Chapter 29:

[Heavy! BlueSpace's start-up company "BlueStar Technology" has just completed a pre-A round of financing of 77 million yuan, with a valuation of 1.1 billion! !! !! ] 《Internet Reference News》
【Winter has gone? Since the Internet entered the cold winter, for the first time, startups with valuations exceeding 1 billion have appeared! ] "Invest Today"
[The social networking site Rookie BlueSpace has received 77 million pre-A rounds of financing. This round of financing was led by Tencent. SoftBank Capital, IDG, and venture capital funds followed suit. ]-"Finance News"
[The strongest founder in history is born. The founder of the pre-A round of financing of BlueSpace website allows capital to willingly accept the almost impossible conditions, almost a legendary financing case! ]-"Search Arc Network"
[BlueSpace website received 77 million financing valuation of 1.1 billion, founder Luo Sheng, Fuda students, a rising Internet rookie! ]-"Science and Technology Daily"
的 After the news that Bluestar Technology completed the pre-A round of financing spread, the company became popular in the industry, and Luo Sheng also became popular.
The founder is a college student, a valuation of 1.1 billion, and the first billion-dollar valuation company after the Internet bubble. These entries have attracted much attention from Luo Sheng and Blue Star Technology.
This financing is a critical date for the Internet industry. More and more people in the industry, especially entrepreneurs, see hope.
The cold winter may have really passed, and the Internet is about to usher in a new stage of vigorous development.
Uh ...
With the completion of the pre-A round of financing, the company officially set up an option pool reservation. After getting this financing, Luo Sheng did not immediately consider expansion. The problem he wants to solve now is the company's operation management.
Put simply people.
This problem is not resolved. Once entering the fast track of rapid development, the company will inevitably become chaotic in operation and management.
Next, the company will enter the true development track in the true sense, and the follow-up staff expansion will be for adults, and the company's current bedroom culture must be removed.
Development has entered a new stage and has to enter a new management style.
It ’s not okay to just shout slogans. The current startup team is basically all students and fresh graduates. The enthusiasm is naturally high, but this enthusiasm will not last for a long time without a good incentive mechanism, especially with the company. Expand after recruiting adults.
After completing the pre-A round of financing, the company's option pool reserve has been set up, but how to use it effectively and how to use equity incentives in a reasonable way is really a headache.
Obviously, the company urgently needs a professional legal person. Although Luo Sheng also knows a little about legal affairs, this is not his specialty.
To this end, he called his mother for help.
Luo Sheng did not forget that his mother was a senior practitioner in the lawyers industry, and he was the top elite in the industry. He had the idea at an instant, that is, he invited his mother to the company as the chief legal officer CLO, but did not Give up decisively when you think about it. This is no different than asking a Buddha, such as Buddha, to put yourself under the Wuzhi Mountain.
Eventually Luo Sheng's mother came back to headhunting and recommended him a professional legal practitioner and her most proud student.
Luo Luosheng was overjoyed, and his mother's professional abilities were there, and she certainly would not pit her son.
However, Luo Sheng's mother asked for an annual salary of 8 million plus 1% of the company's equity for the person she recommended, not because of the relationship, but because her student has the ability to match the treatment and can Bringing the contribution far beyond this treatment to Bluestar Technology.
If Luo Sheng didn't agree, his mother made it clear that she would not recommend her. Luo Sheng didn't care about it, as long as it was really worth the treatment, what would it do?
The option pool just set up is reserved for real talent sharing.
I was able to make my mother propose such a high treatment. The talent he recommended must be something. Luo Sheng waited for three days in anticipation. The party finally came to Shencheng and saw this talent that was praised by his mother.
Uh ...
This morning.
Luo Luosheng went to meet at the agreed place. In a coffee shop, he already knew the name of the party, called Qin Weimu, a woman.
After Luo met, Luo Sheng was still quite surprised. Qin Weimu was a high-looking urban beauty, with long partial hair, Zhu lips not slick and red, intellectual and full of Yujie Fan'er.
At this moment, the two were sitting in a private room. Luo Sheng was also very curious about her talents. You must know that Blue Star Technology now owns 1% of the equity plus 8 million annual salary. Even if it is an executive vice president, Luo Sheng also It is impossible to give such treatment, almost exceeding the treatment of all the executives of domestic Internet companies.
Luo Sheng looked at the beautiful lawyer sitting in front of him thoughtfully: "Weimu reminded me of the myth of Jing Wei reclamation. Oh, it should be from Tao Yuanming's" Reading the Shan Hai Jing · Qi ". Jing Wei The title of Weimu will fill the sea. "
Qi Qin Weimuxian held his jaw in his hands and stared at the man who was three years younger than himself and might become his own boss. He said, "I'm ready now, can I interview and evaluate now?"
Upon hearing this, Luo Sheng shook his head and smiled: "Even if the interview is assessed, you can trust my mother. In a word, you leave my startup company where the original law firm ran to, and I have no reason not to believe it. Will my mother still pit me? From now on you will be the company's chief legal officer. "
Qin Weimu pouted a smile, and after a while couldn't help but laugh: "In fact, I didn't know before, I did not expect that Teacher Li would actually recommend me to work in her son's company. Bluestar Technology is very famous in the Internet community recently. , I also heard something. "
Luo Sheng smiled and said nothing, after a while Qin Weimu added with a touch of confidence: "You can consult me ​​with any questions related to legal issues, whether domestic, North American or EU countries. It also includes Financial audit issues, financial issues. "
Luo Luosheng stared at the beautiful lady in front of her in surprise. Her words revealed her strong self-confidence in her profession. Obviously, she also had great trust in Luo Sheng's mother.
After a while, Luo Sheng nodded and thought for a while and said, "The company has completed a new round of financing and has reserved an option pool. The company has also entered a new round of development from the initial stage. You can say that you are blue Star Technology's first employee with work experience. Except for you, the other twenty or more employees were either fresh graduates or students at school. Previously, the management was flat and loose, but the new stage is obviously not adapted to this. Management tools. "
Xu Qin Weimu nodded slightly, listening carefully to what he said.
Luo Sheng continued: "With the recruitment of more and more adult employees with work experience in the future, how to keep the whole team up and down to stay focused and struggling is very important. This is my most concerned and troublesome problem recently. I think Equity incentives are the best way. I also decided to implement equity incentives in the company, but the question is, how to do equity incentives? Is it appropriate to give to employees or sell to employees? "
After talking about these issues, Luo Sheng looked at the lawyer and sister in front of her and asked her staff and staff to analyze and analyze it before she could make a decision.
"Sell!"
Wu Qin Weimu said without hesitation.
Luo Sheng could not help but stare at her for a while, and Qin Weimu continued: "You must implement equity incentives, do not give them to employees, or even if your company management is excellent, you are excellent, Blue Star Technology The probability of failure has already occupied 50% in advance, and I can say that in packing tickets. "
"Continue, listen and listen." Luo Sheng watched her wait.
Qi Qin Weimu quickly organized what he wanted to say, and after a moment, he came in an orderly way:
"Equity incentives must be sold, because if you give them away, he will not cherish them. The purpose of equity incentives is to let employees, like shareholders, share benefits and share risks with the company. You give him equity, and the company Good development, he shared the benefits, the company is bad, he will not share the risks with you. "
"It is very easy to do the equity incentive plan. You can give as much as you want. But it is difficult to sell equity to employees. From the perspective of humanity and psychology, no matter what price they sell to employees, He will feel high. Therefore, if you want to do a good job of equity incentives, you must meet six core elements, all of which are indispensable: equity pricing, capping, waiting periods, instant incentives, security, and deep lock-in. "
Luo Sheng couldn't help but be interested. He decided not to be so transparent as to think of equity incentives. He was indeed a professional. Luo Sheng immediately said: "Please elaborate on these six core elements."
Qin Weimu took a sip of coffee, lowered it, and looked at Luo Sheng. He found that his eyes were looking straight at himself, but she did not see the lightness in the eyes of the other person, but listened quietly. Later, this makes Qin Weimu's favorability increase a lot.
After a while, Qin Weimu slowly said: "The first priority for equity incentives is pricing. Take the case I have taken for example. Once a business owner also implemented equity incentives. He pressed 10% of the company's equity 50% off the normal valuation and sold it to employees, but no one bought it. I wasn't surprised at all, because employees first wondered if there was a problem with the company and the boss wanted to hold them in? "
"That boss also doubted his life in the end. Why did n’t any employee buy it? Did the company really have a problem? He was also a little self-doubt. Later he came to my law firm and just consulted and commissioned me on this case. I took it too. "
Luo Luosheng curiously interjected: "How did you do that?"
Qin Weimu Yan Zhan smiled and said bluntly: "I took this case and first looked at his business operation and financial situation. The next thing I did was to help him find an investment institution to invest 10 million, accounting for 10 % Equity, valued at 100 million. The purpose of doing this is to price the company's equity. At this time, 6 million, the employees are rushing to buy. "
"At the same time, I also made a presentation to the employees of the company, explaining the equity incentives, what are the advantages, what are the disadvantages, and what are the benefits."
Luo Luosheng said: "So, my company has already completed the pricing, and the pre-A round of financing has just been completed."
Qin Weimu tapped lightly and continued: "The second element is to set a cap. Equity incentives cannot allow employees to buy as much as they want, such as the vice president level up to 5%, the director level up to 3%, and the manager level Buy up to 1%, etc., and make a weight coefficient based on the employee's age, position, performance, contribution, etc., to determine how much to sell. "
"The third element is the waiting period. The so-called waiting period is also a test period for employees. You must never give a certain employee 3% or 5% of the stock right. You must give him a waiting period and a test period. The more you wait, the more you can test and assess what value and contribution he has made to the company through this stage. "
"A lot of times you will find waiting and waiting for the employees to run away, because he feels that the waiting period set by the boss is to draw him a big cake, so the middle stage needs to let him taste the real sweetness This is the fourth element. "
"The fourth element is to set up an instant incentive. What should I do? Simple, use the dividend right to motivate. When setting options for employees, you must combine the dividend right. Although the shares are still options, at least they can get dividends. I do n’t think you ’re drawing big cakes.

Wu Qin Weimu said that he paused for a while, took a sip of coffee and added:
"The fifth element is a sense of security. Many companies fail in equity incentives because of their verbal promises, especially if they drink some wine at the dinner table. How can employees believe your promise at the wine table? Not only will you not work well because of your verbal commitment, but you will also doubt the truth of your performance. "
"So companies must give employees a sense of security when doing equity incentives for their employees. UU reading www.uukanshu.com is also a legal guarantee. That is, signing complete legal documents for equity incentives must be complete, and at least one equity incentive must be formulated. The plan also needs to be signed with an equity incentive agreement. Many companies' so-called equity incentive agreements only have two pages of paper. Can this give employees a sense of security? Obviously not, it is like buying a house. The developer gives you a two-page real estate contract. Do you dare to buy it? "
Luo Luosheng shook his head, he would definitely not buy it, and then asked subconsciously: "How do I do that?"
Qin Weimu replied: "What to do when employees are promoted? What to do if they are demoted? What to do if they are divorced? What to do if they are injured? What to do if they have a series of entry, exit and promotion All situations such as demotion, demotion, etc. should be considered and written into the agreement, exhausting all possible possibilities, what if there is only a poor two-page paper, what should go wrong in the end? The final interpretation power does not belong to the company? The employee is still a vulnerable group, no A sense of security. "
所以 "So, there must be complete legal documents in the equity incentive and sign the equity incentive agreement. After I formally enter the job, I can prepare a complete contract document for you to review."
"The last element is deep lock-in. That is, step-by-step lock-in of employees, requiring employees to pay money, time, and feelings in the company. Don't underestimate the amount of money that employees make, for example, equity incentives cost employees hundreds of thousands. , Tens of thousands, tens of thousands to buy the equity of Bluestar Technology. After spending this money, his mentality will change. "
Finally, Qin Weimu said succinctly, "Because of whose money, who cares."
I heard Luo Sheng stare at her in surprise here. With an annual salary of 8 million yuan plus 1% equity treatment, she was able to use her talents that she has initially shown, and her mother is really smart.
Uh ...