Chapter 1083 Who Can Make Money and Who Is the Father

Due to Li Mu's toughness and the rising status of the entire Muye Technology in the Internet industry, Sequoia finally gave up the routine due diligence work before financing, and directly completed the contract with Li Mu at Muye Technology!

$33 billion, the dust settled!

Li Mu's strength has made Sequoia and the entire venture capital circle feel a lot of pressure, but in the capital field, whoever can make money is the father, and Li Mu happens to be the one who can make the most money.

When Mark Zuckerberg founded Facebook, it was very difficult to get hundreds of thousands of dollars in financing, but after he put aebook into the formal, overseas rich people flew to the United States, begging him to pay a high premium Taking a stake in aebook and voluntarily giving up all voting rights is the change of status in the capital industry.

A contract has finalized the valuation of Muye Technology at US$33 billion, and also confirmed the largest financing in the world's Internet industry at the end of 2002.

However, the valuation at this time is much higher than the previous value. After all, no matter how high the previous valuation was, no shares have been successfully transferred at that valuation price. However, it is different now. The contract has used 3.3 billion US dollars, affirming the valuation of Makino Technology of 33 billion US dollars.

After the contract was signed, the entire Makino Technology was boiling up and down.

Both colleagues in the United States and colleagues in Yanjing are all excited at the moment for the company's surge in valuation and the achievement of huge financing, and the atmosphere is even more exciting than the New Year.

Although Makino Technology has not received the money immediately after signing the contract, the entire Internet industry and the venture capital circle have all exploded.

I know that Muye Technology is very good now, I know that YY has more than 200 million users, and I know that YY has begun to develop towards "centralization", but I didn't expect that YY's valuation could reach such a high level.

Thirty-three billion dollars! This is already a record high valuation of Huaxia Internet companies, and it can be among the best in the entire U.S. Internet industry.

However, the statistics of capital are relatively rigorous. Although Sequoia has given Muye Technology a valuation of 33 billion US dollars, no media has listed Muye Technology in the rankings of the market value of Silicon Valley and the world's Internet companies, because those who are really on the list The companies on the list are basically all listed companies, because for the media, the concept of "market value" is only available after companies are listed.

In general, the market value has the highest gold content, and the valuation after the actual financing is second. The valuation of Muye Technology of more than 30 billion US dollars has made it completely among the top of the pyramid in the world's Internet industry.

The media around the world are paying attention to the financing of Muye Technology.

It’s like Alibaba’s listing in the United States in the past life, and the world is watching his market value break through the 200 billion and 300 billion US dollars mark.

Overnight, countless media published extensive special reports on the Series C financing of Makino Technology and Sequoia, which made Makino Technology a global hot topic.

The world's major media have different opinions on the valuation of Makino Technology at US$33 billion. Most of the views are shocked, a small number of views are taken for granted, and a very small number of views believe that the bubble of Makino Technology is too big and scary. The bursting of the bubble will become the biggest news in the Internet industry, and it will even trigger a chain reaction, leading to a new round of bursting of the Internet bubble.

However, no matter what kind of voice, it can't hide the brilliance of Muye Technology at this moment. The whole world turns its attention to Muye Technology. Just in Asia, more than one billion people are paying attention to every one of Muye Technology's financing. step.

The people of China are the most cheered by Muye Technology. In China, the attitudes of more than one billion people are highly unified. Except for pride, there is nothing else.

At the same time, the Chinese people's respect for Li Mu has once again reached a new high.

Li Mu hopes to be the business card of China's Internet industry, and even China's national business card. Now it seems that he has achieved his goal.

Li Muren has not returned to China, but the domestic reports on him are not just overwhelming.

Since the Harvard speech, Li Mu's every move in the United States has been closely followed by Huaxia media, and every detail has been tracked and reported, so that Li Mu's current exposure is even more exposed in China than the entire entertainment industry.

Just when everyone hoped that Li Mu could stand up and speak out at this time, Li Mu, who was still in Silicon Valley, asked Lin Qingya to discuss with Kong Lingyushang, who was in Yanjing, about the new round of financing.

However, as soon as Li Mu came up, he threw out the core idea to the two of them: "This time, we will not discuss corporate development and strategic planning, but only two issues. First, employee cash rewards; second, employee option pool preparation."

After the financing is successful, the valuation of Makino Technology will continue to rise soon. If there is a major strategic development in the next one to two years, then basically you can consider launching an IPO. Once the company's IPO is successful, then it will be the company's shareholders and employees. When picking the fruit, the core employees now have a certain amount of shares. Although the financing is slightly diluted, the overall market value is still very gratifying, but this is only the core management personnel. Although ordinary employees currently have various comprehensive benefits, but The issue of options has not been prepared, and now it seems that the time has come.

Li Mu's proposition is that before the company goes public, it must prepare a certain proportion of shares as an option pool, and complete the allocation before going public. In this way, once the company goes public, the employee's options are converted into the company's stock, and they can trade in the stock market by themselves. Right to cash out.

Kong Lingyu and Lin Qingya have no opinion on Li Mu's option pool plan. They have worked with Li Mu for more than a year, and now they are billionaires with a theoretical worth of over 100 million, and their blind worship of Li Mu has almost reached a peak.

Therefore, Li Mu probably made a plan. At present, he holds about 70% of the shares of Muye Technology. After the 10% dilution this time, there are still about 65% left, so he personally is willing to take out 5% of the shares to rush into the option. Pool, this 5%, according to the current valuation, the overall more than 1.5 billion US dollars.

No matter Song Liang, Chen Ze, and Xu Jiaming, they are all investors in Muye Technology. With capital coming in, there is no problem with their dilution, but Li Mu of the option pool knows that they can no longer be used to promote their style, while Lin Qingya, Kong Lingyu and the others have no problem. The shares in the company are already very small, and it would not be fair to them if they were to donate part of it.

Therefore, Li Mucai decided to take out 5% of his shares to set up an option pool, and then split the 5% of the shares, dividing the 5-point shares into 5,000 shares at the rate of 10 million original shares per percentage point. 10,000 original shares and 50 million original shares are the employee option pools of the entire Muye Technology for a period of time in the future.

After setting the total number of option pools, Li Mu asked Lin Qingya to take the lead in formulating an option allocation rule, which should be based on the time when each employee joined the company, the level of the company, and the company's contribution, KPI assessment, special contributions and other dimensions. Formulated, it is clear how many corresponding options can be obtained under different conditions, and the time required for the option to exercise.

50 million original shares is not a small number, so Li Mu asked Lin Qingya: "At present, we only have more than 1,000 employees, so you have to allocate the options in the option pool reasonably, and you can't spend them all in one go. Like savings and savings, you have to have control.”

Lin Qingya nodded: "Don't worry, President Li, I understand this."

Li Mu said: "My idea is to take 10% from the option pool at this stage, that is, 5 million shares, and distribute them to our current more than 1,000 employees. When our employees exceed 3,000, we will take more shares. 10% will be given out, it will break through 5,000, and then 10% will be given out. Before we go public, we will give out another 20%, and half of the option pool will be distributed, and the remaining 50% will be slowly distributed to later participants after the company goes public. new colleagues."

Kong Lingyu said in the video conversation: "Boss, 5 million shares for 1,000 people is already very high. Now the value of each share is 33 US dollars, which should be around 270 yuan. Even if an employee gets 1,000 shares, this It's more than two hundred thousand."

Li Mu smiled slightly and said, "Ling Yu, the value of options is not calculated like this."

Both Kong Lingyu and Lin Qingya in the video looked at Li Mu.

Li Mu smiled and said: "Look, although we are currently valued at 33 billion US dollars and split 5% of the shares into 50 million shares, each of which is indeed $33, but before we go public, options are not allowed to be exercised. Yes, all employees who want to cash out have to wait for us to go public, and after we go public, the value of this stock option must be far more than $33."

After speaking, Li Mu explained: "Although each original share of the option pool is worth $33 at this stage, its actual value is not measured in money. You have to remember that if we set it this way, then The actual value of each original share is one billionth of the actual value of the company."

"If our future valuation continues to rise, the market value may reach $80 billion before we go public, and the company's market value may exceed $100 billion after we go public. It is the window for employees to redeem their options. Each original stock option is equivalent to a company stock worth one thousand dollars. For example, if the stock price after our listing is $20, then the actual value of each original option is one thousand dollars. In US dollars, after we go public, each original share in the hands of employees will be directly converted into 50 shares of the company."

Kong Lingyu nodded, laughed at himself, and said, "Boss, I'm from Ye Luzi. To be honest, I don't know how to play options, especially after the listing."

Li Mu smiled and said: "It doesn't matter if you don't understand, just do the business you are responsible for. This one doesn't have to follow the rules of the industry, we can make our own decisions."

Lin Qingya asked at this time, "Mr. Li, if we split 50% of the option pool, what should we do with the remaining 50% of the option pool after we go public? Will it be converted into the company's stock directly?"

Li Mu nodded and said, "That's right, we give stock options to our employees before listing, and we will give them stock directly after listing. In the future, according to my assumption, our total share capital after listing will total 5 billion shares. That option The remaining 2.5% in the pool will directly become 125 million company shares."

After speaking, Li Mu added: "After we go public, in order to attract talents, we will formulate a stock quota for mid-to-high-end talents to enter the company. For example, when P7 technical talents come in, we will give five more in addition to the salary package. Thousands of company shares, five thousand shares may be worth tens or millions, but the exercise of these five thousand shares has a time limit, and the exercise of rights is divided into several years, so as to bind talents with the company for a longer time. ."

Lin Qingya nodded and said, "Understood Mr. Li, we will limit the total exercising period to three years at that time. Employees can have one opportunity to exercise their rights one year after they formally join the company, and the total exercising rights shall not exceed three years of the total number of shares held. One-third; after two years of exercise, one-third; after three-year exercise, the remaining one-third.”

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PS: I am too tired, I owe you a chapter tonight, and I will try to make it up tomorrow.