Global monopoly of technology

Forty to fifty minutes have passed since this meeting and consultation lasted. In fact, investors have roughly a bottom line in their hearts.

Participant Meng Qiu smiled and said: "Mr. Luo, this C round of financing is jointly led by Goldman Sachs and SoftBank Investment."

It turned out that during the audit stage, SoftBank and Goldman Sachs both wanted to lead the investment separately, and the two sides also argued about it. They are the masters of no shortage of money. No one will give up, and they will not give each other face.

In the end, there was nothing, so I chose to give in and made such a joint lead.

A total of 15 independent investment institutions participated in the C round of financing.

After Mengqiu's statement, other investors have also expressed their views, including Google and Gates investors, are willing to participate in Bluestar Technology's C round of financing.

Willing to give money to the prodigal Luo Sheng.

Luo Sheng told investors a wonderful story + the current development of Bluestar Technology = high-quality potential stocks.

"Brother Luo, how many shares do you plan to sell this time?" Li Yan, the head of Softbank Capital in China, laughed loudly.

"Sell 8.5% of Bluestar Technology to raise US$1.275 billion." Luo Sheng was not polite at all. He had always been righteous when asking investors for money, even if he was not right.

"what?"

Meng Qiu, the head of Goldman Sachs Capital, was stunned when he heard this number, and the other investors present were also shocked.

After regaining his senses, Meng Qiu quickly said: "Brother Luo, I admit that Bluestar Technology has a good momentum of development now, and its future potential is also good, but the valuation after the C round of financing is 15 billion US dollars... It is high, it is outrageous, You can’t just be so cruel because this is the last round of financing? Our internal audited comprehensive valuation is around US$12 billion after financing, and you overestimated it by US$3 billion."

As soon as these words came out, more than half of the investors who were present at the scene immediately joined in, and they were speechless for a while. Luo Sheng was not in a big grade, but his appetite was not small. It was really a lion's mouth.

Google's public IPO some time ago only raised $1.666 billion.

The development momentum of Bluestar Technology is indeed irrefutable. Both the Silicon Valley technology circle and the Wall Street investment circle are very optimistic.

But the valuation is so high, and there is no profit yet, and the risk realization has increased. This risk leverage is doubled and doubled, so it is not virtual.

The current data of Bluestar Technology is indeed very eye-catching, but this is not a financial report. If these picturesque data are profit, it is completely different.

It can be said that the development momentum of Bluestar Technology is fierce, and the industry is also optimistic about it, but Luo Sheng has been reluctant to make the company realise. This is an unknown after all, which indirectly increases investment risks too much.

The current financing stage is not a small amount of millions or tens of millions of dollars, but a huge amount of financing of hundreds of millions or billions of dollars.

If the investment really fails or loses, even a capital crocodile like Goldman Sachs will be very painful.

Luo Sheng really wanted to make the last private financing thick-skinned, and he was also betting to see who couldn't stand it first.

At this moment, he had reorganized the language in his heart. Just as he was about to speak, Fang Liyan, the representative of Softbank Capital, suddenly said: "After C financing, it was valued at 15 billion, and Softbank Investment accepted and recognized this valuation."

Luo Sheng looked at Li Yan: "???"

Venture Capital: "I heard it right?"

Morgan: "What?"

Sequoia: "Areyoukidding???"

The audience was in an uproar. Luo Sheng was stunned for a while, and when he reached his throat, he was swallowed abruptly again.

At this moment, the meeting room suddenly fell into a rushing situation, one by one glaring at Li Yan.

"What do you mean?" Meng Qiu said in a daze. After thinking about it, he suddenly became angry. He showed anger and dissatisfaction on the spot. What does yin legs mean?"

Li Yan asked with a look of stunned expression: "What do you say? It's a discussion, let's lead the vote together!"

Meng Qiu glared at him, and was not angry for a while: "You..."

Luo Sheng is now on the sidelines. Although this situation is not clear, it seems that SoftBank has played with Goldman Sachs. I don't know, VCs are pinching each other, so he will be a beautiful man and watch the show quietly.

This has to be said about Softbank's investment. Sun Zhengyi has a reputation in the investment industry for his generous investment. Other VCs are desperately bargaining with startups.

Softbank Capital has played the role of "Kaye" in the circle very qualified. From investing in Yahoo in the early Internet era, to investing in Ari, Shanda, and now investing in Bluestar Technology, it is about to become "Kay". Softbank’s "corporate culture" has become.

Not only does Goldman Sachs have nothing to do with Softbank's "throwing of coins," other investors have nothing to do with it.

The point is that it can't be stopped.

It's very angry.

Under normal circumstances, Goldman Sachs or other investors are already shareholders of Bluestar Technology. In order to increase capital and expand shares, it must be approved by shareholders holding more than two-thirds of the company's equity before financing can begin.

Therefore, all the shareholders of Bluestar Technology were present this time, and the trustees were also sent to those who did not.

In other words, as long as shareholders have 34% of the voting rights to veto, then the C round of financing cannot be launched, because the capital increase and share expansion is a major issue of the company, which requires a two-thirds majority, which is 67%. Voting for approval is required, and shareholders who currently disagree with the US$15 billion valuation have crossed the 34% line of equity in Bluestar Technology.

But it cannot be rejected.

Because the shareholder agreement signed by Luo Sheng and the investor stipulates the AB share system, Luo Sheng actually has the final say.

To put it simply, this time the shareholders meeting was held for the capital increase and share expansion. When everyone voted, Luo Sheng agreed. Even if all of them voted against, they could not veto it. On the contrary, Luo Sheng still holds the ultimate trump card: a veto. .

I haven't used it once so far.

Obviously, if Goldman Sachs does not want to suffer from this boring loss, it can only follow Sun Zhengyi's generous "kai" once.

In addition, other VC investors have to struggle with whether or not to "kai" together. However, there is a bit of comfort that is protected by weighted average anti-dilution clauses to ensure that the equity held by early investments is not excessive. dilution.

But now everyone is angry that Softbank Capital’s behavior of driving up its stock price is too unnatural, relying on its own "Kay" Softbank Capital’s intention is already a clear sign. Everyone can see that they want to use this simple and rude means to help. At the C-round financing stage, more equity was acquired.

Realization has increased everyone's investment costs and indirectly increased leverage, which further increased investment risks.

You don’t have a good way to get angry with this method, even if you agree in your heart, but the wallet disagrees.

Now it's fine. With the same expected investment, the equity is less because the valuation is $3 billion higher; with the same expected equity, you have to spend more money because the valuation is $3 billion higher.

Either give up the follow-up investment in Series C financing.

But this is the last round. Luo Sheng, who chose to hide himself next to him, is not a fuel-efficient lamp, but a thief and clever ghost.

No matter which one you choose, it loses more than expected. As for the third kind of non-following, it is the worst for the VCs present.

It was precisely what Softbank Music saw that Sun Zhengyi himself did not come, but he was actually very concerned about Bluestar Technology. As long as other VCs were willing to let it out, he really dared to let Softbank eat it all at once.

Li Yan had a calm face and pretended not to see anything in the face of the dissatisfaction of other investors. In business, venture capital is based on his own ability, and whoever has more money has more ability.

"Then, if you disagree, let's vote at the shareholders meeting." Li Yan looked around and said loudly.

"Also vote for a P. Just listen to what you said." Meng Qiu snorted.

"Ha...Lao Meng, got it, almost done, I'm just a part-time worker." Li Yan laughed and muttered as he came to him.

The subtext is: This is not what I meant, this is what the old grandson meant. Everyone is paid by the foreigner, but your boss is this foreigner. I am another foreigner who works for foreigners and takes money. In handling affairs, I have done my duty and are worthy of the foreigner's salary, but the painstaking effort is a bit overwhelming, and it's almost enough. It's all a Chinese who doesn't speak two countries, and I will have to drink together later...

Thus, the main theme of the C round of financing was finalized.

Bluestar Technology’s shareholders meeting voted to go through a process. More than two-thirds of the votes agreed to this round of capital increase and share expansion, to transfer 8.5% of the equity, and raise $1.275 billion. After the financing, Bluestar Technology is valued at $15 billion.

After the C round of financing, Bluestar Technology has not only become the Internet technology company with the highest valuation in China, but also the Internet company with the highest valuation in the world.

Prior to this, Google's valuation was even higher, reaching 23 billion US dollars, but Google has been successfully listed in August, and Bluestar Technology naturally took the first place.

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