The richest man starts with a blind box

Chapter 1199 How do investment institutions make money
Professor Parkinson's whole plan may sound complicated, but it can be summed up in one sentence, that is, he does not intend to make money from future passengers, but to make money from current investors.

Because Goldman Sachs did not use its own money to build the railway, but raised money in the stock market by establishing the United Railway Company, and then used the money to build the railway.

So the money is actually not from Goldman Sachs, but from the newly established Consolidated Railroad Company. Professor Bakinson intends to turn the money into Goldman Sachs, which is almost the same routine.

This more or less made a certain movie classic reappear.

And this is how capital makes money. For a while, some bigwigs like to teach young people to change their way of thinking and look at the world from a different angle, so that they can find that money is not earned, but picked up.

That’s pretty much what it means, you always think about earning money by operating the industry honestly, it’s wrong, it’s an old way of thinking.

The new way of thinking should be to draw a pie, attract others to spend money to buy the pie, and then take the opportunity to take the money away. This is the way of making money in the new era, and it is also the way of making money for capital.

It seems that between 2010 and 2020, the entire investment circle has experienced an Internet wave, and countless Internet companies have sprung up during this period.You just need to pull a project, find a blind spot in a traditional industry, add an Internet+ label, find an investor to put in a PPT, and you can immediately get a large amount of investment.

How crazy was this situation at that time? Within one year, more than 5 emerging Internet companies across the country received more than 100 million yuan in angel round investment. This is an incredible statistic.

Are these 5 emerging Internet companies all unicorns?

Of course it is impossible. After the rise of the concept of shared bicycles, more than 6000 shared bicycle brands were established in one month across the country, and more than 2000 of them have received investment from investment institutions.

Then look at the ending now... Hey, thinking of my 188 deposit, I feel uncomfortable all over.

This is the case for shared bicycles, so naturally other industries are not so good.But wait until 10 years later, these Internet companies are basically gone.Except for a few real unicorns that rose in the chaos, the other companies died without knowing how.

It seems that all the investments of these investment institutions have lost their money, and the entire investment community is a bunch of idiots.

Is this the case?
Of course not, these investment institutions have already made a lot of money, and their mouths are full of laughter.

Seeing this, you may find it very strange. 99.999% of the companies invested in this investment have closed down. Why are they still making a lot of money?

Because these investment institutions are the same as Professor Ba Jinsheng's money-making routines, they don't earn profits during the business operation process, but the profits when the company conducts various financial activities.

First of all, for investment institutions, after investing in the angel round, if the company's data is better, or the story can continue to be told, then they will soon be able to wait for the opportunity of the B round of investment, also known as venture capital.

Generally speaking, the amount of investment in the B round is more than 10 times that of the angel round, and the shares obtained from these investments must be obtained from the investment institutions of the angel round. The shares are directly realized through the B round of investment.

For example, an investment institution invested 100 million in the angel round and got 50% of the shares.When it comes to the B round of investment, the total amount is 1 million. Generally speaking, if the investment institutions of the angel round choose to leave at this time, they can basically hold more than 000 million in cash.

This is equivalent to directly multiplying the investment of angels by 5 times.

That is to say, out of every five invested companies, as long as one can reach the B round of investment, it is a very successful investment.In fact, the amount of investment in the B round is likely to be 5 times and 20 times, so the tolerable failure rate is actually higher.

And the same way of making money can continue forever, because there will often be C-round investment, D-round investment, E-round investment and so on. The most famous example is Tencent in 2003. Got a full 9 rounds of investment, and the amount of investment is more terrifying every time.

The institutions that initially invested in Tencent's angel round have already achieved more than 10 times the income in the process.

Of course, if this institution knew how much Tencent's stock price would be in the future, I'm afraid the tears would be shed... He missed an opportunity to surpass his father and become the richest man in the world.

That's right, this organization was founded by the son of a certain richest man. He once held 50% of Tencent's shares. If all these shares were kept, the world's richest man might have to change.

Of course, smart friends may have discovered that no matter how many rounds of investment continue, it seems that an investment institution is making another investment institution’s money, so some investment institutions will definitely lose money, and the amount of loss It is definitely higher than the amount of money earned, because these invested unicorns, companies are never stingy when spending money, after all, these are investors' money.

So where do these subsequent rounds of investment institutions make money?

Of course, it is the securities market for all investment institutions.

From the moment a company accepts investment from an investment institution, there is basically only one ending, which is to go public, because after it goes public, it can harvest shareholders' money from the market.

If all the previous investment institutions invested 10 billion yuan, the total market value after listing will inevitably exceed 100 billion yuan, because these investment institutions need to double the investment money from shareholders.

This can also explain why many so-called unicorn companies do not perform very well, but they like to brag and tell stories on various occasions.And I also like to market the founders of companies, posting desperately on various social media, chasing the popularity, and catching up on any event is a frenzy. It doesn't look like a company at all, but like an Internet celebrity.

These are the results of the orientation of investment institutions. The fundamental purpose of these investment institutions is to promote the listing of these companies. This requires shareholders to recognize their value. In other words, these companies must be famous. Category.

As a result, many things that I didn't understand were easily solved.

All in all, after 2010, there is no investment institution that expects a company to make money from its operations in a serious manner, and all of them intend to get money back from the financial market.

And Professor Bakinson's routine is the same, except that he doesn't engage in investment institutions, which is too low-end. After all, there is Goldman Sachs in the market, and a junk company can be listed directly. What Goldman Sachs needs to consider is how It is reasonable and legal to turn the money of stockholders into your own money in a short time.

"What's my plan? I would like to ask Dr. Cooper to give some advice!" Professor Parkinson asked triumphantly.

And our Dr. Cooper thought about it very seriously for a while, as if he really wanted to find some loopholes in it, but in the end he could only shake his head helplessly and said, "Your plan is indeed very mature, as long as it can be carried out smoothly , making money is inevitable, and there is no risk, it is a plan that no one can refuse!"

"It's rare, I never expected to hear such words from Dr. Cooper. I was really moved. I thought you were going to mock me!" Professor Parkinson said cheerfully. , and then I heard Dr. Cooper continue to say, "But, what if your plan doesn't go well?"

"..." Professor Ba Jinson was stunned for a moment, and his face turned red immediately, "How could it not go well? I have considered the whole plan very thoroughly throughout the entire article, and I have made detailed plans for possible troubles. , so you don't have to worry, even if this plan suffers setbacks, it will definitely continue to operate smoothly."

"Of course I am looking forward to it!" Dr. Cooper nodded and said, "But the core point of your plan is to be able to raise a huge amount of more than 20 trillion US dollars in the stock market. And this is just the beginning , In the next few years, you will need to raise a total of more than 000 trillion US dollars through the stock market to support the complete operation of your plan."

"However, the figure of 50 trillion US dollars is too huge. Even in our US securities market, it is difficult to raise such a huge figure. After all, the total market value of 000 Network has not yet exceeded 00 billion US dollars. You are directly supplying 10 trillion US dollars now, the difficulty is extremely terrifying, as long as something goes wrong, it may cause a collapse across the board!"

Dr. Cooper's analysis is still very reasonable, after all, these reasons are also very simple.

It's just that after Professor Parkinson finished listening, a smile appeared on his face. He thought that this guy had found some problems, and feelings were just such problems, so Professor Parkinson said unceremoniously, "Dr. Don’t worry, since I have formulated this plan, I am sure to raise two trillion dollars in funds!”

"So I don't just plan to list on Nasdaq, but also to list on the five major markets in the United States, as well as London, Paris, Hong Kong, Tokyo, etc., the ten major stock exchanges in the world collectively. Combining the forces of these markets, it is nothing more than a piece of cake to get together 20 billion US dollars!"

"That's why!" Dr. Cooper nodded thoughtfully and said, "That's why such a violent propaganda campaign and flattery erupted all over the world in just one month. The feelings are all created by you with a huge amount of money. It's for the fools of the world to pay you!"

"It's about the same, but the publicity I really spend is only about 1/4 of the total publicity, and the remaining 75% is self-promotion by major media. I don't spend a penny more! Especially in the Huaxia market, I originally I didn't plan to go public in Huaxia, but I didn't expect that the popularity and praise of Huaxia media would be ranked second in the world, which is so interesting! Hahahaha!" Professor Parkinson said triumphantly.

(End of this chapter)