Chapter 567 The Fears of Internet Entrepreneurs
As the morning sun shone brightly, the fragrance of Longjing tea mingled with the rich aroma of freshly ground coffee, filling the air inside the Huiwen Conference Room.
Chen Minxing took a sip of black coffee and subtly observed the renowned wife of the richest man across from him.
She was quite surprised when the headhunter representative from Huiwen Asset Management approached her.
In Hong Kong, she had seen too many wealthy wives bound by their family status, but those like Liu Shishi, who could still break free from their husbands' family constraints and develop their careers as they pleased after marriage, were extremely rare.
Liu Shishi was also observing the partner that the headhunter had strongly recommended.
Her neat short hair, well-tailored suit, and calm yet sharp eyes perfectly matched her image of a powerful businesswoman from a top investment firm.
Knowing that efficiency is paramount in the investment industry, Liu Shishi skipped the pleasantries and got straight to the point:
"Mr. Chen, everyone's time is precious. I'm sure the headhunter has already explained the whole story to you."
"Yes, Mr. Liu."
"So, my goal is to develop Huiwen Asset Management into a top-tier investment institution."
"In your opinion, how should this path be planned?" Liu Shishi calmly posed the question, and the partner interview officially began.
Chen Minxing straightened up, put down his coffee cup, and showed complete focus.
However, instead of immediately explaining her business plan, she unexpectedly asked in return, "Mr. Liu, before answering this question, I would like to clarify one point."
Regarding Huiwen, do you intend to entrust its management entirely to someone else, or will you also participate in investment management yourself?
After a moment's thought, Liu Shishi frankly replied, "I won't be a hands-off manager. But as you know, I need to balance my family and other career areas."
Therefore, at Huiwen, I will only focus on a few key projects. Routine investment decisions and day-to-day operations management will be entirely handled by the partners.
"I understand." Chen Minxing nodded slightly. For a professional manager, this is an ideal situation.
The boss provides ample trust and space while maintaining strategic direction. This "focus on the big picture and delegate the details" approach often leads to great success.
Feeling somewhat relieved, I continued the conversation and raised the second key question: "So, Mr. Liu, what are your investment philosophy and main investment directions?"
Zhang Tong, who had been listening quietly, smiled slightly.
The scene before them was quite interesting. Originally, Liu Shishi was interviewing the other party, but now it seemed as if the prospective employee was assessing whether the boss was worth assisting.
However, she did not interrupt, knowing that this was also an important part of the two-way selection process.
After a moment's thought, Liu Shishi answered clearly: "I don't lack money, so I don't pursue short-term financial returns in my investments, but rather value long-term value growth."
However, I would like to emphasize that I have three principles for not investing: First, I will not invest in companies that directly compete with Tenda Technology's core business;
Secondly, I won't invest in companies whose values clash with mine or whose founders have questionable character; thirdly, I won't invest in business models that I completely cannot understand and that rely solely on hype and hype.
Upon hearing about "long-term value" and the "three no-investment" principle, a hint of surprise and appreciation flashed in Chen Minxing's eyes. This coincided with the value factors she valued most when choosing a platform.
"As for investment areas, I prefer the internet and communications technology sectors."
Upon hearing this, Chen Minxing's face flashed with an extremely complex expression, and he pressed on, "If I may ask, why did President Liu choose this direction first?"
Liu Shishi smiled calmly, her words carrying a hint of matter-of-fact:
“My husband works in the internet industry, and he is exposed to it from time to time, so he has some understanding of the latest trends and industry logic, which means he has some basic knowledge.”
However, Chen Minxing shook his head, his tone carrying an almost sighing emotion:
“Mr. Liu, if you intend to focus on the Internet and communication technology fields, I think there may be no need to set up Huiwen Asset Management.”
"Why?" Liu Shishi asked in astonishment.
Chen Minxing’s voice was deep, with a hint of awe that only someone in the industry could understand: “In the eyes of the general public, Tengda Technology is an internet company.”
But to those in the investment world, it's essentially already a super-large investment institution!
Liu Shishi was stunned by this statement: "Why do you say that?"
Chen Minxing took a deep breath and then described it with a series of cold and intuitive numbers: "President Liu, can you imagine?"
When you open the app store, more than 70 of the top 100 mobile apps are either directly invested in by Tenda Technology or have been invested in through other portfolio companies.
That pervasive sense of ecological fatalism in the internet sphere is truly terrifying.
Upon hearing this, Zhang Tong instinctively swiped his phone screen to open WeChat, Weibo, and his favorite music and video apps…
I was suddenly struck by the realization that every corner of my digital life seemed to be shrouded in Tenda's ecosystem.
“This is just the surface,” Chen Minxing continued. “Last year, Tengda Group’s annual investment in China exceeded 10 billion yuan, burning through an average of 30 million yuan every day.”
It accounts for nearly 60% of financing cases in China's internet sector. Now, internet entrepreneurs only have two paths to choose from: be invested in by Tenda, or be crushed by the Tenda ecosystem.
Liu Shishi was somewhat bewildered. Although she knew her husband's company was powerful, she had never felt such a dominant sense of oppression so directly from an investment perspective.
"For all internet entrepreneurs, Tenda has become an indispensable chapter in their business plans."
Chen Minxing's voice was filled with deep helplessness, "When evaluating a project, any venture capitalist will inevitably ask two fatal questions:
What if Tenda does that? What if Tenda invests in your competitor?
Although the words came from Chen Minxing, Liu Shishi seemed to be able to personally feel the immense pressure and helplessness of countless internet entrepreneurs when facing the formidable Tengda.
Zhang Tong tried to find a flaw in the business logic and interjected, "President Chen, with such a large-scale investment by Tengda, the rate of return may not be ideal, right?"
"No! You're wrong." Chen Minxing shook his head, revealing another layer of truth.
"In financing negotiations in the technology sector, once Tenda confirms its investment intention, the market will automatically generate an unwritten Tenda coefficient, and the project's valuation will automatically increase by more than 20%!"
This stems from the market's unconditional recognition of the massive traffic and ecosystem empowerment it can bring after its entry into the market.
This strong pricing power allows Tenda not only to invest well, but also to invest cheaply.
Even with a high entry price, the long-term returns remain extremely attractive, easily creating a virtuous cycle.
Zhang Tong couldn't help but feel a sense of absurdity and helplessness. When the end of the investment was Tengda, how could others still play this game?
After recovering from her brief shock, Liu Shishi waved her hand and said excitedly, "President Chen, the investment direction can be adjusted."
If you don't want to invest in the internet sector, you can invest in intelligent manufacturing, high-end medical care, and new energy; there are many other high-quality sectors out there. But let's get back to the main topic and discuss Huiwen's development path.
Chen Minxing composed himself, suppressing the fear of being dominated by an industry giant, and regained his composure:
"Okay. I think Huiwen Asset Management should adopt a strategy of taking small steps and moving quickly at the current stage, starting with co-investment."
Mr. Liu can leverage his network to participate in Series A or Series B funding rounds led by top venture capital firms like Sequoia Capital and IDG, acting as a co-investor.
This is the lowest-risk and highest-efficiency way to learn.
She paused briefly before continuing to outline the future: "In addition to following the main investment themes, the company should establish a focused research mechanism."
The team is required to conduct in-depth research on one or two niche sectors each quarter, such as new energy, semiconductor design, and biotechnology, and to produce a professional "Internal Investment Reference".
This forces the team to continuously learn, stay ahead of the curve, and avoid falling behind.
"Of course, the most crucial thing is to capture the unicorn companies that belong to Huiwen," Chen Minxing emphasized.
"If we can get involved in the first or Series A round of a unicorn company, then Huiwen Asset Management can make a name for itself in the investment world and gain a foothold."
She picked up her coffee cup and took another sip, marking the final step in this plan:
"As its reputation grows and its performance is validated, Huiwen's capital pool should no longer be limited to your personal funds."
The company needs to gradually introduce long-term capital such as university endowment funds and insurance funds to launch independent thematic funds.
Investment stages should extend from the early seed round to the later growth and M&A stages, building a full-cycle investment capability.
Hearing this, Zhang Tong's eyes were full of approval.
She also understands investment, but compared to Chen Minxing's clear and systematic strategic planning, she admits that she is far inferior.
She sincerely hopes that Liu Shishi can partner with such a professional and truly achieve something great.
“The core competitiveness of a truly mature top-tier investment institution often lies in its post-investment practices.”
Chen Minxing specifically emphasized, "The company must establish a dedicated post-investment empowerment team, whose members should include former product managers, marketing experts, HR experts, and so on."
They can systematically provide portfolio companies with comprehensive support, including strategy, recruitment, marketing, and technology consulting.
"The reason why Tenda Group's investment is so powerful is that it can provide unparalleled ecological empowerment to its portfolio companies."
Simply investing money is the worst approach. Some companies are never short of funds from the very beginning. I'm sure you two know this better than I do.
After all, when Mr. Song founded Tenda and Mr. Lei founded Xiaomi, they didn't lack initial capital and didn't need to bring in external investment.
Zhang Tong and Liu Shishi exchanged a glance and smiled knowingly.
Chen Minxing's words were spot on; the circumstances of her husband's early entrepreneurial endeavors perfectly illustrate her point.
Liu Shishi quietly savored Chen Minxing's clear and logical explanation and profound vision, and had already made up her mind.
The professionalism and strategic vision demonstrated by this former Carlyle Managing Director made her the ideal partner for her.
Looking sincerely into the other person's eyes, he extended a solemn invitation:
"Mr. Chen, would you be willing to join Huiwen Asset Management as CEO and work with me to develop this business?"
Chen Minxing did not answer immediately, but pondered for a moment. This was a decision that required careful consideration.
Meeting Liu Shishi's gaze, he asked the most crucial question: "Thank you for your appreciation, Ms. Liu. What kind of salary and benefits would you be willing to offer me?"
Liu Shishi was well-prepared and calmly offered her terms: "Fixed base salary, 1.2 million after tax. Performance bonuses will depend on annual performance, with no upper limit."
She said frankly, "I know this is not comparable to your multi-million dollar annual salary at Carlyle, therefore, I will grant you 10% stock options."
Chen Minxing nodded slightly. This model of low fixed salary and high incentives was within her expectations and is a common way for startups to attract talent.
She knew the real action was yet to come.
"The option vesting conditions are as follows: 25% will be unlocked in one lump sum after 18 months of employment, and 25% will be unlocked annually thereafter. From the date you exercise your option, you will be entitled to participate in the overall profit distribution of Huiwen Asset Management."
The company's profit distribution principle is that 70% of the annual net profit will be reinvested to expand the fund's size; the remaining 30% will be distributed as dividends to shareholders according to their shareholding ratio.
At this point, Liu Shishi suddenly remembered something and quickly added, "Profit sharing only applies to new projects after you join the company."
She recalled the Pinduoduo project, which Song Ci had spearheaded the investment in. It was a future giant company with a market value of hundreds of billions, and the right to distribute this huge amount of profits had to be clearly defined without any ambiguity.
"In addition, as the company's CEO, you will be provided with all the benefits you are entitled to."
This includes a personal vehicle and driver, an annual personal business entertainment budget of 1 million, and full medical expense coverage for immediate family members.
After listening to this detailed plan, Chen Minxing was filled with mixed emotions.
The 10% partner option is higher than the industry average of 5%-8%, demonstrating the extraordinary generosity and sincerity of the richest family.
More importantly, she had a deeper consideration:
Behind Liu Shishi stands the behemoth that is Tengda Technology. If she could climb up this towering tree, the resulting network of connections would be of immeasurable benefit to her personal development and even her family's future.
Opportunity knocks but once.
Without further hesitation, Chen Minxing smiled brightly, stood up, and extended his hand to Liu Shishi:
"I am grateful to Mr. Liu for valuing me so much and giving me such a broad platform. I am willing to join Huiwen Asset Management."
Liu Shishi stood up happily, took her hand, and beamed with joy: "That's wonderful! President Chen, welcome to Huiwen, my CEO!"
Looking at their tightly clasped hands, Zhang Tong smiled with relief. The heavy burden on her shoulders could finally be handed over.
With the cooperation agreement reached, Chen Minxing immediately got into his role and focused his mind on building the company's team.
After she sat down again, she suggested in her capacity as CEO: "Mr. Liu, a top investment institution needs a core team with complementary capabilities."
In addition to us, we need at least three key figures: a keen technical expert to interpret cutting-edge technology trends;
A skilled professional with expertise in finance and operations, overseeing post-investment management, legal affairs, and risk control;
In addition, a policy advisor with a macro-level perspective is needed to help the company understand national strategic direction. Often, direction is more important than effort.
Liu Shishi watched with appreciation as the new CEO quickly got into the swing of things, and responded with a light laugh:
"Don't worry, I've already commissioned headhunters to look for top candidates in these areas."
(End of this chapter)
Continue read on readnovelmtl.com
