jiang Ying.

After he came in, a young man and a young woman sitting in the conference room stood up. The young man greeted Hao Qiang: "Hello, Mr. Hao, I'm Guo Cai, the investment manager of Yuecheng Huafeng Investment Company, and this is my assistant Zhou Chang."

"Hello, please take a seat." Hao Qiang sat in the main seat and gestured for the two to sit down.

Li Xin at the front desk poured tea for everyone and then left the meeting room. She was the one who was entertaining the guests just now.

After the two sides exchanged greetings, Guo Cai praised Hao Qiang a lot, saying that he was young, promising and talented.

However, Hao Qiang just smiled faintly and remained calm.

Once you get too excited, you will lose the upper hand in business negotiations.

In fact, the negotiation officially started when he answered the phone.

If Hao Qiang answers the phone and says to meet immediately, it means he is in urgent need of funds.

But Hao Qiang didn't. He gave half an hour but didn't let others wait too long. He found it just right.

After Guo Cai praised him for a while, he saw that Hao Qiang was still keeping a calm smile, and he felt a little embarrassed.

Before coming, he thought Hao Qiang was too young and his business was just luck, so he wanted to see if he could fool him.

It seems that this was a bit of a misstep.

Of course, he is optimistic about the development of worldly affairs.

"Manager Guo, please speak frankly." Hao Qiang still kept smiling.

"Mr. Hao, our company attaches great importance to the development of Renjian Fireworks and would like to have in-depth cooperation with your company."

Typically, venture capital firms analyze founders rather than companies.

If the founder is awesome, even if it is a newly established company, a large number of venture capital companies will flock to it.

Hao Qiang nodded and took a sip of tea.

Guo Cai said with a confident smile: "According to the estimates of our institutional investment analysts, Renjian Fireworks' current pre-investment valuation is 170 million yuan, and our company plans to raise 30 million yuan.

Under normal circumstances, we do not participate in the day-to-day operational decisions of the world.

I believe that through our cooperation, Renjian Fireworks will develop even faster.”

When Hao Qiang heard the valuation was 1.7 million yuan, he really wanted to scold him.

Renjian Fireworks currently has 6 branches in operation, with monthly profits exceeding 4 million yuan and annual profits exceeding 50 million yuan, which is very terrifying.

Generally speaking, the commonly used valuation methods for valuing a company include price-to-earnings ratio method, discounted cash flow method, price-to-book ratio method, DuPont analysis method, etc.

The price-to-earnings ratio method is more commonly used, that is, the PE multiple.

In different industries or at different stages of development, the price-to-earnings ratio will vary due to differences in growth rates.

The price-to-earnings ratio can also be queried through listed companies of the same type. For example, in the catering industry, during a certain period, the price-to-earnings ratios of A-share Quanjude and Xiang'e Qing were 30 times and 35 times respectively.

If applied to Renjian Fireworks Company, the valuation would be equal to = PE multiple of annual profit = 15 billion yuan to 17.5 billion yuan.

However, Guo Cai said that the pre-investment valuation was only 1.7 million yuan, which is 10 times different from the actual situation.

In fact, the world of fireworks is in rapid development and it is difficult to value it.

15 billion to 17.5 billion is just an assumption.

Normally, venture capital firms will give a very high PE multiple to a company that is growing rapidly and has proven its crazy profitability.

Of course, the company must go public within the deadline.

If there is no plan to go public, or if the company does not plan to go public for many years, the investment risk for the venture capital company will be high, and it will take a long time to recover the investment cost through dividends alone.

Therefore, when raising funds, the listing plan will also be discussed.

"Manager Guo, you're such a joke! You think we don't know anything about this? Do you think the CFA certificate I have is fake?"

Jiang Ying couldn't help it and said sarcastically.

Guo Cai and Zhou Chang thought that the young lady who had been silent was just a decoration, but they didn't expect to meet an expert.

Just now, Hao Qiang just gave a brief introduction.

"Manager Guo, I have something urgent to deal with today, so I won't see you off." Hao Qiang smiled speechlessly, feeling that he had wasted his time and met someone who wanted to fool him.

After saying that, he stood up and left the meeting room, not wanting to say anything polite to them anymore.

He has been in a good mood recently and doesn't feel like cursing.

If it were in the past, I would definitely curse “Get lost, you piece of trash”.

You're about to become the chairman, but you still have to maintain your composure.

After Jiang Ying saw the boss leave, she saw Guo Cai and Zhou Chang still in the meeting room and said sarcastically, "You two, isn't our boss clear enough? Go back to where you came from!"

Guo finally realized that it was useless to explain anything. He smiled awkwardly and quickly left the world, followed by his female assistant.

He came here this time just to take a gamble on whether Hao Qiang was young and didn't understand this, and to see if he could fool him.

If the trick succeeds, you will make a lot of money.

In fact, he did not get the authorization for 30 million yuan in funds, and he could not even take out several million yuan.

After signing the agreement, the financing funds will not be received immediately.

Guo Cai planned to sign the agreement with Hao Qiang and then transfer the agreement to other venture capital institutions at a high price to make a quick buck.

This kind of trick of getting something for nothing really works if the founder is a fool.