Chapter 68 Betting

Qian Ming made a surprised "O" shape, borrowing money!

Mr. Cao, are you a money-splitting boy? Oh, with your looks, figure, wealth, and future, you can't be a boy, you are a young man who just throws away his wealth!

You know, YouRong Technology is still burning money and has no assets to pledge. It costs 20 million to withdraw all personal angels! Just borrow it?

And as I just said, the situation of this project is not optimistic, and the transformation has hit a wall. If it really can't continue, your 20 million will be wasted!

Looking at Cao Shen, there was reverence in his eyes, he is rich, he is really arrogant!

Is this how you do your investment banking business? Then you are an invincible investment banker!

Cao Shen was willing to pay, which was a great thing. Qian Mingshen was afraid that Cao would be hot-headed and change his mind after a while, so he hurriedly summoned the CEO of Yourong Technology.

Taking advantage of this opportunity, Cao Shen also called his senior sister over. As the CEO of Jianshen Incubator, Zhang Beixin naturally came today, but he was not always with Cao Shen. Calling her over now will also make it easier for her to follow up on the follow-up process.

When Yourong CEO Cheng Zhuo entered the conference room, Qian Ming hurried out after the introduction, leaving the two of them to chat first. He had more important things to do, so he quickly called the seven personal angels.

We must communicate well one by one. Don't make any mistakes at this stall and sneak away with money!

The reason for this is because what he told Cao Shen before was that he could persuade Cao Shen to quit with 50 million in cash. It was only a verbal negotiation at the time, and it was in an informal setting. The general situation is as follows:

Personal Angel: Maida, you want to take in Yourong, the valuation is 65 million, and you need cash.

Maida: We are also a small company and don’t have that much money. The maximum valuation is 50 million, all of which will be replaced by equity.

Personal Angel: No, we don’t want your equity. You can make a concession and purchase 60 million in cash.

Maida: 60 million, 8 million in cash.

Personal Angel: No way!

Fierce quarrels ing…

Qian Ming: Don't quarrel, don't quarrel. We are all one family. Harmony makes money, and harmony makes money. How about 60 million, 15 million in cash, or 50 million, all in cash?

Oh, come to think of it, no one seems to have finally agreed to this proposal.

Rub rub rub rub! Qian Ming wiped his sweat. Why did he boast about his awesomeness just now? He should make up for it quickly! remedy!

Here Cao Shen saw Cheng Zhuo, who was dark and strong. He looked like he was running around outside a lot.

Cheng Zhuo was also very happy to see the famous Cao Shen, smiling so much that he showed two rows of extremely white teeth.

"Are you saying that you want to lend me money to buy the equity in the hands of a personal angel?" Cheng Zhuo couldn't believe Cao Shen's proposal. Is there such a good thing?

"Yeah," Cao Shen nodded:

“But I have conditions.

First, we will lend you money at an annual interest rate of 13% for half a year, and in the form of debt-for-equity swaps. In other words, when you raise this new round of financing, I have the right to convert the money into corresponding shares at 20% off the valuation. "

Cheng Zhuo nodded solemnly. This interest rate is reasonable. Generally, the debt part of the debt-to-equity swap given by investors is based on an annualized interest rate of 11%-14%. The bank's interest rate is lower, but the company cannot get a loan without collateral.

As for the 20% discount on the new round of valuation, converting the borrowed 20 million into shares, this is also reasonable. The debt-for-equity swap offered by peers in the industry is a 7.5 to 8.5% discount on the new round of financing.

Compared to a bunch of scattered personal angels, Mr. Cao, who has a head, a good face and money, is of course more powerful.

"This is no problem!" Cheng Zhuo promised.

Cao Shen straightened his back, leaned against the back of the seat, and said with a smile:

"Also, I plan to invest in you this round."

"Ah?" Such good luck? ! The rumor in the circle that "Cao Shifen" is actually true!

I subconsciously looked at my watch, it wasn't even ten minutes yet!

He came in for a short while, the personal angel problem was solved, the financing problem was also solved, and suddenly he felt that his eyes were burning!

You know, he has been struggling for a long time for mergers and acquisitions, transformation, and maintaining the company's survival.

Looking at Cao Shen, I felt like he was shining! And it’s the kind with a circle of light above your head...

I blinked hard, oh, I had just hallucinated.

"Mr. Cao, thank you very much for your support. Of course we are honored. But I still have to tell you the truth. We are currently in the process of transformation, and it is not as good as expected."

Although Cheng Zhuo is very happy, as a CEO, he is a rational person.

Mr. Cao probably had high expectations for Yourong by giving him such generous conditions.

However, it is sometimes not a good thing for investors to have too high expectations. It will put a lot of pressure on the team, and if things are not going as expected, it will be easy to point fingers and waste energy to appease them.

Those personal angels in the past were like this. They invested money very ambitiously, but they were very idealistic and lacked patience. It's quite painful to rush to talk to him when you feel slightly unsatisfied.

Therefore, he had to communicate with Cao Shen in advance so that Mr. Cao should not have too high expectations or worry about the gap in the future.

Cao Shen nodded. It seemed that Cheng Zhuo was really scared by a bunch of previous angel investors and was giving me vaccinations in advance.

"I know, Mr. Qian has already told me. You listen to me finish the conditions first, and then we will discuss business issues."

"Okay, okay! Mr. Cao, please go ahead." Cheng Zhuo nodded quickly.

"I see your offer for this round of valuation is 90 million. I definitely can't offer this price, 80 million."

"Okay! No problem!" Cheng Zhuo readily agreed. He asked for 90 million because he estimated that investors would definitely bargain. His bottom price in his mind was about 75 million. Cao Shen was very satisfied with 80 million.

"I invested 16 million in you this round, accounting for 20%. If I convert debt into equity after the personal angel is cleared, it means that I have a total of 52% of Yourong Technology in my hands."

"Yes! In this way, you will be the major shareholder of Yourong Technology." Cheng Zhuo was a little embarrassed. He actually didn't want to give up 20% of the shares this round, but there was no way. The company was burning money and needed so much money to develop. After calculating, his team only had 32% of the shares left after this round. But Mr. Cao's proposal was the best plan he could receive.

Cao Shen continued: "I am also an entrepreneur, and you will definitely need money after this round, and you must continue to raise funds. The entrepreneurial team cannot have too few shares. So, are you willing to bet with me?"

"Betting?"

"Well, if you complete the task according to the betting agreement, I can give you 15% of the shares as the company's option pool.

The distribution of equity in the option pool can be decided by the shareholders' meeting, and all or part of the shares in the option pool can be allocated to a certain person or a certain group of people. Of course, you can also give them all.

In other words, your core management team has the opportunity to get 15% of the shares from me for free. Add up, you will have 47% of the shares and become the largest shareholder."

Cheng Zhuo was shocked. There was such a good thing! His heart beat a few times.

"Mr. Cao, your proposal is really something I never expected. What are your requirements? Please tell me. In addition, I also want to know what the result will be if the bet fails."

Betting is always a double-edged sword. Cao Shen's proposal is of course very tempting, even beyond the scope of Cheng Zhuo's understanding. However, with such a great temptation, people have to think about what if they fail?

Yourong Technology is the hard work of the team, and he does not want to destroy the company because of temptation.

"If you fail, there is no punishment, that is, you will not get the 15% shares. But more importantly, if you fail, you will not be far from closing down and liquidating. So, you don't have to worry about this, just think about how to win."

Cheng Zhuo was shocked again. It turned out to be such a bet that was completely beneficial to him. No! This is not a bet, this is Mr. Cao's encouragement to them!

Mr. Cao is right! At this time, we should pay more attention to how to win, rather than thinking about losing!

Pattern, this is Mr. Cao's pattern, no wonder he is so successful at such a young age.

Originally, Cheng Zhuo came to see this rookie who Qian Ming always praised with curiosity today, but now, he really admires him. Success is not accidental...

"However, I require you to transform your business." Cao Shen tapped the table with his fingers.

Cheng Zhuo, who was just sighing with emotion, was stunned when he heard this.