Perfection of Rebirth

Chapter 203 First Round Investment
Just when "The anchor is coming" became popular all over the Internet, Xiaonei also ushered in the first round of financing negotiations. Deputy General Manager Tang Wenwen and Deputy General Manager Fang Dawen led the Minister of Legal Affairs Xiang Weiwei and the Minister of Finance He Ling join.On Softbank's side, Mr. Xiong, the general manager of Softbank Tianchao, and several other staff were present.

The reason why Jiang Hui himself did not participate in the first negotiation was mainly due to the fact that it was only an early-stage contact, and it was not yet time to negotiate terms. Moreover, other venture capital institutions have not yet reflected, so it is necessary to delay. Procrastinate for specific negotiations.

In fact, as Jiang Hui expected, IDG and Sequoia Capital are also evaluating the value of Xiaonei in order to start financing negotiations.The development and changes of Xiaonei.com are too fast, and venture capitalists need to inspect the operation of Xiaonei.com and learn as much as possible about the project.They generally carefully evaluate Xiaonei's technology, market potential and size, and management team through a review process that includes contacting potential customers, consulting with technical experts, and holding several rounds of meetings with the management team.These people help venture capitalists come to a conclusion about how risky it is to invest in Xiaonei.

The place where we met for the first time was the meeting room of Xiaonei, which was also convenient for taking Softbank personnel to visit Xiaonei after the meeting. It is impossible for Softbank to make a decision to invest or not to invest in the company without seeing the company itself.

After Tang Wenwen brought Mr. Xiong from Softbank and his group to the meeting room, they exchanged a few simple greetings, and then began to understand each other's situation.

"Mr. Tang, I heard that the founder of Xiaonei.com is Jiang Hui, who is a student at Teito University of Technology. Would you like to confirm again that this is indeed the case?" Mr. Xiong of Softbank saw that there seemed to be no personnel involved in the negotiation on Xiaonei. Jiang Hui asked deliberately.

"That's true. Xiaonei was originally founded by Mr. Jiang alone, and now he is also an absolute major shareholder. It's all my fault. I didn't make an appointment with him in advance. It just so happened that the leaders of Imperial University of Technology came to talk to him today, so I couldn't participate today. meeting", Tang Wenwen said.

"Mr. Tang, is it convenient for us to introduce the shareholder composition of Xiaonei.com? There are various opinions on the Internet, and we don't know which one to listen to," Mr. Xiong said.

"Xiaonei.com now includes the founder Mr. Jiang, the management team's shareholding, and the share exchange when he acquired Hao123. At present, there are a total of 17 shareholders. Among them, Mr. Jiang holds more than 80.00% of the shares, and Mr. Li Xingping holds nearly two points of shares. , and other managements hold nearly [-] point or [-] of the shares," Tang Wenwen said.

"It is said that Xiaonei.com, Guanghui Games, Guanghui Payment, Guanghui Technology and other companies were all created by Mr. Jiang. What is the relationship between Xiaonei.com and these companies?" Mr. Xiong asked.

"These four companies were indeed founded by Mr. Jiang alone. Among them, Guanghui Technology is the parent company of Xiaonei.com, and Mr. Jiang's shares in Xiaonei.com are all held indirectly through Guanghui Technology; The main strategic partner, most of the popular games on Xiaonei.com are developed by Guanghui Games and launched on Xiaonei.com; and Guanghui Payment was a payment interface of Xiaonei.com before, and later became independent as a company. The current shareholder composition and Xiaonei Internet is almost the same,” Tang Wenwen said.

Although being honest will help win each other's trust, it also saves the effort of lying everywhere in the follow-up.However, there is a real need to hide some information at the first meeting before conducting a rigorous evaluation with investors.Just like dating, you want things to evolve gradually, you don't spill all your secrets on the first date, you create a sense of mystery.Tang Wenwen also adopted a similar method when introducing several companies, which was also discussed with Jiang Hui beforehand.

"Currently, Xiaonei.com focuses on the development of the college student market. Will you consider other markets in the future?" Mr. Xiong asked.

This topic can be regarded as a cliché, and it has been discussed many times inside Xiaonei, so Tang Wenwen answered it very smoothly.

"At present, the main positioning is still the college student market, but in the future, we will consider opening registration to high school students," Tang Wenwen said.

"Aren't you considering opening registration to all Internet users?" Mr. Xiong said.

"There is no such consideration within this year," Tang Wenwen said.

"Mr. Tang, can you tell us about the number of users of Xiaonei?", Mr. Xiong said.

"Of course. In fact, we will publish the data on the Internet regularly. At present, the school has more than 900 million users in the mainland, and more than 100 million international users in island countries. The total number of users is close to 100 million. Moreover, more than half of the users log in to Xiaonei at least once a day, and the number of simultaneous online users reaches more than 500 million,” Tang Wenwen said.

This data is even better than SoftBank’s previous survey. In particular, half of the users log in to Xiaonei at least once a day, and the highest number of online users exceeds 500 million. This shows that users are more sticky to Xiaonei and the website is more attractive. .

"We learned that there is also a Facebook company in the United States. Their business is very similar to Xiaonei. Before, Xiaonei merged all its North American users into Facebook. What is the relationship between this company and Xiaonei? ?” President Xiong asked.

This issue is relatively seldom paid attention to. Softbank's ability to understand this situation shows that they have really investigated the situation of Xiaonei.com, and it also shows that they really have an idea to invest in Xiaonei.com.

"Facebook was established at Harvard University in February this year. Later, Xiaonei also invested in shares. At present, its major shareholder is Guanghui Investment Co., Ltd., but the majority of voting rights are still in the hands of the founders. They mainly target the European and American markets. Xiaonei mainly targets Asian market," Tang Wenwen said.

This news was quite unexpected to Mr. Xiong. They only guessed from the transfer of North American users of Xiaonei to Facebook that Xiaonei and Facebook should have some connection, but they did not expect Xiaonei to be its major shareholder.Mr. Xiong, as the general manager of Softbank Tianchao, also knows some information about Softbank's investment in the world. According to his understanding, Softbank America is also considering investing in Facebook. Unexpectedly, colleagues in Tianchao and the United States have all taken a fancy to the same company. .

"Mr. Xiong, Xiaonei.com is an open and ambitious company. We welcome like-minded investors from all walks of life to participate in the development of Xiaonei.com. I wonder how SoftBank will cooperate with Xiaonei.com?" , Tang Wenwen asked.

(End of this chapter)