Taking over the electronics factory, you actually created an industrial empire

Chapter 106 Launch of Series B Financing! (Second more)

But now, with the launch of the battery and chip segments of Shangsha, and the rapid development of the Mate 2 mobile phone, Shangsha Technology has encountered a new problem, that is, the funding sector has begun to tighten up again!
The focus of running a business is nothing more than two: money and people!
Although the estimated sales volume in 07 was close to 30 billion, in 06, the annual sales of Shangsha Technology was only a little over 10 billion, and the profit was even less than 2 million.

The research and development budget of the Shangsha R&D Center in 07 alone reached 2.7 million yuan.

What about the cost of the battery plate?

What about the cost of the chip plate?

What about marketing costs?

What about other administrative miscellaneous expenses?

What about taxes?
And what about the cost for Sheng Huainan to drive his own Cadillac to relax in his leisure time?

Starting a company is not easy!
Core-making, a highly controversial action within Shangsha, can be said to be carried out by Sheng Huainan alone, and the risk is particularly high. Oppo's abandonment in the previous life will not be an isolated case.

Core-making requires a lot of investment and a long cycle, and it is difficult to produce real results. It is not possible without too much surplus money. Many big giants in hardware, automobiles, and the Internet have gathered together to do it. Continue to give up core making, and the loss will be hundreds of millions.

Now that the small shrimp company in Shangsha dares to enter the deep water area, even if Sheng Huainan is a traverser, he must have made sufficient preparations!

This makes the capital chain on the account of Shangsha Science and Technology very tense.

In case something goes wrong, Shangsha Technology will face the risk of a complete rupture of the capital chain.

Faced with such a situation, Sheng Huainan had only two choices.

One is to lengthen the development time.In 08, the Shangsha mate 2 mobile phone was released, but that time was during the financial crisis. Although Sheng Huainan does not know whether his little butterfly will change the relevant history, but at that time, the new product will definitely have a big impact. No problem, if there is a problem with sales, then there will be a big problem for Shangsha Technology!
The second is to carry out B-round financing or bank loans!Through the second round of equity dilution, it is also a very good choice to allow some interested venture capital or institutions to invest in shares and exchange time for space. At this critical point in 07, it is also a very good choice to open up financing channels.

He first asked Zhang Peng to get in touch with many banks in Yuzhou. Although most of the banks were very interested in granting loans to Shangsha Technology, considering that Shangsha Electronics Factory had already pledged, the quotation for the second loan was not high, so Most of the banks only gave a loan amount of about 500 million, and the highest was Yuzhou Bank. The bank that Sheng Huainan contacted through official channels also had a maximum credit loan of no more than 1000 million, which made him kill The idea of ​​developing the business directly through bank loans.

No wonder later generations of private enterprises are unable to make loans, and many of them are forced to go to the private sector to make usury loans with an interest rate of 2 cents. Even some large companies like Forever Da Real Estate dare to borrow usury loans with an interest rate of 3 cents!

As one of the few private enterprises in Yuzhou, his debts are not high, and he can't even get a large amount of credit loans, let alone the kind of private small boss who is full of debts.

He asked Zhang Peng and many venture capital investors who were interested in Shangsha Technology to put forward the financing conditions for selling 10% of the shares, and asked these venture capital companies to give their own valuations.

A few days later, Zhang Peng contacted some private equity funds in the beautiful country and state-owned investment and financing banks in China. Although most of them showed a high interest after learning about the business situation of Shangsha Technology.

Their quotations have also been transmitted to Shangsha Technology one after another.

70% of the venture capital companies valued Shangsha Technology at about 30 billion, 20% did not understand the situation at less than 30 billion, and 10% of the few companies valued at more than 40 billion. A round of red shirt capital, and there are large investment banks such as Gaosheng and Softbank.

These big investment banks have more resources than Sequoia Capital. As long as they invest, the resources they can provide are more meaningful than taking more money.

Such a large volume can also give such a considerable PE value.

Seeing this number, Sheng Huainan couldn't help but feel happy.

He didn't expect that the venture capital companies with the highest quotations were all from overseas. Among them, Gao Sheng even gave a preliminary valuation of 42 billion, which was the highest bid among all companies. From the perspective of valuation, overseas venture capital companies Confidence in Shangsha Technology is stronger.

It's no wonder that domestic electronic technology started late, and there is no corresponding leading company that can match the international big brands. Venture capital companies that understand Huaguo's electronic technology industry are also rare, which is why the domestic Internet or some emerging electronic technologies The company's initial investment basically comes from overseas and Xiangjiang.

Last time, Sequoia Capital purchased 20% of the equity at 10 times the PE, and made the A round at 20 times the PE, which was a bid of 6500 million yuan. Sheng Huainan used 1500 million yuan for unconditional precipitation. According to this price, Shangsha Technology The total valuation is 13 billion, and now it has tripled in just one year. This multiple has directly made Shen Peng's Sequoia Capital double!

It can also be seen from this that the growth rate of Shangsha Technology has been so strong this year!
Anxious about not being able to eat hot tofu, Sheng Huainan didn't discuss with these VCs in depth after getting the quotations from these venture capitals. Instead, he asked Zhang Peng to blow the wind out and let more private equity know about the situation of Shangsha Technology. We have raised enough money in this round, and while there is still enough hot money in the market, we can store enough food to break through the 08 financial crisis in one fell swoop!

. . . . . .

Sitting in his newly bought Cadillac, Sheng Huainan asked his newly recruited bodyguard Tian Mingjian to drive in front, and then asked Li Jingshu beside him, "Which neighborhood do you live in now?"

Li Jingshu whispered, "Fayuan Community."

Sheng Huainan frowned slightly: "I seem to have heard of this community, where is it?"

"On Ziyuan Road, Longta Street." Li Jingshu glanced at Sheng Huainan, and a panic flashed in her heart when she spoke.

"Oh! I see, that community is in Huangnipang, why did you move here?"

After Li Jingshu's reminder, Sheng Huainan immediately remembered that this place is actually not too far from the Longhu camphor forest where he lived. When Sheng Huainan was a descendant, he also paid attention to that community when he went back to Yuzhou to look at houses. But I just heard that the community is full of small two-bedrooms and small three-bedrooms. The house types are generally small and many of them face west or east, so I gave up.

Yuzhou is a very special city. Most of the commercial houses here are 3 households with 8 floors or 2 households with 6 floors. Many of them face west or north, and basically there is no daylight most of the time.

(End of this chapter)