If everyone is reborn, who will work for capital?

Chapter 174 A straightforward approach leads to $2.5 million! (7.5k)

Lei Jun didn't expect that the financing negotiations, which he hadn't hoped for and were just a formality, would last for five and a half hours.

The four people moved from the small round table in the coffee shop to the conference room of Dami Technology in the Yingu Building.

On the table were a notebook, a cell phone, several cups of coffee that had gone cold, and a stack of draft paper covered with arrows.

During this time, Li Dongping also taught Lei Busi and Lin Bin how to order takeout using Ele.me.

Yingu Building is located in Zhongguancun and is surrounded by more than a dozen universities, including Tsinghua University, Peking University, and Beihang University, making it extremely convenient to order takeout.

After ordering takeout, Li Dongping briefly discussed Ele.me's business model with Lei Jun. He ended by saying, "Ele.me is like Dami Technology; it's not well-regarded by others, but we at Arctic Capital are optimistic about it," which left Lei Jun and Lin Bin speechless.

Over the course of five and a half hours, Lei Jun was gradually convinced by Li Dongping's understanding of the future development of the smartphone industry. He went from being tight-lipped at the beginning to being open and honest, and took the initiative to share his thoughts and plans.

During the five and a half hours, Li Dongping was also impressed by the behind-the-scenes boss's understanding of Lei Jun.

He suddenly realized that his boss understood him even better than Lei Jun himself. Lei Jun knew his way of thinking, his decision-making habits, his weaknesses, and his bottom line.

For a fleeting moment, he even suspected that Lei Jun was the mastermind behind Arctic Capital.

The four people talked about everything from triathlon to the progress of MIUI, from smartphone manufacturing to investment and financing details.

Lei Jun became more and more engrossed in his speech, Li Dongping listened more and more attentively, Lin Bin occasionally added to the conversation, and Li Zhaohui took notes rapidly in his notebook.

They had a great time chatting, a lively conversation, and a lot of fun.

Li Zhaohui also kept his promise and introduced hardware expert Zhou Guangping to Lei Jun, creating a QQ group on the spot.

Zhou Guangping holds a PhD in Electromagnetism from Georgia Institute of Technology and is currently the Senior Director of Motorola's Beijing R&D Center. His resume is a perfect fit for Dami Technology at this time. This information greatly pleased Lei Jun.

However, there are still disagreements between the two sides regarding the company's valuation and equity ratio.

Arctic Capital hopes to invest $600 million in Dami Technology, acquiring a 20% stake, based on their previous assessment.

But Li Dongping's appreciation gave Lei Jun immense confidence. He didn't want to give up so many shares, only willing to offer $500 million for 15% of the equity.

In the end, Arctic Capital conceded and agreed to Lei Jun's demands.

Li Dongping promised to complete the DD (Deal-in-the-Domain) process as soon as possible and to make the payment immediately once approved.

Before parting, Li Dongping kindly asked Lei Jun one more question, his eyes filled with inquiry: "Mr. Lei, in terms of software, besides developing the MIUI operating system based on a deep customization of Android, have we considered developing unique utility software, social software, or the like?"

Lei Jun seemed thoughtful: "We did consider creating a social networking app internally, similar to Momo. But we decided to focus on MIUI first. Now is not the time; resources and energy are limited."

Li Dongping originally wanted to recommend the Kik model, but after thinking about it, he realized that Dami Technology really needed to focus on its core business at the moment, so he didn't say anything more.

After seeing Li Dongping and Li Zhaohui off, Lei Jun and Lin Bin exchanged a glance and smiled.

Lin Bin couldn't help but clench his fist and shout "Yay!"

Lei Jun couldn't help but exclaim, "A true friend indeed!"

His voice carried a long-lost excitement, as if he had found someone who truly understood him.

"Yes!" Lin Bin couldn't help but exclaim, "This Mr. Li Dongping's investment style is very decisive! Unlike some people, who talk for three months and still haven't given a definite answer."

The "some people" that Lin Bin mentioned were clearly referring to Liu Qin.

After the initial excitement subsided, Lin Bin asked again, "President Lei, are you going to call Liu Qin again tonight to discuss things?"

Lei Jun thought for a moment, then said with a mix of emotions, "Let's have a polite chat. After all, without Liu Qin's leak, Arctic Capital wouldn't have been able to come to us."

When he said the word "leak," there was a bitter smile on his lips.

As I stepped out of the Yingu Building, the setting sun in the capital was painting the sky a golden-red hue.

The expressions on Li Dongping and Li Zhaohui's faces were complex. They felt happy, emotional, and above all, respect.

The good news is that we successfully completed the task assigned by the boss. Lei Jun signed with TS, and Dami Technology's Series A funding round was completed.

What's remarkable is that after talking with Lei Jun and Lin Bin, the two men surprisingly became more convinced of Dami Technology's [software + hardware + internet] business model. It was as if they had brainwashed themselves—as they talked, they started to believe it.

What's admirable is that their own boss successfully predicted Lei Jun's prediction.

"Brother Ping, just how powerful are our boss's intelligence capabilities and resources? He knows so much about Lei Jun. I even suspect he's related to Lei Jun." Li Zhaohui asked, half with emotion and half with a tentative inquiry.

"I feel the same way. I even suspect our boss is Lei Jun (Lei Jun's nickname)," Li Dongping joked, without answering Li—

Chaohui's question.

Li Zhaohui didn't press the matter further, so he asked, "Brother Ping, shall we fly back to Hong Kong today?"

"The boss told us to stay in Beijing for a few more days, as there might be a new project we could discuss, but I don't know the specifics."

Li Dongping shook his head and added, "Let's go back to the hotel and catch up on some sleep. We'll watch the semi-final between Germany and Spain in the early hours of the morning."

"Great!" Li Zhaohui laughed. "I listened to Paul the Octopus and bet on Spain to win."

The two got into a taxi and disappeared into the evening rush hour traffic.

On their way back to the hotel, in the Sequoia Capital office at the China World Trade Center, Mingfan Technology B...

The round of financing negotiations has also entered a critical stage.

The host, Shen Nanpeng, sat at the head of the long table, with members of the Mingfan Technology team—Geng Zhi, Gu Wanning, Tang Yan, and Lü Siyu—sitting on either side.

On the other side sat representatives from four investor companies:

Matrix Partners China's Founding Managing Partner Zhang Ying, Qiming Venture Partners' Founding Managing Partner Zi Ping, and Yunfeng Capital's Head Yu Feng

Liu Chiping, Chief Strategic Investment Officer of Tencent.

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Behind them sat several core members of their team.

This is the second round of negotiations today, and the atmosphere at the negotiation site is exceptionally intense.

As per the previous agreement between Gengzhi and Sequoia Capital, Sequoia has already secured $1200 million in investment, with the remaining $1300 million to be split between a financial investor and a strategic investor.

Financial investors can choose between Matrix Partners and Qiming Venture Partners, while strategic investors can choose between Tencent and Yunfeng Capital.

In the separate briefings held two days ago, Geng Zhi had already explained his company's product data and funding plans in detail to the four potential investors.

It's just that the things I say to different investors are different.

During today's negotiations, Geng Zhi didn't discuss anything related to the product at all; the topic focused solely on investment matters.

With such fierce competition for Mingfan Technology's Series B funding, the four investors have little concern about valuation or investment amount.

No one thought the $2.5 million valuation was expensive. All they had to do was fight tooth and nail to get a ticket to the game.

As a result, An Wenjing, the investment manager behind Liu Chiping, and two team members behind Yu Feng even started arguing during the meeting.

At this point, valuation and investment amount alone are no longer sufficient to determine who will secure a place. All four companies accepted a valuation of 2.5 million, all four wanted to participate, and all four had the funds.

Geng Zhi gave Shen Nanpeng a wink and slightly raised his chin, signaling him to be the villain.

Shen Nanpeng understood, coughed lightly, and tapped the table: "Everyone, everyone, please be quiet. All four of you candidates are top-tier institutions, but there are only two spots available."

He paused, his gaze sweeping over everyone present: "The valuation of 2.5 million was set by Mr. Geng from the very beginning, so he never thought of raising the price through face-to-face competition."

But since we're at an impasse, let's go over the investment terms together again.

Upon hearing this, the representatives from the other four institutions realized that the investment terms were being used to weed out candidates, and they couldn't help but feel a little nervous.

As Shen Nanpeng spoke, he looked at Geng Zhi and asked, "Mr. Geng, could Mingfan Technology elaborate on the investment terms?"

"Ahem," Geng Zhi coughed lightly before speaking, "Dear seniors, on behalf of Mingfan Technology, I would like to thank you all again. I wish I could accept investment from everyone, after all, the more funding the better! But reality doesn't allow it."

As he spoke, Geng Zhi glanced at Shen Nanpeng.

All eyes immediately turned to Neil Shen, the head of Sequoia Capital.

Everyone realized that this competitive financing was not the idea of ​​Geng Zhi, an industry veteran, but rather the idea of ​​Shen Nanpeng of Sequoia Capital.

Shen Nanpeng, who had just been replying to a text message, was a little distracted and only now realized what Geng Zhi meant. His face darkened.

Is this guy trying to shift the blame onto me?

Shen Nanpeng's expression was quite awkward, his lips twitched, and he felt as if a million grass mud horses were galloping through his mind.

But for the sake of the bigger picture and for the sake of his revolutionary friendship with Geng Zhi, he still helped Geng Zhi take the blame for this huge black pot with a diameter of 1.8 meters.

Geng Zhi glanced at his watch and said decisively, "Seniors, time is limited, so let's finish this quickly."

After saying that, he glanced at Gu Wanning beside him and continued, "Ladies and gentlemen, now let our lawyer Gu Wanning from Mingfan Technology read out our latest [Five Investment Clauses]."

"After each clause is read aloud, everyone should raise their placards to indicate whether they agree. If any institution does not raise their placard to indicate 'agree,' they will withdraw from this Series B investment. What do you all think?"

His words, though spoken politely and gently, were like a knife, stabbing straight into the four investors.

The tone was negotiable, but the content was non-negotiable.

Yu Feng and Zi Ping, who were whispering to their respective teams, were stunned upon hearing this and sat up straight involuntarily.

Zhang Ying and Liu Chiping's hearts jumped instantly. Zhang Ying put down her pen, and Liu Chiping loosened his crossed hands.

Disagreeing with the terms means immediate elimination?

Liu Chiping felt that Geng's words were ambiguous and quickly asked, "President Geng, you just said that if we don't agree to the terms, we'll be out immediately? You're not even giving us a chance to communicate and discuss?"

"Yes, every investment term is standard industry practice; you only need to focus on the numbers. The bosses are all very busy, and Mr. Shen and I don't want to take up any more of your time. Right, Mr. Shen?"

After giving his straightforward answer, he glanced at Shen Nanpeng, as if seeking confirmation.

Shen Nanpeng felt as if another huge, round, and heavy black pot was coming at him, but he still nodded calmly.

The four investors and their team members in the room immediately began to whisper among themselves.

Liu Chiping thought to himself: Isn't this just deliberately trying to drag us into raising the price? This is even worse than raising the price!! At least with price gouging, you can negotiate, but this is putting us on the hot seat.

This auction-style bidding model is absolutely ruthless!

Shen Nanpeng, you're such a scoundrel! — Liu Chiping cursed Shen Nanpeng several times in her heart.

Liu Chiping was torn between standing up and opposing the voting rules. As a veteran who had been in the investment industry for so many years, he had never seen such an overbearing bidding method.

But after glancing at his opponent Yu Feng and seeing that his opponent had no objection, he gave up the idea.

He worried that if he objected, he would be kicked out by the outspokenness the moment he did.

"In terms of strategic synergy, Tencent is clearly much stronger than Yunfeng Capital, so there shouldn't be any pressure in the bidding," Liu Chiping thought, feeling more relaxed.

Just then, the company secretary, Lü Siyu, took out four playing cards from her bag next to her seat and got up to distribute them to Liu Chiping, Yu Feng, Ziping, and Zhang Ying.

The front of the paddle had the words "[Agree]" printed in green, and the back had the words "[Disagree]" printed in red, similar to the paddles used at auctions.

This unusual voting ceremony left the four seasoned investors somewhat bewildered, but the next second, everyone felt an intense sense of pressure.

All four of them were speculating about what terms Geng Zhi would propose and whether they would be in their favor.

Seeing that no one spoke, Geng Zhi went around confirming with each person again: "President Zhang, President Liu, President [Name], President Yu, you all understand the elimination rules, right?"

He realized his words were a bit impolite and quickly corrected himself, "Oh, no, I should say, I've explained the elimination rules clearly, haven't I?"

Everyone: "————"

After a moment of silence, Kuang Ziping couldn't help but ask, "President Geng, I have a question. What if, and I mean, what if, Qiming Venture Partners and Matrix Partners both disagree with a certain investment term you've proposed? Surely we can't both be out of the game?"

"Mr. Kuang, you're right." Geng Zhi nodded with a smile, his tone crisp. "For the sake of fairness, impartiality, and transparency, if neither of you agrees, then Matrix Partners China and Qiming Venture Partners will have to withdraw from this investment."

After saying that, he turned to Shen Nanpeng and asked with a smile, "Mr. Shen, Sequoia Capital can take over the vacant investment amount, right?"

"No problem!" Shen Nanpeng immediately nodded with a smile, his tone full of joy. "I couldn't be happier! Sequoia Capital wouldn't mind investing more if there was an opportunity."

Kuang Ziping was speechless for a moment. Her throat moved, but she swallowed back the words that were about to come out.

"Similarly, if President Yu and President Liu also disagree, then Yunfeng Capital and Tencent will also be out of the game." Geng Zhi added, then looked at Shen Nanpeng, "President Shen, Sequoia Capital can take all 2500 million US dollars in investment, right?"

"No problem!" Shen Nanpeng nodded with a smile, this time even brighter than before.

Kuang Ziping, Zhang Ying, Yu Feng, Liu Chiping: "————"

The four men's faces turned pale and then red, their hearts growing increasingly tense. In contrast, Geng Zhi became more and more relaxed, a faint smile always playing on his lips.

At this moment, the company secretary, Lü Siyu, had already raised her phone, turned on the video recording function, and carefully recorded this spectacular scene of [bidding for investment].

"Four seniors, do you have any questions? If not, let's begin. Remember, just raise your placards, no discussion. If you don't raise your placard after the time limit, it will be considered as disagreement."

After offering his polite reminder, Geng Zhi gave Gu Wan Ning a wink, signaling that she could begin reading the terms.

Gu Wanning smiled and nodded slightly to everyone before beginning to read out the terms seriously: "Article 1: Financial investors will invest up to $8 million USD, and strategic investors will invest up to $5 million USD. The amounts are fixed and no negotiations will be accepted."

The terms are clear and unambiguous. The only thing the four companies need to worry about is whether the figures meet their expectations.

As soon as Gu Wanning finished reading, Geng Zhi stood up with an imposing air: "Bosses, 15-second countdown, please raise your signs! 15, 14, 13—"

Yu Feng was the first to raise his sign, which clearly read "[Agree]".

He waved his hand while holding up the sign, saying, "Mr. Geng, Yunfeng Fund has no doubt about the amount; we'd even double it!"

Kuang Ziping then chimed in, holding up a sign and saying, "Yes, Mr. Geng, money is not a problem, it's not a problem at all."

Geng Zhi counted down to [12], and Zhang Ying and Liu Chiping also raised their signs one after another [Agree].

Gu Wanning smiled slightly, and seeing that all four agreed, she continued to read: "Second Article: After this round of financing is completed, the board of directors will have three seats: two for the founding team, one for Sequoia Capital, and the other two new investors will not have board seats, but will be given observer seats."

"15-second countdown, start! 15, 14, 13—" The straightforward voice rang out again, still crisp and decisive.

When the countdown reached [13], Zhang Ying from Matrix Partners and Zi Ping from Qiming Venture Partners raised their placards in agreement.

These two companies were purely financial investors and never expected to obtain a seat on the board of directors.

Moreover, according to industry practice, small investors with less than 5% equity share usually do not have a separate board seat; at most, they have an observer seat, which is quite reasonable.

Yu Feng of Yunfeng Fund had no objections.

Their goals for this trip were twofold: first, to capitalize on the momentum of Yunfeng Capital's recent establishment and co-invest in a wave of high-quality projects to enhance its brand awareness; and second, to seize this investment opportunity from Tencent at any cost and disrupt Tencent's strategic plans.

With an investment of $500 million, holding only 2% of the shares, and being granted an observer seat, it was already beyond expectations. So when the countdown reached [10], they raised their hands to indicate [agree].

Of the four companies, the only one that is conflicted is Liu Chiping of Tencent.

Although Tencent doesn't invest much externally at the moment, it has one ironclad rule—it always seeks board seats when it invests; this is their fundamental objective.

Although the investment amount is not large and the shareholding is not high, in Liu Chiping's view, Tencent can provide Momo with huge resources, such as traffic support and channel support, which cannot be measured by money. It would be unreasonable not to give it a seat on the board of directors.

He really wanted to stand up and suggest that the board of directors set up 5 or 7 seats, giving Penguin a seat, but Geng Zhi had already said that he would only raise his paddle and not discuss the matter, so he didn't have a chance to speak.

Should I vote "agree" or "disagree"?

Liu Chiping suddenly panicked, really panicked.

The countdown to Geng Zhi's death has begun[3]. Before Liu Chiping could even raise her sign, Yu Feng, who was watching the spectacle from the sidelines, had already begun to show a happy expression.

I agree. Spending 500 million just to buy an observer seat feels like a rip-off no matter how you look at it!

However, if you don't raise your "agree" button, you're out of the game, and all the previous communication and groundwork will be wasted. You'll have no chance to obtain Momo's business secrets or understand the straightforward logic behind MoMo's overseas expansion.

At this moment, not only Yu Feng was overjoyed, waiting to see Liu Chiping eliminated, but Zhang Ying, Zi Ping, An Wenjing, and everyone else's eyes were also focused on Liu Chiping, and the atmosphere was extremely tense.

Even Geng Zhi himself was quite surprised.

In order to make the penguin willingly give up, he specially prepared three sets of 15 terms for the penguin. Unexpectedly, the penguin was about to fall in the second round of the first set.

At this point, Geng Zhi had calmly counted to [1].

Anyway, with observer seats, one can learn about all of Momo's movements; without board seats, one can't.

Liu Chiping made a snap decision and decisively raised the "Agree" sign.

call----

An Wenjing and the others breathed a sigh of relief, while Yu Feng sighed silently in frustration.

Next, Gu Wanning read out the third point, which was also unanimously approved.

However, when discussing the fourth clause regarding priority liquidation rights and most-favored-nation treatment, Kuang Ziping did not raise her placard to indicate "agree," which means that Qiming Venture Partners, as a candidate for financial investor, chose to withdraw due to the stringent conditions.

Shen Nanpeng and Geng Zhi politely thanked Kuang Ziping and her team again, and then Yang Dong saw them off without letting them participate in the subsequent vote.

At this point, only Matrix Partners remains as a candidate for financial investor.

Upon seeing this, Gu Wanning immediately adjusted the subsequent terms and conditions, appropriately relaxing some conditions to ensure that Matrix Partners would not be eliminated in the next round.

She continued reading: "Article 5: From the date of signing the investment agreement until two years after exit, investors and their affiliates shall not independently develop, invest in, hold controlling stakes in, or act as agents through third parties for any products in China that directly compete with Momo's core business (such as location-based stranger social networking)."

"If this clause is violated, Momo has the right to repurchase all of its shares at the original investment price, and the investor shall bear the corresponding liability for breach of contract."

Upon hearing this, Zhang Ying and Yu Feng both breathed a long sigh of relief, and relaxed smiles appeared on their faces.

Liu Chiping was stunned. Her face turned pale instantly, and her eyes were filled with disbelief.

This means that from this moment on, investors must be strongly aligned with Mingfan Technology in the field of stranger social networking.

Matrix Partners can do that, since Yunfeng Capital and Alibaba Group are not the same entity, so it can be explained in time. But Tencent is different.

Once Tencent invests in Momo, Tencent and its future investment institutions will no longer be able to invest in or develop any stranger social networking products, including features such as "People Nearby" currently being developed for QQ and QQ Zone, as well as planned overseas products.

How could Tencent possibly abandon the stranger social networking arena within its vast social empire?

This is unacceptable to penguins under any circumstances; it is their Achilles' heel.

This $500 million investment is purely a financial investment! And it's a self-destructive financial investment! A losing financial investment!

The countdown had gone from [15] to [0] in Geng Zhi's mouth, but Liu Chiping still didn't raise the sign. Her hands were clenched into fists, and her face was so gloomy that it could drip water.

Geng Zhi picked up the whiteboard eraser on the table and used it as a small hammer, tapping the surface gently with a sense of ritual: "No objection once, no objection twice, no—"

"President Geng, President Shen, this is unfair, extremely unfair!"

Liu Chiping could no longer hold back. Before Geng Zhi could knock a third time, she slammed her hand on the table, stood up, and spoke with a tone full of anger.

Seeing her boss so angry, An Wenjing quickly stepped forward and said excitedly, "That's right! This clause targeting strategic investors is simply a 'rogue clause'! How could it be set up like this? It's clearly targeting Tencent, it's so unfair!"

"You're wrong about that!" a girl behind Yu Feng immediately retorted sharply. "Before the vote, President Geng specifically asked for everyone's opinion. Why didn't you raise any objections then? Now that you're out, you're jumping out to say it's unfair. That's just a sore loser!"

"Exactly! A bet is a bet. Such a big organization, if you lose, you lose. Making excuses is so unsportsmanlike!" A boy behind Yu Feng chimed in, his tone full of sarcasm.

The meeting room was immediately filled with arguments and chaos.

Lu Siyu's video recording work did not stop.

After the two sides had been arguing back and forth for more than a dozen rounds, Geng Zhi finally spoke slowly, raising his hand to stop them: "Everyone, everyone, stop arguing, stop arguing, we're all friends, we're all friends, let's not hurt our harmony."

The meeting room fell silent instantly, and everyone's eyes were fixed on Geng Zhi, waiting for him to speak.

Geng Zhi first bowed slightly to Liu Chiping and apologized sincerely: "President Liu, Manager An, I'm really sorry to have upset you all. We'll have many more opportunities to cooperate in the future, so let's not let this disagreement affect our future relationship."

After apologizing, he slowly explained, "We at Mingfan Technology are a small company, and we want to survive. We want to focus all our energy on creating the ultimate experience and tremendous value for our users, rather than on malicious competition."

"Tencent is a large company, a highly innovative company. We believe that Tencent is unlikely to imitate our Mingfan Technology products, and we also believe in Mr. Liu's character and vision."

Geng Zhi paused for a moment, then continued, "But the business world is like a battlefield, and people's hearts are unpredictable. We should be cautious and clear about the rules beforehand to avoid unnecessary disputes later. I believe you, Mr. Liu, can understand this."

"Moreover, this rule is not deliberately targeting Tencent. It applies the same to Sequoia Capital, Matrix Partners, and Yunfeng Capital. It treats everyone equally and without any favoritism."

As Liu Chiping listened, the anger on her face gradually faded, replaced by a hint of helplessness and embarrassment.

Realizing he had been somewhat out of line, he simply said, "I understand, but I cannot accept it," before turning and leaving the meeting room with his team.

Geng Zhi, Shen Nanpeng, and Yang Dong personally saw him off, while Lü Siyu recorded the scene.

After Liu Chiping's team left, the atmosphere in the meeting room completely relaxed.

After another hour and a half of communication and negotiation, Mingfan Technology, Sequoia Capital, Matrix Partners, and Yunfeng Capital quickly reached a Series B investment agreement and signed a letter of intent.

Ultimately, Mingfan Technology raised a total of US$2.5 million in its Series B funding round, giving up 10% of its equity, officially valuing the company at US$2500 million.

Sequoia Capital invested US$1200 million, Matrix Partners invested US$800 million, and Yunfeng Capital invested US$500 million.

Prior to its Series B funding round, Mingfan Technology's equity structure was as follows:

Geng Zhi: 70% (including the 10% of unclaimed shares held on behalf of Tang Yan)

Employee Stock Ownership Platform (ESOP): 20%

Sequoia Capital: 10%

Following its Series B funding round, Mingfan Technology's equity structure is as follows:

Geng Zhi: 63% (including the unclaimed shares held on behalf of Tang Yan)

Employee stock ownership platform: 18%

Sequoia Capital: 13.8%

Latitude and Longitude: 3.2%

Yunfeng Fund: 2%

The structure diagram is as follows:

Following the Series B funding round, Mingfan Technology's board of directors structure is as follows:

Seat 1: Geng Zhi; Seat 2: Tang Yan; Seat 3: Sequoia Capital.

Observer seats: Matrix Partners China and Yunfeng Capital.