Yanzi Valley of Jingcheng

Chapter 272 The Millennium Fox

"So Mr. Xiao means... I hope Guan Sha can invest and cooperate with Lian Tianhai's Dinghui, so that several long-term rental apartment brands under CDH can be integrated into our Yanzi Valley?" Guan Zhenzhen asked Ren Tianxing.

"Well, there is also their data from Aixin Rent a House, but I think it is just like what Guan Sha's father said, Mr. Xiao himself is not willing to do this." Ren Tianxing said while eating the delicious meal made by Guan Zhenzhen, "Even Tianhai, I had dinner with him, it’s not a fuel-efficient lamp, besides the Yanzigu Apartment brand, your big data analysis system and refined management app are what he likes, even Tianhai’s plate looks quite big, in fact It is a pool of stagnant water, and the occupancy rate is very poor. I went to the science and technology park to see it two days ago, and few rooms were lit at night."

"What about Sanyun City? Isn't that Aishang Apartment also his?"

"Our colleague over there also went to investigate. It was Zhang Yuchen. He said that there are countless houses released, and they are all empty, so you can pick them at will."

"Did you tell Sister Guan Sha about this?" Guan Zhenzhen sandwiched a large piece of ribs for Ren Tianxing.

Ren Tianxing stuffed the ribs into his mouth without hesitation, and said vaguely, "Of course, she knew it well, and she also told me that she also sent a few people to investigate and found that the vacancy rate of Lian Tianhai's apartment was too high. It has a lot to do with the fact that the apartment's capital chain was broken and the landlord and tenant were offended, she thought that even if she didn't cooperate with Lian Tianhai, even Tianhai might not have the strength to bite her to death."

"Haha, Sister Guan Sha is very smart." Guan Zhenzhen scooped up another bowl of loofah soup for Ren Tianxing as she spoke.

"That old fox Lian Tianhai definitely wants to borrow Yanzi Valley's two systems to slowly revitalize his game, and of course you have such a reputable apartment brand." Ren Tianxing said, "But with his broken conditions, he still wants to hold shares Right, I think it's too much."

"Then what if he gives a very high price?" Guan Zhenzhen asked, at this time there was an extra rib that Ren Tianxing had picked up for her in her bowl.

"If you want a controlling stake, the price must be high." Ren Tianxing said, "If you think about it, he will have a controlling stake, which means that in addition to investment income, Lian Tianhai has also obtained the company's major operating decision-making power. This decision-making power must be There must be a premium price, so if you really want to sell it, Mr. Xiao can't prevent him from bleeding more, they are all thousand-year-old foxes, and no one can be scared by playing Liaozhai."

"Then will you sell it?" Guan Zhenzhen asked suddenly.

"what?"

"I asked if you would sell it?"

"I... I'm just a kid. It's useless if I don't sell it. The company's fund needs to be paid back..." Ren Tianxing quickly stuffed rice into his mouth after speaking.

"Then what if you were Mr. Xiao? Would you sell it?"

Seeing Guan Zhenzhen's persevering eyes, Ren Tianxing chewed his food without saying a word, and waited for him to swallow it before saying, "We'll talk about it when I sit in his place."

Guan Zhenzhen immediately stopped eating after hearing the words, "So you actually want to sell it!"

"Where is it?!" Ren Tianxing looked innocent.

Guan Zhenzhen insisted, "You are!"

"I'm not!" Ren Tianxing defended, "I'll think of other ways, I really can't think of another way."

"Then Mr. Xiao didn't think of other ways?" Guan Zhenzhen asked.

"Of course I thought about it!"

Coincidentally, Ren Tianxing's entry time was about the same as the time when Xiao Jie was transferred from the Jinquan headquarters to serve as the president of the branch. Ren Tianxing knew that Xiao Jie had been dealing with the big trouble of Hongfeng Jingshun No. [-] Fund since he took office.

For venture capital companies, the investment projects are generally divided into four categories: ABCD.

Type A projects are the absolute leaders in the industry, such as Ye Taodu, whose annual growth rate is 20% to 50%, even more than 50% in the early years, and the team is excellent. Such projects should be based on IPO exits.

Although category B projects are not necessarily industry leaders, the profit growth rate can reach 20% to 50%, generally around 30%. The founders are excellent and the prospects are broad. You can also consider exiting through mergers and acquisitions.

Type C projects are relatively general in industry and team, and there is no established way to exit.

Category D is a very bad project. If you can’t afford it, if you give it money, it will not make you a profit, and it will not win the market. It is a real money-losing product.

Generally speaking, venture capital institutions will do their best to ensure the healthy development of Type A and B projects, help the rapid improvement of Type C projects, and at the same time dispose of Type D projects as soon as possible.

When Xiao Jie took office, the loss of Hongfeng Fund was about 24 billion. He optimized the fund's holdings in this direction.

"The loss of 24 billion has been reduced to 2500 million, which is already great!" Guan Zhenzhen said, "Then what kind of category is our Yanzi Valley? It can't be a D category, right?"

"In the past, it was almost a category D. It cost money, but now it can grow by itself even if it doesn't give money. Besides, the advantages of relying on digital transformation in management are obvious, but the growth rate is very slow, and the profit is not high enough, less than 10%. At most, it is classified as Class C.” Ren Tianxing said, “The main reason is that the funds before Jinquan seldom lost money, and they haven’t had any losses in ten years. In extraordinary times, extraordinary measures must be used. At present, Mr. Xiao of Class D has already dealt with it, so I guess the above is under pressure. Let him withdraw from the C-type project and get back the cost as soon as possible.”

"How long is left now?" Guan Zhenzhen asked.

The corner of Ren Tianxing's mouth twitched, and said, "Three months..."

Guan Zhenzhen gasped.

Ren Tianxing was also very helpless, "The main reason is that the economy was overheated before, which caused our primary market valuation to be seriously overvalued, and it was a bubble. The previous team didn't do a good job, so they knew how to grab the track. Many companies bought expensive. In short, Mr. Xiao You didn’t actually make much money when you sold it.”

"Then if we want to sell it in Yanzi Valley, how much can we sell?"

Guan Zhenzhen's question reminded Ren Tianxing of the "Analysis and Forecast of Valuation Multiples from Angel Round to Series A Financing in 2021" that he saw in Ma Yu's office.

Ren Tianxing didn't have the chance to read the original document, but he can do this kind of analysis report himself.

Ren Tianxing made a rough statistics of some public financing case data. The return multiples of most angel investors are between 20 and 50 times, while the return multiples of A round investors are much lower. There are less than 10 companies with more than 8 times. Most are between 3 and 8 times.

"That's not high." Guan Zhenzhen sighed when she heard that, "I heard before that you guys can make a lot of money, and you can earn hundreds of times with just one investment."

"You have read too much news, and the data in the news is untenable. Our business is not as profitable as you think." Ren Tianxing said, "Actually, Jinquan invested in Yanzi Valley, which is similar to an angel round. After all, Mr. Xiao at the time Guan Sha only had less than ten houses in her hand when she voted, so if they resell, Lian Tianhai will be counted as the A round this time."

"Wait, didn't you have Ye Taodu before Jin Quan?" Guan Zhenzhen reminded.

"Oh, hehe... That valuation is too low, it's just a little bit more expensive than our Jinquan, and the amount is not big, so it's not the A round, it's the pre-A I told you."

"Oh ha ha!" Guan Zhenzhen immediately recalled, "The price after the angel was too low and the scale was too small. The founders are embarrassed to call it the A round, right?"

Ren Tianxing nodded, "Rubbers can be taught, but that's not the point. The point is to sell to Lian Tianhai. If he insists on controlling the stake, he must follow the normal angel round to round A valuation range, which is 20 to 50 times. The current valuation of Yanzi Valley is 1350 million, if it is 20 times, it is 2.7 million, if it is 50 times, it is 6.75 million."

Guan Zhenzhen covered her mouth when she heard the words, "It's so valuable! Isn't Sister Guan Sha worth over [-] million?"

"It's because the company is worth over [-] million yuan, so it's fine if it can sell so much, but I don't think the thousand-year-old fox is so easy to talk about. If he doesn't admit that we are considered angels when Jin Quan enters this time, he will give us a valuation from the A round onwards." , then only about ten times, maybe even five or six times, and..."

"And what..." Guan Zhenzhen was curious.

Ren Tianxing couldn't say anything, since he witnessed Lian Tianhai deliberately embarrassing Xiao Jie at the dinner table last time, he thought that this thousand-year-old fox was not that simple.

Ren Tianxing feels that Lian Tianhai doesn't like Xiao Jie very much. This cooperation is a controlling stake, and it's nothing more than forcing Ye Taodu to withdraw. It is obviously illogical to kick out Jin Quan, an investor with strong resources. In Ren Tianxing's view, these Don't investors like to hug together to keep warm?

As Xiao Jie said before, the more people tied to the boat, the safer it is. Doesn't Lian Tianhai hope that Yanzigu Apartment can continue to receive help from the Jinquan Value Mining team?

Or did he have other plans in mind?
"I know!" Ren Tianxing suddenly thought of something, "This possibility cannot be ruled out! I have to tell Mr. Xiao immediately!"

He was about to pick up his mobile phone to contact Xiao Jie, when he remembered that Xiao Jie was still living in Guan Sha and Xiao Qianxing's house at that time, and his mobile phone was not with him. Thinking of this, Ren Tianxing rushed out without eating, and only listened to Guan Zhenzhen's words, "What is it possible?"

Ren Tianxing slammed the door, "Come back and tell you! The ribs are delicious!"

(End of this chapter)