Internet 2010

The next day, Lu Zhou drove to Zhujiang New Town. This was his first visit to the location of the Dream Creation Fund.

From the establishment to the start of the operation of the entire fund, Luzhou only made decisions in key places, and the rest was done by the senior management of Mengguang and the new team of Chuangmeng.

The reason for choosing Zhujiang New Town is simple. Compared with Menggu's huge human resources system, the fund's personnel system is much more "pocket", and considering traffic and "compulsion", it is understandable to choose this place.

Today, Lu Zhou went to Chuangmeng, saying that the inspection is the second priority, and the main thing is to meet the "old friends".

After he registered at the front desk, he followed the staff to a conference room. At this time, a "training" was being held inside.

In the audience, all are investment managers of the Dream Fund, and some are senior executives of the company who have been notified to come to the lecture. At a glance, there are some familiar faces, such as Pan Feiwen and Wang Zhengye of orange and melon peel.

Lu Zhou found a seat in the last row and sat down.

At this time, Lin Xinhe was sitting on the stage talking freely.

"We often talk about business, business models. Often when we receive business plans from startups, entrepreneurs also talk about business models."

Lin Xin and the conversation changed, "But in my opinion, many people don't realize a fundamental problem. The design of equity is one of the most important business models of a company."

"Here, let's think about it from two perspectives. For most strategic investors today, the role of equity is to make money. But for entrepreneurs, this role is relatively small, and it more represents the right to speak and control. .

It is not difficult to find some contradictions in the middle. For example, as an investor, we prefer the founding team to come up with a larger option pool, which can effectively motivate members outside the founding team. The founding team may be reluctant to share too much equity from the perspective of self-interest.

Different founding teams have different approaches. A good equity design should have several important factors.

To ensure the normal operation of the company, the founding team retains the right to speak to the company.

When the founding team is relatively large, it can take into account the interests of the founders and reduce the cost of internal friction.

Option incentives can be effective and can effectively promote the labor of bottom-level employees.

In the case of a poorly functioning company, shareholders can have effective means to implement changes.

For us, the reality is very complex, which requires us to screen them one by one. "

Lin Xinhe clicked the ppt on the next page, "Next, there are still many things to consider. Here, we use WeChat as a case to discuss related topics."

Under the stage, Lu Zhou smiled when he heard it. He really wanted to know what Lin Xinhe thought about it.

"First of all, let's look at the simple development process in WeChat's equity design.

In June 2010, Lu Zhou, Cheng Xuyuan and Lu Ming jointly established WeChat Technology with RMB. Among them, Lu Zhou holds 75 shares, Cheng Xuyuan and Lu Ming each hold 5 shares. The actual total investment is between 3 million and 4 million.

We can note that there is no so-called dry stock or technology stock component in the establishment of WeChat. To a certain extent, this can effectively reduce the friction of interests between founders.

Cheng Xuyuan and Lu Ming’s investment was between 150,000 and 200,000, and they also received WeChat’s salary during their time in the company. We assume that the investment and salary are approximately equal. Here we assume another situation.

After one year of operation, WeChat technology has not been satisfactory. Cheng Xuyuan and Lu Ming got their investment back through their salaries, while Lu Zhou still took higher risks because of the company's lack of recruiting other employees.

Luzhou has a higher investment, a higher proportion, and a higher risk. The other two are the exact opposite.

Of course, a large number of start-up teams in the market cannot achieve this situation. For example, the start-up capital is small and cannot be measured in currency. Or the ability of the founders is average, and the shares must be distributed more evenly as a last resort. "

Lin Xinhe paused, then clicked to the next page.

"Let's talk about a financing for WeChat Technology in November 2010. Here, the founder Lu Zhou was seeking financing in the form of convertible bonds. Why did he have this demand, and d finally agreed to this plan? Let's have a good discussion.

Here, the time node is the most important factor. At this time, WeChat was at the front and back of the two important versions of the Moments and the official account, and at that time, Penguin WeChat was also chasing after it.

Due to financial pressure, Luzhou chose to raise funds.

Why did Luzhou choose to use convertible bonds for financing instead of promoting WeChat Technology for Series A financing? The reason is simple.

At this time, WeChat is in a critical period. Equity financing at such a node may lead to a low valuation because the institution does not correctly recognize the value of the current version. Convertible bonds can avoid such a situation. Weixin Technology borrows money from d, and then carries out equity replacement in round a.

So why does d accept such an 'unequal treaty'? Two, stand and risk.

The facts that Lu Zhou is convinced of, our institution cannot be sure of.

Therefore, at this critical node, risk control is more important for institutions. Once WeChat fails within the time period at that time, we can directly ask WeChat to pay cash and interest in currency, with a slight profit. And once WeChat succeeds, although we get less equity, the risk we take will also be smaller. "

Lin Xinhe sat down again.

"Although we often invest in venture capital, we should also consider risks. If WeChat failed at the time, we only needed to go to the door to collect debts all day long. If WeChat succeeded, we would earn a little less, and it would not be a loss.

We look at WeChat, how to evaluate it, it can be disassembled into several components. The potential value of WeChat is the cost of switching from a new experience to an old experience.

What Luzhou is convinced is that the new experience of WeChat is far greater than the previous communication products.

What we can't confirm is how much the user switching costs.

Although the two are far from each other~www.readwn.com~, they can also reach a certain consensus through the design of various modes. "

He suddenly noticed the road boat in the back row.

Afterwards, he said with a smile, "Of course, I still admire Mr. Lu's courage. After all, if WeChat really fails and chooses to convert debt instead of equity, WeChat will need to take on tens of millions of dollars in debt. Not every founder takes that bet. It requires a lot of confidence in its product, and that's what an investment manager is looking for."

"Okay, come here first. The rest, we'll talk about it later. Take the recent Mochat as an example, this is also a case that needs to be reviewed."

After all, Lin Xinhe also walked over to the back row, and Lu Zhou got up when he saw the situation and hugged him.

Lu Zhou smiled and said, "Mr. Lin's last sentence should be added temporarily."

Lin Xinhe, "Hehe, seeing you now, there are a lot of things I can't talk about. Let's go and talk to my office."

Lu Zhou smiled in his heart. After more than a year of fooling around, he could be considered to have fooled this "big fish".