Reborn in America, I'm serious about making money.
Chapter 157 The Myth of Wealth Creation on the Internet
While the world was still basking in the joy of economic boom, North American internet companies had already begun to go public one after another.
After 1995, with companies like Netscape going public, a wave of IPOs swept across North America.
The myth of wealth creation on the Internet began from there.
In 1996, with an average of one company going public every month, the financing plans that began excited many retail investors.
Alumni.com has begun its final round of pre-IPO financing, and Jim's current stake is only 8.192% after five rounds of financing, but the entire alumni.com is valued at $500 million.
"Mr. Jim, your company will soon be going public. What are your thoughts on that?"
A beautiful blonde woman is interviewing Jim, a college student who has recently graduated.
Although Jim wasn't a novice, the beautiful woman in front of him was so stunning that his face flushed slightly. To the blonde female reporter, this flush was the result of excitement.
"I'm so excited. I never imagined that my alumni network, which I started as a hobby, would achieve such success. The internet is truly fascinating..."
Jim, as seen on camera, is a young, tall, and handsome man. After the interview, the beautiful reporter, when no one else was paying attention, quietly said, "Shall we have lunch together?"
"I couldn't have gotten it."
Jim forgot his promise to have lunch with his girlfriend and ended up having lunch with this blonde female reporter instead.
Jim's finances are not good right now, and he's even a little strapped for cash. Fortunately, Golden Globe Bank's Silicon Valley branch provided him with a $50,000 credit card so that he wouldn't be in such dire straits when he's out.
Similar to the founders of the internet companies established in 1994, their founders share a common characteristic: they are not financially well-off, and they often flaunt their achievements and consume lavishly.
Such a life naturally breeds a deep desire for wealth, a desire that is beyond the reach of ordinary people.
Unlike the funds that invested in him, these founders, spurred by a life of luxury and extravagance, were more eager to go public than the fund managers.
In this situation, they are more willing to cooperate with the shareholders.
When Jim and the blond reporter woke up in the evening, he remembered his girlfriend, whom he had completely forgotten.
Well, this older female reporter in front of him knows more poses, and he learned some different poses from her.
Shortly after, Alumni Network received approval for its IPO and began its roadshow; perhaps Jim had a journalist girlfriend who also became his agent, discussing with the shareholders how to better facilitate the IPO.
"We should create a startup star, make those investors believe in Jim, and make him a startup hero."
The shareholders at the board meeting were pleasantly surprised. They realized that compared to Jim, who was blinded by success, his girlfriend was a much more qualified marketing talent.
"Kona, right? I'll be entrusting the planning of this roadshow to you. After the roadshow is completed, you will receive a reward of five hundred thousand dollars."
And so, Kona joined the roadshow team and became a very important figure. On the internet, Jim was all about luxury cars and beautiful women, and in real life, he was completely infatuated with this girlfriend.
On the day of the IPO, Kona joined the bell-ringing ceremony as an advisor.
Jim was the first major shareholder, owning 6.5536% of the shares. The rest were held by various funds. The second largest shareholder was Dahongshu Fund, which initially invested in the alumni network. Until the IPO, he sold his shares to many other funds, eventually holding 8% of the shares.
Before its IPO, the Big Mangrove Fund reached an agreement with other shareholders to reduce its holdings by 4% upon listing due to financial reasons, in order to alleviate financial pressure.
This condition was agreed upon by the other shareholders.
The company's valuation reached $800 million in this IPO. As for why it's $800 million, it's obviously for easy calculation. It only took two months to go from $500 million to $800 million. This money is really too easy to make.
The total share capital is 80 million shares, with 20 million shares issued at a price of ten US dollars per share. This round of financing will raise 200 million US dollars for equipment maintenance and upgrades, overseas expansion, and loan repayment (this sentence is in the most inconspicuous position), transforming the campus network into an international internet company.
At a price of $10, Xiaoyou.com received 50 times oversubscription. On the day of its listing, the price once exceeded $20 during trading and closed at $18, a gain of 80%. Xiaoyou.com's market value was $1.8 billion, and Jim, who held 6.5536%, became a newly minted billionaire overnight.
If someone were to dig deeper, they would find that after the alumni network went public, it only reported Jim's net worth, without mentioning the net worth of anyone else.
Ordinary people might feel that the other's net worth is overshadowed by Jim's dazzling brilliance.
This is inconceivable in a capitalist society like North America. It's as if Jim, the founder, is too selfish and unwilling to share in this sharing society.
There are many such listed companies, especially later ones, where such examples are even more numerous. However, no one pays much attention anymore because public attention has shifted elsewhere.
Jim, a newly minted billionaire, bought a huge villa in Beverly Hills for $20 million. As an entrepreneurial hero, his success has become a role model for countless college students.
"Newly minted billionaire Jim threw a party tonight at his Beverly Hills mansion. More than twenty Hollywood actresses attended, and he and his team enjoyed a wonderful evening..."
"Jim, the internet startup hero, drove his luxury car and went to XX Hotel with two blonde beauties to enjoy a wonderful night. Indeed, this is the allure of wealth..."
In the eyes of North American investors, those internet entrepreneurs, after their companies go public, move into luxurious villas, drive top-of-the-line sports cars, frequent high-end clubs, and enjoy a life of extravagance. Endless parties, expensive champagne, and gourmet food become part of their daily routine.
Dressed in fashionable designer clothes and adorned with jewels, they became the focus of social occasions. However, this superficial prosperity could not conceal the ease with which they acquired their wealth.
Wealth brings material satisfaction, and the happiness behind the nightly revelry is unimaginable to ordinary people.
Jim is neither the first nor the last. The internet will bring more wealth myths, and the guys behind these companies are quietly enjoying the pleasure of creating riches.
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