Chapter 39 Financing Plan
Chapter 39 Financing Plan
Zhiyun Technology Co., Ltd. and the smartphone team of its predecessor, Weiku Electronics, have made quite a name for themselves in the past two months.
Especially in January, after Zhiyun Technology was officially established, a series of media reports on the talent poaching war broke out, bringing the new company Zhiyun Technology into the vision of industry insiders.
Ordinary people may not know this yet, after all, Zhiyun Technology currently has no smart phone products.
However, Zhiyun Technology has already made a name for itself in the mobile phone industry. Not every mobile phone company can come up with a smartphone R&D team of more than 200 people at this point in time.
This has led many mobile phone manufacturers to quietly regard Zhiyun Technology as a potential major competitor.
At the same time, this industry attention has also attracted the attention of many venture capital funds!
From last year to this year, the 3G communications industry can be said to be the hottest financial topic. Apart from the economic crisis, this topic has the highest popularity.
This is true both abroad and at home.
Seeing a brand new track emerge, venture capitalists naturally acted quickly and began looking around the world for suitable investment projects.
But after looking around, these venture capitalists found that except for some marginal industry and spare parts companies, they could not find a single smartphone manufacturer to invest in.
Needless to say, those big mobile phone companies are already quite large and don’t need any investment at all.
There was also a company called Meizu that was also highly regarded by the market, but they had been very successful in making MP3 players before, and were a large enterprise with annual revenue of over billion yuan, so they had no shortage of money to develop mobile phones and subsequently mass-produce them.
In addition, Meizu is actually a family business and the boss is averse to capital, so these venture capital funds have no chance to invest in it.
These venture capital companies have been going around in circles in the market, but they haven’t found a target to invest in…
In this case, can you imagine how these investment funds feel when they hear that a new startup company has assembled a large R&D team, is making very smooth R&D progress, and is expected to launch a smartphone this year?
So excited!
Since January, investment funds have contacted Zhiyun Technology one after another, wanting to invest.
Now the financial director has reported dozens of investment intentions to Xu Shenxue!
After placing a thick stack of letters of intent on the table, Kong Weiquan said with a smile: "The response from the capital market is even better than we expected. Many well-known large funds in the industry have sent letters of intent to negotiate investments, and the valuations they offer are also quite good!"
“Of course, there are also some small investment companies that don’t see the situation clearly and want to take advantage of the big bargains!”
As he spoke, Kong Weiquan pointed to the letter of intent for investment on top. Xu Shenxue took it and looked at it, then his face darkened: "Estimated value of 100 million? An investment of 30 million for 30% of the shares, and also requiring voting rights and a seat on the board of directors..."
Xu Shenxue didn't get angry at first, but took a closer look, then asked in a puzzled tone: "Does this company have a background?"
Kong Weiquan chuckled, "When I first saw it, I thought it was a big deal, so I checked it out. It's just an investment company set up by a few local bosses from other provinces. They want to enter the high-tech industry every day but are reluctant to spend money. I heard that they tried to participate in the B round of a science and technology company some time ago, but they were kicked out in the middle of the financing meeting!"
Hearing this, Xu Shenxue couldn't help but say, "Blacklist this investment fund, and also blacklist all those non-industry-related companies, ordinary local bosses, and those with no background behind them!"
“There are always some people who see money falling from the sky and think they can pick it up… They have no self-awareness at all. There is no need to deal with such fools.” How could these small venture capitalists and local bosses get involved in a high-tech startup like Zhiyun Technology, which has huge potential and obvious momentum?
This is not a question of money, but a question of resources.
Zhiyun Technology needs not only funds but also various resources to raise funds. It will have to continue to raise funds in the future. Are there any channels for raising funds worth billions of yuan? It will go public in the future. Can you provide guidance for the listing?
After the mobile phone is released, it will be mass-produced, and a large number of spare parts will have to be negotiated and purchased from major international manufacturers. Can the production capacity be obtained? Can the price be cut down?
Can you help to acquire a small or medium-sized company or business for business development or technology research? Can you help to obtain patents held by other companies that are difficult for Zhiyun Technology to obtain?
We will need talents for further R&D and management. Can you contact these senior talents who are not available in the market and persuade them to work in Zhiyun Technology?
I'm not talking about any talent that can be poached for just a few hundred thousand dollars, but rather those already successful scientific research giants and top talents in senior management and marketing. Can you poach them?
Then marketing also requires promotion channels, as well as other unconventional resources.
Tell us what resources you can put forth, and then we can discuss valuation and share issues.
What, nothing?
What the hell are you talking to me about? Do you really think money can fall from the sky and hit you on the head?
If you don't have special resources, you are not ashamed to come to Zhiyun Technology, a high-tech enterprise that can make money at first glance, and make a lot of money? You must have been caught in the door!
For Zhiyun Technology, financing requires not only funds, but also various resources.
These local bosses are not only ignorant of themselves, but also have problems in their brains... They dare to say that the valuation is 100 million. Look at how the big funds offer prices, they also offer 100 million, but their unit is US dollars...
Xu Shenxue has invested nearly 30 million yuan in Zhiyun Technology, and is preparing to inject at least 20 million yuan in the future, with a total cash investment of 50 million yuan.
At the same time, with the support of the scientific research system, the development of smart phones is progressing extremely fast. Even if the requirements are not so high, Xu Shenxue is expected to see the prototype by the end of this month, and then prepare to hold a press conference in early February!
In this case, the other party only gave a valuation of 100 million... This is not a question of whether it is dark or not, but the other party lacks even basic cognition.
In the case of Zhiyun Technology, even though it has just started and the R&D work has not yet begun, the starting valuation price is over 100 million just based on the R&D team of more than 200 people.
If you know this and still give such a quote, and the quote is made by someone with no background, then the problem is even bigger and it is simply a matter of brain problems.
In terms of money, the bosses of these small venture capital firms are probably not worth as much as Xu Shenxue!
Kong Weiquan followed Xu Shenxue's instructions and sorted through the dozens of investment intentions. He then pointed to a pile of about ten and said, "These are all relatively reliable. There are some large international capital investment funds that can assist us with future follow-up financing and solving overseas listing issues. There are also some relatively large domestic investment funds that can assist us with listing on the Hong Kong or Taiwan stock markets in the future."
“There are some with higher bids!”
"There are also some with special resources, such as those who can coordinate international supply chains and solve some key patent licensing issues!"
"The last one is from Blue Mountain Investment Fund. This investment company is relatively special. I contacted it through an old classmate through a local unconventional channel. There are no major problems with valuation and investment. The other party said that they can accept the valuation plan of other lead investors for follow-up investment, and they can also accept the AB equity structure."
"But they have certain requirements for the company's independent innovation capabilities, future tax contributions and employment opportunities. Only after passing their assessment can they receive investment."
"Their fund company has recently attached great importance to the 3G communications industry and is looking for 3G communications high-tech companies with strong R&D capabilities, innovative capabilities and high social responsibility."
"There are only a handful of complete smartphone R&D teams in China, and there are only two in Shenzhen. We are one of them. As long as there are no problems here, we have a good chance of getting investment."
(End of this chapter)