Winning the new financial era

Chapter 289
"Yida, Kuaishou is very similar to DouTV. It also makes short videos. It only has user growth and no business income."

Shen Beipeng took a sip of tea, cleared his throat and said, "Didn't Ruixiang also participate in Kuaishou's B+ round of financing last year? At that time, DST led the investment, and Heishan and you Ruixiang followed the investment.

You should have some understanding of Kuaishou’s situation. Can you use it as a benchmark against Doushi? "

Zhang Yida nodded. This is indeed the case. Ruixiang invested 3000 million US dollars in Kuaishou last year and took 5% of the shares.

However, it is really inappropriate to use Kuaishou and Doushi as benchmarks.

But Zhang Yida didn't refute, and continued to listen to Shen Beipeng's explanation.

“Didn’t Kuaishou completed its Series C round of financing of US$2.5 million last month? Qiandu and CMC invested, and the valuation of Kuaishou was US$20 billion.

Kuaishou's DAU is 2000 million, which means a daily activity of $100.

Pushing the timeline to last year’s B+ round of financing, Kuaishou’s daily active users at that time were 600 million to 700 million, and the valuation was 6 million US dollars, which is calculated as a daily active user of 100 US dollars. "

Speaking of this, Zhang Yida also understood Shen Beipeng's meaning, that is, a daily active user is 100 US dollars, and Douvision's 4000 million daily active users is 40 billion US dollars.

Zhang Yida retorted: "Kuaishou's users are all in China, but we still have more than 1000 million daily active users abroad?

If the advertisements are monetized, the foreign users can earn US dollars and euros. Calculated by the exchange rate, one overseas user can be worth six or eight domestic users. "

"Having said that!" Shen Beipeng laughed, "However, your overseas users are basically teenagers, and their purchasing power is inherently insufficient.

Not to mention that you haven’t started monetizing your ads yet, even if you start, what kind of ads can you push?
Toy?game? "

"Don't underestimate the purchasing power of children." Zhang Yida gave another example, "Look at the penguin game, isn't it supported by domestic children?"

"Yida, are you going to learn from Penguin and launch games overseas? Or are you just advertising?"

Xu Xiaoming interjected.

Zhang Yida shook his head, "I'm sure I won't be able to make games by myself, I don't have such a deep background, even good game studios can't afford it now.

However, most of our overseas users are teenagers, which are very suitable for promoting and attracting game companies. "

"Games must be developed if there is a chance. EA, Vivendi, Ubisoft, Activision Blizzard, Valve...these companies are all good." Xu Xiaoming began to advise Zhang Yida.

Shen Beipeng saw that the two of them were getting more and more off topic, coughed twice to remind them, "Don't talk too far, let's talk about the valuation!"

“估值60亿美元绝对不高，国内近3000万日活用户对标快手就是30亿美元，国外这1000来万日活用户调整汇率就是60亿美元。

That adds up to $90 billion! "

Zhang Yida said with a smile, "All the people invited today are relatives and friends, that's why I didn't quote 90 billion US dollars, it's all for friendship."

"Have you paid attention to Kuaishou's C round financing?" Shen Beipeng asked suddenly.

"I didn't pay much attention!" Zhang Yida smiled and shook his head, "Ruixiang is only a financial investment, and after the completion of the C round, our shares have been diluted to only 4%.

They only sent an investment representative to participate in their C round of financing negotiations, just going through the motions.

Su Hua guessed that seeing me vibrate, he even became wary of Ruixiang. "

Black Shirt Capital participated in Kuaishou's multiple rounds of financing and is considered one of the very important investors, so Shen Beipeng knows some inside information.

But now that Douvision has become Kuaishou's opponent, it's not easy for him to directly point out these inside stories.

Shen Beipeng thought for a while and asked in a roundabout way: "Do you know why Qiandu invested in Kuaishou? And gave him a valuation of US$100 billion for a company with less than 20 employees and no income yet?"

"I remember that Su Hua seems to have come out of Fengchao?"

Shen Beipeng nodded, "Yes, it is the Phoenix Nest of the search marketing system.

After Su Hua dropped out of Aoki University's Ph.D., he worked in Google and Qiandu successively, responsible for the research and development of back-end technologies such as search and recommendation algorithms and system architecture. "

Zhang Yida thought for a moment and asked, "You mean that Qiandu wants to arrange short video advertisements?"

"I didn't say that!" Shen Beipeng waved his hand, "You guessed it yourself."

Zhang Yida remembered, didn't Qiandu just work with Kuaishou on the advertising system in his previous life?
But later, Kuaishou chose live streaming as a monetization method, and short video advertisements were not launched. Qiandu also changed from a strategic investor to a financial investor.

“The recommendation algorithms of Kuaishou and Doushi are different, they are based on people rather than content consumption.

Tiktok is just the opposite, we are based on content consumption rather than people. "

Zhang Yida said while recalling that in his previous life, Kuaishou and Doushi had seemingly similar but completely different models and strategies.
Kuaishou pays attention to the opportunities for users to participate, the video recommendation is scattered and sinking, and strives to make the videos of ordinary users visible;
On the other hand, Douvision pays attention to the user's viewing experience, and the video recommendation is concentrated, focusing on a few broadcasters with a large number of fans.

Therefore, for ordinary users, Kuaishou may be more fair, which leads to uneven video quality of Kuaishou. It does not look so good, but it is more real and closer to life.

DouTV is to give more recommendation opportunities to videos with exquisite shooting and various high-end content, which can be regarded as a kind of performance, which is more enjoyable to watch.

Zhang Yida is a little worried now. Pinduoduo's style is obviously more compatible with Kuaishou, and it is a sinking channel, which is not compatible with Doushi.

"What about commercial monetization? Are you planning to do commercials or live broadcasts?" Shen Beipeng asked.

"Don't worry about it now, let's wait until the number of daily active users exceeds 1 million!"

Once commercial monetization is started, the user experience will definitely be worse.

Zhang Yida can imagine with his toes that users will definitely be dissatisfied when they encounter an advertisement after swiping a few videos.

The current leading position of DouTV has not been fully established, and he dare not rashly start commercial realization.

Competitors like Kuaishou haven't started to realize their business yet, so why is he in a hurry?

Isn't it just burning money?It will pay off sooner or later in a few years.

Shen Beipeng nodded, and expressed his understanding of Zhang Yida's approach, typical Internet thinking!
"Okay! 60 billion is 60 billion, how much do you want to raise?"

After finishing speaking, Shen Beipeng looked at Zhang Yida.

"Let's raise $6 million!"

Zhang Yida began to make arrangements, "Ruixiang invested 3 million US dollars, I personally followed up with 1.5 million US dollars, Huayi, Heishan, and Zhenke each invested 5000 million US dollars!"

Shen Beipeng was not happy anymore. He frowned and said, "Such a small share? 5000 million US dollars can't even account for 1% of the shares."

"Yida, be more generous. We all agreed on a pre-money valuation of US$60 billion. Why do you have to open a financing line of US$10 billion?"

Xu Xiaoming had a lot of confidence in Zhang Yida. Chen Ou had been caught in a storm of counterfeit products recently, so he didn't use Chen Ou as a case when he participated in various investment forums and carried out investment work.

However, the development of Zhang Yida's companies is better than the last, which helped him earn a lot of face and various reputations.

Seeing that Yimin Wealth is about to go public again, Zhenke Fund will make tens of millions of dollars again.

So his confidence in Zhang Yida rose to an incomparably high level.

"That's it!"

Zhang Yida thought for a while, and decided to do it in one step, and would not raise any further financing.

He said his plan, "Ruixiang Industrial Fund is 5 million, I personally follow up with 2 million, and the three of you each have 1 million US dollars."

"can!"

Shen Beipeng no longer asked for too much share. In his opinion, a start-up company with 60 billion US dollars, there is not much room for growth, and there is not much room for profit.

However, Zhang Yida's follow-up investment of 2 million US dollars still impresses him.

In this era when the founders are scrambling to cash out, Zhang Yida dared to personally invest 2 million US dollars. It can be seen that he has great confidence in the success of this project.

Xu Xiaoming also nodded in agreement. Zhenke Fund was originally small in scale, and it was far inferior to the big business of the black shirt. The share of 1 million US dollars made him very struggling, and he couldn't eat any more.

After all, a fund can’t hold all of a company’s holdings heavily. Investors may withdraw their capital if they find out.

Neither Lan Lan nor Lei Dongming had any objections. Zhang Yida had strong control over both companies, so the two of them just followed his arrangement.

After completing a series of due diligence procedures, Zhang Yida signed a round A investment agreement with Sifang in a low-key manner.

The Cayman holding company of Douvision and Musical.ly received a joint investment of US$60 billion from five parties including Zhang Yida based on a pre-money valuation of US$10 billion, bringing the company’s post-investment valuation to US$70 billion.

The shareholding structure before Doushi’s financing was that Zhang Yida personally held 90% of the shares, and another 10% option pool was set up.

After the merger and acquisition of Musical.ly, and the development of North America, Europe and other operation centers, Doushi has more company executives such as Ma Jun, Yang Lu, and Ryan.

These people are conscientious and diligent in starting their business with Zhang Yida. Take Ma Jun as an example. After opening up the North American operation center, he went to Europe non-stop and did not return to China during the Chinese New Year. It can be said that he did not work hard.

They fight so hard, and what they are looking for is options, and they want to make a huge fortune when the company goes public in the future.

So this 10% option pool is set up for these people to motivate them to work better.

In addition to company executives, middle management and key employees also have the opportunity to obtain stock options.

There are relatively few grassroots management and employees. If there are no outstanding achievements, they will generally be given some consoling options.

After all, the cake is so big, and the biggest portion must be given to the employees who have contributed the most.

After completing the A-round financing of US$10 billion, Zhang Yida’s equity did not drop much because of his personal co-investment of US$2 million, and he still holds 80% of the shares;

Ruixiang acquired 7.14% of the shares, and Heishan Capital, Huayi Capital, and Zhenke Fund each held 1.43% of the shares;

The option pool has shrunk from 10% to 8.57%, but it is still worth a lot, worth a full $6 million.

The financing was carried out in a very low-key manner. Zhang Yida did not invite any media or reporters. After all, the $10 billion A round of financing is quite shocking.

If the outside world knows, it will inevitably attract more hot money to invest in the short video field, bringing a lot of unnecessary vicious competition.

But it is impossible to hide this kind of thing for too long, especially after the completion of financing, Zhang Yida gave a round of option incentives to the company's executives, middle managers, and key employees.

For option incentives, you have to tell employees how much it is worth!Although a non-disclosure agreement is signed, it is inevitable that some employees will brag to their former colleagues and peers.

China's domestic conditions are like this, and the legal awareness is weak.

But Zhang Yida didn't plan to hide it for long, one more month is one month!
In addition, Zhang Yida is also very concerned about Zhang Ming's actions. Toutiao has its own algorithm and technology accumulation. It is not difficult for them to launch a short video.

There was already a Kuaishou as a competitor, and if Toutiao joined it, it would be the killing of the Three Kingdoms.

　Thanks to Go Pikachu for the reward!Hello, the first rudder owner in this book, leather rudder owner!

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(End of this chapter)