My Age of Investment

  Chapter 257 Lichun Fund

  "100 million dollars!"

  Hearing these words, Peter Thiel almost missed the coffee.

  Xia Jingxing also felt very high.

   In the A round of financing, Facebook had tens of millions of users, and it was only valued at 500 million US dollars. In terms of conversion, it was 50 US dollars per user.

  But LinkedIn is a business person, and it’s not impossible to value a user at $100.

   But if the scale effect is to be considered, the millions of users are not obvious when they are placed on a large number of social networking sites.

  Xia Jingxing did not appear to be particularly surprised. He pretended to be very emotional, and asked faintly: "Pre-investment valuation or post-investment valuation?"

  "Post-investment valuation, pre-investment valuation is 90 million US dollars."

  Hoffman explained: “Our A round post-investment valuation is only 18.8 million U.S. dollars, and the current valuation of 90 million U.S. dollars has risen by less than five times.

  And our number of users has increased by more than 20 times compared with the tens of thousands of users at the time of the A round of financing. "

  Xia Jingxing smiled and said nothing.

  At that time, LinkedIn, which had only tens of thousands of users, was valued at $18.8 million because it not only calculated the value of users, but also included LinkedIn’s business model and team value, including Hoffman.

  Now we have reached the B round of financing. The valuation proportions of the team and business model have dropped. The core has to look at the website, how many users and how much traffic there are.

   But now that he has decided to krypton gold, Xia Jingxing does not care about that little bit of gains and losses.

   "Hoffman, if you agree, we will sign the contract now. Ten million dollars will be paid to LinkedIn in a week. I can accept this valuation."

  Peter Thiel gave Xia Jingxing a surprised look. Isn’t that too straightforward?

  Hoffman shook his head and smiled: "Daren, thank you very much for your optimistic view of LinkedIn, but we still want institutions to invest in us."

   "I also have an organization!" Xia Jingxing said lightly.

  "Do you have an organization?"

  Not only Hoffman, even Peter Thiel was surprised.

  "Vision Capital recently plans to operate a VC fund called "Lichun"!"

  Hoffman understood in an instant, he smiled and said, “Dylan, it’s a hedge fund and a venture capital fund. You don’t want to build an investment empire outside of the Internet!”

   "The empire dare not be, mine is called "knight collar" at most."

  Xia Jingxing’s humor made the two laugh.

  After laughing, Hoffman slowly said: "Daren, I will tell you the truth!

  A newly established venture capital institution does not meet LinkedIn’s financing requirements.

  We need an established institution that can help us raise Series C financing, as well as provide human resources, media relations, government relations and other resources.

  These are what a newly established venture capital institution cannot give us. "

  Peter Thiel nodded, "This is why so many established venture capital institutions are getting bigger and stronger.

  Because these established institutions have money and time to build their own resource ecology.

  Entrepreneurs also prefer to take their money from established institutions, and even take their money as the first goal, as the dividing line between mediocre entrepreneurs.

  For a long time like this, the head projects have all gone to the established institutions.

  This has caused established institutions to continuously harvest successful projects and create huge returns. LP also prefers and believes in these established institutions.

  It can be said that up to now, established venture capital institutions already have brand premiums. "

  Hoffman nodded, feeling that his partner was right.

  "I have no brand premium, only money premium!"

Compared with two fingers, Xia Jingxing smiled and said, "I have two plans.

  The first one, with a post-investment valuation of 120 million U.S. dollars, and Vision Capital invested 12 million U.S. dollars, accounting for 10% of the shares;

  The second one, with a post-investment valuation of US$120 million, and Vision Capital invested US$10 million, accounting for 8.33% of the shares. "

  The premium was 20% when it came up, and Hoffman instantly felt the courage of Xia Jingxing.

  Hoffman smiled and said, "Daren, it’s not about money."

  That is not enough money!

  Xia Jingxing understood in an instant, "Then, if Vision Capital invests 10 million U.S. dollars, we only need 8 shares."

  Thinking about it, and then added: "The voting rights are also entrusted to you."

  To be honest, Hoffman was a little excited. The post-investment valuation has been given to 125 million U.S. dollars, and he has also delegated voting rights to himself.

  Where can I find such a good investment institution?

  Xia Jingxing This is the usual routine of DST Yuri Milner, a well-known former investor.

  I don’t want the company’s voting rights and support you unconditionally, but you have to take me to make money.

  Xia Jingxing knows how powerful the bald head is, and relying on this trick, he has invested in Internet giants all over the world, and Sun Zhengyi is slightly less coquettish in front of this person.

  He doesn’t have any special thoughts on LinkedIn, so he invests financially, takes more equity, and earns more money in the future.

  The idea is so simple!

   "Well, Darren, I accept the investment of Envision Capital."

  Hoffman was also a decisive person, and made a quick decision. He stood up and stretched out his hand to Xia Jingxing.

  In his opinion, although the Envision Capital brand is not strong enough and the resources can be said to be lacking, it can't hold back the money given by others, and he doesn't like to be nosy.

  Xia Jingxing smiled and shook hands with Hoffman.

  Peter Thiel watched the investment that had been decided for half an hour and was secretly surprised.

  He smiled and applauded, "Congratulations to both of you!"

   "Oh, Reid, it will take half a month in the evening to invest."

  Hoffman frowned, is this going to regret it?

  Peter Tell also looked at Xia Jingxing in surprise.

   "Investment is absolutely fine, but you have to give me half a month to register the fund first."

  Xia Jingxing didn't feel embarrassed at all, and said it openly.

  Actually, he has not registered a fund yet!

  Hoffman was stunned. He just heard Xia Jingxing report the name of the fund. He thought that the fund had been established, but he had not started to invest abroad.

  As a result, even the fund has not yet been registered.

  Hoffman immediately laughed, "It seems that Darren, you set up a fund specifically to invest in us.

  It’s okay, we can wait, but we only wait for half a month. "

  Xia Jingxing nodded, "Half a month is enough."

  Peter Thiel thinks this is the most outrageous and absurd investment he has ever seen.

  I started investing at a premium for a long time. As a result, I haven’t even registered the fund yet.

  But the two did not think there was a big problem.

  Tesla’s investors, Facebook and YouTube founders, this is the best credit endorsement.

  They are not worried that Xia Jingxing will release the pigeons, after all, they are also people with good looks.

  …………

  …………

  Fixed LinkedIn’s Series B financing, Xia Jingxing went to Envision Capital and gave Liu Hai a task.

  "Set up a venture capital fund under Vision Capital? The name is Lichun Fund?"

  After listening to the boss, Liu Hai was surprised.

  "Yes, the hedge fund is so powerful that it is called Lixia.

  The venture capital fund, named Lichun, implies that the arrival of our fund is like the arrival of spring, everything recovers, and startups become vigorous after harvesting our investment. "

   Liu Hai chuckled. He didn't want to ask why the fund was called by this name.

  In fact, as long as the fund has the strength, its name does not matter at all. What the investor cares about is your performance and your rate of return.

  Even if you are called junk capital, as long as the return on investment is amazing, people will rush to it, and even the media will interpret the name of the fund as a kind of "self-humility."

  However, the boss has explained so many things, and he has to say something.

   nodded in agreement: "Jingxing, this name is good, China’s twenty-four solar terms, it shows that Envision Capital has not forgotten its roots and its roots..."

  Xia Jingxing nodded, Liu Hai’s remarks fit his mind.

   After a compliment, Liu Hai smiled and asked, “But we don’t have any money right now?”

   "I will consider, don't worry about this, you can register an offshore fund first."

   Liu Hai nodded, "All right, I will do it now."

  Because of the tight time, Liu Hai contacted the agency and made an urgent process.

  …………

  …………

  In October, Lichun Fund was finally registered.

  Xia Jingxing sold 520,000 shares of Amico at an average price of 39.19 US dollars and received more than 20.37 million US dollars in funds.

   Ten million US dollars to invest in Tesla, and ten million US dollars to invest in LinkedIn.

   Both investments were made in the name of Lichun Fund.

  After Tesla’s due diligence was completed, he originally planned to increase capital in his own name.

   But now that he has established a fund, he has decided to use a fund instead of holding shares, and he has to learn to keep a low profile.

  You can't hide the government, and it's good to hide it from ordinary people.

  At the same time, in order to keep his three points of LinkedIn shares from being diluted, he also invested 300,000 US dollars in his own name.

  In other words, LinkedIn’s B round of financing is a total of 10.3 million US dollars.

  At the signing ceremony, Liu Hai, as the fund manager, attended the meeting on behalf of Envision Capital.

  Xia Jingxing represents herself.

  Under the witness of the old shareholders, Xia Jingxing, Envision Capital, and LinkedIn signed the contract and exchanged the contract.

  Hoffman smiled and shook hands with Liu Hai, and shook hands with Xia Jingxing.

  Vision Capital's action, he was completely convinced, and it was extremely efficient.

   Moritz, as an old shareholder, also applauded.

  After the ceremony, the old man walked up and talked with Xia Jingxing.

  "Dalun, when will Facebook's Series B financing be carried out?"

  Xia Jingxing smiled and said, "This hasn't been determined yet. Let Mr. Moritz be notified at that time."

  Moritz thought that the other party was still angry last time, and said with a smile: "Dalun, the valuation of 3 billion US dollars, do you want to think about it?"

  (End of this chapter)