Chapter 139: Venture Capitalist Knocked Out by a Club

"I really admire you for arguing with me for 1 minutes just for % of the shares."

Liu Qiangdong was exhausted physically and mentally, and was worn out to the point of losing his temper.

Li Zehua lit up a Victory cigarette and said, "I am very optimistic about the future development of JD.com. Maybe this 1% stake is worth tens of billions."

"Thank you for thinking so highly of me."

Liu Qiangdong didn't say anything, but he was very happy in his heart, after all, he didn't lose anything.

"Hummingbird Express invested 10% in the first half of the year, and Chizumo invested 3% in the first half of the year. It is estimated that with $500 million in cash, I will get 1.1 million Class A shares.

But why can’t we just sign the agreement? Do we have to wait until we finish talking to the venture capitalists?”

Liu Qiangdong wanted to take the opportunity to finalize the deal, but Li Zehua was unwilling to give in easily. "I can give JD.com a preferential share price, but the venture capital has already offered a 1500% valuation of 20 million US dollars.

In other words, the value of eating Mejia Hummingbird is far more than this.

What's more, I have proposed a new development idea, and the venture capital is currently conducting a comprehensive evaluation. I believe they will give me a satisfactory answer!

Words are not enough, let's just wait and see.

But you can rest assured, Brother Dong, I am not a greedy person. The relationship between Hummingbird and JD.com is one in which both sides will benefit if they cooperate and both will suffer if they separate.

Under this premise, no matter what the negotiation with venture capital is, I am willing to offer JD.com a preferential price.

Besides, I also want to take the contract back to Shanghai and ask Yuantong and Yunda to pay for it."

Liu Qiangdong couldn't refuse what he said, so he could only say something else.

"We agreed that I would arrange the seats on JD.com's board of directors, and you would entrust me with the voting rights of your shares and sign a letter of concerted action.

Fengniao Platform and JD Logistics have reached a comprehensive strategic partnership. "

"Absolutely authentic. Once you convince the shareholders behind me to agree to my share swap, we'll write it down in black and white.

But you have to get my approval to choose the person. It's fine if we all agree on the person, but I have a veto when it comes to cooperation with Fengniao Express."

Li Zehua is also happy. With JD.com and the Pinxixi group buying he is planning to do, the future of Hummingbird Express is worry-free.

Even if Taotao has a complete falling out with him one day in the future, he will be able to pin the other person to the ground and beat him.

JD.com targets the mid-to-high-end market and competes with Taobao’s Cat in consumption upgrading.

Pinxixi focuses on the mid- and low-end markets, and goes deep into the third-, fourth- and fifth-tier cities to tap into the potential of the grassroots markets.

Coupled with the expected traffic from short video platforms, the future is promising!
As for the shares, Qingyun Investment definitely holds the majority. It doesn't matter whether he eats it or not, it's his.

The two shareholders of Hummingbird also have to pay money, and then 3% of JD.com shares will be transferred to the name of Hummingbird.

Thinking of this, I couldn't help but said happily, "Have you eaten yet? Here, I won't arrange a seat for you for the time being.

Fengniao Group has been split up, and Yuantong Yunda will each have a seat on the board of directors. JD.com must help and send a management team to serve as directors and deputy general managers. "

Liu Qiangdong nodded and said, "As a reciprocal measure, we must also have a veto power over matters involving cooperation between Hummingbird and JD."

"Of course!
The next step is to bring Zhongtong Shentong and SF Express into the picture, and there will basically be no more problems. Even if Taotao reacts, he won’t dare to turn hostile at this time.”

Li Zehua thought for a moment and said, "I don't know Mr. Wang from SF Express very well. I think you, Brother Dong, may need to come forward and discuss this matter."

Liu Qiangdong readily agreed, but soon he asked, "Is this money from you okay?"

After all, five million US dollars is not a small amount of money, and Li Zehua doesn’t look like a rich second generation at his age!
The latter patted his chest loudly and said, "Don't worry, I have 20 or 30 million yuan and I can take it out at any time.

Besides, if the venture capital offers a high price later, I might not have to pay a penny."

It just didn’t say that the unit is RMB.

He has also thought it through. If he misses this opportunity, he will miss it forever. In a while, JD.com's financing will start at hundreds of millions of dollars.

He wouldn't have enough time to make money.

"I will arrange for Qingyun Investment to acquire a stake in JD.com. We will not issue convertible bonds, but directly convert them into your Class A shares, and entrust you with the voting rights."

Li Zehua thought about it and added, "As long as you are still the actual controller of JD.com, this rule will be valid forever."

Liu Qiangdong was stunned, "Really?"

Seeing him nod seriously, she was very happy, "Brother, you are really nice. You must have a good drink tonight!"

Can you be unhappy?

Once the two groups successfully cooperate, the shares held by Liu Qiangdong will exceed 60% again, which will be of vital help to him in managing the company.

However, Li Zehua was also troubled because the deal was done, but the money was still not settled.

The only way is to withdraw half of it from the stock market, and then borrow from venture capital or banks in the form of mortgage loans.

The 13 million shares of JD.com Group obtained in exchange are almost equivalent to more than % of JD.com’s current total shares.

JD.com has never made this data public, but based on the total number of shares held when it went public, Liu Qiangdong himself held approximately 3 million shares, with more than 3 million shares given out in the first and second rounds of financing.

This part of the financing is redeemable and convertible, which is equivalent to a loan.

However, there are special terms for Li Zehua's investment. Once JD.com goes public in the future, approximately 3600 million shares will be transferred back to Liu Qiangdong in the name of rewarding JD.com's management team.

The latter will buy it at a relatively reasonable valuation, more than half of the last financing price.

In return, when Li Zehua cheats venture capitalists later, JD.com will have to cooperate in raising the price.

When Hummingbird goes public, JD.com will also give him about one-third of the shares as a reward.

This is the value of Chimei Hummingbird. The combined valuation of the former is enough to exchange for 10% of JD.com’s current shares, and the US$500 million is only equivalent to a loan.

The shares can only be cashed out when JD.com is successfully listed, but as he is familiar with historical development, he clearly understands the value of this part.

Liu Qiangdong was very happy that the cooperation was successfully reached and kept asking questions about the operating model of Fengniao Express.

When I heard that Li Zehua's team, in addition to the Chime Fengniao website, also had a portion of its revenue traded in cash, I shook my head repeatedly.

"I'm telling you, cash transactions must be eliminated. Look at JD Logistics, all of them use POS machines..."

"Otherwise, I still need some guidance from an old veteran. I came here this time to purchase office computers so that we can get things up and running as soon as possible."

Hearing Li Zehua nodding repeatedly, he also took the opportunity to ask for some preferential policies. After all, one thousand computers were just an appetizer.

His group buying plan may need JD.com's help in the future...

The two of them conspired in the office to reach a deal.

Temasek, Jinshajiang and Gaoling Capital are also not idle.

Thanks to the advance knowledge, the negotiation speed among the three parties was not slow.

Invest, you must invest!

The question is simply whether the catering holding plan itself is the foundation for building a catering distribution empire or just a pie in the sky to deceive investors.
Temasek responded more quickly in this regard.

It only took Lin Wenhui an hour to send all the content back to Lijiaopo.

Temasek headquarters gave a clear answer: lead the investment at all costs!
This is a project that the headquarters is optimistic about. The business logic is sound, the market share is rising steadily, and the user response is very good.

In addition, Fengniao Express has achieved successive victories in platform development, so how could they give up this opportunity?

Fifteen million US dollars accounts for 20% of the angel round, which is not low for any startup in the world.

But the situation has changed now. As we have a deeper understanding of the Hummingbird model, we have discovered its irreplaceable unique advantages.

And the monopoly strategy for future development have all deeply impressed venture capitalists.

Of course, Temasek needs to analyze it carefully.

One hour is enough for their think tank investment analysis team to give preliminary opinions.

There is a great possibility of success!
First of all, thanks to Chimome, Hummingbird has a huge employee base. At this time alone, they have a field sales team of about a thousand people.

Temasek is a shareholder of Ali, so it naturally understands the strength of Taotao’s iron army in its early days.

Any ground promotion team that eats up the food has half the combat effectiveness of the Ali team with the same number of people!
This matter can also be done in an orderly manner.

The second is Li Zehua’s ambition!
Never underestimate the role of a company's founders, especially in the early stages, as they can have a decisive impact on the future ceiling of the entire company.

As the saying goes, if a soldier is raging, a general will be raging in a nest.

The speed of a train depends entirely on the locomotive.

Li Zehua himself has great energy, excellent vision, and leaps into the future thinking.

Especially when we first met him, his self-deprecating remarks about his clothes and his determination to never give up, all showed his deep desire for success!

Just imagine, how strong must a person be inside, who has proven his abilities in the financial market, made quick money, and can endure loneliness?

The logic of investing is to invest in people!

In this regard, venture capital, in addition to being more professional and having more reliable and faster sources of information, actually values ​​the overall qualities of the entrepreneur himself the most.

Li Zehua's biggest weakness is that he has not received a high-quality education and does not have a prominent background.

This can be seen from the business model he founded. Although Chizume and Fengniao both have their own websites and very high user stickiness, they are completely different from the mainstream Internet that focuses on light assets and heavy technology and pursues user scale.

Fortunately, there is a considerable potential user base.

It has to be admitted that Li Zehua has grasped the core competitiveness.

Just as a senior executive of Temasek said: The three major operators are equivalent to the water and electricity infrastructure of the Internet. Tenda has grasped the information exchange, Ali has grasped the commodity exchange, and corporate foreign-related services.

And have you eaten it?

It is about to capture the stomachs of people all over the country!

The most important thing is that this plan itself has a successful reference, which is the successful Home Inns and Hotels Group that was listed in New York.

Its founding team used superb capital operations to first invest in a hotel, use the hotel as collateral to open another hotel, and then use the hotel's income in the next few years to borrow from banks and financial institutions.

After opening 20 hotels, they began to train a management team and look for franchisees on a large scale across the country. They cooperated directly with the landlords, converted shares, and dispatched management teams.

Using a unified decoration style and a unified service team greatly reduces uncontrollable risks, enables rapid expansion, rapid listing, and rapid cashing out.

The one who is best at this approach is Hai H, which is the fastest-growing company on the market. In just a few years, this previously unknown company has expanded its influence to the extreme.

As for one day in the future, when it collapses, people will find out what the so-called capital operation is all about.

But at the moment, their existence is proof of the success of our strategy!

This greatly increases Temasek’s confidence!
If successful, Chichume will directly monopolize this huge market. At least in terms of non-policy and purely commercial competition, it will be invincible.

Li Zehua brought this up at this time because he didn't want venture capitalists to misjudge the value of the product. He understood the principle that rare goods are valuable!
But the Fengniao express delivery platform is slightly weaker. After all, the future is full of uncertainty because it only grasps half of the competitiveness of e-commerce and is still a dominated downstream industry.

But no matter what, the chemical reaction produced when these two companies come together is still very fascinating, and it seems to have an unlimited future.

"Okay, I'll do it."

After hanging up the phone call from the top management of the group, Lin Wenhui waved his hand and said, "Let's talk again. We must win."

He was full of confidence, and he became even happier when he heard that Gaoling Capital had not yet left the meeting room.

Unfortunately, as soon as I arrived at the office, I was almost knocked unconscious by a club.

"No, Mr. Li, are you kidding me?"

After listening to Li Zehua's introduction, Lin Wenhui looked back at Zhu Xiaolong and Lin Renjie, feeling that it was unreal.

They talked with Li Jiaopo for an hour in the conference room. Have they eaten here? Have Hummingbird and JD.com reached a preliminary cooperation agreement?

Li Zehua smiled and said, "I have to thank Mr. Lin and Mr. Zhang from Gaoling. Without your recommendation, I would not have been able to reach an agreement with Mr. Liu."

Liu Qiangdong nodded in agreement, "Mr. Lin shouldn't mind, right?
Business cooperation requires complementary advantages, and it just so happens that Fengniao Express and JD Logistics have a lot of overlaps.

Mr. Li and I had a great conversation on this issue, and we are both very optimistic about each other’s business logic and future development.”

Li Zehua took over the conversation, “This is also a good thing for Temasek Jinshajiang. Fengniao Express has added JD.com, a powerful partner, which eliminates the underlying risks.

Expanded business scope and living space!

I firmly believe that reaching a strategic cooperation with the fast-growing JD.com will play a decisive role in the future development of Hummingbird.

Temasek and GSR Ventures will also gain a high-quality enterprise with a more certain prospect and more controllable risks.

This is a win-win cooperation for us!"

"Win-win..."

Lin Wenhui resisted the urge to curse, what the hell is this a win-win situation!
If other companies said this, he would definitely have no objection!

I wish someone would come in and share the risk.

Problem: Temasek, from top to bottom, is optimistic about the cooperation.

For this purpose, he was urgently authorized to issue a 3+5 bet agreement, striving to reach a cooperation within the range of million US dollars. As long as the target performance is achieved, an additional investment of million US dollars can be made at any time.

What should we do now?
He had no choice but to bite the bullet and ask for the details of the cooperation.

How could this be possible? Li Zehua shook his head decisively, "Sorry, just now, my lawyer team in Yanjing has signed an investment intention agreement with JD.com's legal department."

"What agreement of intent?"

The one who suddenly spoke was Zhang Lei of Gaoling. He squeezed out of the crowd and spoke anxiously.

Before he had time to reach a consensus with internal investors, he heard that Temasek had left. He left his team and hurried over. When he suddenly heard this, his scalp went numb!

Li Zehua explained again, and Zhang Lei couldn't sit still any longer. "Mr. Li, are you kidding me? You know we are in a negotiation, this is too much.

Is this a continuation of the hummingbird tradition, where friends who come to help are treated as enemies when things don't go their way?
Or, in Mr. Li’s eyes, venture capital firms are dispensable, and our reputation can be trampled on at will?”

The look in his eyes was extremely unfriendly, and it would not be an exaggeration to say that he looked fierce.

He also put pressure on Lin Wenhui, who was also very unhappy, but did not leave the court as quickly as he did.

But who is Li Zehua, that he could be scared by him?

He immediately responded with an even more ferocious look, "Mr. Zhang, are you trying to scare me?"

The greatest confidence in living your life again is to be able to see through the future development of the situation. No matter how successful you are today, you cannot escape the crushing of the general trend.

Li Zehua took great pains to plan for this, contacting Southeast Asian capital, and even preparing to live a hard life in the next few years.

If you want to take a shortcut, it would be much easier to go directly to American Capital. They have been deeply rooted in this land for many years, and their network of contacts covers all walks of life, especially in financial operations.

But he didn't want to be liquidated after seven or eight years.

Since you take the money, it is impossible for you not to be influenced by others, and it is inevitable that you will show your bias on certain issues.

So from the beginning, he didn't plan to take the initiative to contact her. If there is, that's great. If not, then forget it.

This thing requires extreme pulling.

If you come to me and ask for investment, then I will definitely put forward conditions and requirements. If you agree, I will invest. If you don’t agree, you can go out and invest in my competitor, and I have no objection.

After all, a business that is driven by others is not a good business!
Although Lin Wenhui didn't get angry, he was still holding back his anger. "Mr. Li, we at Temasek came here with sincerity. Isn't this inappropriate for you to treat guests well?"

Li Zehua was neither humble nor servile, and behaved in a measured manner, "First of all, I came to Yanjing this time to seek strategic cooperation with JD.com.

Secondly, I have disclosed all the information about Chizume and Fengniao to all my venture capital friends without reservation. Isn’t this enough to express my sincerity? "

Lin Wenhui was speechless, and Zhu Xiaolong coughed to ease the atmosphere.

Zhang Lei couldn't bear it anymore and directed the conflict directly to Liu Qiangdong, "Mr. Liu, signing a strategic cooperation and mutual shareholding is such a big deal, doesn't your company need to hold a board meeting to vote on it?"

The latter smiled slightly and said, "According to the company's articles of association, we have just held an emergency board meeting and successfully obtained unanimous consent from all participants!
After our careful evaluation, all the directors attending the meeting believed that cooperation between us would provide positive help to the business development of JD.com!"

How can I disagree?
Except for two venture capital seats, the rest of JD.com's board of directors were brought up by Dong Ge himself. Several other people were also present and nodded in approval.

"But this will affect the relationship between our two families! It may even hinder a certain plan that is currently being implemented."

Zhang Lei tried to threaten from other places, but because of the presence of people from Temasek nearby, he was able to speak vaguely.

Lin Wenhui is not in a hurry now. What has happened has already happened and he can't change it.

If you relax your mind, you will see things more clearly. Li Zehua is right. With JD.com joining in, the prospects for express delivery platform network construction will be even better.

This is a good thing, as Temasek does not lack the money anyway.

While waiting, he had someone pass the message back to headquarters and await a response.

Now listening to what Zhang Lei said to Liu Qiangdong, I feel thoughtful.

Temasek's investment in Ali is subject to restrictions in terms and conditions. Even though it is optimistic about JD.com, it cannot act rashly.

Thinking of this, he gave Zhu Xiaolong a look, and the latter understood immediately and stepped forward and said,
"Boss Liu, Boss Zhang, we are all friends. There is no need to get upset over this matter. Just calm down."

Liu Qiangdong was just preparing to organize his words to refute.

Even potential investors cannot interfere in JD.com’s decision-making. The worst that can happen is they can just switch to another company.

Zhang Lei didn't want to get into an argument, so he took the opportunity to say, "I said the wrong thing, but what you did was really unkind, Mr. Liu."

Li Zehua couldn't stand it anymore and spoke up to help, "Let's talk business. If Mr. Zhang insists that the cooperation between Mr. Liu and I has harmed Gaoling's interests, then this cooperation can be terminated directly.

I speak quite directly. First of all, I have made it clear that I came to Yanjing this time to seek cooperation directly with JD.com. Both Mr. Lin of Temasek and you, Mr. Zhang, joined us temporarily.

If we continue to dwell on this issue, I think we can end this conversation early to avoid damaging our friendship."

Zhang Lei was helpless, but he didn't get angry.

This made the other people who were watching the show feel very regretful. If Gao Ling quit at this point, it would be great for them to have one less competitor.

Zhu Xiaolong continued to add fuel to the fire with a smile on his face, "Boss Zhang, can you bear this? Why don't you ban it in the industry or something?"

Zhang Lei sneered, "Don't worry about it, Mr. Zhu. You should just take care of yourself. You only invest in industry followers, not even a leading enterprise."

He was very angry, but refused to leave.

(End of this chapter)