Winning the new financial era

Chapter 56 Fundraising is not easy
"Hey, Teacher Xu, I want to ask you for a favor."

"What's the matter, I just want you to introduce Senior Brother Dongfang Yu for me. I want to discuss cooperation with him."

Zhang Yida said with some embarrassment that he knew that Xu Xiaoming and Brother Dongfang Yu had a very unpleasant relationship when they co-founded New Western Company.

I heard that once Dongfang Yu learned that Xu Xiaoming led his employees to carry out a "revolution" and opposed his reforms, so he directly asked Xu Xiaoming's office to be occupied.

When Xu Xiaoming went to work, he saw someone else sitting in his office and was almost speechless.

In short, the two had various contradictions and conflicts when they were in the company.

In the end, Xu Xiaoming was kicked out of New Western Company and founded Zhenke Fund as the ending.

But although Zhang Yida and Dongfang Yu are alumni, they have never met each other, and they don't even have contact information.

So I had to bite the bullet and ask Xu Xiaoming for help.

After hearing Zhang Yida's words, Xu Xiaoming on the other side of the phone didn't say anything for a long time. Then he opened his mouth and said slowly, "Okay, what are you talking about? I'll help you with this."

Zhang Yida said: "I founded a venture capital fund called Huayi Capital, which has invested in two projects, Toutiao and Didi, and is now looking for LP investors."

Xu Xiaoming said earnestly: "Yida! Your company is getting bigger and bigger now, but there are more and more things you need to deal with, and they are getting more and more complicated.

Now Ruixiang is still starting a business, but you have been distracted halfway to start a venture capital fund, so I don't know what to say about you.It's the end of the day! "

Zhang Yida hurriedly said: "Here I want to explain that Huayi Capital was founded by me and Lei Dongming. Later, he will leave his job to take charge of Huayi Capital, while my career focus is still sharp."

Hearing this, Xu Xiaoming looked better and said, "That's all right! I'll contact him and set up a meeting for you. Whether it can be done is up to you, and I can't help you with other things. I speak up to him." It doesn't work in front of you."

Zhang Yida hurriedly thanked: "Thank you, Mr. Xu, it's fine if you can introduce me to the following, and I will do the rest myself."

After asking a few more questions about Toutiao and Didi, Xu Xiaoming hung up the phone.

Then Zhang Yida called Zhou Chengdong again.

"Mr. Zhou, it's me, Zhang Yida. I want to ask if you know Senior Brother Robin Li?"

"Oh, we met once, but we're not familiar with each other, right?"

"Can you help me contact him through the alumni association? Yes, thank you very much, Mr. Zhou."

Zhou Chengdong said with a smile: "You kid hasn't come to see me for a long time, have you forgotten me, old man?"

Zhang Yida laughed and said, "How can it be? Isn't it too busy? Ruixiang is preparing for the B round of financing recently, and there are too many things to deal with."

After chatting with Zhou Chengdong for a few more minutes, he hung up the phone.

The next day.

Inside the office of the chairman of New Western Education Company.

Looking at the 50-year-old Xu in front of him, wearing a pair of black-rimmed glasses, he looks a bit like Dongfang Yu, a university teacher.Zhang Yida and Lei Dongming first introduced the purpose of their visit, then took a sip of tea and waited for his reply.

Dongfang Yu was silent for a moment, did not reply immediately, but smiled and said:
"I heard from Old Xu, Junior Brother Zhang, your Ruixiang has already been valued at one billion dollars? It's amazing. We were still studying at your age, and we were full of confusion about the future."

Zhang Yida thought to himself that you are so confused, and the university probably decided to hold training courses outside to make money.

Zhang Yida responded modestly: "Brother Dongfang, I have won the award. Your conditions were different at that time. I caught up with the good era of entrepreneurship, and I had the blessing of venture capital when I first started my business. The center is accumulating strength little by little.”

Dongfang Yu nodded, this is the truth.When I started my own business, I didn’t have any venture capital capital. I started my business slowly, one student at a time.It took more than ten years to pull the company to complete the listing, and there were blood and tears along the way!

Today's children start their own businesses, and the journey is full of flowers and applause.At that time, I didn't just hold a training class outside of class, and I was punished by the school, and the whole school notified me of criticism.Let yourself be disgraced, and finally resigned helplessly.

Withdrawing his thoughts, Dongfang Yu returned to the main topic: "What projects does your venture capital fund currently invest in? Let me introduce the initial investment threshold, closing period, and management fee rate."

Zhang Yida began to introduce: "We are currently involved in Toutiao and Didi's C round and C+ round investment.

Since it is a US dollar fund, the initial investment threshold is US$100 million.

3+2 model, 3-year duration, 2-year extension period.

The fund fee consists of two parts, and the annual fixed management fee is 2% of the fund share.

The fund's annual compound rate of return is higher than 8%, and 20% of the fund's income is charged as performance compensation.

The annual compound rate of return of the fund is higher than 16%, and a performance fee of 25% of the fund's income is charged.

The annual compound rate of return of the fund is higher than 24%, and a performance fee of 30% of the fund's income is charged.

……

The annual compound rate of return of the fund is higher than 56%, and a performance fee of 50% of the fund's income is charged.

Taking the rate of return of 56% as an example, the fifth power of 1.56 is 9.24. The five-year fund income and principal amount to 5 times the investment principal. After deducting the principal, we charge 9.24% of the fund income as a performance reward.

Calculated based on a guaranteed rate of return of 8%, the fifth power of 1.08 is 1.46, and the five-year fund income together with the principal reaches 5 times the principal. After deducting the principal, 1.46% of the fund income is charged as performance compensation.

The 5-year joint principal will not reach 1.46 times, and the increase of 100 million US dollars will be less than 146 million US dollars, and no performance compensation will be charged. "

Although it was a bit confusing, Dongfang Yu still understood.

Invest $100 million and receive a fixed annual management fee of $2.

In 5 years, you can't earn 0.46 times the principal, which is 46 US dollars, and you don't receive performance compensation.

5年赚到了8.24倍也就是824万美元的收益，就要收取50%业绩报酬，风投机构得412万美元，投资人得412万美元。

Dongfang Yu thinks that this rate is not outrageous, after all, it is the annual compound rate of return, and it is calculated as compound interest, not simple interest.

Buffett's annual compound rate of return is only 21%, and 56% is simply sky-shaking.

Dongfang Yu joked: "Do you think your Huayi Capital's annual compound rate of return is expected to reach 56%?"

Zhang Yida looked at Dongfang Yu and said with a smile: "I invested in Toutiao and Didi with a valuation of around US$10 billion. When they reach a valuation of US$100 billion, they can achieve a compound annual return rate of 56%."

Dongfang Yu laughed. His New Western Education has been listed for eight years and its market value is only a few billion US dollars. A market value of 100 billion US dollars is not easy.

Dongfang Yu pondered for a moment and said: "Let's do it! Brother Zhang, I invested 100 million US dollars in your Huayi Capital, which can be regarded as a little support for you from the old senior. Work hard!"

Zhang Yida felt a little distressed, his qualifications were still too lacking!Finding an LP investor is a bit difficult. No, seniors with a net worth of more than a billion dollars are willing to spend 100 million dollars to test the waters.

Zhang Yida pretended to be happy and said, "Thank you for your support, senior. I will do my best to make the fund well."

Then, Zhang Yida went to Qiandu to visit Brother Robin Li.

Robin Lee is over 40 years old, still very handsome, a charming middle-aged uncle.

When the alumni association recommended a junior junior who could be called a young talent to visit him, he did not refuse and expressed his great welcome.

Zhang Yida came to Robin Lee's office, briefly explained the purpose of his visit, and then introduced Huayi Capital.

Robin Lee spent a few years on Wall Street when he was young, and Qiandu also accepted venture capital stocks, so he is very familiar with venture capital.

He said directly: "Junior Yida, venture capital is a high-return and high-risk industry, and requires a lot of experience to operate well.

Technology, management, business model, and capital operation all need to be understood.You have to know people and projects.

Vision, experience and ability are indispensable.

As far as I know, Ruixiang has only been established for less than a year.Unless you listed Ruixiangdai, the current you can't let me invest funds in you with confidence. "

Zhang Yida wasn't angry either. He knew that Robin Lee had lived overseas for many years and spoke in a western style, rather straightforward.

Zhang Yida began to analyze the business models of Didi and Toutiao for him, and described the future development prospects.

After listening to Robin Lee, his attitude was much better than before.replied:

"Your analysis is very reasonable. After hearing what you said, I also think that the development prospects of these two companies are very good. However, you can only be regarded as a newcomer in the venture capital industry, and I cannot give you too much investment. .”

Zhang Yida was a little disappointed, and hitting a wall again and again really hurt his self-confidence.

Seeing that Zhang Yida was somewhat disappointed, Robin Lee comforted him: "Don't feel disappointed, nothing can be accomplished overnight. You are still young, and I was far behind you when I was your age."

Zhang Yida waved his hands again and again, this guy is a boss, he can't afford such high praise.Hastily said: "Brother, I understand all this, and thank you very much for your support."

Robin Lee smiled and said: "I appreciate your vision and ability. The only thing you lack is experience. This time I will invest 200 million US dollars in you. Don't be too small. It doesn't matter how much the 200 million US dollars will eventually earn.

As long as you bring Ruixiang to the market, if you still want to be a venture capitalist, I will invest 1000 million US dollars for you. "

Zhang Yida was a little moved by these words, and he was not so disappointed. After all, this is also a kind of optimistic about himself!

After bidding farewell to Robin Lee, Zhang Yida returned to the office rented by Huayi Capital and discussed countermeasures with Lei Dongming.

The two bigwigs invested a combined US$300 million, which is far from their ideal US$1 million, not even a fraction.

After thinking about it for a while, Lei Dongming said, "Well, I'll go to Souchangyou to find my former colleagues, and I can also try Charles Zhang. If I can raise a little bit more!"

After Zhang Yida pondered for a while, he raised his eyelids and looked at Lei Dongming. I thought of a way.

"What way?" Lei Dongming asked.

Zhang Yida smiled confidently and said:
"Let Yimin Wealth and other third-party wealth management companies sell it on an agency basis."

"Ah? Isn't this going on all the time?" Lei Dongming asked suspiciously.

Zhang Yida glanced at him, looked away, and said:

"Let them let the wind out, both Dongfang Yu and Robin Lee have invested in our fund."

"This is not good! What if the big boss is angry? And this leaks the customer's privacy!"

Lei Dongming said with a frown.

"I can't control that much, let's make up the more than 1 million yuan first. I'm really angry, so I'll come to the door to apologize in person!" Zhang Yida also said helplessly.

"Then let's do this! It's all private placements, and they are publicizing in private places. Just ask their wealth management institutions to pay attention when they are preaching to customers!"

Lei Dongming gave a suggestion.

Zhang Yida nodded slightly, thinking that he would never go to the battle to raise funds in person again, if he had no money, he would not invest!Anyway, in recent years, the big fish have been caught, so if you miss the small fish and shrimp, just miss it!

(End of this chapter)