My Age of Investment

  Chapter 711 Financing Law

  The next day.

  Berlankfan and Mai Jinheng each brought a group of people to Facebook. The three parties negotiated for several hours on financing and reached a basic plan.

   Facebook will use a pre-investment valuation of 24 billion U.S. dollars, raise 1 billion U.S. dollars, and reach a post-investment valuation of 25 billion U.S. dollars.

  Goldman Sachs and Morgan Stanley each invested 500 million US dollars, each holding a 2% stake in Facebook.

  In addition, Facebook also allows Goldman Sachs and Morgan Stanley to form a $1.5 billion special investment fund, with the opportunity to make a surprise investment on the eve of Facebook’s listing.

  After completing this round of financing, Xia Jingxing’s personal shareholding in Facebook will drop from 51.64% to 49.58%.

  The shareholdings of shareholders such as Yang Niu and Little Dog are diluted equally.

  In the conference room, a group of people were negotiating, and the little dog hit Xia Jingxing with his leg under the table.

  Xia Jingxing looked at the little dog in confusion, and the latter gave him a sign to go out.

  So, he followed the dog out of the meeting room and came downstairs to the company.

   "Why are you walking so far? Are you replying? Deaf?"

  Xia Jing walked in the back, watching the dog leading the way in front of him and kept silent, feeling irritable in his heart, and his tone became harder.

  "Boss, I think...I want to sell shares!"

  The little dog suddenly stopped and turned to look at Xia Jingxing, his eyes full of determination.

  Xia Jingxing was stunned for a moment, and then asked in a puzzled way: "Hey, I said, this is fine, why are you suddenly selling shares?"

   "I need money." The dog's tone was calm.

  "Didn't the company adjust the salary for several rounds? Isn't it enough?"

  The little dog shook his head, "Not enough."

  Xia Jingxing thought for a while, besides love to pay for everyone, the little dog seems to have no other bad habits, right?

  However, comparing his life with that of a foreign girl, as one of the founders of Facebook, life is indeed a bit simple and unpretentious.

   Regardless of him, Yang Niu also pledged equity, but the dog neither sold equity nor pledged equity, and all income came from salary.

  As a startup company, even if it is a star startup company, the salary of Facebook cannot be compared with that of the executives of large listed companies with annual salary of several million dollars and tens of millions of dollars.

  Most executives are paid cash salary plus options, and less cash, more options.

  This is the norm for startups, and it is a way of throttling.

  Xia Jingxing thought for a while, now that she is living a good life, but she has ignored some of the feelings of the little dog.

  Dog now holds 4.55% equity in Facebook, and also holds 4.27% equity in YouTube, worth more than one billion US dollars.

  But he still wears a plaid shirt, rents an apartment, and drives a second-hand broken BMW, which is particularly low-key.

  He wondered that the little dog didn’t think this kind of life was a problem before, so why suddenly he began to pay attention to material life.

  Xia Jingxing doesn't mean to criticize the little dog. To save others with oneself, the company has reached this stage of development, and it is indeed time to improve the material living conditions of entrepreneurs.

  What is the purpose of starting a business, really to change the world? Marketing means, selling feelings.

  Xia Jingxing sighed and patted the dog on the shoulder and said, “Don’t sell equity. I’ll talk to Belan Kefan and Ma Jinheng, let them give you an equity pledge loan. Is 100 million U.S. dollars enough?”

   "Ah! So many? What should I do if I don’t make it?"

  The little dog was a little bit twisted, “It’s not that practical. Ten million dollars is enough. I just want to buy a more comfortable house.”

After hearing this, Xia Jingxing instantly thought of a lot, and asked with a smile: "Did your girlfriend make a request?"

  The little dog waved his hand immediately, "It has nothing to do with her, it is my own desire to own a big house."

  Xia Jingxing didn't believe this, and guessed that it might be the dog's girlfriend who made the request for the dog. By the way, he hasn't seen Little Dog's girlfriend until now.

  "Make an appointment with your girlfriend tonight, let's have a meal together, get to know."

  The little dog was taken aback, then nodded, "Okay, I'll call her later."

   After chatting for a while, Xia Jingxing and Little Dog went upstairs and returned to the meeting room.

  As soon as he entered the house, Xia Jingxing talked about the dog's intention to pledge equity.

   "10 million dollars, right? We Morgan Stanley took it."

  Mai Jinheng grabbed the business in front of Bellan Kefan, and the old man looked at the little dog with a smile, “Is there a little bit less, and more loans are okay.”

   "Enough is enough, I only need so much." The little dog is very sincere and is determined not to be confused by the old man.

  "Mr. Dog, we at Morgan Stanley can provide you with the lowest interest rate. You can borrow more money and use it for financial investment. The profit is enough to cover the interest cost."

When    was speaking, Mai Jinheng also glanced at Xia Jingxing several times, his eyes full of meaning.

  The foreign girl is looking for a loan from Goldman Sachs, and Xia Jingxing is a loan from Damo.

  So Old Man Mai knew exactly what Xia Jingxing was doing with the money.

   Seeing that the little dog was unmoved, Old Man Mai hit Xia Jingxing's idea again.

  "Daren, Morgan Stanley can continue to provide you with loans if necessary."

  Looking at Old Man Mai, Xia Jingxing kept a faint smile on his face.

  As the valuation of Facebook increases and its influence increases, and at the same time, Morgan Stanley has also become a shareholder of Facebook. The risk of his equity pledge loan should be reduced a lot.

  If you still don’t have the money, Facebook’s equity should not worry about the buyer, or Morgan Stanley can buy the equity by itself.

  With this kind of valuable collateral in his hands, Morgan Stanley has become more and more courageous, and he actually wants him to borrow more money.

   However, he really had this idea, and when he was about to speak, Bellan Kefan rushed to speak in front of him.

  "Darren, Christina, Little Dog, you have any financing needs, Goldman Sachs' doors are open for you at any time, it is absolutely the best quality service, the best interest rate, and the highest priority."

   After all, Bellan Kefan also gave Mai Jinheng a provocative look.

  Now, Xia Jingxing and other three Facebook founders have become billionaires, and their assets are becoming more and more valuable. They are very high-quality customers.

  This kind of good business, Bellan Kefan does not want to be snatched away by his old opponents.

  More importantly, through the opportunity of doing business, we can also enhance friendship with the three founders and lay the foundation for more diversified cooperation in the future.

  Mai Jinheng lowered his head and smiled, instead of arguing with Bellan Kefan, it was good to show his attitude.

  Seeing this interesting scene, Xia Jingxing was quite happy in his heart. He didn't bring in these two shareholders in vain, and there would be ways for financing in the future.

  "Mr. Mack, Envision Capital previously pledged 20% of its shares in Facebook to a syndicate headed by Morgan Stanley. Now Facebook has conducted a Series C financing, and the tubing has also been split out for a Series A financing.

  The valuation of these two major assets has increased a lot. Can we give us an additional loan without increasing the collateral? "

  Xia Jingxing deliberately raised it in front of Bellan Kefan. If Mai Jinheng disagreed, he would go to Goldman Sachs.

  Mak frowned. The 20% stake in Facebook pledged to them at that time will soon become 19.2% in Facebook and 18% in tubing, with a market valuation of nearly US$6 billion.

  And they previously issued a loan of 1.5 billion US dollars to Envision Capital, and the pledge ratio exceeded 70%.

  According to the current asset appraisal value, the pledge ratio has been reduced to 25%, and the risk is greatly reduced.

  If additional loans are provided to Vision Capital without additional collateral, that is, equity, it is actually amplifying the risk exposure of this loan.

  From the perspective of risk control, Mack does not want to issue additional loans to Xia Jinghang.

  But from the perspective of expanding business and enhancing the relationship with Xia Jinghang, this loan still has to be released.

  What's more, Old Man Mai also noticed Bellan Kefan, who was staring at him and was ready to pry the corner at any time.

  So, Old Man McDonald only hesitated for a few seconds, and then replied very readily: “Dalun, no problem, I can give you an additional loan of no more than 1.5 billion US dollars.

  If you are willing to take more equity to pledge, the amount can be added.

  In addition, don’t think it’s too much. YouTube’s valuation and Facebook’s valuation are actually two concepts, and the market’s recognition of Facebook’s valuation is higher. "

  Xia Jingxing nodded slightly. He understood the twists and turns. Facebook's business model is mature and profitability is expected. The oil pipeline is relatively close. Many analysts feel that there is a bubble in valuation.

  Furthermore, in fact, their shares in unlisted companies are not good for pledge loans, and the pledge ratio is usually very low.

  A-shares, for example, the small-cap stocks are 30-40%, the mid-cap stocks 40-50%, and the main board 50-60%.

  In the case of US stocks, the pledge rate of Ruixing Coffee, that is, the pledge ratio is 50%.

  Old Maitou is equivalent to giving treatment to a Facebook listed company. Xia Jingxing feels that he can't fault it too much.

  I just don’t know what the old man would think about when he took the money borrowed from Morgan Stanley to buy the CDS issued by Morgan Stanley.

  (End of this chapter)