Reborn: Billionaire in College

Chapter 193 Walking $$
This lively financing feast attracted mixed reviews from investors. One investor who participated in the bidding complained that "the financing was so complicated because they wanted to take all the benefits and not give investment institutions any sense of security."

Shen Nanpeng said in public: "Renren unexpectedly did not accept due diligence in its Series B financing, nor did it issue financial reports to investors. Its valuation was based on benchmark companies and past transaction prices. As a result, many investors later gave up bidding, and Sequoia Capital is also considering it."

IDG's Xiong Xiaoge also said: "Don't join in the fun. It's just a project. The official hasn't responded much. Don't believe the hype."

Even until the night before the second round of bidding, an unknown third party was still transferring Renren's shares: "According to the post-investment valuation of US$35 billion, the first-tier SPV will be transferred as a whole, with a quota of US$5000 million, and can become an explicit shareholder."

Some even said: "For projects that everyone knows, even if the companies are good and the valuations are high, there is not much money to be made. Some institutions like to use star projects to raise funds, just to fool some people who don't know the business."

12 month 20 day.

The second round of bidding for Renren's Series B financing.

截止当日15:30，最高2亿美元（单个投资机构投资额上限）的平均D类/B类股的认购比例为1.61:1。有机构测算，这意味着人人网投后估值或将达到35亿美元。

It was only at this point that people realized that Shen Nanpeng was just throwing smoke bombs.

As the leading investor, it took up most of Renren's financing. However, some small and medium-sized institutions that were shortlisted for the second round received calls from Renren saying they were out and arranged to have their original deposits returned.

This time, everyone was dumbfounded.

It's just smoke bombs everywhere, no money needed.

All the bad news before was false!
It’s all to cover up the truth!

In fact, these large institutions are extremely optimistic about Renren.

In this regard, Chen Pingjiang also conveyed through the media: "The eyes of capital are sharp and the sense of smell is the most acute. Everyone's extremely high enthusiasm for subscription also shows that capital is extremely optimistic about the future prospects of Renren. We prefer to regard this financing plan as an innovation in financial methods. We hope that the outside world will not over-interpret it. In addition, Renren will also launch new major projects after financing, and investors will make a profit. It is very likely that this is our last round of financing!"

Why are Chen Pingjiang and Renren so arrogant and powerful, with fixed valuations and no due diligence, yet so many people still flock to them?

Why did Chen Pingjiang dare to set up a bidding mechanism with a simple and crude standard - the highest bidder wins. All investors who offer the highest D/B subscription ratio can participate in the subscription. No one's recommendation or any intermediary agency is accepted. No one's words are valid. Money speaks the truth.

First of all, Renren itself is very powerful.

As the current leader in SNS social networking sites, Renren has crushed its competitors. As of December 12, the daily active users of Renren Farm exceeded 20 million, which is a quite terrifying number.

Secondly, Renren's profitability is also quite impressive.

In addition to making huge profits from the previous cooperation with major automobile manufacturers to grab parking spaces, its own advertising and in-site recharge business has more than 3000 million each month. Especially after Renren Farm became popular, the revenue in this area has exceeded 12 million and will exceed million in December.

Don’t forget that the cash cow DNF will be online soon.

This number was considered an anomaly among unlisted Internet companies in 2007.

After all, many websites either haven’t found a clear way to monetize, or their advertising fees are only a few million a month.

All in all, Renren's annual revenue is estimated to exceed RMB 15 billion. At that time, Tencent's revenue in 07 was RMB 38 billion, but its market value was RMB 800 billion.

With this conversion, Renren's pre-investment valuation of US$25 billion is not high.

If Chen Pingjiang didn't want to build a headquarters building, he wouldn't even need financing.

Finally, Chen Pingjiang has publicly stated that this may be the last round of financing for Renren.com, and if you miss this opportunity, you will miss it forever.

Therefore, although the expected return on investment in Renren is not high, for many investment institutions participating in this round of financing, investing in a successful case like a "unicorn" is more important. It doesn't matter if the return is low, the key is to get on this train.

It is even more important for small investment institutions. When they talk about it in the future, Renren will be the case on the PPT!

This indirectly proves their "vision"!
Many VC/PEs have sufficient reasons to believe that there may not be a better company than Renren in the next 3-5 years.

…………

On December 12, Renren launched the third and final round of bidding. Some investors offered a 25:2 ratio or even a higher price, but still failed to avoid being eliminated.

This is the ruthlessness of Chen Pingjiang.

Many investment institutions can afford the $2 million cap on Class B shares, so what can they do in the end? They can only compete to see who has lent more money to Chen Pingjiang.

Anyway, Chen Pingjiang only plans to sell 10% of the shares in the B round and raise 2.5 million US dollars, but it does not prevent him from borrowing more.

In the end, the ratio reached 2.5:1.

This means that instead of raising $2.5 million in financing, you can borrow $6.25 million in interest-free loans.

With the gentle knock of the wooden hammer, this unprecedented financing method finally came to an end after almost a month.

This grand circus was performed for almost a month, attracting countless eyeballs and further increasing the popularity of Renren.com.

There was a mixture of slander from the losers, joy from the winners, and applause from the entrepreneurs.

"This round of financing was led by Sequoia China, followed by IDG and Singapore's sovereign wealth fund Temasek, marking the largest single investment in a domestic Internet company so far."

"Through a series of magical operations, Renren.com only sold 10% of its shares and obtained $2.5 million in financing and $6.25 million in interest-free loans, with a post-investment valuation of $40 billion."

"It is conservatively estimated that the net worth of Renren's founder and CEO is over $20 billion, and the industry is generally optimistic about Renren's future development."

"..."

After securing the investment, Chen Pingjiang slept soundly for the whole day.

During this period of time, I have been meeting with various investors and dealing with various issues, which has really consumed a lot of my energy.

After waking up from a sleep, he couldn't tell the time. He sat at the head of the bed and stretched.

There were numerous missed calls and congratulatory messages on his phone. Chen Pingjiang replied to each message carefully and called back the missed calls.

It took almost an hour to complete.

Chen Pingjiang himself might not have felt it deeply, but after the news of the successful financing spread, everyone who knew him was really shocked, and they always felt that the distance between them and Chen Pingjiang was getting farther and farther.

The next day at work, as soon as Chen Pingjiang reached the 16th floor, he saw new couplets posted on the gate.

The four big characters "Prosperity and Wealth" are particularly eye-catching.

Wan Yuqian was still carefully watering the money tree.

Chen Pingjiang asked curiously: "Where did the fortune tree come from?"

Song Xinyue, who had already been promoted to administrative director, chuckled and said, "Yesterday afternoon, after the news of the successful financing came out, President Wan went to buy it."

Chen Pingjiang nodded: "Watch this thing carefully, don't let your competitors come and kill it."

After saying that, Chen Pingjiang walked towards the office, leaving Wan Yuqian and Song Xinyue behind with confused looks on their faces.

When passing by the office area, a group of employees, all with smiles on their faces, stood up and greeted Chen Pingjiang.

Respecting the boss is all fake!

After the financing is successful, the reality is that the net worth of those who have obtained the options will skyrocket.

Not long after Chen Pingjiang sat down, the president of the East Bank branch and the key account manager appeared in the office.

It was as passionate as it could be.

Chen Pingjiang looked at the key account manager in amazement. Has Dongxing taken out all his secrets?

She was dressed like a young woman in her early thirties, exuding the aura of a queen. She was very dedicated and was still wearing black stockings even at the end of December. A pair of gold-rimmed glasses made her look very abstinent.

"Mr. Chen, congratulations. Let me introduce myself. I'm Zhong Chi, the president of the Dongxing Minjiang Branch. I'm an acquaintance of Mr. He Zhiyu. This is Shi Zongfang, our company's key account manager." Zhong Chi's face was wrinkled like a chrysanthemum, and his enthusiasm was so enthusiastic that even Chen Pingjiang had to praise him.

Why did the bank come to Chen Pingjiang so eagerly?
Of course, it is to attract deposits.

Although the total financing of US$8.75 million is received in three installments, the average amount per installment is RMB 3 billion, and the first installment will be deposited into Renren's designated account before the end of the month.

Today is December 12th, and there are 26 days left until the end of this year.

With so many BUFFs stacked up, it’s understandable why Zhong Chi is so enthusiastic.

Chen Pingjiang is such a high-quality customer that he is like an angel to the Minjiang Branch which has not completed its deposit task!

As the saying goes, don't hit a smiling person. Especially when running a business, no one wants to offend the bank, as you never know when they will need a loan.

Chen Pingjiang smiled and nodded, and asked Guan Yifeng to pour tea: "I know President Zhong's intention, but our company has always cooperated with CCB, I am afraid..."

It is necessary to explain here what image Chen Pingjiang has in the eyes of President Zhong and Shi Zongfang.

It's probably something like $$$$$$.

How much is 2.2 billion?

The black suitcase that appears in the movie can hold about 240 million yuan, and it would take about 15 armored trucks to carry it all.

Even if we use the standard configuration of five people per escort vehicle, that is, one driver, two guards, and two cash transporters, a team of about 5 people would be needed for the escort.

Taking a general branch as an example (not a branch office or other outlets), the average retail deposit is generally only about 200 to 300 million yuan, and most branches have about 100 million yuan. In a county-level area with a dozen institutions, the retail savings amount is probably only 200 to 300 million yuan (excluding corporate deposits).

This means that Chen Pingjiang, who has more than 2 billion yuan in assets, can basically dominate the retail deposits of other banks in a region except the Big Four banks.

This shows the importance of Chen Pingjiang.

For President Zhong, the importance of this issue is doubled because their branch's deposit mission has not yet been completed.

To be honest, at this time Chen Pingjiang could make all kinds of requests. As long as they were not illegal, he could basically do whatever he wanted. He could even serve as a branch manager and just be paid for his position.

In addition to the usual benefits such as high interest rates, VIP channels, salons, physical examinations, travel, and specialized financial products, the bank can also use the resources at hand to help Chen Pingjiang do many unexpected things.

Especially if Chen Pingjiang can be persuaded to pay the salary through Minjiang Branch.

Gee...

I’m afraid that the benefits I can get will be censored if I write about them.

What can the bank do with this money?

By borrowing some money, crossing a bridge, doing some financial management, and completing the deposit task, you can earn back several times the money you paid on Chen Pingjiang in minutes.

Someone might argue that I work on projects, managing tens of billions or even hundreds of billions of dollars, and often have tens of millions in deposits in my account, so it's normal for managers to be polite, right?
In this regard, I can only say that as a manager of a project department, you have no right to decide which bank to deposit the funds in or whether to change the bank.

In addition, even if we calculate the bank's commission for attracting deposits based on the interest rate in 2007, through current accounts, it is 660%, or million.

However, if it is a current account, when Chen Pingjiang wants to withdraw the money, President Zhong will probably be as if his mother has died.

By that time the teller was afraid to handle it, the branch manager would delay, saying things like "it's difficult to transfer the money", "can it be transferred later", and so on.

Therefore, in the eyes of President Zhong and Manager Shi, Chen Pingjiang is truly a walking $$$$$.

　Modify the financing amount, the previous article has also been changed
　　
　
(End of this chapter)