Winning the new financial era

Chapter 90 Pete Net Pre-Series A Financing

"Yida! This is another project you have tinkered with!" Xu Xiaoming sat in the meeting room of Petnet, smiling like a Maitreya Buddha.

Shen Beipeng on the side also sighed: "It's really tossing."

Zhang Yida smiled and said, "The two teachers are invited here to give you advice! The domestic pet market still has great prospects for development."

"Do you want us to invest again?" Xu Xiaoming told the truth.

Zhang Yida smiled, gave a thumbs up, and praised: "Teacher Xu really has sharp eyes."

Zhang Yida then handed over two operational reports, one for Xu and one for Shen.

After the two watched for a while, Xu Xiaoming took the lead and said:
"Pet e-commerce + pet O2O + pet social networking is a good idea.

The promotion is also good!It has been online for 3 months, with 10 registered members and e-commerce GMV exceeding 1000 million. O2O services have settled in more than 500 merchants, with more than 5 orders and more than 500 million GMV. "

"Compared with your previous grades, it's still a bit worse!" Shen Beipeng interjected.

Zhang Yida nodded, and then said: "After all, the pet market is relatively small. And we didn't have enough funds in the early stage, and 550 million funds are enough to set up the basic shelf of the platform."

"The ceiling of e-commerce in this vertical field is a bit low. If you reach the limit, it will be on the order of US$10 billion. What do you think?"

Shen Beipeng spoke straight, and he almost pointed at Zhang Yida's nose and said: You are not doing your job properly, what a mess for a small plate of 10 billion US dollars!

Zhang Yida was not angry either, and put his hands on his chest, and slowly expressed his opinion:

"At present, the pet market is indeed a niche market. But with the aging population in our country, there are more and more empty nesters. There are also more and more young unmarried people in cities.

More and more lonely people, more and more pets.The pet market will definitely usher in a big explosion next.

And Patenet is engaged in pet services, and can also enjoy this wave of growth dividends.

Within three to four years, it will definitely be able to achieve a scale of 10 billion US dollars.

Investing in Petnet, the return on investment is not necessarily particularly high.But the future is clear.Why not complain about easily harvesting an IPO? "

Xu Xiaoming felt that it made sense, looked at Shen Beipeng and said:
"Old Shen, I think you swelled up after becoming a top investor. Isn't a billion dollars money?
I think Yida is a very good project. If you don’t vote, I will vote alone! "

Shen Beipeng was also amused, spreading his hands to express his innocence, and said with a wry smile:
"Did I say no to investing? I just said it honestly. This pet e-commerce company is definitely not comparable to a full-category e-commerce company like Ahri. There is limited room for growth."

"Cut, the vertical segment is good! Look at Jumei, it's not worth billions of dollars now!"

Xu Xiaoming is a little proud. Jumei can be called a successful investment for him, with a return of more than a thousand times.

Shen Beipeng was too lazy to argue with him, so he looked directly at Zhang Yida and asked:
"Let's talk about the valuation. If it's not expensive, I'll invest. If it's too expensive, I won't make money."

Zhang Yida raised his right hand and spread all five fingers.

"5000 million RMB? Then we, the black shirts, voted." Shen Beipeng spoke first.

"Ahem, the unit is wrong, it's Meidao!" Zhang Yida smiled awkwardly.

"5000 million U.S. dollars. Yida, this is a bit expensive! Look at you only invested more than 3 million 500 months ago, and now the valuation is 5000 million yuan, which is also a 10-fold increase!"

Xu Xiaoming couldn't help but said that the ceiling of pet e-commerce is too low after all, and the imagination of the story is limited.Previously, Zhang Yida gave high premiums to two financial projects because the stories were so moving!The development is very imaginative.

"Hey, Mr. Xu, let's take a look at the financial report of Patenet. In three months, apart from the payment of more than 100 million yuan in salary, the other 300 million yuan was spent on promotion.

If you give me 1 million yuan for promotion, I can increase the operating data dozens of times in a year. "

Zhang Yida began to describe the future prospects to Xu Xiaoming, telling him that investment would never lose money.

"Yida, the valuation of 5000 million US dollars is really too high. I think 1000-2000 million US dollars is more reasonable..."

Xu Xiaoming began to bargain with Zhang Yida.

Shen Beipeng couldn't stand it anymore, and said directly:
"Calculate according to the GMV valuation method!

P/GMV, that is, market value/total turnover, this figure is generally 0.6.

The total turnover of Patenet in three months is 1500 million, and it is 6000 million in one year.The valuation should be around 3600 million.

Considering your past achievements in Yida, we will give you a premium of 1400 million.

The pre-investment valuation of 5000 million is very reasonable! "

Zhang Yida pursed his lips and said:
"Mr. Shen, your calculation is wrong.

Let’s talk about GMV first. Our first, second, and third month’s total turnover was 100 million, 300 million, and 1100 million respectively, maintaining a monthly growth rate of 300% month-on-month.

According to this growth rate, the GMV in the next year will be at least 10 billion or more.

A valuation of 6 million yuan is not too much! "

"You all know it's the next year, and what we're discussing now is the present." Shen Beipeng looked at Zhang Yida and said seriously.

"However, it is estimated that GMV is only 6000 million a year, which is too little. After three months, Petnet's monthly turnover will reach 3 million."

Zhang Yida was very unconvinced, and he would definitely not accept the valuation of 5000 million.

"Okay, Yida, we don't mean to embarrass you. But the results of your Patenet operation for 3 months are really not that impressive. Otherwise, let's raise less money first and raise a Pre-A round! "

Xu Xiaoming knew that everyone might have a big difference on the valuation issue, and it was difficult to reach a consensus for the time being, so he proposed a new plan.

"The Pre-A round is good. After you get the financing, you will operate for another 3 months. If the growth rate is still the same as the current monthly growth rate of 300%, then the A round will give you a high valuation."

Shen Beipeng also expressed his opinion, thinking that a round of pre-A round of financing should be done first, and it will be a small test.

Zhang Yida also knew that asking them to recognize the valuation of tens of millions of dollars was unrealistic, so he nodded and said:
"Okay, you can do a Pre-A round of financing first, but the pre-investment valuation must be based on a valuation of 1 million, and I only raised 1000 million."

Xu Xiaoming and Shen Beipeng looked at each other, and Shen Beipeng said:
"We can agree to your conditions, but you have to make a little concession. According to the pre-investment valuation of 9000 million yuan and the post-investment valuation of 1 million yuan, we will finance the 1000 million yuan."

Zhang Yida thought for a few seconds and replied, "Yes!"

Lu Fenghai was called, and Zhang Yida signed the Pre-A round financing agreement with him.

Blackshirt Capital invested 600 million, Zhenke Fund contributed 400 million, and invested a total of 1000 million in Patenet.

At the same time, a 10% option pool is reserved for the introduction of talents in the future, and the option pool is diluted by the equity of Zhang Yida and Lu Fenghai.

The final shareholding changes to:

Zhang Yida: 72.9%
Lu Fenghai: 8.1%
Option pool: 9%
Blackshirt Capital: 6%
Zhenke Fund: 4%
On the second day after the agreement was signed, the two major venture capitalists brought in 1000 million funds.

Zhang Yida said to Lu Fenghai:
"In fact, the two funds are still very optimistic about us, but our data is still a little bit worse. They want to lower the price to buy shares and earn higher returns."

Lu Fenghai said with a smile:

"With this 1000 million yuan, we don't have to worry about the funds for the next six months. I am sure that the monthly turnover will reach more than 6 million yuan in six months."

Zhang Yida shook his head, if he did that, the day lily would be cold.Said his thoughts:

"This 1000 million, we have to spend it in 3 months. Don't save, because it doesn't make any sense at all.

What they want to see now is our growth rate and the efficiency of burning money.

So we must spend the 1000 million wisely, keep 200 million as salary, and use the other 800 million to burn advertising and grow.

In the next three months, the turnover will be 2000 million, 4000 million, and 8000 million respectively.

Be sure to keep doubling your growth rate.In this way, the negotiations can have a say in the A round of financing. "

Lu Fenghai frowned and said:

“8月份做到2000万不难，9月份做到4000万恐怕有些难度，但是也还是有希望。10月份要做8000万那可以称得上是地狱级难度了。”

"I know that it is indeed difficult to maintain a high growth rate after the magnitude has risen. However, only when we have made this achievement can we prove our value to investors."

Zhang Yida took a long breath, patted Lu Fenghai on the shoulder, and said:
"Let's work hard together! After achieving this goal, I will call for a valuation of 10 billion for the A round of financing."

"Haha, the investors haven't turned the tables yet!" Lu Fenghai felt that Zhang Yida's appetite was too big, and the valuation of the next round of financing would increase by 10 times.

"Don't worry, as long as we really achieve this goal, they will see the value in it." Zhang Yida has dealt with investors a lot, and he knows what indicators they value most in the project, first of all, the growth rate.

Lu Fenghai nodded and said:
"Next, we will expand to a few more cities, and we still have a chance to achieve our goals."

"Do your best! Ruixiang and Yimin will also help you with promotion. You should prepare more e-commerce shopping coupons and O2O service discount coupons. At that time, I will arrange for Ruixiang and Yimin to cooperate with Patenet Hold some events."

Zhang Yida also made a suggestion that in order to achieve the goal of Petnet, he is going to use all kinds of resources.

"Isn't that good?" Lu Fenghai rubbed the back of his head, a little embarrassed.

"There's nothing wrong with it. It's really bad if you can't meet your goals. Patenet conducts activities, and it uses all the profits to make coupons.

For Yimin and Ruixiang, it is also possible to give back to users through this joint activity.

I was wondering if Yimin and Ruixiang were taking advantage too much.Gotta get them to take the money and buy a bunch of coupons. "

Zhang Yida felt that it was necessary to give Patewang some blood, otherwise it seemed that it would be difficult to complete the task.

Lu Fenghai was left speechless by Zhang Yida's coquettish operation, and said:
"Brother, don't. Our kind of people used the huge traffic of Yimin and Ruixiang to help us promote new users. If you ask them to pay for it, that's a related party transaction. It won't affect you as a major shareholder very well."

Zhang Yida shrugged and said he didn't care.

In fact, I was just joking!Don't take it too seriously.Zhang Yida thought to himself.

(End of this chapter)