The capital market is a market full of charm. Here you can get rich overnight, and you can also lose everything overnight. Capital never sleeps. They are chasing prey all the time. They are either hunting or preparing to hunt. .
SandHill Road is a common place name in Silicon Valley. However, this VC street named "Sand Hill Road" has become a global symbol and is known as the "West Coast Wall Street". Hundreds of well-known venture capital companies gather here, and there is gold everywhere and every inch of land is precious. Not an exaggeration.
Although the sudden rise of Burn After Reading has surprised many people, after all, its previous performance was not qualified, but the profit-seeking characteristics of capital will make them start to study you immediately, and some people have even started to take action.
Li Jie has received a lot of calls in the past two days. Various unknown and famous VCs have called one after another. However, there are only a few real giants. Among them, the most famous one is SVangle (Silicon Valley Ambassador). Li Jie’s last rejection did not matter. It does not affect the other person's senses.
David Lee is not a fool. As a veteran who has been in the VC market for many years, of course he will not be swayed by personal opinions. Although he was a little uncomfortable before, he will not refuse the opportunity to make money. This phone call was just a test call, and there was no substantial contact between the two parties.
Now that he is on the fast track of development, Li Jie will definitely not let this opportunity pass easily. The original investment of US$500,000 has been almost spent, and the one million spent on this promotion is Li Jie's additional investment.
Spiegel is not a person who is willing to be lonely. The trend of burning after reading has begun. Of course, he is not willing to have his shares diluted. This time he sought help from his parents and persuaded him several times, and finally borrowed five shares. One hundred thousand US dollars. If this investment fails, he will be in debt for a long time in the future.
This opportunity is rare but must be grasped firmly. Li Jie spared no effort for this promotion. He did not want to continue to invest money. Those venture capital investors are not kind-hearted people and refused once or twice. There are reasons, but if you refuse again and again, there is no guarantee that they will switch to your competitor.
For example, shared bicycles were a star project in the investment circle back then. As long as you dared to get involved, I would dare to invest. Countless investors rushed to enter the market, waving a lot of money, and the two largest ones were OFO and Mobike. One of the two bicycles belongs to the Penguin series (Mobike), and the other belongs to the Ari series (OFO). In fact, when Penguin first entered the market, it was not Mobike, but the yellow car OFO, because at that time Mobike The vehicle cost is too high, which is not conducive to rapid market promotion.
On the contrary, it is the lower-cost Huangche that attracts Penguin's attention more. However, because the founder of Huangche is young and energetic, how can a post-1990s top student who graduated from Peking University be easily controlled by capital? The two sides are still arguing over whether to enter the city. At that time, the main distribution channel for yellow cars was on campus, because yellow cars first started on campus, and spread from Peking University to major universities across the country.
On the other hand, competitor Mobike focuses its main efforts on cities. The most important reason why Huangche’s founders rejected Penguin’s request to enter the city is that Huangche’s campus model has begun to make profits, which gives Huangche’s founders enough The two sides finally broke up because of this issue. The founder of Huangche said: Penguin, why don’t you vote for me again in the next round?
Capital is keen, efficient, and ruthless. Penguin later switched to Huangche’s competitor Mobike, participating in the C+ round and leading the subsequent D and E rounds.
Li Jie doesn't expect to continue working on the APP that burns after reading. After graduation, he will return to China and cannot take into account its development. The only purpose of creating it is to teach Su Mingzhe, and making money is just incidental.
Of course, there is a difference between spending your own money and spending your own money for investment. When you spend your own money, you definitely want to use the money wisely and do big things with it. If you are investing your own money, the greater the efficiency, the better. In an increasingly competitive market environment, what matters is efficiency and development speed. You must be one step ahead of others, otherwise subsequent pursuers will pull you down without hesitation.
The same is true for entrepreneurship. Any giant has not stepped on the bones of countless peers along the way. People tend to only focus on the first, and maybe look at the second and third. But in The one at the back, I'm sorry, who are you? I'm sorry, I don't know you very well.
The Bai Group has been working in the United States for many years and still has some connections here. Thanks to Li Jie, Bai Hongwen safely avoided the financial crisis that swept the world in 2008. The aftermath of this crisis has not yet subsided. , If Li Jie wants to borrow Bai Hongwen's connections in the United States, there will definitely be no problem.
However, the industries the two are in are not the same after all. One is engaged in industry and the other is involved in the Internet. Although they end up with the same goal in the end, they belong to capital, but they are different. Moreover, Li Jie does not want to borrow Bai Bai. Hongwen's name, Burn After Reading, is just something he uses to practice in his spare time. His real main business is Tomorrow Capital in China.
Comprehensive consideration, it is imperative to introduce external capital, but Li Jie still needs to consider how to introduce it and what capital to introduce. Selling for a price is essential, and using the least equity in exchange for the largest investment That's the best way to deal with it.
The one million he invested last time can last for a while, so Li Jie is not in a hurry. This time he plans to start the PreA round of financing first. It is best to find three to four VCs. This is also the general practice in the market. Because VCs also have to take risks. If they are not particularly confident, few institutions will choose to invest alone when financing. Of course, seed rounds and final rounds are counted separately, because the later the financing amount, the higher the risk. The bigger.
Of course, it is not a good thing to have too many institutions in the early stage of starting a business. Capital is all about profit, but it is different for everyone. Since I have invested money in you, I must have the right to know and make suggestions. There are too many mothers-in-law. Sometimes it's not a good thing. Where does Li Jie have so much energy to deal with this group of people.
Li Jie has roughly selected the list of investors. Of course, his own Tomorrow Capital cannot escape. David Li from SVangle has called several times. He must be included. Even if he asks Li Jie to take the lead, he will not refuse.
Li Jie of the other two companies plans to ask Penguin first if he is interested in getting involved. If so, they will be one of them. If not, he will choose two of the many institutions.
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