Actually I just want to act

Chapter 978

Shenghai, the headquarters of Surf.com.

"Bilibili also opened online video?"

Cheng Dongquan, chairman of Surf.com, looked at Bilibili's webpage, and felt a little weird about the huge proportion of online videos in the middle.

No one expected that Cheng Dongquan actually paid attention to animation, and was a serious fan of comics.However, Cheng Dongquan has no intention of doing comics, he just likes comics, but he doesn't understand comics.Seeing the development of Bilibili now, he suddenly realized.

"Could it be that online video is really a hot spot?"

Cheng Dongquan thought about it, and felt that it was a bit risky, because Surf.com used to be a portal website, and recently it was engaged in finance and online literature, which already took up a lot of resources.If you burn more money to make online videos, it may not be much better. "In the portal website, video news can be embedded, but there is not necessarily a separate video viewing."

Cheng Dongquan understands too well that once online videos are made, the consumption of the server is beyond the reach of ordinary people.Surfing.com is fine on the server, but if it doesn't burn money, where will users come from?Without users, how can surfing.com's online video be paid back?
Among other things, just a proposal may be rejected by the board of directors.

No way, Surf.com is not like Feixun or Baidu. It is Fang Jiming's speech.

The most important thing is that Surf.com almost fell into the gambling trap of Bald Eagle Private Equity Fund.So, despite the fact that Cheng Dongquan is very prosperous now, in fact, he does not have a veto power over the company's control.This is the lack of financing experience, which leads to the inability to dilute the financing shares, allowing the private equity funds of the angel round of financing to take advantage of it.

If it was like Feixun, it is estimated that surfing.com would have been listed long ago.

However, it is also understandable that private equity funds are not open to charity, what they need is to prevent and control risks.A series of agreements, including anti-dilution agreements, VAM agreements, priority liquidation agreements, etc., are all means of risk control.It's just that Cheng Dongquan was young and ignorant at that time, and he was fooled by a private equity fund.

For example, Fang Zhiming, his first point of financing is, do you like to come or not, and put forward conditions?You deserve it too!
Therefore, Feixun's operational control and actual controlling rights are all firmly in the hands of Fang Jiming.As for the financiers, you are here to invest, so what are the conditions?Sorry, go out and turn left, get lost.

This is also the place where Feixun and Baidu are most envied in the industry.You must know that even for Chinese Internet companies with operational control in their hands, the actual controlling stake is still occupied by foreign capital.This is their advantage. Using poor information cognition, using a bunch of seemingly inconspicuous agreements and financing agreements of more than a hundred pages, turn your company into a place for its risk prevention and control.

Cheng Dongquan also regretted that he should not have given a veto to the financing party of the angel round.

"I hope it can be listed as soon as possible. After the listing, the VAM agreement will be completed, and I can also withdraw a veto."

Cheng Dongquan doesn't want to make a fuss now, once he takes the risk, he won't be able to pass the listing on the Bald Eagle's side, so he can only watch Surfing Net being taken into his arms.Because it is stated in the agreement that if there is no way to go public within five years and more than 50% of the shares are sold, the drag sale agreement will be triggered, that is, the financing party will sell the remaining 38% of Cheng Dongquan’s shares to others at a low price, and Cheng Dongquan will be unconditional. sell.Not only that, but there is an agreement in front of the drag sale agreement, called the repurchase mechanism for withdrawal.

That is to say, if it cannot be listed within five years, Surf.com will trigger the repurchase clause. Surf.com must unconditionally pay for the repurchase, and use its own money to repurchase, even at an annual rate of return of 20%.In other words, within the five-year investment period, the angel round financing party will get back double the investment amount. 20% income, five years, is doubled.

But it was obvious that Cheng Dongquan would have no money at that time.Therefore, another clause is triggered, which is the right to drag sale.At the same time, there is a VAM clause called preferred stock and liquidation preference.That is to say, if Cheng Dongquan runs out of money, the angel round financing party will sell Surfing.com to others at a low price, and make up for the double investment return that the angel round financing party should obtain.

At that time, Surfing.com no longer belonged to Cheng Dongquan.

Cheng Dongquan couldn't refuse yet, because he also signed the liquidation clause.That is to say, if someone on Surfing.com wants to acquire more than 50% of the equity, it can be regarded as a liquidation, and the liquidation priority clause can be triggered.It is equivalent to discounting Surf.com from 10 billion US dollars to 5 million US dollars, how easy it is to sell.

With the money sold, the investor will immediately return the capital and double the profit.

Not only that, the private equity fund also signed a compensation agreement.At that time, Cheng Dongquan will still be the founder, just to prevent domestic bald eagle private equity funds from being able to legally recognize the clear shares and real debts, and then they will support the compensation agreement signed by individuals.This is tantamount to blocking both ends. As long as it is not listed, you have to lose money.Even if Cheng Dongquan still has 5% of the shares left in the end, it is still a minority shareholder.

Look at how ugly this private equity fund is, and how ruthless its methods are.

Of course, if you want to blame, you can only blame Cheng Dongquan himself. At the beginning when he had no money, he cried and asked the capital to send money, but now he can only pretend to be pitiful.

However, targeting will not stop.Cheng Dongquan felt that the veto power of the board of directors could not be regained, unless the private equity fund was willing to give up Surf.com, or Cheng Dongquan had enough money to buy back the shares.

"One wrong step, one wrong step..."

Cheng Dongquan is also tired, but he still has a chance, because the listing is coming soon!

As long as it works properly, the right of veto can definitely be recovered—after the five-year investment period, the VAM agreement signed by the angel financing will also become invalid.This was the only thing Cheng Dongquan asked for, and the agreement was only for five years.

"I can't develop a video website..."

Cheng Dongquan had to accept this fact, "But, I believe there are still outlets!"

This sentence is not very confident, because Cheng Dongquan is not Fang Jiming.

If Fang Zhiming, of course he knows there are still outlets, and there are many.

It's just a pity that these outlets are not something ordinary people can grasp.Because the cost of starting a business on the Internet is getting higher and higher.Where can ordinary people get start-up funds?

Not only Cheng Dongquan, but also Ling Changyun was moved.

"Can a video website be embedded in a forum?"

Ling Changyun thought about it and started to do it, adding an upload video button in the forum.After the user uploads the video, others can click to watch it.However, the video size is limited, and only videos within 30MB can be uploaded.In addition, the viewing experience is not good, so after it was launched, it was still criticized a lot.

Online video, the limelight is second to none!
(End of this chapter)