Became the best actor, the system just finished loading

Chapter 349 Xiaomi's Twin Brother
Lei Jun's initial valuation for Xiaomi was $200 million, but naturally, the higher the final result, the better.

He had fantasized about three or five hundred million, but that was ultimately unrealistic.

It also makes valuation in subsequent rounds inconvenient.

Unexpectedly, Donghao Venture Capital's new proposal not only did not lower the price, but also gave a valuation of $2.5 million.

Of course, there's no such thing as a free lunch.

Donghao Venture Capital is not without its conditions.

They demanded exclusive ownership of the Series A funding round, contributing $8000 million for a 30% stake.

Lei Jun found this condition somewhat unacceptable.

First of all, he didn't want to raise too much money. Corporate financing is for burning money; enough is enough, not the more the better.

If you raise 30% in the first round, how much will you raise in the second round?
If a few more rounds of this happen, control of the company will be handed over.

Even if you set up dual-class shares, where A-shares have ten times the voting power of B-shares, once the founder's shareholding becomes too low, the profits won't be much of theirs once the company grows and expands.

A-shares only have more voting rights than B-shares; the returns are the same.

Lei Jun's original plan was to keep the financing amount within 5000 million US dollars, with a financing ratio of about 15% to 20%.

Secondly, Lei Jun hopes to bring in several more powerful venture capital funds.

For example, BlackRock and Vanguard.

Obviously, when it comes to financing, the source of the funds is also very important.

Lei Jun's main consideration was for subsequent financing.

With a current valuation of $2.5 million, Donghao Venture Capital readily provided $8000 million. What will happen when the valuation increases and more funding is needed?

For example, a valuation of over ten billion US dollars is beyond the reach of most funds.

Donghao Venture Capital doesn't even have a channel for raising funds.

At that point, we'll have no choice but to turn to the National Integrated Circuit Industry Investment Fund (Big Fund).

There's a saying in the investment world: Why bother with other people's problems?

Many large funds only participate in earlier rounds of financing, where the returns are high and the investment opportunities are plentiful. They tend to avoid investing in companies that are already fully booked for IPOs.

Finally, there's one more thing: Lei Jun is very wary of Donghao Venture Capital.

The business philosophy demonstrated by Donghao Venture Capital challenged his understanding and made him realize Donghao Venture Capital's ambition.

He contacted Donghao Venture Capital on his own initiative.

However, this company's choice to enter the mobile phone industry was premeditated.

Lei Jun's preliminary preparations were already done by others, and they were even more thorough than his.

Therefore, he fears that one day Donghao Venture Capital will take over his position.

However, the cooperation should still continue. Lei Jun couldn't imagine a company behaving like Xiaomi's twin brother.

If there are two identical mobile phone brands in the industry at that time, they will definitely fight to the death.

Donghao Venture Capital doesn't care. The mobile phone might just be one of their many investment projects. If it succeeds, so be it.

But Lei Jun is not an option.

He is now poised to achieve his goal in one fell swoop.

Half a lifetime of accumulation, success or failure depends on this one decisive transaction.

The two sides engaged in a heated exchange of words.

Ultimately, Donghao Venture Capital invested $3000 million to acquire a 12% stake in Xiaomi.

Two other venture capital firms joined forces to secure 8%.

Qi Hao expressed his satisfaction with this.

Although it will undergo multiple rounds of financing and dilution in the future, 12% is not bad for now.

They can't possibly give too much.

Asking for 30% upfront is just a negotiation tactic.

If Lei Jun were a short-sighted person, or a recent graduate and entrepreneur, seeing the extra $500 million from Donghao Venture Capital might actually have swayed him.

However, Lei Jun's family is an old hand in the business and they are not short of money.

There's no way they could give that much as 30%.

Within the general framework, both sides also agreed on many detailed rules.

For example, Donghao Venture Capital can send representatives to the board of directors to participate in company decision-making, and the two parties will also cooperate in other investment areas.

Lei Jun couldn't get Donghao Venture Capital to write a guarantee saying that they would not get involved in the mobile phone business in the future.

In fact, Xiaomi was not the first to launch such an attack.

Donghao Venture Capital invested in Apple many years ago, purchasing a significant number of its shares.

Therefore, combining each other's interests is the best way to discourage the other party from starting their own business elsewhere.

Lei Jun hates nothing more than laymen directing professionals.

However, Donghao Venture Capital's performance was anything but amateurish; in fact, it was more knowledgeable than many professionals in the mobile phone industry.

Besides Xiaomi, Qi Hao also obtained information about DJI.

That's... utterly outrageous. If Xiaomi's success was due to Lei Jun, a prominent figure in the internet industry, and the fact that it was favored by the capital market from the very beginning, then DJI is a prime example of something completely unrelated.

This company was founded in 2006 by Wang Tao.

This guy dropped out of East China Normal University in 03 and went on to study Electronic and Computer Engineering at Hong Kong University of Science and Technology.

Drop out of school?
This password seems to be correct. Many outstanding people have had experiences such as dropping out of school, leaving school, or delaying graduation.

Wang Tao mainly conducted research on flight control systems for remote-controlled helicopters at the university.

The company was established in 2006.

When the company was first established, its office was located in a private house in Lianhua Village, Shenzhen. The team consisted of only four people, of whom only Wang Tao had a background in drone technology.

In 08, the company launched its first automated electric unmanned helicopter, the EH-1, and completed flight tests in high-altitude and cold regions such as Mount Everest.

In 09, the third-generation flight control system XP3.1 was released, which solved the technical problem of helicopter hovering in the air.

This year, Ace One, its first consumer product, was launched, officially entering the consumer market.

This is a very niche market.

The drone market is out of reach for ordinary consumers; the high prices and complex operation deter most people.

DJI is currently in the stage of accumulating technology, and not many venture capitalists are interested in it.

Wang Tao is easier to talk to than Lei Jun.

He urgently needs funds to research and develop consumer products and monetize the technology he has accumulated over the past few years.

Without cashing out, there's no money to invest in subsequent research and development.

Without continuous investment in research and development, it is impossible to grow bigger and stronger.

Donghao Venture Capital is well-known in the industry.

In particular, it has never had any problems with its reputation, and I have never heard of it cheating anyone.

Qi Hao, the head of the company, is known in the investment world as "Little Buffett".

The assets he has his eye on are all of very high quality.

If even a seasoned veteran like Lei Jun can be impressed, then academic entrepreneurs like Wang Tao are even more likely to be taken seriously.

Upon encountering such a lucky charm, he immediately embraced her and refused to let go.

The collaboration with Xiaomi has been in talks for several months.

It was only with Tongzi's help that Qi Hao unleashed a trump card, finally forcing Lei Jun to compromise.

Wang Tao's side has only been negotiating for less than a week.

Donghao Venture Capital invested US$500 million, accounting for 20%, with a post-investment valuation of US$2500 million.

In addition, it also stipulates Donghao Venture Capital's subsequent priority subscription rights.

As for the fact that the mission is not yet completed and DJI's specific business information is still unknown—as the owner of Tongzige, Qi Hao trusts Tongzige to the point of blind delusion.

If Qi Hao hesitated even for a second on any project given by Brother Tongzi, it would be considered disrespectful to Brother Tongzi.

At the 23rd Tokyo International Film Festival on October 31, Wang Qianyuan won the Best Actor award for his role in "The Piano in a Factory".

Qi Hao didn't go this time, and he didn't receive any nominations.

When Wang Qianyuan gave his acceptance speech, he expressed his deepest gratitude to Qi Hao.

If Wang Qianyuan was grateful to Zhang Meng before, he is now wholeheartedly grateful to Qi Hao.

This year, Andy Lau released two films, "Aftershock" and "Detective Dee and the Mystery of the Phantom Flame," breaking her annual box office record.

With its listing last year, it can be described as a year of great success.

however……

Qi Hao directed several films that grossed over 200 million yuan at the box office, making Zhonghao Entertainment the industry leader.

Everyone in the entertainment industry racks their brains trying to figure out how to get closer to Qi Hao.

Wang Qianyuan doesn't need it.

He can proudly say that he was nurtured by Qi Hao.

Qi Hao was his mentor.

When he was at his most confused and helpless, and filled with a sense of frustration about his life, Qi Hao asked him to act in "The Piano in a Factory," which led to who he is today.

Actually, he was recommended by Zhang Meng.

However, this did not prevent him from choking up as he expressed his gratitude to Qi Hao during his acceptance speech.

There's no need to call him hypocritical; this is just reality.

Even having reached Qi Hao's current status, he wouldn't dare say he could live as he pleased without having to consider anyone else's feelings.

At this year's Tokyo International Film Festival, in addition to Wang Qianyuan winning Best Actor, "Buddha Mountain" also won the Best Artistic Contribution Award, and its lead actress Fan Xuexue won the Best Actress Award.

If the so-called "Double Xue" in the past were just riding on the coattails of big-name actresses, then Fan Xuexue, after two years of development, has finally shown some signs of becoming a big-name actress.

Qi Hao never expected that he would run into Fan Xuexue so soon.

Due to weather and location constraints, filming for "Flying Swords of Dragon Gate" was moved to indoor locations.

Just before filming began, Qi Hao learned that Fan Xuexue had come to make a cameo appearance as Consort Wan.

(End of this chapter)