Reborn, back to a small county town to become a wealthy family

Chapter 746 Some things cannot be looked back upon.
"The reason I specially invited Mr. Shen to Shanghai this time is to discuss the second round of financing for shared bicycles with you in advance."

Since it was something that would have to be said sooner or later, Luo Yang didn't beat around the bush.

"Oh, does Mr. Luo have other ideas?"

Shen Nanpeng was quite curious because before today, Song Wan had been communicating with him and his assistant Cao Lingfeng, and they had discussed the general situation of the second round of financing, including the valuation.

"It really came as a surprise."

If something that was agreed upon suddenly changes, it must be Luo Yang's fault.

If he can't come up with a reason that satisfies the other party, it will definitely affect future cooperation, and even Luo Yang's reputation in the industry.

"Didn't we mention before that we received help from an angel investor when we were expanding into the capital market?"

Luo Yang frankly stated, "This friend suggested to Song Wan that the concept of our bike-sharing project was more suitable for European and American countries, and asked if we were interested in cooperating to develop the market there."

Shen Nanpeng's eyes suddenly lit up.

Or rather, it sparks an emotional interest.

Investors like him have an incredibly keen sense of smell.

Judging from the promotion of the bike-sharing project in China, its future prospects are becoming clearer, especially the concepts of low carbon, environmental protection, and energy conservation, which are definitely highlights in the promotion.

With the mobile internet industry booming, the concept of the sharing economy is definitely worth hyping up.

The European and American markets seem to be more receptive to this approach.
"Mr. Luo, why did you suddenly bring this up? Do you mean you want us to get involved in this project during the angel round?"

Shen Nanpeng looked at Luo Yang with a smile and said, "Or do you have some other ideas?"

"The bike-sharing project has only expanded into the domestic market so far. The shortlisted companies and their shares for the second round of financing had already been roughly determined, but because of this matter, I have a different idea."

As Luo Yang walked, he said, "If Mr. Shen could help me get in touch with your Sequoia Capital US office, that would be ideal. If that's too much trouble, I'd like to bring in a US investment company for the second round of financing. Of course, to compensate for Mr. Shen's losses, the shared bicycle project startup in Europe and the US can bring in your Sequoia Capital during the angel round."

Sequoia Capital was founded in Silicon Valley, USA in 1972 and is a globally renowned venture capital firm.

However, Sequoia Capital has now established localized funds in the United States, China, and India. Therefore, strictly speaking, Sequoia Capital, led by Shen Nanpeng, is a localized fund in China and has no equity overlap with Sequoia Capital in the United States. They can only be considered sister companies.

After hearing Luo Yang state his conditions, Shen Nanpeng did not immediately give a reply.

Before coming to Shanghai, he had considered the possibility of unexpected events, but he did not expect such a big unexpected situation to occur.

According to Luo Yang's words, if the first option is chosen, Shen Nanpeng needs to introduce Sequoia Capital of the United States to Edifier Technology and facilitate their cooperation.

Making this choice might only earn him gratitude from his sister company, with little benefit to him.

If the latter option is chosen, Shen Nanpeng will have to give up a portion of the second round of financing for the bike-sharing company in China, but he will also gain the qualification for angel investment from overseas startups.

This means we'll have to gamble on whether the bike-sharing project can succeed in the European and American markets.

Countless possibilities flashed through Shen Nanpeng's mind.

"Mr. Shen, although Europe is more in line with the concepts of low carbon, energy conservation and environmental protection, in my personal opinion, the shared bicycle project has a greater chance of success in the United States."

Luo Yang did not wait quietly for Shen Nanpeng to give a reply.

He interrupted the other person's thinking directly, delivering the most damaging statement: "Wall Street needs a concept, so given the right conditions, the concept of the sharing economy will definitely be hyped up."

Damn it, after staying in the country for so long, I almost forgot the greedy nature of capital.

Luo Yang's words shattered Shen Nanpeng's almost fixed mindset like lightning.

In the eyes of those on Wall Street, whether a project ultimately succeeds is not the point; the key is whether the concept is advanced enough, whether it has a buzzworthy appeal, and whether the scale is large enough.
If these conditions are met, even if the project is a Ponzi scheme, it can still be very successful.

As for who will be the last one in this game of musical chairs, nobody cares.

"I think it would be wonderful to support Mr. Luo in promoting low-carbon, energy-saving, and environmentally friendly projects to the world, while also receiving substantial investment returns."

Shen Nanpeng stopped and looked at Luo Yang with a smile, saying, "If you need my help in introducing you to investment institutions in Europe and America, Mr. Luo, please don't hesitate to ask. I do know some people in that field."

The implication was that he was willing to accept the second suggestion that Luo Yang had just made.

"My friend from the capital is coming to Shanghai tomorrow."

Luo Yang replied with a smile, "If all goes well, we can give President Shen a result the day after tomorrow."

"How much of its stake will Sequoia Capital have to give up in the second round of financing?"

Shen Nanpeng knew that although Luo Yang would release 25% to 30% of the shares in the second round, Sequoia Capital, which was qualified to lead the investment, would not be able to get more than 15% of the shares.

words now
"The new partner organization values ​​the equity of the overseas company more, while the domestic part will only serve as a bridge for the two parties to reach a cooperation agreement."

Luo Yang first set the tone: "A ratio between 5% and 8% should be fine."

"What percentage of equity can Sequoia Capital acquire in overseas companies?"

Now that everyone is discussing things openly, Shen Nanpeng naturally wants to maximize his own interests: "I'm referring to the equity allocated during the angel round."

"First, in the angel round, I will bring in two investment institutions and one angel investor."

Luo Yang also frankly stated: "The two institutions are of course Sequoia Capital and the new partner institution. The angel investor is that friend from the capital. As for the equity ratio, I will contribute 60% of the equity, which will be distributed according to the ratio of 3:2:1."

Shen Nanpeng was taken aback.

"If you give up 60% of the shares in the angel round, what about the subsequent rounds of financing?"

"Mr. Shen, when we reach the first round of financing, I will use the equity of the domestic company to exchange for the other party's equity in the overseas company, further reducing my shareholding ratio in the overseas company."

After listening to Luo Yang's plan, Shen Nanpeng fell into deep thought.

"Mr. Luo, are you planning to completely divest your overseas companies at some point?"

After thinking it over, there's only one possibility.

Shen Nanpeng looked at Luo Yang with considerable puzzlement: "Given the size of the US market, the overseas company's valuation is likely higher. How can you bear to give up your equity like this, Mr. Luo?"

"You can't say that."

Luo Yang shook his head and said, "According to my plan, by the time the overseas company reaches its third or fourth round of financing, I should still have about 15% of the equity left, and the overseas company should have a valuation of 20 to 3 billion US dollars. If I sell at that time, I can get 30 to 4 million US dollars in cash flow."

Shen Nanpeng stared intently into Luo Yang's eyes, seemingly trying to discern the truth or falsehood in his words from his gaze.

"Mr. Shen, shouldn't you be investing in Meituan by now?"

Suddenly, Luo Yang changed the subject.

Although he didn't know why, Shen Nanpeng nodded: "We are the only investor in Meituan's Series A round."

"Then Mr. Shen must know about the group-buying war."

After saying this, Luo Yang did not explain in detail, but slowly walked towards the golf cart next to him.

Shen Nanpeng stood there, stunned.

The seemingly unrelated content sparked countless thoughts in his mind.

Since the group-buying industry has generated such fierce competition in the domestic market, then according to Luo Yang's idea, the shared bicycle project will certainly face just as much competition in the future.

While it may not reach the point of a thousand-group-buying war, it's highly likely that three or four similar companies will emerge as competitors nationwide, or even within a specific region. To defeat these rivals, business strategy is one aspect, but the most crucial element is burning through cash.

Starting with online shopping platforms, the model for internet companies to seize the market has become very brutal: whoever can sustain subsidies and burns more money will have the last laugh.

Is Luo Yang planning to use the money earned in overseas markets to subsidize domestic companies?

The thought of this possibility made Shen Nanpeng instinctively shake his head.

Even if Luo Yang is willing to increase capital, would the institutions that have already entered the market be willing?

Or does he have other plans?
Thinking of this, Shen Nanpeng caught up with Luo Yang and quickly arrived at the side of the golf cart.

"Does Mr. Luo already have a comprehensive and feasible plan?"

"It's still just a preliminary concept and not yet perfect."

Luo Yang smiled mysteriously, gesturing for Shen Nanpeng to sit down, and said, "It's too early to talk about it now. Perhaps my ideas will be more mature when the bicycles leave the campus and are deployed in the city."

Shen Nanpeng: "."

Luo Yang was unwilling to talk about it, and he didn't press him for details.

Fortunately, these issues do not affect Sequoia Capital's interests, so it's not unreasonable to put them on hold for now.

He also became interested, especially in the presence of such a business genius.

When we have time, we can unravel the mystery and deduce Luo Yang's true thoughts, which would be quite enjoyable.

Soon after, the golf cart arrived at the next teeing ground.

"Mr. Luo, I strongly suggest that Ms. Wen be your partner, and you will only be responsible for the tee shot."

Although Shen Nanpeng's golf skills aren't exceptionally high, he's still quite respectable for an amateur, consistently achieving a 90 or higher score over 18 holes. Luo Yang's skills, however, are... well, let's just say they're questionable.
"Tsk, I need to practice more in the future."

Luo Yang chuckled self-deprecatingly: "Otherwise, inviting someone to play ball would just turn into a walk."

Even geniuses aren't omnipotent.

Shen Nanpeng said happily, "Next time Mr. Luo invites me to Shanghai, we can find a quiet place to have some tea and chat."

"Oh!"

Slightly frustrated, Luo Yang swung his club to hit the ball.

Grass clippings flew everywhere.

"Lemon CC's development speed has exceeded my previous expectations."

Luo Yang gave up his hitting position and, while watching Shen Nanpeng prepare to break the pitch, said, "Next year, should we continue to deepen our presence in the domestic market while also expanding into the Southeast Asian market, or should we simply find a buyer and sell it off? What does Mr. Shen think?"

Besides He Maosong and his associates, Sequoia Capital is also a shareholder of Lemon CC. The company will continue to expand next year, which is something we don't need to tell anyone else.

However, if we want to sell it, we definitely need to communicate with the shareholders first.

"You're planning to sell it next year?"

Shen Nanpeng was about to swing his club when those words made him abruptly stop, leaning on his club and asking, "Didn't you say you were going to sell Lemon CC when its valuation was around 100 billion? Even if you complete the layout this year, it will only reach the figure of our agreed valuation, right?"

When they played here last time, Luo Yang and Shen Nanpeng estimated Lemon CC's value at 42 billion yuan.

The two parties also signed a performance-based agreement based on this valuation.

The agreement clearly stipulates that Lemon CC must have more than 2000 directly operated stores and more than 4000 franchised stores nationwide by the end of this year.

In fact, this figure was almost reached by the end of the second quarter.

However, Shen Nanpeng was unaware of this situation.

According to the agreement between the two parties, Sequoia Capital's first payment would not be deposited into Lemon CC's account until July, and the supervision of the use of funds would only begin after the funds were received.

Sequoia Capital is unaware of Lemon CC's operating data for the first two quarters.

"The agreed valuation figure was roughly reached by the end of the second quarter."

Luo Yang smiled and said to Shen Nanpeng, "Even for Sequoia Capital, the valuation reached 42 billion in July. At the current rate of development, doubling it by the end of the year is definitely not a problem. That's why I think we can consider finding a buyer next year."

Shen Nanpeng: "."

This is the second time I've been speechless today.

After a moment, he looked at his assistant Cao Lingfeng: "What's going on? Why didn't I know about this?"

“Our first payment was transferred to the other company’s account in early July, and it began to be used intensively in mid-July. The regulators’ main focus was on reviewing whether the use of these funds was compliant, and they did not have time to carefully understand Lemon CC’s operating conditions in the first two quarters.”

Cao Lingfeng did not exaggerate.

Because of Luo Yang, Ling Shi Gong Group's second-quarter financial report meeting was delayed by at least a week, and the money that Lemon CC received from Sequoia Capital was only brought in after the second-quarter financial report meeting.

It has only been a little over two weeks since the second quarter financial meeting.

This means that the first sum of over 100 million yuan had to be spent in just over ten days, and each sum was between several hundred thousand and a million yuan. The task of supervision was extremely arduous.

How could they possibly have time to understand Lemon CC's operating performance in the first two quarters?

"Find out the details as soon as possible."

Shen Nanpeng didn't care about any of that: "I'll give you a week."

After giving his instructions, he looked at Luo Yang.

"Mr. Luo, you've given me another wonderful surprise!"

"Mr. Shen, you're pleasantly surprised, but I'm so regretful."

Luo Yang feigned a bitter expression: "If only I had insisted on a valuation of 50 billion from the start. Now it seems I've suffered a huge loss."

"Hahaha"

Shen Nanpeng let out a hearty laugh.

From an investor's perspective, he benefited from Luo Yang this time, so it's no wonder he's happy.

"Mr. Luo, with our funding, Lemon CC can expand at a faster pace. Otherwise, it will lack momentum in the second half of the year, and you won't reach a valuation of 10 billion until at least next year or the year after."

Of course, it shouldn't be excessive either.

Shen Nanpeng offered some consolation to Luo Yang, saying, "Considering the time cost of the money, you won't lose out."

Is it really not a loss?
Luo Yang initially thought of financing from Sequoia Capital to rapidly expand Lemon CC in order to acquire the headquarters building and raise funds to enter the new energy vehicle industry. His goal was to sell Lemon CC within one or two years and obtain a large cash flow.

From this perspective, he didn't lose out by doing this.

If he knew he would make enough money in the US crude oil futures market, would he still do it?
Some things cannot be looked back upon.

(End of this chapter)