Reborn multinational giant

One of the signatories of this agreement is Huizhong, the invested company, and the other is some of the world's top capitals that Fang Zhe has been in contact with for more than a month.

Although there are many top global capital and institutions interested in investing in Huizhong, only a few can really get this big cake.

Among them, the US Carlyle Investment Group, Sequoia Capital, Apple, Japan's Softbank, Russia's DST and a domestic red capital, with a valuation of 45 billion US dollars, invested a total of 9 billion US dollars in Huizhong, accounting for 20% of the shares!

A round of financing of 9 billion US dollars!

When this news, which has been kept strictly confidential, was announced by Fang Zhe himself at the signing ceremony of the Yanjing National Convention Center on the morning of November 15, all the media and reporters invited to participate were completely stunned. Up!

9 billion dollars, what concept?

Roughly calculated according to the current exchange rate of RMB 7 to USD, it is 63 billion RMB!

More than 60 billion, this number is more than twice the total annual net profit of Baidu, Tencent and Alibaba!It is six times the annual profit of Tencent, which has already made public financial reports, of nearly 10 billion!

A huge sum of money is absolutely unimaginable!

In the previous life, Facebook, which defeated mysapce's dominance of the social network industry, had a market value of over 100 billion U.S. dollars at the time of listing, and its financing amount was only 16 billion U.S. dollars. In 2014, Alibaba went public with a market value of over 200 billion U.S. dollars, and its financing amount was only 230. One hundred million U.S. dollars.

With the valuations of hundreds of billions of dollars and the biggest feast of wool cutting, the two companies got such a high amount of financing. However, now, Huizhong, which is valued at 45 billion US dollars, is the first time to go abroad. The financing is the A round of financing, and it has received up to 9 billion US dollars in financing!

The $9 billion A round of financing, not to mention domestically, has never happened in the world!

Even more than 95% of the world's listed companies have listed financing amounts far below this figure, let alone several rounds of financing before listing.

If Huizhong conducts Series B, Series C or even DEF financing in the future until it goes public, then how high should Huizhong’s financing quota and valuation scale be, and such a high valuation and financing quota will be global How many capitals and large companies are willing to be and can afford to be this receiver?

There are two ways to calculate the valuation of Internet companies, one is net profit multiplied by the price-earnings ratio, the other is calculated based on the business scale, such as the number of active registered users, and so on. The latter is mainly for those that are not yet profitable. A start-up company, and for a company like Huizhong that doesn't lack money, how can it not make money?

Therefore, according to its valuation equivalent to Tencent, many people outside have speculated that Huizhong's current annual profit scale has approached or even exceeded tens of billions of yuan!

Huizhong, which was founded two years ago, has an annual profit of more than tens of billions. This legendary development speed and earning ability has made the outside world marveled and numb. However, what has surprised the outside world, especially the domestic investment circle and Internet industry peers, is that Huizhong The total amount of funds raised by Zhongzhong is 9 billion U.S. dollars, nearly 60 billion dollars. This sum is also equivalent to six times of Huizhong’s current net profit. If Huizhong’s future profit growth is not considered, this money is equivalent to Huizhong Six. Years of profit!

Six years!What is the concept? Taobao and Alipay were just founded six years ago, and Tencent just went public six years ago, with a market value of only 500 million US dollars. Six years ago, Apple was still in decline, and Nokia was in full swing!

In six years, there are too many variables. No one knows what Huizhong will look like in six years. Whether it has grown into a world-class multinational giant or is declining in a flash. If it is the former, it will be fine. The latter, the investment of more than 60 billion yuan, can be tumbled!

For this reason, many of the investment circles and peers in the Internet industry who were invited to participate on the scene were surprised that Huizhong was able to raise a huge amount of US$9 billion in the A round, and what surprised them even more was that this time The leading party turned out to be Apple!

Among the US$9 billion investment, the Apple family contributed half of the US$4.5 billion, and Apple also obtained 10% of Huizhong's shares and became Huizhong's largest foreign shareholder!

"How did Huizhong hold Apple's thigh?"

"Is the relationship between Huizhong and Apple so good?"

"Why does Apple invest in Huizhong? Is it because Huizhong's mobile game business is too profitable, or because of 91 assistants?"

"Stupid, it's because of WeChat of course. Didn't you read the blog posted by Teacher Li the other day? About Huizhong's $45 billion valuation analysis! Among them, only WeChat, Mr. Li valued it at $10 billion! "

"US$10 billion? Didn't WeChat just break through 100 million users two months ago? Even after two months, it won't exceed 200 million. YY had 100 million users half a year ago, and its valuation was only a few hundred million US dollars! "

"Give you a glimpse! Can it be the same? The potential of YY is regulated by QQ. The users are still in China, and YY is not an instant messaging software. It is normal for users not to go online for ten and a half months, but WeChat What? Let me tell you that, except for sleeping, I don’t open WeChat every two hours and look at it. I feel uncomfortable! The potential between the two is simply incomparable!”

"No matter what you say, I still feel a little too unrealistic. That's more than 60 billion yuan. Even if you sell Huizhong, it won't have that much money!"

"Why didn't you sell you!"

......

It’s no wonder that many viewers and media who heard the news on the scene talked about it and felt unrealistic. Even Fang Zhe himself, the amount of financing discussed with the senior executives at the beginning, was only raising 4.5 billion US dollars at the price of 10% of the shares. That is also nearly 30 billion, which is enough to make Huizhong's financial situation from not bad money to inhumanity!

However, Fang Zhe obviously underestimated the appetite of these capitals, and 10% of the shares are not enough for a few capital and institutions to divide up.

For this reason, after discussing with Zheng Siwen and Li Yifei and other shareholders, Fang Zhe increased the proportion of the transferred shares to 20%. After the financing was completed, Fang Zhe’s shareholding was reduced from 73.95% to 59.16%, and Zheng Siwen’s shareholding was changed from 21.55. At 17.24%, senior executives such as Li Yifei and Chen Yimei hold 3.6%, Apple holds 10%, and foreign companies such as the Carlyle Group and Softbank hold 10%.

In addition, while Huizhong completed the A round of financing, in order to motivate Huizhong’s core backbone and attract more high-end talents, Fang Zhe listened to Zheng Siwen’s suggestions. All Huizhong shareholders, large and small, gave a total of 5% of the shares. The option pool is used to formulate a long-term equity incentive plan. At this point, Fang Zhe’s shares have further dropped to 56.02%, and other shareholders have also fallen correspondingly.

Although Fang Zhe’s shares are close to the 50% control red line, the voting power on the board of directors exceeds 90%. Therefore, even if Huizhong is listed in the future, Fang Zhe’s shares are really diluted to below 50%. , Fang Zhe still has absolute control over Huizhong!