Perfection of Rebirth

Chapter 200 SoftBank
This is the first time for the shareholders of the company to hear the relatively comprehensive financial, development and market situation of Xiaonei. It can be said that the development of Xiaonei has exceeded everyone's expectations.Especially the profit of more than 3000 million yuan per month. Although Xiaonei has not distributed dividends since its establishment, according to the shares held by everyone, it is equivalent to more than [-] yuan per month for everyone with the least shares.

When Xiaonei was founded, what Jiang Hui said to everyone is still vivid in his memory. Most of the current shareholders are still students in school. Although the monthly income of more than [-] is not available for the time being, it is quite impactful.

"Let's ask Mr. Tang to introduce the background of today's meeting," Jiang Hui said.

Softbank first came into contact with Tang Wenwen, who is currently responsible for the early communication with Softbank. For many shareholders present, they probably don’t have much idea of ​​what venture capital is and Softbank’s status in the venture capital world.Jiang Hui himself didn't know that there was a big crocodile like Softbank behind the Chinese Internet industry under repeated bombardment by the media in his previous life.

"A few days ago, the staff of Softbank Tianchao contacted me and expressed their willingness to invest in Xiaonei. According to Mr. Jiang's instructions, let me take this opportunity of this meeting to introduce you to the situation of venture capital and Softbank." Tang Wenwen said.

"Venture investment is actually the abbreviation of venture capital. Generally speaking, VC refers to venture capital. This term and its behavior are generally believed to have originated in the United States. After the 20s and 70s, some investors were willing to exchange high risks for high returns. Invented by investors, this investment method is fundamentally different from the previous mortgage loan method. Venture capital does not require mortgages and does not need to be repaid. If the investment is successful, investors will receive several times, dozens of times or even hundreds of times return; if it fails, the money invested will be wasted. For entrepreneurs, the biggest advantage of using venture capital to start a business is that even if they fail, they will not be in debt. This makes it possible for young people to start a business. Overall In terms of investment, over the past few decades, this investment method has developed very successfully,” Tang Wenwen said.

"In the past seven or eight years, a group of overseas students represented by Du Niang, Xinlang, Sohu, etc. have returned to China to start businesses and brought back a large number of venture capital to China. This new financing method has greatly catalyzed the growth of small and medium-sized enterprises. .Currently well-known venture capital firms include IDG, Sequoia Capital, SoftBank, etc.,” Tang Wenwen said.

"The one who wants to invest in Xiaonei this time is Softbank. It is estimated that other VCs will extend olive branches to Xiaonei soon. Softbank is the abbreviation of Softbank Software Bank Group. It is a comprehensive venture capital company founded by Masayoshi Son in 1981. Founded in the island country on September 9, 3 and listed in the island country in 1994. The software bank group is mainly committed to investment in the IT industry, and its business includes broadband networks, fixed-line telephones, e-commerce, Internet services, Internet telephony, technology services, holdings, Finance, media and marketing, etc. Software Bank Group owns shares in hundreds of IT companies around the world, and has a relatively large influence on the Internet. Just last year, Softbank invested 4000 million in Shengda Games,” Tang Wenwen said.

"Softbank founder Sun Zhengyi is a legendary figure. Sun Zhengyi came to California from the island country at the age of 16, studied at the University of California, Berkeley, and received a bachelor's degree in economics. During college, he imported video game consoles from the island country, And installed and operated near the campus, and got the first million dollars in income. He also developed a variety of computer games. His entrepreneurial spirit made him invent and obtain a multilingual pocket translator soon after. The patent was later sold to Sharp Corporation for US$100 million. In 1981, he returned to the island country and established Softbank. You can learn about his deeds when you have time after the meeting. Helpful," Tang Wenwen said.

“软银在天朝还有一个比较大的投资就是给杭城的马天才的两笔资金。软银分别在2000年和2004年阿力巴巴的第二三轮融资中以2000万美元和6000万美元共买下阿力巴巴20%的股份。从软银过往的风格来判断的话，本次软银天朝估计想投资一笔资金占有校内网20%左右的股份具体情况要开始谈判后才知道，以上就是我今天要说的内容了”，唐文章说道。

Except for Jiang Hui, Tang Wenwen and Fang Dawen, the other people present did not have a deep understanding of SoftBank's investment intentions this time, so after listening to Tang Wenwen's speech, everyone turned their attention to Jiang Hui.

"Everyone understands the situation of the company. The current development is relatively fast, but some problems have also been exposed, such as the decline in the growth potential of the number of users, and the profit is heavily dependent on the game revenue. The introduction of venture capital can speed up our professional and standardized development. The funds obtained can also allow us to let go and work hard, which is also very beneficial to the future listing of the company. But there are also some disadvantages. First of all, our company’s development decisions will have more voices, and these voices may conflict with everyone’s. Inconsistent. Some regulatory measures will also be added to the use of funds,” Jiang Hui said.

Jiang Hui picked up the teacup on the table and took a sip of tea, giving everyone a little time to digest.

"Having said so much, in fact, what everyone is most concerned about is whether to accept financing? What valuation is used for financing? What is the financing ratio? In fact, in my personal opinion, financing is inevitable for enterprises to develop. But should we raise money now? It depends on how much SoftBank bid. After all, financing will dilute everyone’s shares. I once told everyone that everyone will be multi-millionaires and billionaires in the future. I'm serious. Now conservatively estimate that the valuation of Xiaonei.com will not be less than [-] to [-] million yuan. According to the shares held by everyone, everyone sitting here must be worth several million people at least," Jiang Hui said After saying this, everyone felt a burst of emotion. Accidentally, more than a dozen millionaires were born.Maybe in half a year, there will be more than a dozen multi-millionaires.

"Old Tang, contact Softbank first, and see what conditions they offer. I guess that if Softbank makes such a move, other venture capitalists will follow suit. At that time, we will choose the best financing targets," Jiang Hui said.

"Okay, how about our asking price, Mr. Jiang?" Tang Wenwen said.

"The first-time financing ratio should not exceed 15.00%, and the valuation should not be lower than one billion. At least half of these financing shares must have no voting rights," Jiang Hui said.

According to Jiang Hui's request, it is estimated that some people have talked about it, and Softbank will not agree to it in a short time, but this is the same as buying a house. When I first looked at it, I thought it was expensive at [-] yuan. If you can buy five, you will feel that you have earned it.

(End of this chapter)