Only after being reborn did I realize how fascinating the world of the rich is.
Chapter 170 This round of investment is for our own people.
As Wanzhong Media Company grew larger and its LCD screens were deployed more extensively, its reputation in Shanghai's advertising industry also rose rapidly.
A large number of businesses also began to flock to Wanzhong Media. After all, in this era, internet advertising was not yet developed, and the effect of elevator LCD screen advertising was incomparable to that of ordinary print advertising.
It was already the end of 2002, and Li Xiaofeng and the others were already senior students, with their last winter break of college life approaching.
Jiang Xueying flew back from the beautiful country soon after.
However, Li Xiaofeng is now focusing his main energy on fundraising.
His first source of funding was Jiang Xueying's father, Mr. Jiang.
"Mr. Jiang, would you be interested in investing in my Wanzhong Media?" Li Xiaofeng asked casually while playing chess with Mr. Jiang.
In fact, ever since his relationship with Jiang Xueying was exposed during the last summer vacation, he would occasionally go to the Jiang family to play a few games of chess with President Jiang, which was also a way to maintain their relationship.
Mr. Jiang had just won the last game of chess and was in a great mood. He smiled and said, "I've heard about your Wanzhong Media too. It's quite famous now and has developed very well. What, are you still not satisfied?"
Li Xiaofeng smiled and said, "The track I've entered is still a completely new track in the advertising industry. I have to move forward quickly and basically run fast, otherwise the big fish will eat the small fish, and I will eventually be eaten by others."
Therefore, I'm ready to start fundraising. The company's business scope now basically covers commercial buildings and some high-end residential communities in Shanghai, and we plan to continue expanding into Shenzhen and Beijing.
At this point, Li Xiaofeng took a few more steps with President Jiang, leaving him in a sorry state, making it seem like the situation was beyond saving.
Then, he handed Mr. Jiang a financing plan and said with a smile, "Mr. Jiang, how about we call this a draw? Please take a look at this plan first."
Seeing that continuing the game would inevitably lead to defeat, General Manager Jiang quickly seized this opportune moment to end the game and began reviewing the business plan.
"To be honest with you, the growth rate of my company and the advantages of this sector in the advertising industry are obvious. It is not difficult to find foreign financing institutions to obtain funds!"
But I'm a rather conservative person. I think it's better for us to make money ourselves than for foreigners to make money from us. Since you are Xueying's father, I'm showing you this financing plan first.
In this round of financing, I plan to raise 100 million yuan initially. After spending this 100 million yuan, I will proceed with the next round of financing. Therefore, this first round of financing is the most cost-effective!
After looking at it for a while, General Manager Jiang put down the plan in his hand, smiled slightly, and said in a light tone, "I actually have a general understanding of the size of your company."
After all, I am also one of your clients, and I have watched your company grow step by step. I also know that your company's assets are only around 50 million.
Furthermore, your company has only been developing rapidly for six months, yet you're now valuing it at a staggering 4 million, an eightfold increase! Isn't that outrageous?
Li Xiaofeng smiled and said in a calm tone, "President Jiang, I don't know if you're saying this on purpose or if you really don't understand the rules of the game in the capital market."
The company's angel round investment was my own investment. This round saw the fastest growth, and the valuation increased by a multiple, which is normal.
If you really don't understand, you can first look at some financing plans from foreign investment institutions, and then come back to me and see if the valuation I gave you for this first round of financing is too high!
Li Xiaofeng gave a valuation of 400 million yuan, meaning that his company is currently worth 400 million yuan. With the financing of 100 million yuan, the company will become worth 500 million yuan.
In other words, the shares purchased for 1 million yuan account for 20% of the company's total shares. Li Xiaofeng and his executives hold 4 million shares, while the first round of investors hold 1 million shares.
Mr. Jiang smiled and continued in a calm tone, "It seems you have a lot of confidence in yourself!"
"Of course, how can we do anything without information? Actually, I said I came here to raise funds, but in reality, I'm here to give money to your Jiang family. I'll put it this way: in six months, the company's valuation will increase at least several times over."
In other words, if you invest money with me now, as long as the amount is within 1 million, no matter how much you invest, it will at least double in six months.
"Since it's so profitable, why don't you raise more funds? Why only raise 100 million?"
Li Xiaofeng smiled and said, "President Jiang, it seems you know a little about financing, but not much. If you raise too much money at the beginning, what will you do if you want to raise more money later?"
Once all the shares have been distributed, who will own the company?
"The fact that I'm offering 20% of the shares this time is already very generous and shows great sincerity. To be honest, this round of investment is reserved for our own people."
Mr. Jiang smiled but didn't say anything, continuing to look at the financing plan.
"It's alright, Mr. Jiang. If you feel it's not suitable, I'll go to foreign investors. In fact, people from Hard Gold Capital and Dasheng Capital have already contacted me."
Their initial offer was already a valuation of 3 million, so negotiating a valuation of 4 million with them should be no problem, and maybe even 5 million!
Just then, Jiang Chengye came out of his room, his face full of excitement, and said, "Dad, Xueying just called me and said that her flight is the day after tomorrow, and she will be home the day after tomorrow."
A happy smile appeared on President Jiang's face, and he quickly said, "Then you should make good preparations and buy all the things that Xueying likes to eat!"
"Okay, Dad, I'm on my way now!"
After Jiang Chengye left, President Jiang first sighed, then smiled and said, "To be honest, I don't know much about venture capital in the financial world, nor am I very interested in it. However, I'm still willing to invest in you!"
"Why?" This question surprised Li Xiaofeng.
"Although I don't understand venture capital, I believe I'm quite good at judging people. You're a young man with both ability and insight, and you have a good relationship with Xueying. You probably wouldn't do anything to harm Xueying!"
Li Xiaofeng smiled but didn't say anything.
It's best to listen to the expert's ideas before you understand them.
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