My Age of Investment

  Chapter 397 Exponential growth (seeking monthly ticket)

  Pre-A round of financing, as a non-mainstream excessive financing, the financing scale is generally not too large.

  Because there is too much financing, it can be called A round of financing directly.

  The other is that the business model has not been verified, and investors are not willing to take too much risk and make big bets.

  However, because Xia Jingxing holds 51% of the shares in Lilith, which is left-handed and right-handed, he does not have so many worries.

  However, there are some unspoken business rules, so he decided to explain it clearly to the second girl.

   Without looking at Abra, Xia Jingxing looked at the two women and said, “Don’t ask me how much I invest, but how much money you need.”

   "How much does it cost? Is there any standard for this?" Shen Xinyi frowned.

  Xia Jingxing nodded, "Yes, you can calculate how much money will be needed to achieve the scale of the A round of the enterprise from now on.

  Follow this standard!

  Considering that there will be discrepancies between reality and plan, you can blend a little bit more. "

  Goryeo asked with a grin, "Can't you melt more?"

   "If you raise too much, you will dilute too much shares in the early stage, which will be detrimental to the founders and will overdraft your future benefits.

  Also, too much money was raised, but most of them didn’t come in handy. This is a manifestation of inefficient capital utilization.

  After the business model runs through, you can raise funds of several times or even dozens of times with the same proportion of shares in the A round of financing.

  For this, you can refer to and learn from Facebook. "

Xia Jingxing’s words were shocking, and both Gao Lili and Shen Xinyi felt that they had opened a door to a new world.

  Abra nodded in agreement, Darren Xia can do such a big business, and he still has goods in his belly.

  "What kind of enterprise scale do we have to achieve to meet the criteria for opening A round of financing?"

  Shen Xinyi is very keen, and it is very important to realize this. For them, it is also a blind zone in their thinking, so I asked for advice.

   "Good question!"

  Xia Jingxing first applauded, and then said: "First of all, the business model works well. What is your business model?"

  "Recruit influencers to make money for the company."

  Goryeo's words are concise and concise, which sounds rough and simple, but in fact there is such a truth.

   "That's right, let me add a few more points. First of all, the large-scale discovery and cultivation of Internet celebrities requires Lilith to establish a set of related professional mechanisms;

  Secondly, bundling Internet celebrities to let them stay in the company willingly. After becoming famous, many Internet celebrities may jump out and do it alone, because no one divides their money.

  The problem reflected is the uneven distribution of benefits, and the value that Internet celebrities believe that the company provides for themselves, and the benefits they bring to the company do not match, and so on.

  Finally, it is the value creation of the Internet celebrity brokerage company.

  You must accumulate abundant brand cooperation resources and establish a set of mechanisms for maximizing the development of Internet celebrity resources.

  This is your means to control influencers, and it is also a means to increase corporate revenue. "

  "This is very similar to our traditional brokerage company!"

  Abra bravely interjected, “We provide contracted artists with opportunities for a series of exposures such as television stations, magazines, newspapers, various charity events, etc., and even help them with public relations awards.

  Then the celebrity of celebrities has increased greatly, and more entertainment resources can be obtained.

  In addition, we must also help them choose dramas, rob dramas, and create scandals.

  In short, everything we do is for money. The more the artist makes money, the more the agency’s share will be.

  However, Dai Lun, will there be Internet celebrity brokerage companies that will pay high prices to dig corners? "

  Xia Jingxing didn't make any face to Abra this time, and said lightly: "For the time being, there is only Lilith, an internet celebrity brokerage company, as long as you seize the opportunity to grow rapidly.

  It is other Internet celebrity brokerage companies that should worry about being poached in the future, not you. "

  "Yes, yes, Darren, you said too well. With so many resources and first-mover advantage, we will definitely be the giants in this circle by then."

  Xia Jingxing ignored the flattering Abrah, and continued to say to the two women: “These sound corporate management mechanisms need to be shown to investors, and they have to be constantly reviewed and asked questions.

  The most persuasive thing is the data, such as how many influencers have signed, how many subscribers does each influencer have, and how much revenue does each person contribute to the company?

  And, most importantly, can these revenues cover the initial input costs?

  This is the key to a successful business model, proving that it is a profitable business.

  This is very important. When there is no business data, you can brag to investors about how this business makes money.

  But after the product or service is launched, certain commercial data has been accumulated. This is not the time when you just talk about it.

  Display data and facts, it has investment value, and investors actively invest.

  And if it can't be proved that it is a profitable business, investors will not take another look. "

  The two women looked thoughtful, the amount of information was too much to receive all of them temporarily, and they were still thinking seriously.

  After a while, Gao Lili nodded, "I understand, then we will seriously think and explore in the direction you said.

  What about now? Is there a clearer standard, such as how many influencers? How much revenue is in a year? "

  Xia Jingxing squeezed his chin, "Internet celebrity brokerage is a new product, and venture capital has no experience.

  Therefore, they may apply business cases and financial models similar to those of Internet celebrity brokerage companies that they have come into contact with in the past.

  Because this project is connected to the Internet, it is a high probability event to apply and compare with Internet companies.

  It doesn’t matter if you can’t make a profit in the short-term, but the financial statements made must be out of a beautiful growth curve.

  High growth rate, this is an important criterion for judging the potential of a business model.

  I will set a standard for you!

  Taking this as the starting time after its completion, within half a year, monthly revenue will double from the previous month. "

   "It doesn't seem to be difficult to double it!"

  Abra has a calm look.

  Different from Abra’s lack of learning and skill, Shen Xinyi and Gao Lili are both Stanford students, knowing that this is called exponential increase, one becomes two, two becomes four, four becomes eight...

   can be understood as from the first power of 2 to the sixth power of 2.

  The horrible life-threatening, how can it be so easy to achieve.

Seeing the two women with a loss of confidence and a look of lack of confidence, Xia Jingxing comforted: "Just to give an example, the first three months will double the growth, and the next three months will be 90%, 80%. %, 70% growth is also possible, and quite good.

  In fact, a mature company can achieve an annual growth rate of more than 10%, which is not bad. "

  Hearing this, Gao Lili breathed a sigh of relief. The exponential growth just now was really too difficult. It is still possible to work hard to maintain a monthly growth rate of tens of percent.

  "You use the financial data generated by Lilith's current oil pipe account to make an analysis and start to develop a growth plan.

  Through the goal reverse derivation, you can calculate how many internet celebrities with similar data as yours need to be recruited each month.

  Next, we will refine the target, aiming at recruiting so many Internet celebrities every month, what work should be done, how to implement and complete it.

  Finally, summarize the data and come up with a financial model. How much money is lacking, ask me to get it. "

  Go Lili was completely convinced, and the other party’s analysis had already illuminated the way forward.

  Just in the final analysis, the most difficult thing is to execute. One link passes one link, and the effect is easy to decay.

  However, in the execution link, Xia Jingxing can no longer be counted on.

  If the other party does everything, then why do they still have to do it?

  Xia Jingxing did not say more, and took a few people to stroll around the corners of the creative space.

  The reason why he brought the three of them here is to cheer the three of them and let them see how much YouTube holds for video bloggers and Lilith.

  The goal he set for Lilith is not low, but similarly, there is a lot of support.

  Entrepreneurship is destined to be a difficult and long journey. During this period, you may be self-doubt. This requires the encouragement and affirmation of your partners, and you also need to learn to self-regulate and turn pressure into motivation.

  If you can’t adapt and grow, you can only be eliminated, just like the natural selection of nature and the survival of the fittest.

  After visiting the creative space, it was already a bit late and there was no way to rush the night. Xia Jingxing found a high-end hotel in downtown Los Angeles, had dinner with the three, and arranged for three to stay.

  He also stayed, planning to return to Silicon Valley the next morning, safety first, and less driving at night.

  (End of this chapter)