My Age of Investment

  Chapter 161 Due Tuning

   After receiving a call from Xia Jingxing and the other party informed the result of the Facebook round of financing negotiations, Hoffman’s mouth opened wide enough to stuff an egg.

  "500 million dollars, Darren, are you sure you didn't kid me?"

  Xia Jingxing smiled and replied on the phone, “How could I be joking with you about this kind of thing. If you have to sign an investment agreement, it is written in black and white.

how about it? Whether to follow the investment or not, the choice is up to you. "

   "I need to discuss with Peter and Mark."

  Xia Jingxing understands the other party’s hesitation. The market value of many listed companies is not as high as Facebook’s Series A valuation. It is normal to have ideas.

   "Don't let me wait too long, I'm still waiting to sign an agreement with Axel."

   Hoffman replied: "Don't worry, it's only one day!"

  …………

  …………

  The next day.

  Hoffman still brought Peter Thiel and Mark Pincus to the door.

  Xia Jingxing feels that the historical inertia is really great. After going round and round, Facebook finally returned to its original point.

  Axel, Peter Thiel, Reid Hoffman, Mark Pincus and other original Facebook angel investors and Series A investors have gathered under the banner of Facebook that they founded.

  Think carefully, it is actually a necessity.

  These people are the most optimistic about the development of social networking sites, and they are willing to spend a lot of money to invest in Facebook.

  Other investment institutions have a lot of small ideas. They are either not optimistic or want to buy shares at a low price.

  Such results are also destined.

  Xia Jingxing and Peter Thiel and Mark Pincus have met for the first time.

Peter Thiel is 39 years old this year. He is one of the business stars in recent years. He is the founder of PayPal. He also runs a hedge fund called Thiel Asset Management Company. Now this fund has been renamed Claire. capital.

  After PayPal was acquired by eaby, Peter Thiel managed his own hedge fund while engaged in the angel investment business, and had a wide network of contacts in Silicon Valley.

  Hoffman and him are old colleagues and friends, so they got the opportunity to invest in Facebook and they got on to each other.

  Xia Jingxing and Peter Thiel shook hands. The latter smiled and said, "Congratulations, Darren, I have owned a company valued at more than US$500 million when I was less than 20 years old, which is admirable!"

  Xia Jingxing shook hands with the other party and then let go. This old man came out publicly this year. He is a ruthless character. Keep a safe distance.

   responded with a smile, "Haha, this is not my company alone, it’s everyone’s company!"

   "Yes, everyone's company!" Peter Thiel smiled and nodded, agreeing.

  A simple sentence brings a lot of distance between each other.

  Hoffman introduced another curl beside him-Mark Pincus.

  This is not as famous as Peter Thiel, but also several years younger. He started a business in the 1990s and dug up his first pot of gold. Since then, he has been an entrepreneur and an angel investor.

  Pinkas and Hoffman are also friends. After obtaining Xia Jingxing's consent, they brought each other to invest in Facebook.

  The reason Xia Jingxing agreed is because the curly hair will start a company called Zynga in the future, and launch a popular global social game-Happy Farm.

   Facebook will launch a third-party interface in the future as an open platform, and the company’s support is indispensable.

  Let the other party in to invest, the purpose is to make a good relationship first.

   "Actually, I also founded a social networking site Tribe (tribe) this year, but the user growth is very slow.

  I think it can’t compete with Facebook, so I have shut down that website.

  But this entrepreneurship has shown me the potential of social networking sites. Thank you very much Darren for agreeing to my investment. "

   Curly Pincus was frank, shaking hands with Xia Jingxing and saying that he had also founded a social networking site.

  Xia Jingxing hadn’t heard of the other party’s social networking site very much, and was completely out of rank. He smiled and nodded, “Thank you also for your optimism and support for Facebook!”

  We chatted with Mark Pincus, Peter Thiel and others for a while, and Old Man John and Andrew also arrived one after another.

  Brayer, the largest investor, finally arrived and brought Axel's official business team.

  Everyone got acquainted with each other, and after confirming that they had no objections to the investment, they began to draw up and sign the investment intent agreement.

  According to the pre-investment valuation of 500 million US dollars, Facebook raised a total of 55.55 million US dollars, and the post-investment valuation was 55.55 million US dollars, diluting 10% of the equity.

  Old man John and Andrew believed that the valuation was already very high, and they gave up the exercise of anti-dilution rights, that is, follow-up investment, allowing the equity to be naturally diluted.

  Axel Investment Company invested 50 million US dollars and obtained 9% of the equity;

  Brayer personally invested 2 million US dollars and obtained 0.36% equity;

  Peter Thiel also invested 2 million US dollars to obtain 0.36% equity;

  Reid Hoffman followed up with US$1 million to obtain 0.18% of the equity;

  Mark Pincus also invested 550,000 US dollars to obtain 0.1% of the equity.

  A total of 55.55 million US dollars in financing shares, the allocation is clear and clear.

After the completion of this round of financing, Xia Jingxing’s personal shareholding in Facebook will be diluted from 70.2% to 63.18%; Little Dog and Yangniu’s shareholding will be diluted from 5.4% to 4.86%; Andrew and John’s old man will be diluted from 5% to 4.5%; the option pool will be diluted from 5% to 4.5%. 9% is diluted to 8.1%.

  Xia Jingxing can actually sell part of Amicco's stock for follow-up investment.

  But he did not choose to do so, because his shareholding in Facebook is already very high.

  Although no one has accused him of information security and national security, a Chinese person is the CEO of such an important company as Facebook.

  But he must be prepared to prevent accidents.

  In fact, he used the funds to make investments outside, and it was not necessarily less profitable than using it to increase his share in Facebook.

  After signing the investment intention agreement, the attached confidentiality agreement and other agreements, Breyer said to Xia Jingxing:

  "Next, our investors will form a joint due diligence team and enter Facebook to conduct detailed due diligence on Facebook’s assets, revenue reports, intellectual property rights, executives, employees, etc. for a period of one month.

  After the due diligence is completed, the financing funds will be finalized. "

  Xia Jingxing nodded and said, "This is no problem! Just follow the normal process."

  So Breyer began to negotiate with several investors on how to form a due diligence team.

  This is also a not easy task. As the lead investor, Axel will undertake the most important due diligence work, including hiring a law firm and an accounting firm, and the cost is not small.

  However, this process is also necessary.

  After all, $50 million in real money was smashed out, and no one knows if there are any hidden dangers in Facebook.

  If any problems are found, Axel can overturn the investment intention agreement at any time and call the investment stop.

  It’s like stripping off the clothes of a startup company and conducting a pre-marriage physical examination. If we are healthy, we will get married; if there is a problem, the marriage is not worth it!

  From a certain level, startups have suffered a bit by doing this, and they will be taken in vain if they are not careful.

  Non-disclosure agreement can guarantee part of the rights and interests of startups.

  But after the due diligence, the investment institution went back and gave up the investment, which would waste a lot of time and energy for the startup company.

  Especially to the morale of the company’s employees, it will cause a considerable blow.

  Because of such a big movement due to due diligence, it is impossible to hide the employees.

  Angel round financing is rarely so complicated. The earlier the project and the smaller the investment amount, the simpler the project, and vice versa, the more complicated it is.

   Facebook’s A-round scale is a bit large, and it can basically be regarded as overwhelming the future of an established venture capital firm in Axel, so they cannot be cautious.

  Xia Jingxing also quite understands this, and the industry rules are like this.

  He very cooperatively drew out the manpower and asked Christina to lead the team to form a working group to prepare various corresponding materials in order to complete the due diligence process as soon as possible.

   Facebook suddenly has a bunch of strangers, and the employees are very curious.

  Especially an office was vacated for these strangers, and a lot of documents and materials were carried into it every day.

  From time to time, colleagues are called into the office to chat and ask some confusing questions.

  Xia Jingxing did not intend to hide from the employees, so Christina explained: the company is doing due diligence, as usual, just go to work as usual.

  At the same time, it also gave the employees a password, and the content related to the company's due diligence is not allowed to be passed on, so as to avoid extraneous affairs.

  (End of this chapter)