It was not surprising that Song Liang knew that Li Mu was setting up a website. After all, the initial funds for Easy Listening Network were earned from the four people with the simple plan. With Song Liang's relationship with them, this matter was not a secret at all.
Li Mu did not hide this. He nodded and said with a smile, "In July and August, I set up a music listening website. Then, I set up a Tieba some time ago."
Song Liang said, "I heard that these two websites are very popular now and have a lot of traffic?"
Li Mu said, "It's not bad, but the current traffic is far from my goal."
Song Liang asked, "When the website develops to a certain extent, the cost of your investment will also become very large, right?"
Li Mu said, "Yes, after a certain level, the investment in all aspects will increase exponentially. For a small website, the initial investment in servers and bandwidth is only a few thousand yuan a year. However, if it develops quickly, just the cost in this area alone might not be able to stop it even if it costs a few million a year."
Li Mu thought of the future video website. In the future, they would have to pay a huge cost for server space and bandwidth. This cost was so huge that it was almost unimaginable in front of the current Internet companies.
Song Liang asked Li Mu, "In that case, it will be more and more difficult for you to support yourself in the future, right?"
Li Mu nodded and said, "I'm already feeling the strain now, so I'm already preparing to talk about financing."
Sensing that Song Liang seemed to be very interested in this matter, Li Mu asked tentatively, "Brother Liang, if I talk about the Series A financing, when the time comes, there will be a big company leading the investment. Are you interested in investing a little?"
Song Liang's eyes lit up as he asked, "Are you willing to let me come in and dilute your shares?"
Li Mu felt that a person like Song Liang was very suitable for him. Moreover, he had foresight, ideas, and had helped him a lot. If the two of them could reach a common interest in the future, they would definitely be able to do many things that he could not do alone. Therefore, he also wanted Song Liang to participate in the Easy Listening Network and Tieba.
Besides, he had always been envious of the future real estate development in Beijing, Shanghai, and even Guangzhou and Shenzhen. Unfortunately, he knew nothing about real estate. However, if Song Liang was there, the two of them could work together, and they might be able to eat some porridge and grab some steamed buns in the future real estate industry. Therefore, diluting his shares at this time and letting Song Liang participate was undoubtedly a good thing.
Therefore, Li Mu threw out his olive branch. "Brother Liang, to be honest, I was only prepared to dilute 10% of the shares for the Series A, but if you are really optimistic and interested in this area, I can prepare 5% of the shares for Series A for you. At that time, you can follow up and invest in the capital. You will enjoy the same treatment as the lead investor."
The meaning of the same treatment meant that when investing, they would enjoy the same valuation, cash out, increase or decrease, and so on.
For example, when Li Mu chose the capital side, he would give a certain degree of inclination according to the strength of the capital side's resources.
For example, if a company like Baidu with resources invested in him, he could give them a 30% discount based on their psychological price because their resources were strong. They could develop Easy Listening Network and Tieba's business faster. However, if it was an ordinary investment bank, Li Mu would not give them a discount. He would even raise the price for them, such as giving them a 1.3 times coefficient.
If Li Mu negotiated Baidu's Series A, Baidu would definitely be able to get a lower price. However, if there were other capital investors, they would not have such a good treatment. However, generally speaking, people who followed up on the investment had hope for the project and saw a big company leading the investment. Even if they could not get the same treatment as the lead investor, they would still choose to follow up and fight for a future.
The treatment that Li Mu gave Song Liang was that he could enjoy the same conditions as the lead investor if he followed up on the investment. This could be said to be a very big discount.
Although Song Liang did not do the Internet, he knew very well about financing and investment. When Li Mu said this, he knew in his heart that he had not befriended this younger brother for nothing. Although the shares sounded like only 5%, it was already very good for someone like him, who did not understand the Internet at all.
Therefore, Song Liang said, "Brother, don't regret it. I am indeed very interested in the Internet, but I don't know how to get in. If you are really willing to dilute 5% of the shares to me, I will accept it without hesitation."
Li Mu smiled slightly. "Brother Liang, since I said it, I definitely won't regret it. Moreover, this is Series A. If it's Series B and the valuation increases, and you want to cash out and leave, I will communicate with the investors and let you have priority to cash out. If you still want to invest in Series B, I will give you the same treatment. We will discuss the specific points at that time."
Li Mu's words were equivalent to giving Song Liang a guarantee.
Series A came in with a valuation of tens of millions. When the valuation of Series B increased several times, or even more than ten times, if Song Liang wanted to leave, Li Mu would definitely help and let him transfer the shares directly to Series B investors, ensuring that he could withdraw all the principal and profits.
When Song Liang heard this, he was amazed at Li Mu in his heart. This kid is so young. How can he have such a deep understanding of capital? If it weren't face-to-face, he would have thought that he was chatting with a venture capitalist in his thirties or forties.
However, Li Mu's words also made Song Liang very happy. He immediately said, "Brother, then I won't be polite with you! When you talk about Series A, I will directly follow up on the investment in my own name! "
"Good!" Li Mu smiled slightly. Both of their thoughts were very obvious. Li Mu wanted Song Liang to get on the car, and Song Liang also wanted to get on the car. Then, they hit it off and got on the car together to see the scenery.
At this time, Song Liang did not want to see the scenery. He just wanted to get on Li Mu's car. He did not care whether the car could make money in the end. He just felt that he should be bound to a certain extent at the level of interests with Li Mu, which would make the future of the two more possibilities.
Thinking of this, Song Liang said again, "Brother, I have a new piece of land. It is less than three kilometers southeast of the city. Have you heard of the Three Cards Tower?"
Li Mu nodded. The Three Cards Tower was not famous yet. In the future, it would be a new residential area in Haizhou. With the future development of the city, the urban area would continue to develop southeast. In the next few years, it would become the most expensive place in Haizhou.
Song Liang said, "This land will start construction at the beginning of next year. There are a lot of shareholders, so I won't introduce them to you one by one. However, I am a major shareholder. If you are interested, I will give you five units. What do you think?"
Li Mu said, "Brother Liang, a real estate development can easily cost hundreds of millions. Five units will cost at least a few million. I am afraid I can't afford it!"
Song Liang smiled slightly. "You are talking about the total cost. The start-up capital is not that high. Tens of millions is enough. The rest depends on bank loans and internal pre-sales."
Li Mu asked in confusion, "Internal pre-sales?"
"Yes." Song Liang smiled and said, "There are a lot of shareholders in a real estate. There are also many people who want to participate with money but can't participate. After our project starts, in order to recover funds as soon as possible, we will take out a certain proportion of housing to pre-sell to these people. This is also to recover funds as soon as possible."
Li Mu nodded and said with a smile, "Thank you for your kindness, Brother Liang, but I don't dare to say too much about the specifics now. How about this, you keep it for me first. If I can afford it, I will also come to Brother Liang to participate in it."
Song Liang laughed and said, "No problem. If you don't have enough cash, I can lend you some."
Because the two of them had the same idea, they both hoped to be able to have a certain amount of interest with each other, so the two of them had a particularly pleasant meal.
Li Mu thought that his Easy Listening website and Tieba were still personal. When the time came to talk about Series A, he would definitely have to go to a company. Instead of going to the front and being confused, it was better to get this done first. So he prepared to take time to go back to Yanjing to register a company.
However, now the industry and commerce department was also on holiday. The registration would have to wait until after the National Day. However, he could go to Yanjing to find a special agency to help, which could save a lot of trouble.
Song Liang had always been curious about what kind of psychological expectations Li Mu had for the valuation of Easy Listening website and Tieba. Li Mu said lightly, "According to different investors, the valuation should be between 50 to 80 million yuan."
Song Liang was completely stunned. "So high?"
Li Mu nodded and said, "In fact, this valuation is not high."
Based on the current development momentum of Tieba, if it were to carry out Series A financing in October or November, then with millions of registered users and millions of daily active users, it could at least get a valuation of tens of millions. There was a lot of redundancy in the valuation of the Internet, because the Internet never looked at the current profitability, but at the future development prospects. To put it simply, it could be summed up in one word: "concept."
In the future, a website like Happy Network could get millions of US dollars in Series A financing, which meant that the valuation of Series A would inevitably reach tens of millions of US dollars. In Series B, the financing would be 20 million US dollars, and the valuation would be over 100 million US dollars. In other words, in just a few months from Series A to Series B, the valuation would rise several times or even higher. The importance of concept could be seen.
When the school intranet was popular, the valuation was also high every day. When it was high, it could scare people to death. However, like Happy Network, it was a flop that would come to an end after a few years. However, the music demo would be popular for at least five to eight years in the future, and Tieba could be popular for 15 to 20 years. Even if these two major products were just in their embryonic form, discerning investors would also give a very high valuation.
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
