Chapter 67: 82 billion valuation financing

Chapter 67: 82 billion valuation financing

Chapter 67: 82 billion valuation financing

After Xu Shenxue and Kong Weiqian had their meal, they took a break and continued to discuss negotiation strategies. They also negotiated with the hired team of commercial lawyers for more than half an hour.

Afterwards, the negotiation teams of both sides gathered in the conference room again!

This time the negotiations went relatively smoothly, and some differences between the two sides were quickly resolved...mainly because both sides were anxious and unwilling to drag it out!
Now Zhiyun Technology is waiting for money for mass production. The sooner the money arrives, the better its future development will be... because a large number of friendly competitors will not sit idly by and watch Zhiyun Technology occupy the market for a long time.

I'm afraid it won't be long before the American company will launch and sell its mobile phones. After being stimulated, other mobile phone manufacturers will probably follow suit.

It is difficult to say how long Zhiyun Technology's monopoly advantage can last.

In particular, the people from China Unicom have just made it clear that their negotiations with Apple have entered an in-depth stage. After a while, a negotiation team will go to the United States for negotiations, striving to introduce Apple phones into the Chinese market as soon as possible.

And these are all competitors!

A group of investment funds were unwilling to drag it out for too long, and just after they invested, Fruit suddenly swung in, causing Zhiyun Technology to lose the opportunity to grow rapidly.

What they are looking at is not the small amount of money, but the huge future returns of dozens or even hundreds of times?

Whether this profit can be achieved is closely related to whether Zhiyun Technology can grow and develop rapidly within this limited period of time.

When both parties reached this consensus, it became natural to make concessions. After another two hours of negotiations, they finally reached a consensus.

Then the legal teams of both parties immediately brought up the prepared contracts...These contracts had actually been prepared before the negotiations, because all the terms had been agreed upon, and the only issues left were valuation and financing amount.

Therefore, after the valuation and financing amount are agreed upon, fill in the numbers, and then you can immediately print the contract and sign it.

After Xu Shenxue and representatives of investors signed their names on the contract, they shook hands and took photos one by one.

Xu Shenxue said to a group of representatives of investment funds: "I believe that in the future you will feel extremely honored for your choice today!"

A group of representatives from investment funds also smiled and said, "We hope so too!"

With the formal signing of the financing contract, both parties relaxed and were no longer as nervous as before.

The financing negotiations between the two parties have actually been going on for more than half a month. Due to the differences in valuation, they had to wait until after the press conference to discuss the valuation issue.

Otherwise, the contracts would not have been prepared in advance, and the legal teams of both parties would not have accompanied the whole process.

This time the valuation and financing amount are huge!
Zhiyun Technology's overall valuation is US$1.2 billion, equivalent to approximately RMB 8.2 billion. It sold 15% of its shares and raised US$180 million, equivalent to approximately RMB 1.23 billion.

This figure is not the largest financing in Hua Xia’s financing history, but it is the largest Series A financing in the high-tech industry!
Prior to this, Zhiyun Technology had never raised any funds. All of its development resources came from the investment of its parent company, Liuhe Investment Co., Ltd., which invested more than 68 million yuan in cash in the form of loans.

Yes, in order to transfer the corresponding funds back for the development of other businesses after financing, Zhiyun Technology has used funds obtained from its parent company Liuhe Investment in the form of loans since its establishment, rather than direct capital injection in the conventional sense.

Strictly speaking, before the successful financing, Zhiyun Technology owed a lot of debt.

Therefore, the first thing to do after financing is to repay the debt... Xu Shenxue is also waiting for this money to be used for the brand building of mid- and low-end smartphones at Weiku Electronics.

From the huge capital injection from the parent company at the beginning to the current large-scale A round of financing, it can be seen that Zhiyun Technology is actually different from ordinary startups from the beginning. Ordinary startups cannot obtain more than 60 million cash investment in the angel round, even if it is just a loan.

This also enabled Zhiyun Technology to develop rapidly and develop the C1 mobile phone without relying on external financing in the early stages.

At the same time, this also gave Xu Shenxue greater initiative in financing negotiations... I have already made the product, and everyone who has seen it applauded... Now it is not that I am begging you to give me money to make the product, but that we have already made the product, and then we are giving you a chance to get on board and make money.

Furthermore, Xu Shenxue did not have the awe or desire for capital that ordinary entrepreneurs have during the negotiations... because he himself is a billionaire.

Even if all the personal assets of all the people present at the negotiation were added together, they would not be as rich as Xu Shenxue.

The so-called senior executives of the investment fund are nothing more than a group of high-level workers. They cannot put on airs in front of real capital like Xu Shenxue.

Of course, what finally prompted these investment institutions to raise their bottom lines again and again was that Xu Shenxue showed them a PPT... After everyone signed a strict confidentiality agreement, Xu Shenxue showed them several design concept drawings of top flagship models that would be released this fall!
It was a smartphone beyond their imagination, it looked so elegant and perfect!
If Zhiyun Technology can make this thing, they will then dare to cooperate with Zhiyun Technology to brag like this: Jobs redefined the mobile phone, and Xu Shenxue redefined the smartphone!
Xu Shenxue directly took the appearance design of the Fruit 5 from later generations, removed the prototype buttons, and replaced them with three capacitive touch buttons.

Its overall shape can even be said to be ahead of its time!
These concept drawings, coupled with Xu Shenxue's various boasts about mobile Internet, the Android semi-closed ecosystem with Zhiyun APP Mall as the core structure, and the plan to develop his own mobile phone chips and basebands, invest in various industrial chains to improve the layout, etc.

The hype was so exaggerated that everyone seemed to have seen the grand occasion of Zhiyun mobile phones in the future mobile Internet era... and then everyone couldn't help swallowing their saliva.

Then the person in charge of the Red Letter Investment Fund, which led the investment, got excited and directly raised the valuation from the US$1.5 billion that Zhiyun Technology had insisted on to the US$1.2 billion that Zhiyun Technology had insisted on.

In fact, the PPTs for future flagship phones are all fine. The key is that Xu Shenxue is too good at boasting... He boasted that the future of Zhiyun Technology is worth tens of billions of US dollars.

Although everyone knew that Xu Shenxue was bragging... but what Xu Shenxue said was quite reasonable and seemed possible to come true... The most important thing was that the prospects described by Xu Shenxue made them too excited.

Investors are not afraid of your bragging, they are afraid that you cannot brag... If you yourself do not believe that your company can achieve 100 billion US dollars, how can you expect investors to believe it?
If investors don’t believe in you, why would they invest money in you?

It doesn’t matter even if it cannot achieve a market value of 100 billion yuan. With the strength and potential that Zhiyun Technology has shown now, there will always be money to be made. It’s just a matter of how much.

When other investment funds saw this, they realized that their leading bosses had been brainwashed... They listened to Xu Shenxue's bragging like believers, with their saliva almost drooling on their clothes.

Well, why are you still struggling? Just invest.

So one by one they agreed to the valuation of 1.2 billion US dollars.

After the valuation issue is finalized, the issue of share distribution can also be easily resolved. These investment funds have already reached a distribution agreement and they only need to pay according to their respective shares.

In addition, there are a lot of ancillary agreements, such as registering an offshore company in the Cayman Islands, a Hong Kong-funded company, and then establishing a VIE equity structure.

The equity structure is relatively complex and I will not go into detail. In simple terms, it is to facilitate overseas or Hong Kong stock listing while complying with laws and regulations.

A large number of high-tech companies in China basically have this structure.

Then according to the agreement, after the financing is completed, each shareholder will allocate shares in proportion to build an option pool. The share capacity of this option pool is tentatively set at 5%, which will be adjusted later depending on the situation.

At the same time, according to the agreement, Zhiyun Technology adopts an AB equity structure plan. The shares obtained by investors are A shares, with only 1 voting right. Xu Shenxue personally holds B shares, with voting rights...

(End of this chapter)