Chapter 254 Invest in ‘Zitiao Network’!

"Zitiaowang, this name is so strange." Xie Wanting said subconsciously.

"'Zi Tiao' means the organization and distribution of information in the era of information explosion." While Xie Wanting was sighing, Su Yu looked at Mr. Zhang Yiming of "Zi Tiao Network" next to Gu Shenyan with a smile and asked, "Zhang Yiming General, that’s what it means, right?”

Zhang Yiming was shocked when he heard Su Yu's understanding.

Indeed, Su Yu’s analysis of the meaning of ‘zitiao’ was his original thought when he founded the company.

"Mr. Su also has a background in network technology?" Zhang Yiming asked in great surprise.

"No!" Su Yu shook his head with a smile, looking at the founder of the future 'Internet giant' who was only 29 years old and had only founded Zitiao Network for a year and had not grown up at all, and replied, " I just read a lot of relevant industry research reports on 'mobile Internet' and roughly guessed what Mr. Zhang meant by the two words. "

"Is Mr. Su also very optimistic about the future of 'mobile Internet'?" Zhang Yiming saw that Su Yu could perfectly understand the meaning of his word "Zi Tiao". He felt that he had met a like-minded person. For a moment, he couldn't help but look a little excited, " Is Mr. Su optimistic about the development of information organization and distribution? "

"Very optimistic!" Su Yu said without hesitation, "It's a pity that I don't understand technology. Originally..."

Su Yu paused, glanced at Gu Shenyan, and then continued: "Originally, I wanted to invest in such a company, but after actual research, I found that there are large-scale companies focusing on this technology in the market. Basically there are not many.”

"Then... what does Mr. Su think of our Zitiao Network?" Zhang Yiming couldn't help but ask.

The reason why he is here tonight is that the initial financing of Zitiao Network has been burned, and under the basic circumstances of the industry where the mobile Internet is still booming, he needs to raise more money to develop. The company, in the special technology track he developed, occupies a first-mover advantage and rides on the east wind of 'mobile Internet'.

The DST investment company where Gu Shenyan worked was the first investment institution he came into contact with after making up his mind to raise funds.

Of course, the reason why he found DST Investment Company was.

On the one hand, it is because this investment company likes to invest in the domestic Internet industry, and he can get relatively favorable financing conditions; on the other hand, he and Gu Shenyan have had contact before and can be considered friends.

"Very optimistic!" Su Yu replied firmly, "In the era of information explosion, people will waste a lot of time filtering information. If we can use a technical performance to accurately push the useful information that everyone wants to see, In front of them, their traffic acquisition and user acquisition will definitely get twice the result with half the effort.”

"That's true!" Xie Wanting interjected from the side, "Every time I look for useful market information, it takes me a long time to find it, and now the search engine is not as easy to use as before. It is often difficult to retrieve and collect information. A lot of time wasted.”

"I didn't expect Junior Sister and Mr. Su to be so optimistic about the future of network information organization and distribution." Gu Shenyan said in surprise, "I heard that Mr. Su's 'Yuhang Investment' company not only participates in secondary market investments, but also I have also dabbled in primary market equity investment. I wonder if Mr. Su is interested in the Zitiao Network project?”

Su Yu never expected that Gu Shenyan would take the initiative to bring it up at this time. He was very surprised in his heart, but on the surface, he still smiled and said calmly: "The so-called gentleman does not take what others like, although I am optimistic about Zitiao Network 'The future, but since Mr. Yan and DST have already been involved in this project, it's not good for me to get involved, right?"

"Mr. Su is overthinking!" Gu Shenyan said, "We, DST alone, cannot meet the financing conditions that Mr. Zhang requires."

"No way?" Su Yu was really surprised this time.

According to his impression, DST Investment Company is a powerful investment company. Although it is a Russian-controlled investment company, its financial strength cannot be underestimated. It has also invested in many Internet companies at home and abroad, and basically , are all large investments exceeding US$100 million.

"Mr. Zhang's demand is around US$50 million." Gu Shenyan said, "But our DST Investment Company only has a maximum quota of US$30 million for this project. The difference of US$20 million is what I will make an appointment with tonight. The key to Mr. Zhang’s discussion over dinner.”

"It's just that I didn't expect to meet Mr. Su here..."

"I know that although your company, 'Yuhang Investment', has only been established for a short time, it has made a lot of money in the financial market. An investment of 20 to 30 million US dollars should be nothing to Mr. Su, right?"

"It means..." Su Yu understood and said, "Your DST will lead the investment, and we, Yuhang Investment, will follow the investment, and then complete the entire Series B financing plan of Zitiao Network?"

Gu Shenyan said: "Basically, that's what I mean. Of course... all this depends on Mr. Su's wishes. If Mr. Su is not willing, then I can only continue to discuss with Mr. Zhang and let our DST Investment Company do it." Continue to introduce one or more investment institutions to complete the B-round financing plan that Mr. Zhang wants.”

"I wonder what Mr. Gu and DST Company's current valuation is for Zitiao Network?" Su Yu asked, "If the valuation is appropriate, I can follow the investment."

"Since Mr. Su is interested... we can sit down and talk about the details slowly." Gu Shenyan said with a smile, "And I think that since Mr. Su is optimistic about the development in this direction, the market valuation that our DST can accept, Mr. Su should... be able to accept it."

Zhang Yiming was impressed when he saw that Gu Shenyan persuaded Su Yu to participate in just a few words.

In fact, the financing conditions he requested this time were higher than the last time. DST Investment Company, under Gu Shenyan's persuasion, gave a valuation to Zitiao Network that was also very favorable to him and significantly higher than The valuation level of similar network technology companies in the market.

This is also the reason why subsequent investment companies were reluctant to participate after DST Investment Company agreed to lead the investment.

This put the Series B financing plan on hold for the time being.

"Okay!" Su Yu pretended to think for a while and nodded, "Then let's find a place and have a good talk!"

For him, a reborn person, knowing that Zitiao Network will inevitably develop and grow in the future, he will participate no matter what price and valuation the other party offers.

After all, compare with the market valuation of Zitiao Network in the thousands or trillions in the future.

At this time, even if the valuation of the investment led by DST Investment Company is 30% to 50% higher than the market average, compared with the explosive investment returns of hundreds or even hundreds of times after the subsequent enterprises develop and expand, this higher cost , which can basically be ignored.

After Su Yu agreed...

Gu Shenyan and Zhang Yiming instantly became familiar with him.

In fact, the age gap between the three of them is not big. Even among the three, Zhang Yiming, the eldest, is only five years older than Su Yu, so... there are still quite a lot of common topics when talking with each other. Basically there is no topic barrier, age gap or the like.

Xie Wanting, on the other hand, could not say anything after the three of them got into the topic.

The investment projects the three of them talked about had nothing to do with her.

So, after walking out of the restaurant together, Xie Wanting said goodbye to the three of them, and left under the escort of a Rolls-Royce that had been waiting for her.

Afterwards, the three of them came to a quiet cafe and ordered a few cups of coffee.

Just sit down and keep talking.

"Mr. Su, this is our DST Investment Company project team. Please take a look at Mr. Zhang's original documents on several surveys and valuations of Zitiao Network. If you have no objections, we will continue the discussion." Gu As Shen Yan spoke, he sent several documents from his phone to Su Yu using Bluetooth, "If there is something you think is inappropriate, you can bring it up and we can discuss it together."

Su Yu nodded slightly, accepted the document, and then read it carefully.

Then, about half an hour passed.

Su Yu put down his mobile phone and said with a smile: "I didn't expect that in less than a year after Mr. Zhang established the company Zitiao Network, he had already developed other products besides the core product 'Today's Toutiao', such as 'Neihan Duanzi', ' There are 12 APP applications such as "Funny and Awkward", "Connotation Comics", and "Good-looking Pictures", which are amazing! ”

"Thank you, Mr. Su, for the compliment." Zhang Yiming said with a smile, "I think as long as the information organization and distribution algorithms are more mature, the scale of related applications, users, and traffic can be further expanded."

"12 applications, 65 million users." Su Yu said, "The quarterly user growth rate is around 20%. According to this trend... I don't have much opinion on the US$500 million valuation proposed by DST, but... …”

Hearing the twist in Su Yu's words, Gu Shenyan and Zhang Yiming felt slightly nervous.

All eyes were fixed on Su Yu's face.

But Su Yu smiled and continued: "At the current stage, several major Internet giants have begun to wildly compete for land and layout in the 'mobile Internet' field, which is the general trend. In the future, the competition for traffic will definitely become more and more fierce. , I’m thinking... Facing the direct competition from these Internet giants, won’t the Series B financing Mr. Zhang wants, totaling US$50 million, not be enough in the next one or two years?”

"If you want to play, just play with a big one!"

"How about I increase my investment from the original US$20 million to US$100 million?"

"Mr. Su plans to invest 100 million US dollars?" Gu Shenyan's eyes widened in shock.

When Zhang Yiming heard Su Yu's words, he was extremely shocked. He never expected that under such a high valuation, the other party would actually take the initiative to increase capital.

"Enough, enough, US$50 million is enough." Zhang Yiming hurriedly replied, "I am very grateful to Mr. Su for being so generous, but for our Zitiao Network, the financing requirement of US$50 million is enough. ”

Financing requirements of US$50 million.

It was Zhang Yiming and several partners in the company who carefully determined it after repeated calculations.

This can ensure that the company can develop steadily under the "mobile Internet" trend, and at the same time, it will not have too many shares diluted by financing institutions early on, and lose a lot of future development rights and profits.

After all...

This is not his first time starting a business.

Although he understands that the development of the company cannot be separated from the financial support of investment institutions, and financing is unavoidable during extreme business outbreak cycles, in fact, after having several entrepreneurial experiences, he still responds very favorably to the entry of investment institutions. Those who are very wary will never be able to allocate a large share of their equity shares early.

So, regarding Su Yu's suggestion to increase capital proactively.

Although it seems that he can get a lot of benefits at present and the company can also obtain more abundant cash flow, he still decisively refused.

"That's a pity!" Su Yu sighed slightly.

According to the valuation standards of DST Investment Company, the lead investor, the investment of 20 million US dollars can only occupy 4% of the current equity interests of "Zitiao Network".

It can only be said that... it's better than nothing!

Of course, compared with the trillion-dollar market valuation of "Zitiao Network" 10 years later, this 4% equity interest can still be worth tens of billions.

However, this premise is also under the condition that "Zitiao Network" does not continue to raise funds and the shares are not further diluted.

And Su Yu knows that this is basically impossible.

"Then let me add one more." Su Yu paused and continued, "If you have no objection to this one, then I will invest without hesitation."

"What conditions?" Zhang Yiming asked.

"The priority of subsequent financing." Su Yu said with a smile, "That is, in the future C round of 'Zitiao Network', and even during the preparation for listing, the PE stage of financing, we 'Yuhang Investment' will enjoy the priority lead investment rights under the same valuation conditions. What do you think, Mr. Zhang?"

Zhang Yiming pondered for a moment and nodded: "Okay!"

Su Yu's so-called priority is actually not very binding for him or even 'Zitiao Network'.

After all, in the financing stage, it doesn't matter who leads the investment. Whose money is not money? What's more...Based on the understanding of this period of time, he has already understood that the young man in front of him, named Su Yu, who is much younger than him, has gone further than him on the road of entrepreneurship and has unlimited future prospects.

It is not a disadvantage for him to make friends with such a friend who is in charge of a private equity institution worth tens of billions.

"Then there will be no problem." Su Yu smiled and said, "In the next few days, I asked the head of my company's venture capital department to coordinate the subsequent signing matters. As long as the contract is signed, the investment funds will be immediately received. Please rest assured, Mr. Zhang, it will not delay your company's business advancement."

"Okay!" Zhang Yiming responded, "Mr. Su is still straightforward."

Su Yu laughed and said, "For a good investment project, there is no need to hesitate at all. I am also very happy to meet Mr. Zhang and Mr. Gu today."

"Mr. Su is still generous." Gu Shenyan couldn't help but praise.

For a $20 million project, Su Yu only read the research report for more than half an hour and made the final investment decision. If Zhang Yiming hadn't refused, the other party would have directly invested $100 million. This made Gu Shenyan simply amazed and had to admire him from the bottom of his heart.