Chapter 191 Why not just call it Pinduoduo

"Mr. Meng said it well!"

Huang Zheng couldn't help but clapping his hands in admiration after listening to Meng Bai's description.

In the past six months or so, the most common words he heard were "The e-commerce market has been completely occupied by Taobao and JD.com, and there is no need to continue on this dead-end road."

Even Duan Yongping, who was both his teacher and friend, had advised him that instead of sticking to the e-commerce platform that had already passed its peak, it would be better to change to a new track. For example, short videos, Internet travel, or the sharing economy that is now in the limelight.

But Huang Zheng just didn't believe it.

Most of those who succeed are a group of stubborn people, just like he didn't follow Ding Lei to NetEase but chose to start his own business. He firmly believed that there was nothing wrong with his ideas.

So when faced with outsiders' "persuasion to quit", he comforted himself with "entrepreneurs are always lonely."

But at this moment, someone suddenly stood up and said to him, I agree with your business model and plan, and I also believe in future development.

If you say you are here to ask for money, then the other party may be a liar, but now they are here to invest money.

What is an angel investor?

This is a real angel investor!

However, it is not enough to just agree. He needs to confirm why the other party believes in this model.

Thinking of this, Huang Zheng calmed down a little and then asked: "Is Mr. Meng so sure that the sinking market can support a new platform?"

"Yes." Meng Bai nodded calmly, "There are two reasons that make me believe it can be done."

"I would like to hear more details."

"The first reason is because of people." Meng Bai said without hesitation: "I have learned about Mr. Huang's experience. After leaving Google, he successively founded mobile e-commerce business and e-commerce agency operation business. He suffered losses and made money. He still insisted on the road of e-commerce, which is enough to show your determination."

"The wind will pass, the company will disappear, and talent is the core. The so-called investment is actually investing in people."

Huang Zheng smiled: "Investment is investing in people, Buffett's famous saying."

Meng Bai was stunned. This is just what he thought of just now. He didn't know that Buffett also said this.

Having said that, in the track of "life golden sentences", Buffett's status is second only to Lu Xun, so everything he said seems to be very reasonable.

"What about the other point?" Huang Zheng asked.

"Another reason is that I have seen the potential of this new market."

This time it was Huang Zheng who was stunned.

Meng Bai explained: "I don't know if Mr. Huang knows about the film and television market. My main business is actually making online dramas."

"I know, Arclight Films, the pioneer of the online drama market." Huang Zheng nodded and said: "I have watched some, and I feel it is more interesting than many TV dramas now."

Although he said so, in fact, he only checked the information temporarily after receiving the other party's investment intention.

Business mutual praise, can you just say "I have never heard of it"?

"When we made the first drama of Arclight, the main target audience was young people in first- and second-tier cities, especially college students. Facts have proved that we did not make a wrong choice. From the average viewing time of users in the background of the website, it can be seen that the number of users in first- and second-tier cities is the largest."

"However, with the reduction of mobile network charges and the gradual improvement of network construction, the proportion of users from third- and fourth-tier small cities and towns is gradually increasing, and the growth rate is not weaker than that of first- and second-tier cities."

Compared with the abundant resources in big cities, the cultural and entertainment resources in small cities and towns are relatively scarce, and the cheap Internet has become the best way to entertain.

This is what Meng Bai saw from the background data of Leshi.com.

This is true for online dramas, and the same is true for e-commerce shopping.

There are certainly many wealthy people in small cities, especially small counties, but the overall average income is much lower than that in big cities, and most consumers are price-sensitive customers.

As the systems of Taobao and JD.com become more and more standardized, the boundaries between online and offline products have been broken. Take clothing as an example. The "offline same style" of many brand flagship stores actually has no difference in price.

This is certainly more formal, but it also loses the core advantage of e-commerce at the beginning, which is cheap.

"So, grasping the key of 'cheap' is to grasp this vast market." Meng Bai said.

Huang Zheng was silent for a while, and then said with a bright look: "The ancient sages often sighed 'I am not alone'. Today I finally understand this feeling."

After speaking, he stood up, stretched out his hand to Meng Bai and said: "Mr. Meng, on behalf of the entire team, I welcome you to join."

"Happy cooperation."

The two parties confirmed the intention to cooperate, and the next step is some specific cooperation content.

Qiming Venture Partners' investment amount is 5 million US dollars, which is not a low amount for an angel round VC.

Huang Zheng calculated that if the previous 6 million from Duan Yongping and Ding Lei were added, the entire angel round financing amount of "Pinhaohuo" would be 11 million US dollars.

As long as this money is not wasted too much, it will be enough to burn for half a year.

With this period of development, he is confident that the number of users and GMV of "Pinhaohuo" can reach a higher level, give a result that the capital market can believe, and get the next round of A financing.

Of course, financing must be exchanged for shares.

The 11 million US dollars of funds were exchanged for 24% of the shares of "Pinhaohuo". Among them, 11% belonged to Qiming Venture Partners.

As the full controlling shareholder of Qiming Venture Partners, Meng Bai also became the third largest shareholder of "Pinhaohuo".

However, "Pinhaohuo" adopts the AB share system, and Huang Zheng, as the first shareholder, founder and CEO of the company, has 90% of the voting rights, so the entire project is still controlled by him.

Meng Bai naturally has no doubts about this. He was just here to make money and had no intention of intervening in the management.

What's more, this investment can only be regarded as a "side story", and his main focus is still on film and television.

His only suggestion is that companies should consider Tencent for subsequent financing. After all, the Pinhaohuo model based on "group buying among acquaintances" is a perfect match for WeChat's functions.

Moreover, Tencent has not been doing well in the development of e-commerce in recent years. Even though it has invested in JD.com, it has always been suppressed by Alibaba's Taobao.

They would definitely not miss such an opportunity to make trouble for Alibaba.

It took more than a day for the two parties to sign an equity financing agreement. A weighted average anti-dilution clause was specially added to prevent Qiming Venture Partners' shares from being diluted too much in subsequent rounds of financing.

"Mr. Meng, are you going back to Jingbei now?"

"Yes, a new drama is going to be aired next month, and I have to go back to prepare for the promotion." Meng Bai said, "By the way, if we have any needs in terms of public opinion propaganda, we can help a little."

"Okay, thank you very much, Mr. Meng."

Turning to leave, Meng Bai suddenly remembered something: "Mr. Huang, I have a small personal suggestion."

"You say."

"The name 'Pinhaohuo' sounds straightforward, and it is now tied to the main fruit and fresh produce business. If we want to do all categories in the future, I think we should change the name."

Huang Zheng thought about it and felt that what he said made sense: "Does Mr. Meng have any suggestions?"

Meng Bai pondered for a few seconds: "Our main feature is 'group buying'. The more consumers participate, the better. Why don't we call it 'Pinduoduo'?"

"Pinduoduo? Pinduoduo..."

Huang Zheng muttered a few times and felt that the name was quite catchy.

"Okay, if we need to change the name later, we will call it 'Pinduoduo'."

-

Walking out of the Jinhongqiao International Center Building, looking back at the location on the 28th floor, Meng Bai breathed a sigh of relief.

Finally, he has taken the first step in the capital market.

I just don't know whether there is a smooth road or a cliff ahead.

"We put all our funds on one project. Is it too risky?" Chen Jing frowned and asked.

"There is no way. Our funds are too small." Meng Bai said: "You have seen the situation before. We can only reach the threshold of the market by going all in."

After that, he comforted: "It's okay, it doesn't matter if we lose money. As long as the operation and development of Arclight Film and Television are normal, we will always have a trump card to make a comeback."

Chen Jing nodded. Indeed, Arclight Film and Television is the core of their entire business.

"Then, should we at Arc Light accept financing? According to our current development scale, we can skip the angel round and start directly from the A round. In recent months, many people have contacted me to ask about this."

"Arc Light's financing..." Meng Bai groaned, "No rush, let's wait and see. Sister Jing, you can contact them first and ask about their conditions. By the way, there is one thing you must understand, Arc Light does not accept requests such as 'betting'."

"Okay, I got it." Chen Jing agreed, and asked, "Then boss, won't you go back with us?"

Meng Bai shook his head, "No, I still have something to do here, and I will go back after I finish my work in two days."

Hua Yan, who had been silent when discussing business these two days, suddenly became energetic and looked at Meng Bai and said, "Brother Meng, are you going to find Sister Qinqin?"

"..." Meng Bai glanced at her, "You are smart, right? I've never seen your brain work so well when talking about business."

"Hehe~~"

"Stop being cute." Meng Bai said, "I remember you went out and bought a Mimi bunny doll last night, right? Did you open the package?"

"No." Hua Yan shook her head, and then stared at him cautiously: "Boss, what are you going to do?"

"When we go back, lend it to me."

"No! This is my daughter, how can I give it away!"

"I'll give you two back later." Meng Bai said: "Full configuration, choose by yourself."

Hua Yan blinked: "Four, choose by yourself."

"Deal. You buy it directly, I'll pay."

Twenty minutes later.

In the hotel room, Hua Yan "reluctantly" handed a 30-centimeter square box to Meng Bai.

"Boss, it would be better if you just go and buy one."

"I was planning to go, but now it's too late."

Meng Bai took the box and weighed it. The weight was light.

Who would believe that this kind of industrial-scale product costs more than 600 yuan.

Go downstairs to check out, including Meng Bai's room. After saying goodbye to everyone, Meng Bai waited in the lobby for a while, and a message popped up on his phone.

After taking a look, he picked up the gifts and suitcases at hand and turned to the underground garage.

Not long after, a royal blue BMW stopped in front of him.

"Little brother, do you want to take a ride?"

A charming voice came from the car, and then Li Qin's delicate face with a smile appeared in front of him.

(End of this chapter)