Wind Rises 2005

Chapter 378 Well-designed
"Another way? What way?" Xu Xin was confused.

Ma Liang didn't answer directly, but started talking on his own: "Mr. Xu, I have created three brands in total.

[Red Lips Skewers], [Liu Po ​​Mala Tang] and [Liu Po ​​Braised Chicken and Rice].

These three brands are operated independently, and each is managed by a different subsidiary without interfering with each other.

As you know, I also established a venture capital fund before, which is [Gale Capital].

I am quite familiar with investment and financing.So before I started [Yellow Braised Chicken and Rice], I had already made preparations for financing.

The three brands and the three companies have already completed the VIE (Variable Interest Entities) structure.

So from the very beginning, the financing I initiated will be different from that of ordinary start-ups. "

"This is a good thing!" Xu Xin didn't feel unhappy when he heard this, on the contrary, he was very happy, "Mr. Ma, if you can plan ahead, the operation will be easier for our investment institutions."

Ma Liang shook his head, and continued to add: "Mr. Xu, it's different! The reason why I did this is to raise funds in a different way."

"What method is it?" Xu Xin hurriedly asked.

Ma Liang organized his language and began to explain: "First of all, the method I want to adopt is the financing model of three brands.

Secondly, the financing of the three brands is in order. You must first invest in [Liupo Braised Chicken and Rice] to be eligible for admission, and then invest in the remaining two brands.

Finally, I'm going to cash out early on the first round of funding!
I am willing to accept financing only if I agree to these three requirements, otherwise there is no need for us to discuss further. "

"What?" Xu Xin was completely shocked when she heard it. She wondered if she was facing a mature entrepreneur with continuous success. How could anyone talk about financing like this, "Mr. Ma, are you joking?"

Even those novice entrepreneurs will not be arrogant enough to make such excessive demands.

Even if the three brands invest together, these are still within the acceptable range. After all, the projects are very reliable. They have already survived the start-up period, and it can be considered that they have entered the harvest season.

And it doesn't matter if you vote for [Yellow Braised Chicken and Rice] first, anyway, this project is the most promising existence in the industry.

But the last point is a bit unacceptable. How can there be a first round of financing that claims to cash out in advance.

Not to mention domestic, even in America, where the capital is extremely developed, it is rare.

So Xu Xin asked directly, wanting to confirm whether Ma Liang was joking, after all, such things as financing should not be messed around casually.

Ma Liang nodded and responded affirmatively: "Mr. Xu, I am not joking.

I have already thought about the matter of financing very maturely, otherwise I would not have deliberately kept it secret at the last dinner. "

He also has no choice, who let the accumulation of capital on hand is not enough.

Now that I have decided to raise funds, I am rushing to cash out quickly.Otherwise, why bother to find capital help.

It's not that there is no small money on hand, and there is no need to dilute the shares in advance.

Only a large sum of money is meaningful to Ma Liang at this moment.He has only one purpose, to raise enough funds for [Gale Capital] as soon as possible.

You must know that in addition to Twitter, there are several super unicorn projects waiting to be missed.

"Mr. Ma, the financing method you mentioned is unprecedented in China. I don't think many investment institutions are willing to accept it." Xu Xin responded with a playful face.

After all, she is the queen of venture capital and has seen countless big scenes, so she still wants to wait patiently for Ma Liang to give a clear response.

Ma Liang smiled wryly, and had no choice but to continue to explain: "Mr. Xu, listen to me slowly.

If I do business for my sake, I don't really need money anymore.Even if I want to create a few new catering brands, I can easily play around, and there is no need to rush to raise funds.

But now the venture capital industry is getting hotter and hotter, and I am also interested in doing something in this field, so I established [Gale Capital].

But after all, you are too young, unlike Mr. Xu, you can easily handle private equity funds.

My [Gale Capital] is really not strong enough, otherwise I would have followed Brother Chai in the Tudou game last time.

The reason why they are willing to raise money is to raise more funds.

Only then did they decide to sacrifice the long-term interests of the three brands in exchange for short-term cash flow benefits.

However, there is one detail that I would like to declare in advance. The [Yellow Braised Chicken and Rice] and [Liupo · Yellow Braised Chicken and Rice] on the market are not operated by the same company.

The first one to take out financing was [Liupo Braised Chicken and Rice], a self-operated brand.

Only after investing in this brand can we continue to discuss the investment and financing matters of [Red Lips Chuan Chuan Xiang] and [Liu Po ​​Mala Tang]. "

In order to collect money and cash out, Ma Liang really racked his brains and carefully designed it.

Even at the expense of completing the VIE structure in advance, Deng Jingwen asked PricewaterhouseCoopers (PwC), one of the Big Four accounting firms, as a financial consultant.

When everything is ready, I am willing to start talking with investment institutions about making money.

"What? The two braised chicken brands are not run by the same company?" Xu Xin was completely taken aback by the young founder.

In any case, she never thought that Ma Liang would play such a trick, which completely violated the basic logic of venture capital.

Splitting [Yellow Braised Chicken and Rice] and [Liupo · Yellow Braised Chicken and Rice], which already have so many stores in the market, into two companies, wouldn't the value be dispersed.

In this way, [Liupo Braised Chicken and Rice] is like a start-up brand.

Not to mention the greatly reduced investment value, the risk has also increased a lot, which is completely different from what she expected before coming here.

Ma Liang couldn't help himself, so he made such a bad plan. [Braised Chicken and Rice] is used to make money quickly.

The income from these franchise fees will be transferred to [Gale Capital] as a private equity fund in the form of capital operation.

According to previous life experience, [Yellow Braised Chicken and Rice] can open at least 2 stores.

One store charges a franchise fee of 2 yuan, and 4 stores have an income of nearly [-] million yuan, and the final profit can be at least half.

So much money is pure cash flow income, there is no need to deliberately mix it with [Liu Po ​​Braised Chicken and Rice] for more financing.

That's why Ma Liang carefully designed this model. On the one hand, it is for cashing out money, and on the other hand, it is to screen investors.

Acceptable, let's talk further.

If you can't accept it, then beep a few words less, and cooperate again when you have the opportunity.

Seeing that the venture capital queen was stunned, Ma Liang felt a little proud, and he calmly replied: "That's right, Mr. Xu,
You don't think that I can easily earn hundreds of millions by relying on [Yellow Stewed Chicken and Rice], and if I want to use this brand to find investment institutions, I will only be able to raise tens of millions, right?
There is no need for that at all!

The quick-recruitment company that is currently operating the [Yellow Braised Chicken and Rice] project will never raise funds in the future.

But I assure you, [Liupo Braised Chicken and Rice] is definitely a good item.

That's not something I came up with out of nowhere, and it's not purely for defrauding investment to get a brand. I will definitely manage it in a down-to-earth manner.

And in order to reassure you investment institutions, I reluctantly used [Liu Po ​​Mala Tang] and [Red Lips Chuan Chuan Xiang] to raise funds, otherwise I would have kept these two projects in the dark."

"Here, Mr. Ma. You." Xu Xin didn't know what to say. This was the first time she faced such a difficult founder.

She even had a feeling of being tricked, that the other party had no sincerity in financing.

Seeing that the venture capital queen was in trouble, Ma Liang didn't hurry to urge her, the old god was watching her from the ground, and said nothing more.

It's not that easy to take advantage of him. Even if it's financing, everyone has to sacrifice some blood to each other.

2007 is the best year to start a business, and time really waits for no one.

Those unicorn projects are waiting to be missed, so you can't just watch the good opportunities pass by.

The key is that every time you invest in a project, except for the first two rounds where you can start at a lower price, you must keep up with a large amount of money in each subsequent round, otherwise the shares will be diluted too much.

Wouldn't it be a pity not to invest more in a super unicorn project with an unbeatable return on investment.

That's why Ma Liang took such painstaking efforts, otherwise there would be no need to be in such a hurry to raise funds, it's only because the opportunity is too late to come again!

(End of this chapter)