Chapter 133: If you can't persuade me, I will save you

After discussing the serious matters, everyone lost interest in playing golf. Xie Jingxing performed exceptionally well, finishing the 87-hole round with 18 strokes, and Song Anli's horrible performance gave Peng Zhijian and the others an excuse.

He admitted defeat on the grounds that the victory was unfair because he bullied a newbie, then took his leave and returned to the city to discuss with Tang Man in detail and sign an investment intention agreement.

"which one you want?"

Xie Jing Xing asked as he fiddled with the green flag and two golf balls with a sense of mischief.

Song Anli smiled slightly: "I want golf."

"It's boring." Xie Jingxing said angrily.

Song Anli laughed secretly. Men are creatures that apply child psychology. Many times they tell dirty jokes because they want to see the innocent and ignorant girls blush, rather than hearing something even more obscene.

Unfortunately, her home was close to Hong Kong Island and she had heard too many explosive gossips when she was a child, and it was just a matter of golf.

"I brought a pleated skirt jersey. Do you want to take a picture for me?" She pretended to be shy and bit her rosy lips slightly and lied.

Zhang Xuhao, the founder of Ele.me, will come to meet her later. How could she not know the priorities? Xie Jingxing pouted in disdain: "Don't give me that."

"How about tonight? I happened to be on a business trip to Silicon Valley and bought a few camera lenses. Could you help me try out the effects?" Song Anli asked softly with a look in her eyes, following the topic.

"..."

Xie Jing Xing was speechless. This woman always managed to come up with new tricks for him.

Women are really like scraping bones with a steel knife and piercing intestines with poison. Fortunately, he has strong bones. Tonight he must imitate Guan Erye and scrape the bones to cure the poison!
Song Anli's words were very touching. She understood the concept of leaving blank space for reverie and briefly brought the topic back to work: "I feel that Zhang Tao is a little more easy-going than Wang Xing. I don't see much fighting spirit in him."

"It's obvious, but we have no other choice."

Xie Jingxing enjoyed the ambiguity of wanting to say something but not being able to, and explained in a serious manner: "And you will know when you see Zhang Xuhao later. He is a young entrepreneur who is aggressive but lacks calmness. The two of them complement each other as a partnership."

"Can we try to contact Meituan again? Their B round of financing was two years ago. If we calculate the time, the C round of financing should be launched soon, at the latest in the first half of next year."

Song Anli waved her hand as she spoke, and several stadium waiters quickly and silently placed the afternoon tea snacks on the dining table under the parasol, and left quickly without stopping.

Xie Jing Xing sighed: "... Find out which investors they have now. If that doesn't work, you can buy some 'old shares' at a premium."

"It is difficult for the founding team and the two lead investors, Alibaba and Sequoia, to sell their shares. The follow-up investors, Northern Light Venture Capital, an investor from Hong Kong Island and Tiger Fund may be able to have a talk." Song Anli was well prepared.

Xie Jingxing said after careful consideration: "Give this project to Su He."

There are very few ways for venture capital firms to exit their investment in start-ups before they go public. Reselling equity in over-the-counter transactions in the primary market is one of the more common ones, which often occurs on the eve of listing.

Before a company goes public, it will discuss a "lock-up period" with its shareholders, which ranges from three months to six months for U.S. stocks, one year for Hong Kong stocks, and one to three years for domestic stocks.

Shareholders cannot sell their shares during the 'lock-up period', so no matter how long the period is, there is only one purpose - to prevent shareholders from cashing out large amounts of money as soon as the company goes public, causing the stock price to plummet.

For venture capital institutions, the longer the investment cycle, the higher the cost. It is more practical to lock in a sum of money for five years and get a 10-fold return instead of having it stuck for seven or eight years and watching the rate of return increase 5 times without being able to make a profit.

For start-ups that can go public, it proves that their business model is successful and their future prospects are clear. For 80% of these companies, the moment they go public is the peak of their lives, and their future development ceiling is almost foreseeable, and the subsequent return on investment can also be estimated.

Furthermore, the length of the lock-up period does not apply to all shareholders. The lead investor usually has the priority to cash out first, followed by the follow-up investors and the founding team.

Against this background, some venture capital institutions that mainly follow up on investments choose to exit early through the primary market before the invested companies go public.

The buyer can be the lead investor in the previous round of financing, the founding team, or a new external investor in the last round of financing before listing (pre-IPO).

Of course, this operation could have been done earlier. Xie Jingxing was willing to pay a high price, and if the investors in Meituan’s first two rounds of financing were also willing to take a gamble, everyone would be happy. But in fact, there is little hope.

It's like a jade dealer going to Tengchong to gamble on stones. When a stone is cut in half, you can see jade inside. Suddenly, someone comes out and wants to take over at a high price, taking the risk and betting that he can make more money. Everyone would think about it.

Ultimately, Meituan's financing is to expand its share capital and issue "new shares", which are then sold to investors in exchange for cash that goes into the company's public account.

Xie Jingxing used the money to buy the previously issued "old shares" held by shareholders. The direct transaction objects were the shareholders themselves, and had no direct relationship with Meituan, the stone from which the jade was cut.

Even if Wang Xing disagrees, he can only make roundabout changes by manipulating the terms of the investment agreement between Meituan and its shareholders and the board of directors, but he cannot directly stop the transaction.

"Mr. Su suggested that we move faster and more high-profile. The group-buying market structure is clear, and the upper limit of Meituan's business growth is clear. If we cooperate well, we will have a certain chance to buy 'old shares'." Song Anli reported meaningfully.

Xie Jingxing couldn't help but smile: "This is a solution, but there is a window period. When the takeaway market enters a period of rapid growth after the New Year, there will be no chance."

"Then shall I notify President Su first to start preparations?" Song Anli asked.

Xie Jingxing nodded without comment. The group buying market now only has Meituan, Dianping, and Nuomi. The growth of the entire group buying market will reach a clear peak within three to five years.

If Xiyou joins hands with Tencent to enter Dianping, it will once again set off a massive money-burning competition. I wonder how much money will be burned when the three industry leading platforms, which occupy 80% of the market size and have the backing of big companies, fight each other.

When gods fight, mortals suffer, just like Zhu Xiaohu blasted Xie Jingxing's door in a rage and incompetence in the middle of the night. Put yourself in the shoes of Meituan's small shareholders, the more money Dianping burns, the more uncomfortable they will be.

Su He, who is good at manipulating people's hearts, once again accurately found a high-quality entry point, and it was just right for her to be responsible for investing in the Meituan project.

This is based on the premise that the upper limit of Meituan’s business growth is currently clear. Once the promising prospects of the food delivery business are seen by capital next year, the mentality of its small shareholders will be completely different.

"Old and young, Wang Xing is really a bit difficult to deal with." Xie Jingxing commented with a sneer.

Zhang Tao, in his early forties, led Dianping to become the second-largest company and is looking to become the first. Zhang Xuhao started his business when he was 28 or 29 years old after college and has 2,000 employees under him. Both are rare and high-quality entrepreneurs.

However, people are afraid of comparison. Compared with Wang Xing, who is 34 years old and at the peak of his energy and experience, the two of them are somewhat old, weak and disabled. Xie Jingxing is confident that he can lead the two Zhangs to win the final victory in the battle against the bald king. However, if he has the opportunity to imitate Shen Nanpeng and invest in the entire life service track of takeout + group purchase reviews, he naturally has no reason to miss it.

Sequoia China has already invested in Dianping, Ele.me, and Meituan. No matter who wins, it will make a profit. It is really a good stock.

Xie Jing Xing threw down the towel to wipe his hands, picked up two afternoon tea snacks and threw them into his mouth, and said vaguely: "Our signboard is still not shiny enough."

"In fact, I think it's possible that we had preconceived ideas. You didn't give Wang Xing a chance to sit down and have a serious chat, once at the entrance of the summit and once at a drinking party."

Song Anli explained: "If it were me, I would probably question your sincerity in investing... If we really follow Mr. Su He's ideas, it would be difficult to invest in Meituan through conventional financing channels in the future."

"It is now mid-November. According to the financial year, the first quarter of each year is the peak period for financing. Dozens of companies of all sizes in various industries will raise funds in a concentrated manner. This means that they are all trying to make arrangements in advance. I don't have time to influence Wang Xing bit by bit."

Xie Jingxing insisted on defending himself, believing that Wang Xing did not take his money because he was not strong enough and had nothing to do with anything else.

Song Anli just responded with a gentle smile. The investment genius before the self-driving 318 would not be willing to be a supporting role and let Peng Zhijian and Zhang Tao play freely. It is impossible to expect him to make more changes in a short period of time.

A genius must have some personality. It doesn't matter what Wang Xing, this ungrateful bald guy, thinks. If he cannot be influenced, then he should be saved.

Anyway, Song Anli thinks that Xie Jingxing is good in every way and everything he does is right...

…………

A pair of bastards were feeding each other cakes and snacks while thinking about how to harm the founder. Not far away, the caddies stood in a row, looking down at their toes, trying to resist the urge to expose the lustful face of the famous venture capitalist.

A moment later, He Chuan and Zhang Xuhao appeared side by side, saving their professional ethics.

Xie Jingxing was half lying on the chair, Song Anli stood beside him with a dignified posture, waving like a landlord: "Just sit down and relax, no need to be so formal, let's just talk about your next focus."

"Mr. Xie, Assistant Song, you are much more handsome and beautiful in real life than you are on the variety show." Zhang Xuhao greeted them in a unique way.

He is young and of medium build, with a likable and honest round face and a pair of black-framed glasses. His speech and behavior are no different from those of an ordinary college student who has just entered society.

As they were all of similar age, Xie Jingxing's communication style was slightly more direct: "Few entrepreneurs can achieve what you have now at your age. This is both a good thing and a bad thing. You have more trial and error capital than other peers; your path dependence is also stronger. Have you ever thought about this problem?"

"It's impossible to say I haven't thought about it. Mr. Shen Nanpeng of Sequoia Capital also talked to me about it."

Zhang Xuhao was tense, pushed up the frame of his glasses and emphasized tactfully: "But we are a team that started from a university campus and is mostly composed of young people who are brave and hardworking."

"I have no objection to your internal management. I just want to remind you not to limit yourself from the perspective of strategic development and only focus on first-tier cities." Xie Jingxing explained nonchalantly.

Zhang Xuhao was stunned: "Are you referring to the high-end logistics self-operated business of fresh fruits and vegetables, daily necessities and medicines?"

"Including but not limited to, counting your market layout, Shanghai, Beijing, Shenzhen, Guangzhou, Harbin, Changchun, Nanjing... more than a dozen cities are provincial capitals and first- and second-tier cities. Do you really know what you are doing?"

Xie Jing Xing became more and more impolite, and without waiting for a response, he continued to ask: "You know the news that Meituan has launched a pilot program in Beijing, right? If Meituan spends money to fully enter the second- and third-tier cities across the country next year, how will you respond?"

"I……"

Zhang Xuhao felt cold sweat on his back and wanted to say something but was unable to speak.

When he was in college, he and his roommate played games all night and were hungry because there was no food delivery service. In anger, he started a business called Ele.me on campus. Therefore, the university campus where he started his business naturally became his path dependence.

The subsequent priority layout in provincial capital cities is one of the manifestations. He believes that the takeaway market is only in big cities, and college students and white-collar workers are the main user groups.

A few days ago, Ele.me completed its financing. Xie Jingxing denied the high-end logistics self-operated business strategy, which made He Chuan indirectly remind Ele.me not to be too superstitious about big cities.

At around 2 a.m. that night, he paid the overdue interest on public grain to Song Anli, and got out of bed to deal with work emails. Zhang Xuhao sent him a thousand-word essay in which he passionately elaborated on the big city strategy.

——What business fields do online ride-hailing and group buying belong to?
He only replied with one sentence, which made Zhang Xuhao unable to sleep for several nights, scratching his head and thinking about it. Online car-hailing/group buying are both local life service areas!

Didi, which is taking the route of pushing into big cities, and Kuaishou, which is taking the route of surrounding cities from the countryside, are fighting each other till death; Dianping, which has accumulated experience in big cities for many years, has been beaten by Meituan, which is taking the route of surrounding cities from the countryside, and has chosen to avoid it.

For the takeout industry, which also belongs to the field of local life services, is there really no market in second- and third-tier cities?
Zhang Xuhao would hesitate if any other venture capitalist asked this question, but not when Xie Jingxing asked it. Didi's acquisition of Bumblebee and its expansion into Lingnan and reverse push for Zhejiang Province strongly proves the importance of second- and third-tier cities.

But Zhang Xuhao, who realized the strategic direction error, was still hoping for the best. According to Ele.me's internal statistics, they occupied at least 45% of the national market share and had enough margin for error to penetrate the second and third tier markets from the regional capitals.

As a result, Xie Jingxing now puts a new question in front of them. Will Meituan, a battle-hardened company that started out by relying on the strategy of surrounding cities from the countryside, give Ele.me some room for error?
By then, Ele.me will be a copy of Didi. Zhang Xuhao has no confidence in being better than Cheng Wei. Just thinking about burning more than 1 billion in three months makes his calves tremble...

"Just half an hour ago, I signed an investment intention agreement here with people from Tencent and Dianping."

Xie Jingxing sat up straight and tapped his feet: "Tencent will provide Dianping with a traffic portal for users in second- and third-tier cities. Dianping will compete head-on with Meituan in 200 second- and third-tier cities next year."

"Dianping believes that we can do the same market as Meituan, and I think you can do the same for Ele.me."

He gave the final answer: "Relying on the first-mover advantage, we will be the first to fully expand into second- and third-tier cities, and advance both group buying and food delivery. Then it will be Wang Xing's turn to figure out how to deal with us."

"...We are cooperating with Dianping?" Zhang Xuhao was silent for a moment and then made the point clear.

Xie Jingxing tilted his head to look at He Chuan who remained silent the whole time: "It's too early to talk about in-depth cooperation now. For now, let's just consider it as an allied force joining forces against the enemy. If you have any ideas, you can ask He Chuan to help contact the people at Tencent's 'Tenpay' to discuss cooperation on the WeChat mobile payment port."

It is the mobile payment port again. The entire concept of life services has spread and all the money spent in online and offline scenarios revolves around mobile payment.

Tencent brought Xiyou to invest in Dianping; Xiyou led Tencent to participate in the next round of financing for Ele.me. This was the PY transaction that Peng Zhijian was unaware of.

The Allied landings in Normandy strangled Meituan. This is the most exciting script for the Internet industry next year, written by directors Xie Jingxing and Xiao Ma Ge.

(End of this chapter)