The matter of Jiuzhou Blue Arrow has come to an end for the time being. The R&D capabilities of the six technical staff including Luo Liang and Xiang Lanzhi have been greatly improved. Then we can wait patiently for them to produce results. By then, they and Jiuzhou Blue Arrow will be able to achieve mutual success. .
With Qiu Guangcheng in charge of the Jiuzhou Blue Arrow project, Fang Hong also transferred his main energy elsewhere in the following days.
The A-share market fell sharply this week. On Monday, November 30, the last trading day of November ended with a strong rebound. The two cities opened higher and moved higher. The market index rose by +3.20% that day, leaving the country in the dark. The foot has a big positive line.
In December, on Tuesday, December 1, the A-share market had a good start in the last month of the year. The market continued to rebound strongly this week. The market index rose by +1.25% on Tuesday, +1.06% on Wednesday, and pulled back -0.16% on Thursday. On Friday, it rose again by +1.61%, with the index closing at 3317.04 points, once again reaching the 3300-point mark.
In particular, the A-share market on Friday had a rising market. The two markets opened low in the morning and then went up all the way. At around 11 o'clock, it reached 3300 points and the increase expanded by +1.43%. Then it dived again, and by 13:15 in the afternoon It turned left and right, and the decline expanded to 1.6 percentage points. Then it fluctuated and closed higher again in the afternoon, and finally closed up +1.61%. The trading volume of the two cities also released another 400 billion-level volume.
In today's roller coaster market, Qunxing Capital's remaining chips to be cleared in the A-share market were all sold out today.
Even the straw was cleared away, leaving only a bottom warehouse.
Because in the next six months, Maoti will have a period of major decline, so it is natural to avoid risks.
…
Monday afternoon, December 7th.
"Strategic investment in Jingdong?" Tian Jiayi, who returned home and reported on the work of Qunxing Capital on a daily basis, was surprised to hear Fang Hong's new idea. After a while, she looked at Fang Hong and said, "However, Jingdong does not seem to have disclosed it to the outside world at the moment. Seeking financing.”
The beautiful assistant was quite curious and didn't know what Fang Hong was tinkering with at home these days. In Tian Jiayi's impression, he was just a prodigal son who played all day long. Why did he suddenly want to enter the e-commerce field and was attracted by it? Jing Dong instead of Ah Li.
"How can a company in the entrepreneurial stage not be short of money? What's more, Jingdong now has many and powerful opponents." Fang Hong said with a smile. In the past few days since December, he did not do much stock trading, nor did he spend time with his girls. They are just having fun, but have been thinking about how to spend the money of Star Capital.
Jingdong has become one of Fang Hong’s goals. The Great Qiangzi is still very good, and Jingdong is also worthy of Qunxing Capital’s heavy bet. At this time, Jingdong’s valuation will not exceed US$300 million.
As early as April 2007, Jingdong received US$10 million in financing from Capital Today. In the following year, in December 2008, institutions such as Capital Today, Xiongniu Capital, and the private company of the famous Asian investment banker Liang Botao once again provided funding to Jingdong. Raised US$21 million.
Fang Hong handed a compiled document related to Jingdong to Tian Jiayi and added: "Contact his boss as soon as possible to finalize it."
Tian Jiayi took the material and opened it. After a while, his eyes widened after reading the material. He immediately looked up at Fang Hong and said, "You want to invest 2.5 billion in Jingdong? As far as I know, Jingdong's current valuation in the industry is It is generally believed to be around US$200 million. Are you investing in Jingdong Venture Capital or are you going to buy it outright?"
The investment is 2.5 billion, which is about 335 million U.S. dollars when converted into U.S. dollars, which is higher than Jingdong’s current valuation.
Fang Hong and the beautiful assistant smiled and said: "Although the money I earn is about the same as what a strong wind brings, I am not the stupid son of a landlord who has a lot of money. I calculated this number carefully." the result of."
Tian Jiayi was speechless. After joining Qunxing Capital, he felt exactly like this. The money he made was really as easy as the strong wind. It was outrageous but it was real.
The company is really poor now and only has money left, and now Big A has cashed out.
Fang Hong continued: "According to my calculations, if Daqiangzi wants to build a heavy-asset e-commerce model in big cities, it will require at least about 2 billion. How much does it cost to build warehouses, how much to build logistics centers, and how much to build fixed assets? Investment cannot be achieved without more than 2 billion yuan."
Jingdong’s model is different from Alibaba’s model. For this reason, the founders of the two major e-commerce companies have also crossed the line when bragging at many industry forums and conferences. The founder of Alibaba bluntly said that Jingdong’s business model It was destined to be impossible to continue playing, and it would be difficult to make a profit. At that time, Da Qiangzi had no words to refute, because now Jingdong is indeed in a state of "huge losses", and making a profit is simply a dream for Da Qiangzi.
Tian Jiayi couldn't help but said thoughtfully: "I heard the founder of Alibaba once complained about Jingdong's business model at an Internet conference. He said that Jingdong does everything. Such a business model is almost a bottomless pit without transformation. The number of employees will soar significantly in the next few years. According to Mr. Ma’s prediction, there may be 300 million packages per year in the next ten years.”
Tian Jiayi looked at Fang Hong and said: "After calculation, theoretically, Jingdong may need millions of employees to complete the handover of express delivery. Just so many employees will overwhelm you and make you unable to sleep. I think so. What he said makes sense, there are indeed problems with Jingdong’s business model.”
Hearing this, Fang Hong said with a smile: "Let's not talk about whether Jingdong will have millions of employees one day. If there are, it does not mean that a company will not be able to manage millions of people. Wal-Mart has a global presence. There are 1.4 million employees and they are well managed, so why can’t Jingdong do the same?”
Tian Jiayi said: "It seems that you are really planning to bet on Jingdong."
Fang Hong nodded and said affirmatively: "I still have confidence in Da Qiangzi. He was quite 'out of place' when he was selling CDs. He insisted on clearly marking prices, making small profits but quick turnover, insisting on invoicing, and insisting on providing good service. . It is said that when Jingdong was still called Jingdong Multimedia, the Industrial and Commercial Bureau went to the company for three days to conduct a thorough investigation and found that there was no tax evasion, no parallel imports, and no fake CDs. In this way, Jingdong gradually accumulated reputation and repeat customers."
After confirming that Fang Hong wanted to invest in Jingdong, Tian Jiayi didn't say much and just executed it.
However, Tian Jiayi still reminded: "If you want to invest so much money, others may not accept it."
According to what Fang Hong stated in the materials, this investment requires 45% of Jingdong’s equity. Of course, Jingdong adopts the AB share system. Even if it acquires 45% of the equity and becomes the largest shareholder, the control rights The Great Qiangzi is still in control, but Fang Hong has no intention of taking control.
Come and try it quickly. 】
"The 2.5 billion is not directly financed to Jingdong. We invested US$300 million in Jingdong, and the other part was bought from investment institutions in previous rounds." Fang Hong said.
Institutions that financed previous rounds of financing include Today Capital, Xiongniu Capital, etc. The current valuation of Jingdong in the industry is only about US$200 million. Fang Hong directly priced it at a valuation of about US$700 million and bought it from several of these institutions. Part of it is equivalent to allowing them to recover their previous investment costs.
It’s not that they withdraw completely. The rest is all profits. There will definitely be no big problem if the negotiation is completed. Besides, Qunxing Capital has a lot of money to come in and directly increase Jingdong’s valuation. It is estimated that it will reach 1 billion U.S. dollars in a short time. Unicorn level.
Most venture capital will exit later, and now that Qunxing Capital is offering a premium of 2.5 times, it’s impossible not to be tempted.
…
Qunxing Capital also acted quickly. After Fang Hong made the decision, Hua Yu immediately made arrangements and handed over the venture capital project to Shi Yao, one of the company's directors.
Three days later, Shi Yao took a few people and flew there on the company's private plane. Then he chartered a car to feel Suqian and braved the heavy snow in December to go find Da Qiangzi with the contract.
Da Qiangzi was surprised when he heard the news. He didn't expect that people from Qunxing Capital would come directly to his door to invest in his company.
…
