Rebirth 2004: I can make money by writing.

In the past period of time, Hao Qiang has received many visiting letters from investment institutions and companies.

He rejected all those who had no fame or ability.

As long as the company is profitable, it will have no worries about financing from investment institutions.

Some investment institutions not only deliberately set low valuations, but also have various harsh requirements.

The next afternoon,

Hao Qiang met with Chen Kai, vice president of Huaguo District of Huanhui Investment Institution, and a group of three people in his office.

"Hello, Mr. Hao. I've heard a lot about you."

"Hello, you're welcome." Hao Qiang shook hands with the guests one by one.

After chatting for a while, Chen Kai got straight to the point: "Mr. Hao, we are very optimistic about the development of Future Technology Group and would like to conduct in-depth cooperation with your company."

Hao Qiang smiled and nodded, without any surprise.

I've seen it so many times, so that's it.

"Thank you for your favor, Mr. Chen. You can just say it directly."

Chen Kai continued, "Our team has conducted an in-depth analysis of Renjian Fireworks and is very optimistic about its future development. The pre-investment valuation is 42 billion yuan, and we intend to raise 10 billion yuan to support Renjian Fireworks' development.

We will absolutely not interfere with its development, and we will not rush its listing within five years."

After listening to Chen Kai's words, Hao Qiang felt that his valuation was relatively reasonable and he did not deliberately lower the price. This is the courage of a large investment company.

Currently, Renjian Fireworks has opened 20 stores, with monthly profits reaching 1800 million yuan.

Of course, the pre-investment valuation of 42 billion yuan is a bit low.

In Hao Qiang's opinion, a pre-investment valuation of 55 billion yuan is enough.

If we raise 10 billion yuan in financing, we will give out 20% of the shares.

In fact, even if Hao Qiang was given 10 billion yuan to develop the world of fireworks, he really wouldn't know how to spend the money reasonably.

Financing is not the transfer of shares, that is, the money does not go into his pocket, but into the company's account and is specifically used to develop the company.

Moreover, if Hao Qiang wants to embezzle Renjian Yanhuo’s funds in the future, forget it.

“Thank you Mr. Chen for your favor, this valuation is indeed very sincere.

But I have no plans to raise funds at the moment," Hao Qiang said bluntly.

According to his plan, if the number of stores did not reach 80 before 2009, he would not be able to meet the requirements for his planned Series A financing.

Renjianyanhuo is in a period of rapid development, with no shortage of funds and no bottlenecks in development. Financing too early will lead to disadvantages.

After the outbreak of the financial crisis in 2008, the market environment was not optimistic until mid-2009, and most companies would not choose to go public during this period.

Since it is impossible to catch up with the listing opportunity before the financial crisis, it is better to postpone the plan to the end of 2009 or even 2010.

In addition, even if financing is obtained within the past year, it is impossible to go public in a short period of time.

“Mr. Hao, we can continue to discuss the valuation in detail. Even a premium is not a problem.

I personally feel that choosing an excellent partner is more beneficial to the company's development and more valuable than simply pursuing a high valuation." Chen Kai admired Hao Qiang's calm demeanor.

When Chen Kai heard that Hao Qiang refused the financing, he felt happy instead.

If Hao Qiang agreed quickly, Chen Kai would think that Hao Qiang was too hasty. Choosing an impulsive investment target is not a good thing.

Investing is investing in people. The personal qualities of the founder are very important, such as integrity, resilience, perseverance, emotional management, stress resistance, etc. These directly affect the development of the company.

Among them, integrity is particularly critical, and its biggest advantage is to reduce the deliberate concealment of information.

A good founder is more likely to succeed no matter what business he is in.

Chen Kai saw many outstanding qualities in Hao Qiang, which proved that he was not wrong.

"It's not a valuation issue. It's just that Renjian Fireworks Company hasn't reached the stage of raising funds yet. Even if you give me money, I don't know how to spend it." Hao Qiang waved his hand and said with a smile, "I still have over a billion in cash on hand, most of which I've invested in the stock market.

There is plenty of liquidity in the world of fireworks, and people earn money faster than they spend it.

Honestly, I feel like a loser when it comes to spending money.”

"..."

Chen Kai was speechless for a moment.

Damn, this is the first time I’ve met a founder who has so much money that he’s worried about how to spend it.

But he has a good vision and has made a lot of money from investing in Moutai and Tencent stocks.

Chen Kai took a sip of tea and said, “This is also why I admire Mr. Hao so much and am willing to cooperate with him in depth.

Investing is investing in people, and this is the same principle.”

Then, Chen Kai talked about a series of benefits of financing to the development of Renjian Fireworks, and stopped talking about money.

Talking about money, they are not short of money at all.

Hao Qiang's eyes turned and he said, "Mr. Chen, I sincerely thank you for your favor.

Although I don’t plan to raise funds from outside in the next one or two years, I can change the terms of cooperation.”

"Oh? Tell me about it." Chen Kai's mouth was dry and he had already drunk several cups of tea, but Hao Qiang showed no sign of being moved.

There is no way, I met a rich man.

Their biggest advantage is that they have a lot of money, but now, this advantage is no longer effective in front of Hao Qiang.

Hao Qiang smiled slightly and said, "Mr. Chen just said that investing is investing in people. How about this? I'll use 20% of Renjian Yanhuo's shares as collateral to apply for a 10 billion yuan personal loan from your company with an annual interest rate of 10% for a period of two years.

If I fail to repay the principal and interest of 10 billion yuan within two years, then these 20% shares will be officially transferred to your company.

If I can repay this mortgage loan on time, under the same conditions, your company will have priority access to Renjian Yanhuo's Series A financing."

Hao Qiang planned to invest the money in the stock market. In less than two years, after deducting the interest, the rate of return would be at least double.

Of course he didn't want to miss such a good opportunity.

After 2008, we had an extra 20 billion yuan on hand, and we could do more.

After a few more years of growth, it might become more than 10 billion yuan.

At present, the prerequisite is that others are willing to do so.

If it were him, Hao Qiang would definitely not be willing to do that.

Chen Kai and his two entourages were very surprised when they heard Hao Qiang's words.

After all, what Hao Qiang proposed was just a mortgage loan, not usury.

The current annual interest rate for usurious mortgage loans is around 20%, and the annual interest rate for unsecured loans is as high as around 30%.

They had to admire Hao Qiang's shrewd calculation, which was indeed a good plan.

"Private loan?" Chen Kai confirmed again.

If it is not financing but share transfer, this is equivalent to a pre-investment valuation of Renjian Fireworks of 50 billion yuan.

Of course, the difference from their previous estimates is not too big.

"Yes, this money has other uses." Hao Qiang said, "To be honest, it's impossible to get such a large amount of money by borrowing from the bank."

This time, Chen Kai fell silent.

It's not that they can't provide mortgages, it's just that the interest rates are too low.

If used for other investments, the average rate of return will not be lower than 10%.

According to the development of Renjian Fireworks and Hao Qiang's financial strength, it would not be difficult for him to repay the 10 billion yuan.

What they can ultimately get is financing priority under the same conditions.

If other investment institutions offer a higher valuation, this priority will no longer exist.

On the other hand, Chen Kai is more optimistic about Hao Qiang.

The more I communicated with him, the more I felt that he was smart and capable.