High Society [Part I]

19 Financing

The registration of the company is completed, the signing of the contract is also quickly followed, in addition to the fixed remuneration, the dividend given by Huaisen is 1.5% of the financing amount, if it is raised 1oo billion, there will be 150 million into the pockets of Zhao Tingjian and Shen Dongzhi, with the scale of this case is very generous, no wonder Zhao Tingji personally came to bid.

After talking about the remuneration and then talking about financing, it is said that financing is listed and listed, which shows how important the surname of financing is.

In this regard, Waisen also put forward his own requirements, that is, do not engage in a series A and B round C round of financing, and directly raise a round of financing in place!

This request affirmed Shen Dongzhi's idea even more, Huaisen must have a problem, and the reason why the direct round of melting in place was that he couldn't afford to wait.

——Financing takes time, after all, the investor is not a fool, you have to see clearly and negotiate clearly before signing a contract with you to give you money, this is a tug-of-war between investors and enterprises.

After following Han Cheng for two years, Shen Dongzhi has already started with investment, and the difference between financing and investment can be summarized in one sentence, investment is that you give money to others, and financing is that you ask others for money.

As for the essence of financing, it is also very simple, investors exchange low-priced investments for shares in your company, and then sell these shares at a high price when you go public.

The process of financing and listing can be simplified into the following three steps.

First, financing means that the enterprise and the investor are involved in each other, and the investor exchanges the investment for the shares of the enterprise.

Second, use the raised funds to carry out various rectification and adjustment of the company, including share rectification, financial inventory, management reform, expansion of business scale, etc., so that the company meets the standards of listed companies.

Third, the company rectifies, then prepares various materials, and then passes the review of the CSRC with these materials to be listed.

Of course, there is the final step, the company is listed, and the investor and the company sit and divide the money.

As for how to sabotage Huaixing's listing?

The listing process is simple to summarize, but there are many details and difficulties in the real process, and there are no less than ten places to do in the financing alone, so what she and Han Cheng have to do is to take one step at a time, and the soldiers will block the water to cover the soil.

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On the 28th of the end of the month, the second investment fair of the listing of Huaixing Technology was held at the headquarters of Huaisen, presided over by Zhao Tingji, chairman of Ruilin Capital, and attended by Sheng Huaixuan, executive president of Huaisen Investment Group.

Huaisen is a strong group, as soon as the news was released that it was going to prepare for financing and listing, many investors called to negotiate, and Zhao Tingji contacted the Kehuge Fund after communicating with Shen Dongzhi.

——Investors can be divided into main investment and co-investment, and with the strength of Kehuge, it can be the main investment.

The content of today's meeting is very direct, that is, to negotiate the investment amount.

Throughout the room, participants were presented with a business plan from the listing team of Rillin Capital, which focused on valuing Huaixing.

The current popular valuation method is the price-earnings ratio, that is, the price divided by the profit, Huaixing intends to be listed on the ChiNext board, and now the average price-to-earnings ratio of listed companies on the ChiNext board is 9o times, that is, if your company made a profit of 100 million last year, then your valuation is 9o.