Chapter 172: Borrowing Chickens to Lay Eggs
In the quiet meeting room, three old smokers were puffing away.
With a valuation of 7 billion, it is also the highest-value project ever invested by Black Ant Capital.
Even for Pop Mart, when they invested in it, its valuation was only 700 million.
The valuation of Lawang is almost 10 times that of Pop Mart.
This was an investment of hundreds of millions of dollars, which would almost drain all the funds they had raised by begging for help.
"Mr. He, are you really determined to invest in Spicy King?"
Zhang Peiyuan looked at He Yu with an extremely serious expression.
Among the three partners, his position is slightly higher.
Black Ant Capital was also co-founded by him and He Yu.
"Even if you all object, I will use my privilege of forced investment. I have a hunch that if I miss out on Spicy King, I will regret it for the rest of my life!"
He Yu knew that he couldn't hide the truth from his old partner, so he spoke his mind honestly.
"Then vote!"
Zhang Peiyuan smiled and made the final decision.
"I believe in Mr. He's vision, I believe in everyone's professionalism, and I believe in the strength of Shengxuan Group. If our investment fails, the worst that can happen is that we start over again."
"Since Mr. Zhang has also made the decision, we will also support Mr. He."
Chen Feng and Yang Cheng looked at each other, and knowing that they could not defeat the opponent, they expressed their agreement.
Although the valuation of 7 billion is indeed a bit high.
But Lawang’s terrifying turnover and net profit are indeed worthy of this valuation.
Moreover, before this, Mr. Qi had invested nearly 500 million yuan to expand the number of Lawang stores.
The current valuation of 7 billion is not too outrageous.
After reaching a consensus with several partners, He Yu immediately called Yuan Li.
Upon learning that Qi Sheng was in Hangzhou, He Yu immediately booked a flight there.
…
He Yu got off the plane and called a Didi.
Come to the Banyan Tree Hotel located in Xixi Wetland.
Qi Sheng, who was having an outdoor BBQ with the three kids, smiled and nodded to He Yu who was brought over by Gu Feng.
"Mr. Qi, I'm He Yu, the founder of Black Ant Capital. It's not easy to meet you."
He Yu said half with emotion and half jokingly.
"If someone is too easy to meet, it means that the other person is worthless."
Qi Sheng smiled disapprovingly.
"Well... that's true."
He Yu was speechless and became more interested in Qi Sheng.
"Try my cooking."
Qi Sheng naturally handed the roasted chicken wings to He Yu without being too polite with him.
This is the confidence the system gives him.
Even if Lawang does not raise external financing, its development will just be a little slower.
"I'm hungry too, so I won't be polite to you."
He Yu took a bite without hesitation and was instantly amazed, giving a thumbs up.
"Your grilling skills are amazing!"
"As long as you like it, we can talk after we're full. This is also the way we treat guests in our hometown."
Qi Sheng looked at He Yu, who seemed to be hesitant to speak, then smiled and waved his hand.
"good."
He Yu smiled nonchalantly and simply followed the host's wishes.
While eating the skewers, he secretly looked at Qi Sheng.
Although Qi Sheng is only 23 years old, he has a calmness far beyond his age.
This is naturally very important for investors.
Many times, investing in a company means investing more in the founder.
Qi Sheng is undoubtedly the most critical and soulful figure of La Wang.
The three young and beautiful kids gave He Yu a different impression of Qi Sheng.
Romantic!
Come to think of it, with assets worth tens of billions at such a young age, how could he be short of women around him?
Even a man like him, who has average looks and height, has a constant stream of beautiful women.
There are few people working in finance who are short of beautiful women around them.
What's more, they are investors who control hundreds of millions of funds.
I’m tired of going to all the business KTVs.
“This Banyan Tree has a great view!”
He Yu looked at the scenery outside the courtyard and couldn't help but praise it.
Because it is in the outdoor yard.
While eating barbecue, you can watch the water system of Xixi Wetland flowing slowly in front of the yard.
The willow trees sway in the wind, and eating delicious barbecue adds a sense of leisure and comfort.
Wow, Mr. Qi really knows how to enjoy life.
“Soon this won’t be called Banyan Tree anymore.”
Qi Sheng smiled and opened the champagne that had been placed in the ice bucket for a while, poured a glass for He Yu and handed it to him, pointing to the living room.
"Thanks."
He Yu took the champagne glass and the cool wine went down his throat, making him feel more refreshed.
"I just heard you say that this place will soon not be Banyan Tree. Could something have happened?"
He Yu followed Qi Sheng into the living room and sat opposite him.
"It's just a small adjustment within the group. I just bought a hotel near West Lake."
"Once the renovation is completed, it will be listed as Banyan Tree Hotel. Mr. He can come and show his support when he comes to Hangzhou on business."
Qi Sheng sat on the sofa sipping champagne, not in a hurry to talk about business.
"Uh... bought a hotel?"
He Yu doesn't pay much attention to the hotel industry.
Apart from real estate companies, few people would spend hundreds of millions to acquire a hotel.
It will take at least ten years to recover the cost.
It is far inferior to investing in the Internet or new consumer sectors.
"It's not worth mentioning. Let's talk about business."
Qi Sheng smiled and waved his hands, not intending to brag.
"Okay, regarding the 7 billion valuation proposed by Mr. Qi, we at Black Ant Capital can accept it. I wonder how many shares you plan to release?"
He Yu knew without thinking that the hotels near West Lake must be extremely expensive.
Without hundreds of millions, it would be impossible to do it.
Even though he knew that Banyan Tree Group had nothing to do with Spicy King, he was still shocked by Qi Sheng's wealth.
Even the sky-high valuation of 7 billion is not that difficult to accept.
"Black Ant Capital is considered a Series A shareholder. I plan to give you 3% of the shares."
Qi Sheng was reluctant to give up too many shares.
Lawang’s expansion does require funds.
It's not his character to develop things slowly.
Nature can only use chickens to lay eggs.
Use venture capital money to develop your own business.
Then we can buy back the shares, forming a perfect business closed loop.
With the power of compulsory acquisition, he naturally does not worry that venture capitalists will be unwilling to sell their shares.
As long as the current market value or valuation is followed, the system will force venture capitalists to sell their shares.
Of course, venture capital firms like Black Ant Capital that entered the A round must have made huge profits.
But sometimes, the vision to discover gold is what matters most.
Lawang is so popular that many people are optimistic about it.
Currently, only Black Ant Capital dares to make the decision to invest so quickly.
Qi Sheng also knew that the 7 billion valuation he offered was somewhat inflated.
According to the judging criteria of the venture capital circle.
This is a valuation that only a unicorn company can have.
Since Black Ant Capital dared to get on board, Qi Sheng was happy to let them make the money!
“Isn’t 3% of the shares a little too little?”
He Yu frowned instinctively.
I almost forgot about this 3% stake. It was not easy for them to get it.
"Mr. He, the valuation we are talking about is 7 billion."
"Excuse me, whether your company can come up with 210 million is a question."
Qi Sheng had also checked the information of Black Ant Capital.
The other party is just getting started.
The first phase of fund raised was only 400 million RMB.
Among fund institutions, its strength can only be considered average.
Even the most outstanding investment project is Pop Mart.
There is still more than a year to go before the peak market value of 100 billion yuan is reached.
"I'm sorry. I was careless."
He Yu scratched his head in embarrassment, almost forgetting that the valuation he approved was as high as 7 billion.
"It's okay. If Black Ant Capital can afford it, even 5% is fine."
Qi Sheng was very generous and understood the other party's desire to earn more money.
There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!
"3%. We can definitely take it. Please rest assured, Mr. Qi."
He Yu naturally didn't want to be looked down upon by Qi Sheng
He even tried to trick Qi Sheng into becoming the LP of their second fund.
These days, entrepreneurs invested by venture capital companies.
On the contrary, it is not uncommon to become an investor in the funds raised by venture capital companies.
But this premise is that these entrepreneurs have already achieved success.
Lead the company to a successful listing and gain a net worth of billions or even tens of billions.
For example, Wang Xing of Meituan and Huang Zheng of Pinduoduo.
In He Yu's eyes, Qi Sheng has such potential.
He is the chairman of the Banyan Tree Group, which has a market value of billions.
It was a big deal to spend hundreds of millions to acquire a hotel near West Lake.
The first phase of the fund raised by Black Ant Capital was not as much as the money Qi Sheng spent on acquiring the hotel.
Facing such a big-name entrepreneur.
Even if you are a noble investor, you have to put aside your status and flatter others.
"That's good. If due diligence is required, Yuan Li will cooperate with you."
"However, Spicy King only has the main store in Taikoo Li. The other branches are all under renovation, so there is nothing to investigate."
Qi Sheng was clear about the process of venture capital investing in a company, and was very understanding and willing to cooperate.
"Then it's just a formality."
He Yu smiled and didn't care much.
In order to invest in Lawang, he ate at the main store in Taikoo Li four or five times in just one week, and even had difficulty going to the toilet.
Perhaps even Qi Sheng, the boss, doesn't know as much about La Wang's turnover and customer flow as he does as the investor.
"Then I wish us a happy cooperation and make a fortune together!"
Qi Sheng stood up with a smile and shook hands with He Yu.
"Haha, I also hope that Spicy King can go beyond the southwest and enter the whole country as soon as possible!"
He Yu was also full of expectations, hoping that his intuition was not wrong.
"Yes, I hope to see Black Ant Capital among the investors by then."
Qi Sheng also understands the ethics of venture capitalists.
Even if the other party transfers the shares, he will not be surprised at all.
"If we can complete the second phase of fund raising as soon as possible, I will definitely make additional investments in Lawang."
He Yu also felt a little regretful and unwilling.
Looking at the 2% of shares that I missed, I had a feeling that I would miss out on hundreds of millions.
“Believe me, Spicy King will become Black Ant Capital’s most eye-catching investment project in the future!”
Qi Sheng is a man with cheats.
Crushing Haidilao is just basic operation.
It is even possible to make Lawang a giant with a market value of one trillion yuan.
He Yu smiled happily. He really admired the confidence of the entrepreneurs who were invested in.
If even entrepreneurs have no confidence in their own company.
Why did they invest in Gou Ba? ...
He Yu slept comfortably for a night in the Ambassador Villa of Banyan Tree.
I got up and went to enjoy the Banyan Tree Spa.
From body to mind, everything feels purified.
Without even saying goodbye to Qi Sheng, He Yu hurried to Chengdu.
Met with partner Zhang Peiyuan who came over at the airport.
"It's done. The Series A valuation is 7 billion, and we own 3% of the shares."
Seeing that Zhang Peiyuan looked worried, He Yu told him directly the results of the meeting.
"Lao He, luckily you were quick enough. Do you know who I saw at Zhuangyu Catering today?"
"Who is it?"
He Yu was a little curious.
"Su Kai."
Zhang Peiyuan breathed a sigh of relief.
"Su Kai?"
He Yu was stunned for a moment, and suddenly cold sweat broke out on his back.
Naturally, he was no stranger to this discerning investor.
Among Pop Mart’s earliest investment institutions, the CEO of Golden Eagle Trading is Su Kai.
It was Pop Mart, in which he insisted on leading the investment, that witnessed its valuation soar from 100 million to 1 billion.
After Su Kai resigned from Golden Eagle Trading.
Invited to join the top venture capital firm - Sequoia Capital as a partner.
After Golden Eagle Trading replaced its new CEO, it has been gradually clearing out its shares in Pop Mart.
Having been ridiculed by He Yu in front of several partners more than once, he will regret it sooner or later.
Now this investor with a sharp eye has set his sights on Lawang just like them.
With Sequoia’s financial strength and the resources possessed by top venture capital institutions.
It is totally a terrifying existence that cannot be compared with new capital like them.
"Su Kai also accepted the 7 billion valuation?"
He Yu secretly thought he was lucky and had no doubt about the big boss's vision.
"Before I came out, I saw him chatting and laughing with Mr. Yuan. I guess he was very satisfied with the valuation."
“The 7 billion valuation sounds high, but it’s only 1 billion U.S. dollars.”
Zhang Peiyuan smiled bitterly and said, "Which company that is favored by top venture capital firms like Sequoia doesn't have a valuation starting at several billion US dollars?"
"That's right. With Sequoia joining the market, it will be easier for us to raise the next fund. We hope to catch up with Lawang's Series B financing."
He Yu no longer had any expectations for the remaining 2% of shares.
Now he just hopes that Sequoia will not raise the valuation of the B round too high.
"Are you so optimistic about the Spicy King?"
Zhang Peiyuan was a little surprised. He didn't expect his old partner to be so persistent.
"Rather than saying I'm optimistic about the Spicy King, I'd rather say I'm optimistic about Director Qi. When I have the chance to take you to meet him, you'll understand."
He Yu patted Zhang Peiyuan on the shoulder.
"Let's go, let's go sign the contract with Mr. Yuan now."
"So urgent?"
Zhang Peiyuan was horrified.
“We haven’t done due diligence yet.”
"You are a traitor. Do you think Su Kai is a good person?"
He Yu glared at Zhang Peiyuan speechlessly.
"We are racing against time with Sequoia. If we delay too long, Sequoia will directly offer a higher valuation. How can we get on board?"
"Uh, can't we?"
Zhang Peiyuan also lost confidence because of what He Yu said, and hurriedly tried to call a taxi.
"I knew you were unreliable. Why would you call a car at this time? I booked a hotel in advance, and they sent a car to pick us up."
After He Yu finished speaking, he pushed the suitcase.
He ran towards the exit almost at the speed of a 100-meter sprint.
"Fuck, wait for me!"
Zhang Peiyuan also hurriedly picked up his computer bag and suitcase and ran towards the exit after He Yu.
Some people at the airport saw the two people who looked like mental patients and couldn't help but look down on them.
Little do they know that they are chasing hundreds of millions in return on investment.
(End of this chapter)