Rebirth declares war on the honest

"Pleasant to work with."

"Mr. Gu, since Ele.me is our own property, please support us."

A few days later, Ele.me announced at a press conference held on the spot that it had received 10 billion yuan in Series C financing led by Le Capital, and that the two parties will cooperate in various fields.

It is also rare in the entire Internet industry to obtain financing twice a year.

You just completed the B round of financing and got several million dollars, and now come again?

Is Ele.me taking too big a step and burning money too fast?
In just half a year, I was hungry for two financings, and many competitors who secretly wanted to enter the food delivery industry stared at me with a question mark in my heart.

It may be time to step in.

If they don't make a move, Paradise Group and Ele.me will really build a moat for the industry. Once they succeed in becoming famous and go public, people will not even be able to drink soup later.

In the process of listing a company, there is no regulation on how much financing the company needs to go through, it all depends on the company's own needs.

Corporate financing, to put it bluntly, is how companies obtain positive cash flow.

Because you have money, you can be a local tyrant and "buy, buy, buy, buy equipment, land, resources, talents, users and even competitors.

Anyone with basic financial knowledge knows that debt financing refers to borrowing money through banks or non-bank financial institutions, or issuing bonds, etc. Debt financing needs to pay principal and interest, which can bring leveraged income, but it will increase corporate debt ratio.

However, equity financing does not need to repay the principal, without the leverage income brought by debt financing, it will introduce new shareholders, and the potential danger is that it will lose part of the control of the company.

Therefore, in the case of debt financing without money, more companies choose equity financing.

Furthermore, financing in the private sector treats industries with unicorn potential in a different light, and is desperate.

For Internet entrepreneurs, they often need to go through the following rounds of financing before the company goes public.

1. Seed round - team, idea, product

Financiers at the seed stage are usually in an initial state with only an idea and a team, but no specific products.

Investors are generally relatives and friends, or founders pay out of their own pockets, such as Hungry Me f4 represented by Zhang Xuhao. Of course, there are also many sub-stage investments now.

If your fusion project has a team, an idea, and is about to enter the final landing, then you can start the seed round of financing.

In the seed round, the risk of project failure is extremely high, and p (minimum viable product) will run out after the angel round.

The seed round is generally between 50 and 200 million yuan, and it is difficult for institutions to get involved. Generally, individual angels and incubator foundations focus on this.

2. Angels—Visible products and clear business models
Projects in the angel stage usually have a newly established team, a mature product launch, and a preliminary business plan for the product; there are some data or proofs such as growth rate, retention, and repurchase that can show the growth trend of the data.

The same product tends to accumulate some core users, and the business model is still in the stage of verification)
Then looking for angel investors or institutions is the most suitable way to start angel round financing. Generally, the amount of this round of financing is about 300 million to 500 million.
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a——Have a certain scale and lead the market

The pre-a round is a layer where financiers can decide whether they need financing based on the maturity of their own projects. …

If the overall data in the early stage of the project has a certain standard, but it has not yet occupied the forefront of the market, then the pre-a round of financing can be carried out.

At the same time, the pre-a round or a round of financing means that you have not yet begun to take shape, but the money is burned, so first come to the pre-a round to rescue the emergency.

Or after the A-round financing, there are big names who think you are good and want to invest in your business, but you haven’t made any new business progress, and the valuation has basically remained the same, so there is an A-round.

Wheel - a business model supported by products and data, a leading position in the industry, has begun to take shape

Generally, a is a round, and the company is in the first round of financing (this chapter is not finished!)
472. Moat

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is very important) For projects that have products, complete and detailed commercial and profit models, and have a certain status and reputation in the industry, even if they may be in a loss state at this stage, they can also choose professional venture capital institutions for A-round financing.

At this stage, it is impossible for a financier to only rely on ideas for financing, but to be useful, including the number of daily active users and monthly active usage, to have their own business model, to have mature products that can compete with competitors, and to have a certain market Location.

Ele.me’s A-round financing was a multi-million dollar investment from GSR Ventures in 2011, which opened up a complete and detailed business and profit model.

5.b round - Proven business model, new business and new field expansion, relatively strong competitive advantage
After a round of burning money, the project has achieved considerable development, the business model and profit model have been well verified, and some have begun to make profits.

At this time, the financier may need funds to support new businesses and expand new fields, so it is suitable to persuade the previous round of venture capital institutions to follow up with the investment, or to find new investment institutions to join, or to attract private equity investment institutions (pe) Join form to begin a round of Series B financing.

In the beginning, when Ele.me got the B-round financing, it was actually far less eye-catching than it is now.

round—proven business model, new business and new field development

If the project of the financier is very mature at this time, basically can sit firmly in the top three in the industry, and is preparing for the next step, then it is suitable for the C round of financing.

At this time, in addition to further expanding new businesses, it can also lay a solid foundation for completing the commercial closed loop and preparing for listing.

The cooperation between Ele.me and Paradise Investment this time not only means that Ele.me has successfully achieved profitability, but also represents that it is currently firmly in the top spot in the arena.

What else can a company that has raised funds twice within half a year have the guts to gobble it up?
"If there is no accident, I think after this round of financing, competitors will appear if you are hungry."

After the press conference, Gu Yunwenju was invited to participate in the dinner organized by the Ele.me team in the evening.

Due to Gu Yun's identity, there were not many people accompanying him to the meal, there were only four of them, and everyone drank beer and chatted while eating.

"It's nothing, Mr. Gu, are you hungry? I don't know how many small workshops have lost their jobs. We have come here with real swords and guns. We are not afraid of competition."

Zhang Hao raised his glass with a smile and touched Gu Yun.

There is no doubt that what Ele.me is doing is the real rigid demand, which is the lowest essential demand in Maslow's theory.

Faced with this rigid demand, it is obviously impossible to have no competitors.

But what Zhang Xuhao didn't expect was that after having a new partner, the opponent he was about to face was no longer a small workshop, but a mountain of the same level as the Paradise Group, which could integrate resources and replicate it.

472. Moat