Chapter 1165: Pre-financing valuation

The news that Weibo was going to conduct a Series B financing soon spread.
In 2008, there were few companies that could be financed by China Internet companies, and even fewer companies with large financing scale.
Weibo conducted a round of financing in the first half of 2008, when the financing amount was not a small amount.
Sequoia, IDG, Baidu and Victoria Harbour Fund, with cash of US $ 240 million and some technical support, accounted for 20% of the shares.
Based on pure cash flow calculations, the Weibo valuation after financing is as high as US $ 1.2 billion.
However, Baidu is more supported by technology and channels. According to the financing amounts of Sequoia and IDG, the valuation of Weibo was actually as high as 1.4 billion US dollars.
It has been less than half a year since the last financing was successful.
The funds converted from Weibo into RMB are nearly RMB 1.7 billion.
It stands to reason that Weibo did not burn money so quickly, even if the international version went online, opened up global channels, and the domestic publicity and development of Weibo, it took less than 1.7 billion in half a year.
But because before the financing, Li Dong told the other party.
Of the 1.7 billion capital he has mobilized, he has to spend 1 billion, which he can borrow, with a term of one year.
Li Dong didn't pay the money now, at least not until next year.
And 700 million yuan of funds, to be honest, sometimes it is really not spent.
Do n’t look at Weibo, it seems that there is nothing to do. Many people think that simple maintenance is enough. If you get dozens of people, you will be paid.
Seven hundred million yuan, can not spend a lifetime.
But in fact, some things cost more than everyone thinks.
Internet companies burn money, this is not an empty talk.
Not to mention, just for the development of Weibo International Edition, the addition of domestic servers, the start of intelligent big data audits, and manual team review ...
This series of cost management has burned more than 300 million Weibo.
The rest of the money was burned in China.
The number of Weibo users can exceed 200 million, but that is not enough.
Just to promote this, PP, Yuanfang portal, Yuanfang mall, celebrity endorsement, ground advertising ...
This series of actions will cost money, and it will cost a lot of money.
Drainage is not that simple.
Millions of registered users, it ’s not difficult, just a little publicity, tens of millions of users, it must be hyped, users break 100 million, it is not simply a matter of publicity, there are many other things to assist.
Various activities, the development of various new functions, and the production of some focus topics need to be operated.
The remaining hundreds of millions of funds were quickly burned out.
However, whether it is Baidu, IDG, or Sequoia, they are actually not satisfied.
What a burnt hundreds of millions!
value!
At the time of the Weibo round of financing, Weibo registered users had just broken 100 million, and after burning hundreds of millions, Weibo users exceeded 200 million!
Doubled!
Although the proportion of active users is slightly lower than before, but the number of users increased by 100 million, these financing institutions can almost wake up with laughter.
According to the current market valuation method for Internet companies, the self-media platform such as Weibo, the most important thing is the number of users.
The relationship between corporate valuation and user volume is square.
What does this mean?
In other words, for a website with 1 million users and a website with 10 million users of the same type, their valuation is not a 10-fold difference, but a 10-fold square, which is a 100-fold gap!
A company with 1 million users will be valued at 100 million, and a company with 10 million users will be valued at 10 billion!
Of course, this statement is not absolute, but it also shows the impact of the number of users on the enterprise.
The number of remote Weibo users has doubled. According to this calculation method, the valuation of Weibo can be squared on the basis of 2 times, that is, the valuation has increased by 4 times.
This is obviously impossible.
But in any case, only 700 million yuan was burned. In return for such achievements, several investment institutions are naturally unable to find the North.
Now Weibo is running out of money, and the one billion yuan Li Dong owes has not expired.
The second round of financing seems faster, but in fact it is inevitable.
At least at this time, Weibo's own monetization methods are not many, mainly advertising revenue. This profitability, used to burn money, will not last long.
With the launch of the international version, it is time to use money to continue to finance Weibo, whether it is Sequoia or IDG, including the other two, are happy to see success.
If it were not Li Dong ’s personal style that was too strong, and his own strong capital, I am afraid he would n’t wait for him to mention it.
For an Internet company, investment institutions have a great say in financing.
In order to ensure the safety of their funds, the investors may suggest to continue financing before the money is spent.
On the far side, no one mentioned it until this time, and it seemed that there was no money on the books. It was not that Sequoia didn't want it, but they knew it and said it.
Who is Li Dong?
You take the initiative to mention this to him, he may not bother to look at you.
If you have the ability to divest, if you don't want to divest, you have to listen to Li Dong.
He wants to raise money so that you can continue to raise money. He does n’t want to. If you do n’t get out of the way, you will continue to wait honestly. There is no third way to go.
Now Li Dong has started the B round of financing. Although the internal plan has not yet been released, several major investment institutions have brought people to the distance. They want to hear what Li Dong said.
...
meeting room.
Xiong Xiaoge and Shen Nanpeng personally led the team.
Sequoia and IDG have raised hundreds of millions of dollars in the last round of financing. This money is not a small amount.
Now that Weibo is going to conduct a Series B round of financing, they can't worry about letting their people come over. If they really want their people to come over, then some things are not easy to talk about.
Li Dong has always been relatively strong. If there are unacceptable conditions, without them, there will be no opportunity for negotiation.
Facts are not as expected by several people.
As soon as they came, Li Dong held a meeting, and as soon as they met, the first condition made it difficult for everyone to accept.
"On Weibo, I plan to re-draw the total share capital and issue additional share capital.
Previously, Weibo ’s share capital was raised, with a total share capital of 140 million shares, priced at US $ 10 per share.
Now the value of Weibo has soared, the international version has been launched, the number of users has doubled, and the number of active monthly users has increased by 70%.
I gave a rough estimate in my mind, $ 2 billion.
So I plan to issue 70 million new shares, with a total share capital of 210 million shares.
Each share is still priced at US $ 10, Yuan holds 160 million shares, Sequoia and IDG hold 14 million shares, Baidu holds 10 million shares, and Victoria holds 2 million shares. "
After Li Dong finished speaking, he glanced at the crowd and said nothing.
According to Li Dong, some people may be confused, isn't it 210 million shares?
But now, according to the ratio, the total number of shares held by everyone is only 200 million shares, and the remaining 10 million shares?
In fact, it is not necessary for Li Dong to point out that the remaining share capital is regarded as a short share capital.
These share capitals, in accordance with internal valuations, actually exceeded Li Dong's valuation of US $ 2 billion on Weibo.
And what are these 10 million shares for?
Option incentives!
Yes, option incentives do not mean that Li Dong should bear it alone, or that it should not be undertaken by a distant family, but everyone must do it.
It stands to reason that it is not a big deal, this is an industry rule.
However, Li Dongduo issued an additional 10 million shares, it seems that the value of their share capital remains unchanged, and even relatively far away, the share capital ratio remains unchanged.
But in fact, it is taking advantage of them.
10 million shares, according to Li Dong's price, that is 100 million US dollars!
And this $ 100 million, although it is not money, can not be sold, but until Weibo is listed, it must be counted in the total share capital.
When the time comes, it's money.
Now 100 million US dollars are allocated, and when they are listed, perhaps hundreds of millions or even billions of US dollars.
The option incentives have nothing to do with these investors. They are only distributed to distant employee executives.
A small amount of option incentives can be accepted by everyone, because it is necessary.
10 million shares ...
Well, it's really calculated in proportion, but it's actually not high.
But Weibo's value is very high, and the internal price is as high as 10 US dollars per share. So, if you calculate this, the value of the 10 million share options is very large.
Li Dong took so many shares for his employees all at once, which was difficult for several companies to accept.
Xiong Xiaoge looked at each other for a while. After a while, Shen Nanpeng said with a smile: "Mr. Li, we have no opinion on the additional share capital.
Can 10 million shares be used as equity incentives, isn't it a bit too much? "
Li Dong frowned: "Is it more? It's only less than 5%. You yourself say, is this ratio too much?"
At present, the senior management of Weibo is not complete, and the employees have not reached the limit. It sounds like a lot. Wait until the last point, how much can you score?
I originally planned to increase the total share capital to 220 million shares, which is appropriate.
However, considering that Weibo does not have many employees, many senior executives also have multiple jobs. In order to make you feel relieved, I changed my plans and plans.
Now you still tell me a lot. Is it bullying me that Li Dong doesn't understand the market or what!
Domestic Internet companies, you are not investing in one or two companies. What market are you unclear about? "
Everyone was slightly embarrassed when Li Dong's voice fell.
As Li Dong said, the proportion of less than 5% is really not too much.
But because the value of Weibo is too big, it seems to be losing money.
Capital institutions are all vampires. If they can get more benefits, then naturally they need to get more.
But since they can't get it, they are not good to talk about it.
Li Dong really wants to force some more allocation, they really have no good way to stop.
Close when you see it, and everyone will stop talking about it. Xiong Xiaoge smiled and said: "Don't misunderstand Mr. Li, Mr. Liu, they work hard and work hard, and the employees are all conscientious.
We have no opinion on the additional issue plan that Mr. Li just said.
However, I am a little puzzled personally, and I want President Li to explain our doubts. "
"You said."
"I heard that Weibo's option incentive scheme involves the entire remote system. Is this ..."
Xiong Xiaoge's words are not finished, but the meaning is very clear.
Employees within Weibo have option incentives, so I won't say anything about it, they are mostly their own.
But it can involve the entire remote system. Isn't that how they used their money to buy up the hearts of Li Dong?
They are unwilling to do this kind of thing.
Dear brothers settle accounts, Li Dong is no longer strong, and they use their money as a good old man.
Li Dong had expected it, and was not surprised. Wen Yan said lightly: "Weibo is a subsidiary of Yuanfang Group. On the executive side of the headquarters, it is appropriate to take option incentives.
As for other sub-groups, it is indeed different from Weibo.
I have n’t said that it will be distributed for free. Of the 10 million shares, 2 million shares will be allocated for paid distribution. The funds will go to Weibo. Is n’t that a problem? "
"The exercise price of these 2 million shares is ..."
"One dollar!" Li Dong was straightforward, and everyone twitched at the corner of his mouth.
The price of 10 dollars mentioned earlier is just a reflection of the value of Weibo, and the exercise price is actually the real value of equity, or net assets per share.
Weibo is still in the stage of burning money for investment, the enterprise is still in a loss state, and the fair value of equity is generally negative.
Li Dong said that one dollar is not excessive.
In other words, the 2 million shares were bought by distant employee executives, and a total of 2 million US dollars could be sold, which is a 10-fold difference from the current valuation.
If this is the case for employees on Weibo, everyone has nothing to say.
But what about the other subgroups in the distance and what do they do?
It's unknown to take advantage!
Several people were a little dissatisfied, but for a time they couldn't find any excuses, because this is also the current market, and many companies are doing the same.
Shen Nanpeng looked at each other again, 2 million shares, not too much, and the distance actually took the bulk.
It really doesn't make much sense to make this happen.
What's more, it's better than all the free distribution. The 2 million shares are not given to employees of other sub-groups. Weibo has also digested it.
Give some executives a little more, and they still have no choice.
Since the total share capital remains unchanged, it is possible to get an extra US $ 2 million back, and it seems that there is no loss.
Everyone whispered for a while, and finally several representatives nodded: "We temporarily agree on President Li's plan, but the specific plan has to wait for us to come back before we can give a resolution."
Even if this is done, I agree here and there is no reason to go back.
The process should be followed.
Li Dong didn't care, he smiled and said: "This is the best ~ EbookFREE.me ~ In addition, congratulations to you, investing in distant industries, there is no reason not to make money.
The current Weibo, with a valuation of US $ 2 billion, is not much.
In this blink of an eye, your income is as high as 40%, but it has not been half a year.
When the time comes to market, everyone can make a profit, this is the way to win-win. "
At this time, everyone's faces also showed a slight ecstasy, and within half a year, indeed, as Li Dong said, everyone made a lot of money.
This is still under the premise of the financial crisis, many companies have made crazy losses this year.
Not only did Distant Weibo lose money, its valuation also soared, and it was more enjoyable than making money.
But this is not the point, it is still early to talk about making money.
The purpose of everyone's coming today is not this. As for the previous option incentive plan, that is incidental. The real purpose of everyone is still the round of financing of Weibo.