Reborn: Billionaire in College

Chapter 192 The most domineering financing plan in history

Recently, Li Xinkui felt that nothing he did was going well, and burning incense and praying to Buddha was of no avail.

First, the little bastard got into a fight at school and was forced to suspend classes.

Before long, problems arose one after another with the projects under his charge.

First, there was Renren's data center project in Wujiang District. Everything had been negotiated and materials were being prepared, but it was unexpectedly stopped at the critical moment.

Then there were some problems with the settlement of the final payment for the Yuanfang Plaza project that we had previously worked on.

One thing is called an accident. After putting several things together, Li Xinkui, if he is not stupid, will know that he has offended someone he should not have offended.

Recalling the mysterious words that a vice president of the general contractor of the data center project said to him during dinner, Li Xinkui finally understood the whole story.

After calling his son to his side, Li Xinkui lost his fatherly demeanor and asked with his neck stretched and eyes wide open: "Who is the identity of the guy wearing a baseball cap who had a conflict with you guys last time?"

Li Xiaoen doesn't have to go to class during this period, so he can have some fun. But to be honest, it doesn't matter to him whether he goes to class or not.

Seeing his old man looking like a cannibal, he was a little confused: "It must be students. Those who are beating us with steel pipes are students. They are bodyguards."

"No, the client of my data center project is Renren.com. I checked and found that the CEO of Renren.com is from the University of Finance and Economics. Think carefully about whether it is the same person. You little bastard, you killed me."

"I really don't know. I have heard of the name Chen Pingjiang. He seems to be quite powerful in the University of Finance and Economics. But are you scared?"

Li Xinkui didn't expect that he would be hit back by the eldest son. He suddenly felt the blood rushing in his head and wished he could shoot this guy against the wall.

If there was only one project with a problem it wouldn't be a big deal, but now there are problems with several projects in succession and the news has even spread throughout the industry.

This has led to some people who are unaware of the truth considering whether to terminate cooperation with Li Xinkui. After all, no one knows where the news came from, and there is someone else behind Chen Pingjiang.

"Get out, get out, get out! All you do every day is eat, drink and have fun. If it weren't for me, you would have starved to death long ago." Li Xinkui cursed.

Long Yanfen, who had just come out of the shower, frowned and said, "I heard you yelling while I was taking a shower. Can't you speak properly? What if you scare my child?"

Li Xinkui was so angry that he laughed: "A loving mother often spoils her son. You just spoil him. Sooner or later he will be sent to prison to eat peanuts."

Long Yanfen's face changed. She didn't expect her husband to curse their son like this: "Li Xinkui, please explain clearly. You are capable, right? What kind of man are you if you come home to vent your anger after getting mad outside?"

Li Xiaoen on the other end was still adding fuel to the fire: "Someone messed up his project, and he took the blame."

Li Xinkui couldn't hold back any longer after hearing that, and he went up and slapped Li Xiaoen in the face, making him dizzy.

In an instant, the Li family was in chaos.

Within two days, the University of Finance and Economics also issued a penalty decision regarding the fight in the stadium stands.

Li Xiaoen and others were directly expelled!
Li Xiaoen and his mother were horrified by such punishment and wanted to go to the school to make a scene, but Li Xinkui never showed up, and in the end Li Xiaoen didn't even get into the school gate.

…………

By the beginning of December, the market was full of rumors that Renren was about to start its Series B financing, and Renren did not shy away from it.

Just one week later, the situation changed suddenly.

"Who would dare to play with Renren if they do this?"

"They are totally bullying us investors. They are actually trying to come up with a bidding war for investment."

"I don't really want to join in the fun. It's just a project. If things don't go well in the east, there will be brighter days in the west."

Many VC/PE institutions have expressed pessimism about Renren's Series B financing.

The reason for this is that we have been in the circle for so many years and have never seen such a strong financing party as Chen Pingjiang of Renren.

Others rely on FA matchmaking for financing, but Renren has to conduct bidding for financing. According to the rules of the game set by Renren, this round of financing adopted a new financing form of "Class D + Class B" stocks, that is, investment institutions need to invest a certain proportion of Class D non-income common stocks to obtain Class B common stock financing qualifications. The upper limit of a single institution's Class B stock investment is US$2 million, and the minimum investment amount is US$1000 million. There is no minimum investment requirement for Class D stocks. However, Renren clearly stated that under the same conditions, investors who subscribe to a larger amount of Class D stocks will be given priority.

What does it mean?

The lock-up period for Class D shares released by Renren is three years. After the lock-up period expires, investors can ask the company to repurchase Class D shares at the investor's investment cost. From this point of view, Class D shares are actually interest-free bonds in a sense. What's more, when investors ask the company to repurchase Class D shares, the company also has the right to repurchase some or all of the Class B shares held by investors according to the official valuation.

To put it in plain words.

If you want to invest in Renren, you must buy a certain amount of Class D shares, which is equivalent to lending a large sum of money to Renren for free. If you want to redeem the Class D shares after maturity, sorry, there is no interest. And if you want to redeem the Class D shares, Chen Pingjiang can also ask to buy back the Class B shares held by investors, although these Class B shares are calculated based on the market value at that time.

But the risks are much greater.

Because Class B shares may depreciate due to Renren's poor management.

No one in the world has done this yet, Chen Pingjiang is the first!
The worst outcome of this investment was that an interest-free loan was lent to Renren.com for nothing, and the Class B stocks purchased eventually plummeted, causing investors to suffer huge losses.

The best outcome is to earn a lot less money and be stuck with a large amount of money.

These VCs and PEs are really amazing. How can they still play like this?
You, Chen Pingjiang, are no longer a human being?

However, Chen Pingjiang was not moved at all by the outside voices.

按照最新公布的D类/B类平均认购比例1.61:1来计算，认购1亿元的B类普通股，还需认购1.61亿元的D类无收益普通股。假设投资B类股的收益率是每年30%，但由于D类股的认购，整个投资的收益率下降为每年【（1.3^3+1.61）/2.61】^1/3-1=13.41%。

Therefore, the investment returns of investors in this round will always be greatly discounted.

For a time, the market was full of voices that were pessimistic about Renren.

"Chen Pingjiang is too arrogant, and he will suffer the consequences."

"As investors, can we still be controlled by a company? I suggest that everyone stop investing and let everyone cry on the Internet."

only……

Although you say this, your body is very honest.

As of December 12, after the first round of bidding, nearly 15 investment institutions submitted their deposits and bidding applications, exceeding the planned financing amount by 100 times.

Now all VC/PEs were dumbfounded.

The investment institutions that were eliminated cursed in private: "It's simply despicable and shameless. On the surface, they persuaded you to join forces with the enemy and not invest, but in the end they secretly handed over the deposit."

Some investment institutions also quickly found Chen Pingjiang through various channels, saying that they had thought it through and wanted us to get on board!

Those investment institutions that failed to "clean up the market" began to use various means to inquire about prices from each other.

In this capital feast, small institutions are the ones who suffer the most.

Renren's Series B financing plan was finally announced to the public, causing an uproar among some media and financial experts.

25. The previous valuation of Renren Investment was US$ billion.

2. Investment structure: Class B common stock (holding the company's Class B common stock through the SPV company, with voting rights.) Class D non-income common stock (holding the company's Class D common stock through the SPV company, without voting rights.)
1000. Subscription amount: Category B: Submitted by investors and finally confirmed by the company. The minimum subscription amount is US$ million.

Class D: Invested by investors and finally confirmed by the company. No minimum subscription amount is set. (Although there is no minimum subscription amount, among Class B investments of the same amount, those who subscribe to more Class D shares will be given priority.)
For a time, there were all kinds of voices cursing Chen Pingjiang and Renren.

But some entrepreneurs also applauded, believing that Chen Pingjiang's strength could reverse the situation where entrepreneurs were at the mercy of capital.

In the cigar room.

Shen Nanpeng smiled bitterly and looked at Chen Pingjiang: "I really didn't expect you to do this. Not only did I not expect it, but I guess no one in China or even the world thought of it. We have never seen such a strong financing party like you. However, although you can maximize your profits this time, you probably offended a lot of investment institutions, and there are also some people waiting to laugh at you."

Chen Pingjiang shrugged helplessly: "You said no, but your body was honest. In the end, you still cried and shouted to get on the train. Besides, apart from taking an interest-free loan, I didn't do anything. I just wanted to filter out some small investors in this way. The figure of 25 billion US dollars itself is quite suitable. Why don't you, Sequoia Capital, consider taking it all?"

Shen Nanpeng rolled his eyes at him and said, "I would like to, but I can't do it. 20% of the shares means $5 million, and I have to lend you $8 million of Class D shares for free. I'll be the lead investor this time."

Chen Pingjiang nodded without comment.

He was just asking casually. Shen Nanpeng must have understood that the reason for taking this approach was that he did not want to give up too many shares to Sequoia and wanted to attract other large institutions.

Chen Pingjiang was not the first to raise funds through such a strong method, but also DJI in the future.

"This incident has caused a lot of uproar in the city. Renren's every move will definitely be put under the microscope in the future. You'd better ensure that Renren can continue to grow explosively and be successfully listed, otherwise your reputation in the domestic capital circle will really be tarnished." Shen Nanpeng put out his cigar and said earnestly: "However, I have great confidence in you and Renren. In fact, the same is true in the industry. Don't look at them cheering now. As long as Renren keeps going up, these people will be grateful that you gave them a ticket. Capital is so realistic."

Although there were some complaints about Chen Pingjiang's outrageous operations, Renren was indeed a good project, and Shen Nanpeng had to accept it.

(End of this chapter)