Chapter 302: Get the B round of financing in 2 hours, or have a baby to celebrate
Chen Jianghe has always been vigorous and decisive in his work. Once he makes a decision, there will be only one voice in the entire company: execute it immediately.
As soon as the news that the financing process of Light Chaser would be accelerated was released, various investors that had been eyeing this piece of fat meat for a long time immediately came to the news like sharks smelling blood.
Three days later, many bigwigs from the capital circle gathered in the high-end business conference hall of the Garden Hotel.
Among them, the most influential bosses are Liu Weimin, president of Penguin Group and head of the strategic investment department, Shen Junhong, head of Hongyan Capital Hua Xia Foundation, Xu Jing of Jinsheng Capital, Guangdong East State-owned Assets and CITIC Group Investment Department.
"Light Chaser plans to raise $120 million in its Series B round."
Shen Junhong took the financing plan of Light Chaser and read it through in detail.
In the first round of financing of Light Chaser, investors including Penguin Group invested US$20 million, accounting for 23.1% of the shares. The post-investment valuation was approximately US$86.25 million. Chen Jianghe and other founding team members held 76.9% of the shares.
If calculated based on the current valuation of Light Chaser of US$500 million, investors participating in this round of US$120 million financing will obtain a 24% stake.
"AB shares, same shares but different rights. Chen Jianghe is very smart."
Compared with the amount of financing, Penguin Group President Liu Weimin is obviously more concerned about Chen Jianghe's design for the company's equity.
The equity structure of Light Chaser draws on that of BD Group, the first domestic company to adopt the "AB" share system, with the core principle being equal shares but unequal voting rights.
In short, it is to separate voting rights and dividend rights.
Under this framework, investors, company partners and employee stock ownership platforms hold Class A shares, and founders hold Class B shares.
Class A shares cannot be converted into Class B shares at any time, but Class B shares can be converted into Class A shares at any time.
Class A shares have equal dividend rights as Class B shares. In terms of voting rights, one Class A share is worth one vote, while one Class B share is worth 20 votes.
In addition to the financing plan that each boss had a copy of, there was also a PPT on the projector. The two pictures on it recorded the growth of the two core data of cooperative merchants and daily orders since the establishment of Light Chaser.
In order to more intuitively reflect the strong growth of Light Chaser, Chen Jianghe specially arranged for his secretary to include the business data previously disclosed by Nuomi Group Buying and 9527 Company into the PPT for reference.
Data shows that since Light Chaser started operating independently, the business growth rate of 9527 Company has almost plummeted, the growth rate of Nuomi Group Buying has slightly decreased, while the business growth rate of Light Chaser is terrifying.
“Without comparison, there is no harm.”
Chen Jianghe, the main speaker of this round of financing, pointed to the data on the PPT and said to all the capital giants present: "The next goal of our Light Chaser is to acquire one of the two main competitors, and then concentrate our efforts to take over more than 50% of the Yangtze River Delta takeout group purchase market."
After he finished speaking, several bigwigs sitting in the front row nodded. If the Light Chaser's Series B financing was just for expanding its business and engaging in a money-burning war with several existing platforms, then the financing amount of US$120 million was obviously a bit beyond market expectations.
After all, we are now in the economic winter, and the future development situation is still unclear.
If an M&A plan is added on top of market development, this financing will obviously be great value for money.
"Mr. Chen, let me ask you a question. As an Internet platform company, isn't it a bit monotonous for Light Chaser to only do group purchases of takeout in the catering industry?" Shen Junhong suddenly asked while looking at the projection.
"Mr. Shen really has a keen eye."
Chen Jianghe smiled and explained, "Catering delivery is only one of our core businesses at present. After completing the B round of financing, we will simultaneously develop in the fields of fruit, supermarket convenience, medicine, leisure and entertainment to cover the daily needs of ordinary people."
When Shen Junhong heard this, his eyes narrowed slightly. The development thinking of the young man in front of him was very similar to that of the one in Hangzhou. He had the same long-term vision, the same ambition, and the courage to think and do.
"Jiang He, I also have a question."
Penguin Group President Liu Weimin spoke with a smile. His way of addressing Chen Jianghe was unique. As the lead investor in Light Chaser's Series A financing, in public, Mr. Liu obviously treated Chen Jianghe as his own.
"You have a lot of things to do. Isn't $120 million a bit too little?" Liu Weimin asked with a warm smile.
When Chen Jianghe heard that Mr. Liu was obviously planning to add more, he smiled and shook his head.
Additional financing means having to give up more equity shares. Given that the current valuation of Light Chaser is not high, Chen Jianghe will obviously not make a deal at a loss.
When Liu Weimin saw him shaking his head, he exchanged glances with Shen Junhong who was sitting next to him, and they both understood what was going on.
The final result of the meeting was that Penguin Group and Hongyan Capital led the investment with US$100 million, Guangdong East State-owned Assets and CITIC participated in the investment with US$20 million. The investors in this round held a total of 15% of the shares, and the post-investment valuation of Light Chaser was US$800 million.
Chen Jianghe and the founding team's shareholding ratio dropped to 62.7%, of which Chen Jianghe's personal shareholding ratio was 44.2% and he had 78.2% of the voting rights.
After the meeting, Penguin Group President Liu Weimin was included in the board of directors of Light Chaser, Penguin Strategic Investment Department Vice President Cheng Jianyun was an independent director, the company's chief financial officer is still Gu Yuming, and Lin Siqi is the chief human resources officer.
"I thought this round of financing would take at least a day or two, but it was completed in just two hours. Boss, you are amazing, aren't you?"
After leaving the hotel, Lin Siqi happily took Chen Jianghe's hand and praised him as they walked.
When 9527 Company was raising funds, Lin Siqi accompanied Chen Jianghe to the scene to listen. Deng Yongqing and other senior executives negotiated with investors for several days but ultimately failed to get the financing. However, Light Chaser completed its B round of financing in just 2 hours. The comparison between the two is obvious.
"I'm not great at all." Chen Jianghe shook his head, looked at the secretary beside him, and asked, "Do you know what is the most correct thing I have done since the establishment of Light Chaser?"
Lin Siqi thought about it and was a little unsure, so he smiled and asked back, "What is it?"
"Of course I asked you to be my secretary."
Chen Jianghe said with a smile, "If it weren't for you, it would take at least two or three years for Light Chaser to hand over the financing plan to the capital giants present today."
"Ah~" Lin Siqi smiled sweetly and said, "It is my honor to have the opportunity to accompany you throughout the whole process and witness you move towards success step by step."
Chen Jianghe looked at her and said, "Instead of bragging about business, why not do something practical?"
"More practical..."
Lin Siqi's eyes sparkled, and he suggested with a smile: "How about we have a baby to celebrate?"
