Reborn in Hong Kong as a Tycoon

Chapter 506 Apple's second round of financing (two in one)

July 7rd is another Monday.

Lin Baicheng came to Apple again.

In addition to the original shareholders and directors who came to Apple this time, the new shareholders who participated in the financing also came. Today, Apple is here to sign the relevant agreements and contracts for share financing.

It has only been about ten days since the last time Apple held a meeting of the board of directors to decide on financing, and Apple has negotiated the financing. On the contrary, New Century Software, which decided to raise earlier, is still negotiating the company's valuation.

The reason for this is that Apple hopes to obtain funds earlier, invest the funds in the company's development, and try to grow as much as possible before IBM officially enters the personal computer market, so Apple does not have so much time for wrangling.

New Century Software Company is different. It is not short of money at present. The preliminary research and development of database software and personal computer operating system can be fully supported by New Century Software Company’s current funds. Therefore, it is not so anxious about financing. Talking about a higher valuation is a little bit, there are only advantages and no disadvantages.

Today, all Apple shareholders come with lawyers or teams to complete the share change.

This time, Apple raised 10% of the shares, and all original shareholders diluted the corresponding shares proportionally.No one chooses to sell more shares, and no one chooses to spend funds unwilling to be diluted.

Before this financing, Lin Baicheng held 27% of Apple's shares, Jobs held 26.18% of the shares, Steve Gary Wozniak held 21.42% of the shares, and Mike Markkula held 5.4% of the shares , Goldman Sachs holds 10% of the shares, Elephant Capital and Logan Rockefeller each hold 5% of the shares.

And this financing of 10% of the shares, all original shareholders will be diluted by 10% of the shares, which means that Lin Baicheng holds 24.3% of the shares, Jobs holds 23.562% of the shares, and Steve Gary Wozniak holds 19.278% of the shares Shares, Mike Markkula holds 4.86% of the shares, Goldman Sachs holds 9% of the shares, Elephant Capital and Logan Rockefeller each hold 4.5% of the shares, accounting for 90% of the company's total shares.

The remaining 10% of the financing shares were taken by four institutions, of which Goldman Sachs led the investment of 5%, Hutchison Whampoa took 3%, Pioneer Technology Venture Capital took 1%, and Sequoia Capital took the rest 1% share.

Don't look at Lin Baicheng's 2.7% shares being diluted this time, but half of the 3% shares that Hutchison Whampoa got are his, and Pioneer Technology Venture Capital is a company solely owned by him, which means that he gets 2.5% of the shares. Not much diluted.

Lin Baicheng still prefers that Apple can develop and grow in the competition with IBM, and at least survive and occupy a certain market, so that the investment will not suffer losses.

Of course, if Lin Baicheng is really wrong in his judgment, there is nothing he can do about it. After all, the butterfly effect caused by his rebirth will only grow bigger and bigger. It is normal for some companies to have their futures changed.However, although he can't be sure that Apple will succeed, even if he makes a wrong judgment, he can afford the corresponding loss.

After this round of financing, Goldman Sachs' stake has increased to 14%, making it Apple's fourth largest shareholder.

In this financing, Apple is financing with a market value of 2.5 million U.S. dollars, financing 10% of the shares to obtain 2500 million U.S. dollars in development funds.

The last time Apple’s pre-financing valuation was $9500 million, it raised 20% of its shares to get $1900 million, and its post-financing valuation was $1.1 million.

In just half a year, Apple's market value before financing has become 2.5 million US dollars, and its valuation has more than doubled, mainly because Apple's personal computer sales are increasing and its performance is getting better and better.

However, Apple's current valuation of US$2.5 million is actually not high, on the contrary, it is a little underestimated, mainly because IBM is about to enter the personal computer market to compete with Apple, and there is such a strong competitor. It is normal for the market to be bullish.

New Century Software, which is also financing, has a higher valuation than Apple. The reason for this is that New Century Software has no competitors, has basically occupied the market, and achieved a monopoly position, so it will be valued at a normal valuation. A certain overestimation is given on the basis of , because the risk of investing in this company is smaller.

Apple is different. With IBM as a competitor, it is quite possible that it cannot compete with IBM. Its future development prospects are hard to say, so the current performance cannot bring the due high valuation, but will be underestimated by the market.

At a valuation of US$2.5 million before financing, Hutchison Whampoa spent US$3 million for 750% of the shares, and Pioneer Technology Venture Capital spent US$250 million.

After the financing, Apple, which has an extra $2500 million in cash, has a valuation of $2.75 million, but shareholders and management will only say that Apple’s valuation has reached $3 million.

In this way, the stronger Apple is, the more attractive it is to outstanding talents. At the same time, it will have more status in dealing with other companies, and it can get more money when negotiating loans with banks.

However, if Apple is really calculated based on a valuation of US$3 million, Lin Baicheng’s 24.3% stake on the surface is equivalent to US$7290 million, while his investment is only a little more than US$500 million, and the profit has exceeded ten times the cost.

It's a pity, let's not talk about whether Lin Baicheng himself is willing to sell the shares at the current valuation. If he really wants to sell so many shares, there is probably no institution to take over, and even if there is an institution to take over, he will definitely sell at a discount. It would be great if the successor agency can take over at a discount of [-]% or [-]% of the valuation.

Therefore, if you really want to realize the shares in your hands without being discounted, you need to let Apple go public, and at that time, Apple's market value will be higher, and the profits that Lin Baicheng can earn will also be higher.

"Dear shareholders, our management has already booked a hotel and decided to hold a celebration party for our company's successful financing in the evening. I hope everyone has time to attend."

After signing the agreement and the contract, Jobs said to all shareholders.

The director representing Goldman Sachs listened and said: "It's time to celebrate, and I will attend on time."

The director of Elephant Capital also said: "This is a good thing."

"Ellen, do you have time to party tonight?"

Jobs looked at Lin Baicheng who was silent. Of course, he would not ignore the major shareholder of the company.

Lin Baicheng nodded with a smile: "Of course I have time, I have no problem here."

"me too."

Logan Rockefeller came to Apple in person today. He has invested a lot in Apple, and he will definitely find time to come over for the company's official financing.

The remaining shareholders also expressed one by one that they had time and would go to the party at night.

It's still daytime, so everyone leaves Apple first.

When Lin Baicheng left, he left with Cheng Yufeng. That's right, the person in charge of financing this time in the United States was Cheng Yufeng, the vice president.In addition to the need for a high-ranking person in charge because the financing funds are not low, it is also because Watsons is going to open a branch in the United States and open its first supermarket in Los Angeles, so Cheng Yufeng came to do this in person, just came to the United States By the way, the financing is also handled here.

As for the Pioneer Technology Venture Capital Company, as the manager, Iger Demar didn't even know that Lin Baicheng was the boss of this company, so it was impossible to leave with Lin Baicheng, and Lin Baicheng would not tell the other party the truth.

Because they wanted to attend the evening party, Lin Baicheng and the others temporarily booked a hotel and went to the hotel to rest.

At night, Lin Baicheng and Cheng Yufeng went to the hotel booked by Jobs and others to attend the celebration party tonight.

In addition to the management and outstanding talents of Apple, the people who came to the party tonight also included shareholders such as Lin Baicheng, as well as accessories suppliers who had in-depth cooperation with Apple, and the friends suppliers specially sent people to the party to maintain the relationship between the two parties.

After the party officially started, the management headed by Jobs said a few words, and then everyone went their own way, drinking and chatting.

This is a more formal business party, not the kind of party for Hollywood stars, so there are no models, no flour, everyone is successful, and it is a very serious chat.

"Hi Alan, I'm Don Valentine, and this is my business card. Nice to meet you."

When Lin Baicheng and Cheng Yufeng separated, Don Valentine from Sequoia Capital approached him and handed him his business card.

"Nice to meet you, Mr. Valentine."

Lin Baicheng, who took the business card, also took out the business card and handed it over.

Even if Lin Baicheng was just an ordinary person in his previous life, he had heard of the famous Sequoia Capital, but he only found out that Don Valentine is the founder of Sequoia Capital today.After all, he was just an ordinary person in his previous life. No matter how famous Sequoia Capital is, it has nothing to do with him. It is impossible to know who the founder of Sequoia Capital is.

"Alan, you invested in Apple in the angel round, and even invested at a premium. Your vision is much better than mine. It's amazing."

Don Valentine came out to praise. In fact, if he really wants to say it, he contacted Apple earlier than Lin Baicheng, because he had met Jobs before Apple was established.

Jobs started working at Atari. He left Atari in 76 and decided to start his own company. However, he had no money. Atari founder Nolan Bushnell helped introduce Sequoia Capital’s Don Valentine, but Don Valentine didn’t invest money at the time, but helped Jobs introduce others, thus missing the initial investment.

Facing the compliment, Lin Baicheng smiled and said: "Mr. Valentine can judge Apple with a normal heart when he missed it at the beginning, and invest in Apple again with more funds. This kind of mentality is what a good investor should have. , is also where I should learn from you, Mr. Valentine."

"Well, in the final analysis, I still don't have enough vision, otherwise, who doesn't want to get more shares with less money, Alan, don't you think so?"

Don Valentine shook his head. In fact, he didn't regret it much, but he was a little emotional.In his investment career over the years, this is not the first time that he has missed an investment in Apple. If he regretted or complained every time, his mentality would have collapsed long ago.

"That's true."

Lin Baicheng nodded in agreement.

After a few words of small talk, Don Valentine immediately said, "Alan, you are the chairman of New Century Software, right?"

"good."

Lin Baicheng nodded, but he couldn't help wondering whether Don Valentine wanted to chat with him about New Century Software's financing.

"New Century Software is currently financing, and its valuation is higher than that of Apple. I would like to congratulate you, Alan."

Don Valentine said and raised his glass.

"Thank you."

Lin Baicheng raised his glass in response and took a sip of his wine.

After taking a sip of wine, Don Valentine continued: "Alan, Sequoia Capital is also quite optimistic about New Century Software and wants to participate in the financing, but Sequoia Capital is incomparable with Goldman Sachs and Citigroup, and they know It’s a bit late for the financing, so I wonder if you can accommodate me?”

Some companies that are optimistic about the capital market can sometimes not be able to participate in financing with money, but also need some relationships, preferably with the actual controller of the company.

"Of course, I'm looking forward to the more institutions participating in the financing, the better."

Lin Baicheng responded with a smile without even thinking about it. The more institutions that want to participate in the financing, the more room for New Century Software to negotiate prices, and the higher the valuation of the financing may be. Therefore, he welcomes Sequoia Capital to participate. In this capital game of financing.

"Thank you, Allen, then I will trouble you to say hello then."

Seeing Lin Baicheng's quick response, Don Valentine couldn't help but smile.He could guess what Lin Baicheng was thinking, which is why he asked Lin Baicheng for help, but whether the participation of Sequoia Capital would raise the valuation of New Century Software was not in his consideration, after all, Sequoia Capital had previously He did not participate in the financing negotiations, and he also had a bottom line in his heart. Once the valuation of New Century Software Company exceeded his psychological limit, then Sequoia Capital would simply not participate in the financing and lose some manpower.

Lin Baicheng responded: "I will talk to Isabella, the manager of New Century Software, about this tomorrow, and then you can just go to the company directly."

"Thank you!"

Thanks again Don Valentine.

After talking about this matter, Lin Baicheng and Don Valentine talked about other things.There are views on the US economy, some investment experience, and which industries and companies have more potential.

In the middle, Logan Rockefeller also joined in the discussion, and the three chatted for a while.

Lin Baicheng not only chatted with the two of them, but also chatted with others, including Jobs and Steve for a while.

After this second round of financing, Jobs and his management held less than 50% of Apple’s shares, and they no longer controlled 100% of the company. Now it’s just because of the dispersion of shares and shareholders’ trust in management. , management controls the company.

Let’s not talk about whether Apple will have a third round of financing. When Apple goes public, the shares of each shareholder will be diluted again. And others will definitely sell some of their shares to improve their lives.

Therefore, Jobs and others must win over other shareholders and obtain the support of major shareholders, among which Lin Baicheng is the key target of Jobs and the others.Although he was a little wary of Lin Baicheng, after all, Lin Baicheng's shareholding ratio was not low, but after more than a year, Lin Baicheng did not interfere with Apple's operations, and he somewhat gained the trust of Jobs and other management.

No management team would disapprove of this kind of shareholders who only take shares and do not interfere with the company's operations. They wish that there would be as many such shareholders as possible, and the relationship should be maintained so that such shareholders will always support themselves.

In the face of overt or implicit wooing, Lin Baicheng of course expressed his support for Jobs and the others. Anyway, he really didn't think about manipulating Apple, unless he wanted the company's development to be restricted by the ceiling.

As for Apple, which has ceiling restrictions, it is not worthwhile for Lin Baicheng to find a way to gain control. Instead of doing so, he might as well create a new company by himself.

(End of this chapter)