Cold chain for 20 years

Chapter 308

A round, B round, and C round of financing are not complicated in concept. The first round of financing after the angel round is called the A round, the second round is the B round, and so on.

From the round of financing, it can also indirectly reflect the life cycle of the enterprise.In short, the A round of financing mainly depends on the product, such as "I have a black technology with a bright future, and I am eager to spend money to grow it together"; the B round of financing depends on the business model, "The black technology promotion and sales are complete. Rapid expansion turns into a network”; the C round of financing looks at the prospect of expansion, “We urgently need new product lines to expand new businesses and obtain greater benefits.”

Generally speaking, after these three rounds of large-scale financing, companies with good returns will be listed, and then it will be the scope of stock market financing.For some companies that are still unable to complete the listing, it is also common for the DEF round to continue to melt down.

Of course, this is just a general statement. There is no strict definition of financing rounds. Enterprises have different development models and capabilities, and not all enterprises will strictly abide by this concept of order.It is often more practical to understand the development stage of a company through financing rounds.

In the venture capital circle, new A-round financing companies will attract a lot of attention, and investors are keen. Therefore, the potential benefits of successful A-round financing are very strong, especially the recognition of well-known investors in the circle, which is very important for future financing. The advancement of the rounds helps a lot.

In the industry, Guan Wentao is undoubtedly a well-known figure. For many people, his status as a major shareholder of Minghe is second, and what is more eye-catching is "an investor who never fails."

Guan Wentao has already thought carefully about this matter. First, he used Mammoth Angels to open the way. The amount of funds injected is not important at all, but to show his trust in Tongxing, and his trust is confidence in the eyes of the industry. The next A round of financing laid the foundation.

Hu Shutong began to separate the business plan from the proposal, which is crucial in the A round of financing, and this process is not complicated.Liu Zhiying and Yang Chenghai had already expected the scale of this financing, and they also had predictions about what Hu Shutong would actually do, but no one dared to speculate on how smooth things would be.Although the larger scope has not been mentioned, the things available in the A round have already been prepared in the plan.

In addition to the business plan, there is another matter that deeply pulls Hu Shutong's mind. Even though he is a veteran for many years, there is one thing that he has no experience in, and even makes people a little confused.

That is, business valuation.

Valuation is the premise of all financing, and it is related to the most fundamental and specific benefit distribution. If the company is valued at 5000 million and the investor invests 1000 million, it will hold 20% of the shares.Without these data, everything is a castle in the air.

However, for Hu Shutong, there is a huge trouble here, because it is not Tongxing financing, but Tongxing distribution financing, and the current Tongxing distribution has not yet started.If it is Tongxing financing, financial statements are a great tool for valuation.

At the financing meeting, the other party will definitely have some calculations on the valuation, but Tongxing Distribution must also give its own valuation. As for the gap between the two parties, that is another issue.

Therefore, the most important thing is how this value comes from.

At noon of the day, Guan Wentao came to Hu Shutong with two cups of coffee. Seeing Hu Shutong's serious look, he sat down with a slight smile. Did you buy a house?"

Hu Shutong nodded, "I bought a three-bedroom."

"How's the location?"

"It's a bit biased, but considering my work and Ping Xin's work, it's quite appropriate to choose there."

"If I also want to buy a house in that area, you can give me an estimate."

As soon as these words came out, Hu Shutong didn't think it was a family chat, and following Guan Wentao's words, his mind immediately turned.

"I also buy a three-bedroom house. If you buy a Tongzilou, I will also buy a Tongzilou. If you are a bungalow, I will also buy a bungalow. Although I didn't count it before, with your reference, I know how much it will cost."

"Also, for an academic like you, if you want me to say that the best thing you can sell at home is something you can't see. I buy a house to live, but you might be able to create an academic base. If so In other words, ten sets like mine are no match for one set of yours."

"Besides, you still have an old house. You have a large neighborhood for so many years, and you can handle big and small things just by saying hello. This is a great resource. Everyone knows that you also have a group of powerful drinking buddies. Putting on a show together, ordinary people don't have the guts to come, at least you have to have some capital to dare to visit your house."

Hu Shutong took a deep look at Guan Wentao, feeling admiration in his heart. These are all subtle words.Around a house, he gave Hu Shutong suggestions in four directions!
"How? Can you handle my house?"

Hu Shutong nodded deeply, the words were full of sincerity, as if he was teaching himself, every word behind it was a kind of great guidance.Every dimension is opening up Hu Shutong's thinking, so that Hu Shutong, who has no experience in this, can put forward a line of randomness.

The fact that people in front of me can describe "start-up valuation" so plainly and clearly is really the pinnacle of this field.Guan Wentao talked about the market method, the property value method, the customer value-added method, and the professional value method, and these are precisely in the category of "start-up valuation", which is what investors value most for start-ups.

For start-ups, investment can only be based on prospects. If the pots and pans are full and the gongs, drums and suona are booming, then it is not the A round.

There are a lot of companies of the same type in the market, which are the references for valuation, but Guan Wentao’s interpretation is far more than that. Tongxing headquarters does not participate, but it does not mean that Tongxing Distribution cannot use its energy.Regardless of technology or manpower, from Tongxing to Tongxing distribution, even the word transition is omitted. This is what Guan Wentao holds firmly.

Guan Wentao couldn't put it too concretely, because Mammoth Fund will definitely be one of the investors in the A round, and the excessive valuation of the company is naturally what investors don't want to see.

However, Guan Wentao prepared another set of rhetoric with others. Only after the birth of the A round can the growth of the B round. If you want the equity not to be diluted by other investors, then you must lay a solid foundation for the first round.In this circle, relying on strength to prop up the chassis is itself a kind of repulsion.

Hu Shutong couldn't fully understand what such a person was thinking, but one thing he knew in his heart was that Guan Wentao was behind everything that made it to the stage.

The valuation of start-ups is only applicable to the form and steps, and the scale of funds that Tongxing wants cannot meet the real needs.But Guan Wentao is like a guarantor, keeping things that are normally unattainable in a pure logic.For him, as long as this start-up evaluation method is not original at this moment, he has countless ways to bring it to a larger stage.

Once this person takes action, his energy is incomparably amazing.

……

(End of this chapter)