Return to 88: Starting from Marrying My Sister-in-law

Walden International's headquarters is located in America, across the ocean. The company's founder is a powerful tycoon who was born into a Southeast Asian Chinese family.

This man's surname is Chen and his name is Li Wu. He graduated from the University of San Francisco with a master's degree in business administration. He has worked for many years as an engineer at EDS Nuclear in the United States, chief financial officer and engineer at Echo Energy Consultants, and assistant vice president of Chappel&Co.

In 1987, he co-founded the venture capital company Walden International. Since 1990, he has extended his investment tentacles from the United States to Asia, especially Laos and China, focusing on the fields of semiconductors, communications, electronics, software and information technology.

It was just a coincidence for Lu Yang.

Although the learning machines produced by the Little Prodigy Company under its name are not very technologically advanced, they are selling like hot cakes. Compared with those loss-making companies that are full of gimmicks but struggle in the early stages of their business, Little Prodigy is much better than them. Its profit model and future prospects are visible at a glance. Any smart person can see that if you invest in it, its future prospects will definitely be very promising!

To sum up, it is not surprising that Xiao Shentong would be targeted.

No one had thought before that the owner of such a money-making beast would be willing to take it out to cut the cake with others. Now that the owner himself is interested and has taken the initiative to spread the word, the capital attracted will naturally swarm in like a group of sharks smelling blood.

Huang Junfei is Tan Xisong's ex-husband and the head of Walden International in mainland China. He is also Chen Liwu's alumnus of the University of San Francisco. He has been a veteran of Walden International since Chen Liwu founded it and owns a portion of Walden International's shares. The reason why he is willing to return to China to develop and serve as its head of the Asia region is because Huang Junfei's ancestral home is in Shandong, mainland China, and he was one of the group of government-sponsored students studying abroad that year.

At this time, Huang Junfei, who had just attended a dinner, was sitting in the back seat of a luxury Bentley and talking to Chen Liwu who was on the other side of the ocean.

Report on the progress of this investment.

"We have already finished the discussion. The valuation is still the US$6000 million we agreed on. However, in terms of the investment scale, our request for US$30 million and a 15% stake was rejected by the other party. The other party is only willing to give us 3000% of the shares at most and accept our US$ million investment."

"Can't we talk anymore?"

"I personally feel that there is no point in continuing the discussion. The other party is not short of money, but connections and relationships. I can see that."

"Only 15%, a little too little. Why don't you tell this new friend of ours that I can help him with the overseas listing of Little Prodigy, but the prerequisite is that Walden International must give us 15% more of Little Prodigy's shares. The company can still purchase this 15% of shares for 3000 million."

"If you insist, let me give it a try, but the hope is not great."

"Then let's give it a try. If it doesn't work, just agree to it. 15% equity is 15% equity. Let's get a ticket first. This new friend of ours seems to be very capable. He doesn't even want the dollars that are delivered to his door. Maybe in the future we will have a chance to operate this company under his name and list it on our side."

"Haha, it's not that simple. Let's wait and see."

"Don't worry, don't worry. There are precedents for Chinese capital to come to the United States to list. The resistance is not as great as imagined. Let's play the long game first, cast a wide net, and slowly close the net. There is no need to worry that we can't catch a few big fish in this bowl."

"Then let's do as we agreed. You can contact our CEO Lu tomorrow. Although he is not short of money, we still have to show our appreciation. If he agrees to give us 30% of the shares, we will also pay 6500 million US dollars. The extra 500 million US dollars will be used as a treat for our CEO Lu."

"Well, I understand, but what if they still don't want to?"

"Then don't delay any longer and sign a formal contract with the other party as required to avoid any more trouble. I have received news that Mr. Xiong from IDJ has learned that you are in Pengcheng and are negotiating with Walden International to invest in Little Prodigy. He has also shown considerable interest in this mainland company. Don't take it lightly."

"Yes, I understand..."

After Huang Junfei hung up the call with the other side of the ocean, he looked at the neon lights outside the window and fell into deep thought.

……

Lu Yang was also on the phone at this time. He had drunk a little bit of wine and was lying on the sofa in the villa. The little baby of the family was standing next to him. Lu Xiner used her little fists to pat his back while pouting her little mouth and asking for help from her mother who was standing next to her.

When will it end?
Xin'er is so tired, her hands are so sore, wuwuwu, back massage is not fun at all.

She had volunteered to take over her mother's job and give her father a back massage. She thought it was fun and had a lot of fun at first, but after a few massages, she found that it was not the right way to go.

I'm thinking of handing the job back.

Return it to her mom. This aggrieved little expression is so heartbreaking to look at.

Yin Mingyue smiled knowingly and asked her to move aside. Then she continued the work in her daughter's hands and carefully massaged Lu Yang's shoulders.

She was afraid of disturbing Lu Yang's work, so she moved very quietly. Seeing that Lu Yang was on the phone, she specifically signaled to her almost six-year-old daughter not to shout loudly. The two beauties, one big and one small, had been communicating with their eye contact.

"6500 million US dollars, and they added another 500 million US dollars, and they only asked for our 30% stake in Little Prodigy. Xiao Luzi, are we really not going to consider it?"

The call was from Xiao Jun, the current head of the family of this little prodigy. It seems that he has been a little arrogant recently. He used to call him Mr. Lu or Brother Lu, but now he even dares to call him Xiao Luzi.

Lu Yang opened his mouth and retorted, "If Mr. Xiao really thinks the price is right, then how about you sell your shares to him?"

Xiao Shentong Company is not short of cash, but only of connections and relationships. Therefore, after choosing financing, it is not important how much cash can be brought to the company. What is important is that after financing, the equity ratio must be above the safety line, so that Xiao Shentong can always firmly grasp the company's voice. With this prerequisite, it is absolutely impossible to release too much at one time.

Because no one can be sure, there will be a new round of financing after this round A financing. What should we do then?
As the equity is exploited layer by layer, it will be diluted each time. If too much is released at one time, it will only cause trouble for yourself. The consequence of doing so is that sooner or later you will kill yourself, lose your shares, and be kicked out. Many founders are careless in this way, and then in such rounds of financing, they are eventually swept away by capital and lose their status as founders and leadership of the company.

Although Lu Yang might not care about this, the little prodigy himself was the bait he released to harvest leeks. But even if it was just bait, before it grew well and turned into a thriving crop with abundant fruits, he would never allow anyone to come in and seize his territory to harvest.

So before that, you must absolutely ensure that you do not lose your status as a founder, firmly grasp the development direction of the company, and serve as the helmsman of this big ship.

"No, are you crazy? I only have this much equity in my hands. Before the financing, it was less than 20%, and after the dilution, it will be even less. If I sell the shares in my hands, then after I sell them all, won't I become a worker in the company?"

Although the valuation of 15 million US dollars is very tempting, even if you only have less than 3000% of the company's shares, you can cash out million US dollars with them if you are ruthless. But what happens after the cash is out?
You have to leave after taking the money. Xiao Jun doesn't believe that if he is really greedy and chooses to exchange equity for these green US dollars, the guy on the other end of the phone will still let him continue to be the president of this company.

Lu Yang laughed and scolded, "If you don't even want to do it, then why are you trying to persuade me? Let's stop while we're ahead. Just get some foreign investment tickets and make friends with Walden International. I suggest you think about it and see if it can help the company open up overseas markets. As for whether the company will be listed overseas in the future, let's not discuss this issue now, understand?"

Capital seeks to make profits, and the best way to make profits is to go public. As long as a company goes public, it can reap profits in the capital market, and it is also extremely easy to unwind its equity, providing an additional option in the secondary market.

Moreover, the location of listing is also very important. For example, domestic stock prices have a daily limit, and the requirements for companies to go public are also relatively strict. Generally, companies are required to maintain profitability for at least three consecutive years before they can apply for an IPO. On the other side of the ocean, there is no such restriction. It does not matter whether a company is profitable or not. As long as there is a gimmick, the oligarchs on Wall Street will give you an entry ticket, and there is no limit on the daily limit. If the stock wants to rise, it will be absolutely like taking an airplane. It is easy to be manipulated by capital, and the leeks will be cut bloody, falling one by one. Even to go to the roof, you have to queue up. It's exciting!
So, there is nothing wrong with going to the capitalist market to reap the benefits.

Anyway, the ones who are being bullied are not our own.

Why did Lu Yang accept the investment from Walden International?
The answer is right here.

"You have accepted the investment from Walden International, but what about Pengcheng Hi-Tech Investment? How should you respond?"

Xiao Jun asked on the phone.

"What's the answer?"

Lu Yang also smiled and said, "We have discussed that this time we are going to release a total of 25% of the shares, 15% from Walden International, 5% from your father-in-law, and 5% from your father Qian. Haven't we already distributed them all?"

"No, are you really going to play a confrontation? I warn you, the Qian family and the Zhao family can't really run rampant in Pengcheng. The two families still have some say on the ground, but it may not be effective when it comes to some major events. If you try hard to offend the government and make the Pengcheng State-owned Assets Supervision and Administration Commission unhappy, be careful that our company will be bullied next time."

When Xiao Jun got angry, he even cursed himself.

In order to prevent the company from being harassed in the future, he repeatedly belittled his father-in-law's family and his father Qian's family on the phone, verbally belittling the Qian and Zhao families, two local influential families in Pengcheng, as if they were worthless.

Lu Yang laughed strangely and said, "If that's what you mean, why not just give the shares originally intended for the Qian family and the Zhao family to Pengcheng Hi-Tech Investment? Isn't that better?"

Xiao Jun was furious and asked, "Why don't you just die?"

He had finally managed to get the financing done and appeased the Qian and Zhao families. Both families had decided to support him and give him the shares of Xiao Shentong that he would raise in the future to hold on his behalf, in order to increase his voice in the company. If this failed, wouldn't he be back to the days before liberation?

Not only that, this is equivalent to him taking the initiative to stand up both families. Not only will the Zhao family be hostile to him, but even the Qian family will dislike him. And his wife, who he has finally coaxed, may have a new rift. He is not sure whether he can even sleep in the bed at night.

Wouldn't it be bad for him to do this?
"No, no, absolutely not. I'm warning you, if you do this, I'll be angry with you..."

"Okay, I'm teasing you."

Seeing that he was getting a little impatient, Lu Yang decided not to tease him any more and said into the phone, "Let's follow the 25% equity we decided on before. Walden International will take 15%, and your two cheap dads will each take 5%. This is the amount we will release for our A round of financing. We have decided not to change it. With 5000 million US dollars in the account, it is enough for our next plan."

"What about Pengcheng Hi-Tech Investment? You won't give them anything? They have the support of the Pengcheng State-owned Assets Supervision and Administration Commission. Even companies from other places have to give them some face. What's more, our company's registered address is still in Pengcheng. You guys should stop holding on. At worst, we can give them more equity..."

Xiao Jun said anxiously on the phone.

He is now the president of Little Prodigy. No matter what he does, he must first consider whether the company can stand on its own feet. If due to some individual reasons he offends the Pengcheng State-owned Assets Supervision and Administration Commission, and in the end he has to clean up the mess himself, wouldn't it be unfair to him?
He is reluctant to give up the Zhao family and the Qian family, these two allies, and wants to tie them to his own business chariot. He is also prepared to lend a hand to the Pengcheng State-owned Assets Supervision and Administration Commission. He really wants both.

Lu Yang shook his head and scolded with a smile: "You kid, you are so cunning. Okay, I will handle this matter and make sure it will not affect the company. You don't need to worry about it."

Although Xiao Jun didn't understand what Lu Yang was up to, Lu Yang had already made up his mind and also assured him that it would not affect the company and cause it to be suppressed by the local government, so he had no choice but to do so.

He hung up the phone cursing.

Lu Yang smiled strangely, and then he called again: "Good evening, Secretary. Have you eaten? I need your help with something... Yes, yes, yes, just a connection. I want to talk to the people from Pengcheng Hi-Tech Investment in private."

(End of this chapter)