Winning the new financial era

Chapter 124 Radiating the whole country
Zhang Yida smiled brightly, whether the two investment tycoons didn't understand the situation in front of them, or let him pretend to be stupid.

He is more inclined to the latter, probably because he is young, and see if he can get some bargains.

Huimin Bicycle has created the era of shared bicycles and is a leader in the industry. Now as long as Zhang Yida speaks out, Huimin Bicycle will raise funds, and venture capital companies that want to invest can be ranked outside the Fifth Ring Road.

As a high-quality star entrepreneurial project, Huimin Bicycle is not short of investors' favor, and the number of letters of intent sent to the company's mailbox recently is too many to count.

The reason why he entrusted Shen Beipeng to help him find investors for the A+ round was because he valued Shen Beipeng's connections and wanted him to introduce well-known venture capital institutions to invest in the company.

Zhang Yida does not intend to take money from other small and medium-sized organizations.

The valuation of Huimin Bicycle in the next year will go up like a rocket. If it is invested by a small fund with no reputation, the endorsement will be a little bit worse, and it will be easy to be criticized, and it will be criticized for the valuation bubble.

Therefore, financing still has to cooperate with large institutions and large funds. At the same time, it also means to absorb all good resources to Huimin bicycles and reduce the opportunities for other competing products.

Although they need big funds like them to join in and endorse, but the country has developed to the present, there are far more big funds than the two of them, and they are not the only choice, so Zhang Yida said very strongly:

"The pre-investment valuation is 5 million US dollars, if it is lower than this price, don't talk about it."

Zhu Xiaohu and Zhang Ying looked a little ugly, Zhang Yida was too strong, and he didn't even allow them to pay back the price.

They cast their eyes on Shen Beipeng, and Shen Beipeng joked with a smile:
"Why do you look at me? It doesn't work to look at me. Huimin Bicycle is now a hot project in the market. GGV, Qiming, Gaoling, Penguin, Didi and many other institutions are interested in investing in it.

I greeted you before I came and told you to bring enough money.

Take a look at Ruixiang, the black shirt invested in three rounds in a row, and invested a total of 2.4 million US dollars in it. In one year, the investment value increased to 15 billion US dollars, and the floating profit on the book was as high as 12.6 billion US dollars.

You have to give up to get something! "

Zhang Yida was very satisfied with Shen Beipeng's attitude. As expected of a top investor, when he saw a good project, he invested very decisively and was quite courageous.

"The black shirt is a big family, how can our small family compare?"

Zhu Xiaohu's tone was a bit sour, the black shirt's investment in Ruixiang was really a big profit, why didn't I have such good luck?
Now that Ruixiang’s valuation is as high as tens of billions of dollars, it is no longer something their early and mid-term venture capital can afford.

"Okay! Let's follow Mr. Zhang's opinion! 5 million US dollars is 5 million US dollars, but the financing share of 5000 million is too small, at least 1 million US dollars must be opened."

Zhang Ying compromised and agreed to the pre-investment valuation of US$5 million, but the financing share requirement was doubled.

This request gave Zhang Yida a headache. Regarding the financing rhythm and scale, he had planned it long ago. Now Zhang Ying's request undoubtedly disrupted his arrangement.

"A+ round black shirt, do you want to follow up?" Zhang Yida asked Shen Beipeng.

"Follow, you must follow!" Shen Beipeng replied heartily.

Zhang Yida has even more headaches. Nearly 20% of the shares will be released in the A+ round, and the black shirt will follow suit, so his shareholding ratio will further decrease...

Considering that Baimo, a competitor, has already received 3000 million US dollars in financing, Huimin Bicycle can't stop the pace of expansion, and even has to speed up the progress.

If you want to speed up the progress, the money is not enough.

A round of financing of 5000 million U.S. dollars, the exchange rate was about 3.07 million yuan.

造10万辆单车花了1亿，500名调度人员薪酬支出1200万，总部300名研发和运营人员薪酬支出1500万，广告投放支出3000万，采购了160多辆单车调度运输的轻卡2400万……

12 bicycles currently have a single-day riding fee income of about 40 yuan, and the accumulated riding income in three months is 2000 million yuan.

The book cash is almost 1.4 million.

Excluding bicycle depreciation, the monthly loss is more than 2500 million yuan, and the total cash in the account is enough for 5 months.

Looking at it now, it is too conservative for Zhang Yida to spend only 5000/1 of the funds on building a car after obtaining US$3 million in Series A financing.

Now that we have a three-month operating basis, the financial model has also been produced.Back then, Huimin Bicycle’s optimal solution at that time was to manufacture 15 to 20 bicycles.

The next strategy is to enter the second-tier cities and provincial capitals across the country, and the number of bicycles in the four first-tier cities must be further increased.

After deducting the four major first-tier cities, there are 45 second-tier and provincial capital cities, each with 1 vehicles is 45 vehicles.

10 vehicles will be added to Beijing and Shanghai, and 5 vehicles will be added to Pengcheng and Yangcheng. After deducting the existing 12 vehicles, 18 vehicles need to be added.

63 vehicles, 6.3 million yuan, and the cost is almost a little over 1 million US dollars.

The scale of investment has almost increased by 5 times on the existing basis, and the operating loss has quadrupled even if it does not increase by 5 times. The monthly loss is 4 million.

Taking half a year as the plan, at least 6 million operating funds must be reserved.

To implement the 2.0 strategy, 2 million US dollars of funds are needed to support it.

After some consideration, Zhang Yida agreed to Zhang Ying's request to expand the financing scale.

The next day.

Shen Beipeng called Xu Xiaoming, Zhang Yida called Lei Dongming, together with Zhang Ying and Zhu Xiaohu, signed the A+ round financing agreement under the witness of six parties:
According to the pre-investment valuation of US$5 million, Sands Venture Capital and Matrix Partners each led the investment of US$5000 million, Blackshirt Capital followed with US$2000 million, and Zhenke Fund followed with US$500 million.

Huimin Bicycle completed a total of US$1.25 million in A+ round financing, with a post-investment valuation of US$6.25 million.

After the A+ round of financing, the shares were changed to:
Zhang Yida: 54.4%
Option pool: 6.4%
Huayi Capital: 3.2%
Blackshirt Capital: 16%
Zhenke Fund: 4%
Jinshahe Venture Capital: 8%
Matrix Global: 8%
Zhang Yida's shareholding ratio has dropped by 20% compared to the A-round financing, but because of the killer weapon of 1 votes for 20 share, the voting rights of the stock still remain at a high level of 92.3%.

Blackshirt Capital and Zhenke Fund exercised their co-investment rights, and the proportion of shares remained the same as in the A round without being diluted.

Since all the funds raised by Huayi Capital were invested in the Ruixiang Industry Win-Win Fund, Huayi Capital had no money to invest, so the shareholding ratio was also diluted.

1.25 million US dollars is equivalent to 7.78 million yuan, plus the existing funds of 1.4 million in the account, the cash reserve of Huimin Bicycle is as high as 9.18 million at once.

However, the money came in quickly and was spent quickly. Zhang Yida backhanded 6 million and called Fujitec's foundry, placing an order for the production of 60 shared bicycles at one time.

Huimin Bicycle has now signed a strategic cooperation agreement with Fujitec, and the production price was originally at a certain discount.

However, considering that after the bicycle is produced, it needs to be transported to various parts of the country for distribution, and the transportation cost is also a considerable expense.

So in the end, Fujitec was given this large order at a unit price of 1000 yuan per vehicle, including two links of OEM production and transportation to the whole country.

In addition, the operation sub-centers in various places also need to be prepared in advance.

In addition to Beijing-Shanghai Pengyang, Huimin Bicycle has established 42 operation sub-centers at one time, which are distributed in second-tier cities and provincial capitals.

Specifically:
5 cities in Guangdong: Dongguan, Foshan, Zhuhai, Zhongshan, Huizhou
7 cities in Zhejiang: Hangzhou, Ningbo, Wenzhou, Shaoxing, Jinhua, Taizhou, Jiaxing
6 cities in Jiangsu: Nanjing, Suzhou, Wuxi, Changzhou, Nantong, Xuzhou
3 cities in Shandong: Qingdao, Jinan, Yantai
3 cities in Fujian: Xiamen, Fuzhou, Quanzhou
2 cities in Liaoning: Shenyang, Dalian

The other two of the four municipalities directly under the Central Government: Tianjin and Yuzhou

And the capital cities of 14 other provinces except Xinjiang, Tibet, Mongolia, Qinghai, Gansu and Ningxia:

Rongcheng, Qianyang, Kunming, Wuhan, Changsha, Hefei, Harbin, SJZ, Nanning, Changchun, Nanchang, Zhengzhou, Haikou, Xi'an

Due to the limited financing in the A+ round, we temporarily gave up the coverage of 6 remote or frontier provinces, and mainly chose the inland hinterland.

Some places are not particularly suitable for sharing bicycles because of the climate and terrain.

Huimin transferred 2/3 of the staff from the existing team, and distributed them in 42 newly established operation sub-centers, with less than 10 old employees in one city.

This operation has brought a lot of operational difficulty to offline operations.

First of all, because more than half of the old employees were transferred from the four first-tier cities, it took some time for the new employees to get familiar with the work, which caused a great drop in work efficiency.

The newly established operation sub-center has less than 10 old employees, and it is very difficult to manage the 1 shared bicycles that are about to be put in place. Each operation sub-center needs to recruit 40-50 offline dispatchers.

The ground team suddenly expanded from 500 people to 3000 people, which was too big a step, and the whole company was in a hurry.

The operation and R&D team of the headquarters in Beijing has expanded to 400 people, and the newly added 100 people are basically operators of the financial business line of deposit wealth management.

According to financial model projections:

3000人的地面团队每月工资2400万，400人的总部运营研发团队每月支出薪酬600万，各地运营分中心办公室租金每月100万，广告投放每月2000万……

The starting daily expenses of more than 5000 million per month almost made Zhang Yida's eyes pop out.

Looking at the income again, after the operation is stable, one bicycle can generate a daily income of 3 yuan, and 72 bicycles can generate a monthly income of 6480 million yuan.

But Zhang Yida knows that since the charging model was changed from 1 yuan/hour to 0.5 yuan/0.5 hours, if he wants to achieve 3 rides per day per bicycle, the daily income of 3 yuan is basically a thing of the past. The maximum income for a bicycle is 1.5 to 2 yuan.

Based on the daily income of 1.5 yuan per bicycle, the monthly revenue of 72 bicycles is 3240 million yuan.

Compared with the fixed expenditure of more than 5000 million per month, the loss of money went to grandma's house.

Not counting the depreciation of bicycles, the cost of 72 bicycles is 7.2 million yuan, which will be depreciated in 2 years, and the monthly depreciation is 3000 million yuan.

Strictly speaking, after the stable operation of Huimin Bike, the net loss in January can reach more than 5000 million.This is the result of bicycle operations being on the right track and generating 200 million bicycle orders every day.

Therefore, Zhang Yida attaches great importance to the first step in the realization of advertising traffic - deposit financing.

I just don't know how popular it is after it goes online?
Will it be cold?
Zhang Yida wasn't too confident either.

(End of this chapter)