Chapter 17

After five minutes, perhaps it was thought that the reaction seen by outsiders had reached an agreement. At this time, several big men inside were quiet and began to talk and laugh again. It was absolutely unexpected that a few minutes ago, several people were still red in the face.

After a while, Michael Moretz ran out of the conference room. Obviously, he was the only one who could do the errand work. Considering that several of them were the bosses of the company, only he was the second-generation core and was still training. Who else could he do besides him.

"Well, you guys, several of them have completed the negotiation and have achieved results. This investment is the fastest investment plan I've ever seen. Yahoo is a pioneer."

"Oh, that's the best. We all want a good result, don't we?" Yang Zhiyuan replied with a smile.

"Michael, why did you come out to do errands?" At this time, Li Feng was joking on the side.

"Ha ha..."

Sure enough, hearing Li Feng's joke, looking at Michael Moretz's helpless and speechless appearance, they just laughed, and then they entered the small conference room again.

......

"Welcome back, boys. You can be said to be lucky. We agree to your financing plan in principle."

Hearing the words of Andy Grove, President of Intel, Yang Zhiyuan was a burst of excitement.

"Well, boys, I haven't finished yet. In principle, we agree with your financing plan, but we still have some differences on the equity ratio and the current valuation of Yahoo. Therefore, we still need to negotiate with you.

First of all, the valuation of 500 million is really crazy. Our valuation is 350 million.

Second, 20% of the shares are too low. We hope to have more shares, at least 30%.

Finally, if the financing is successful, we will try our best to help Yahoo rise to the Internet and make Yahoo become an Internet upstart.

All right, boys, have a good discussion. " Then he took the lead out of the conference room.

Well, this time it's the turn of a group of big guys to go out of the conference room. Li Feng and others look at each other in the conference room.

......

"350 million is too low, and we can't have too many shares. If there are too many shares in the first round, who knows what will happen when we wait for the second round. Maybe after two rounds of financing, our company won't belong to us.

If there are too many shares, we should stipulate that some shares have only dividend rights and no voting rights, so as to ensure our control over Yahoo.

We don't want to be "Apple jobs second" and be driven away.

In addition, you listen to their two points. In fact, they obviously need to talk about valuation. In fact, they pay more attention to shares. I guess they hope our shares can be divided more. This is their purpose. "

Li Feng first put forward his own ideas. After all, later generations have seen too many, and the founders of many enterprises have been forced to leave the company.

......

As Li Feng's words fell, Yang Zhiyuan and others agreed one after another and felt that what Li Feng said was reasonable. At this time, Yang Zhiyuan and others did not succeed later. Then they began to set various conditions for such a scheme.

In fact, as long as there is a general framework, the conditions are easy to set. What I fear most is that I didn't think of it. Therefore, several people quickly said a few requirements and reached an agreement.

Later generations, when Yahoo went public, Yang Zhiyuan soon withdrew from Yahoo's management. On the one hand, it is estimated that there must be contradictions within the board of directors, so Yang Zhiyuan can't control power; On the other hand, it is also related to the corporate cultural atmosphere in Silicon Valley.

After the success of the enterprise, many founders cashed in a large amount of money and transformed to be venture capitalists. As for the company, they handed it over to professional managers.

Among them, the most famous include the founders of Netscape and Yahoo, who have established personal venture capital companies in Silicon Valley.

Of course, some people are smart and set various conditions in the financing process. The typical ones are Google and FB.

The founders of the two companies set smarter conditions in the financing process, so as to keep the two companies firmly in control. Even if the founders don't have many shares. But in the board of directors, the voice is the largest.

Li Feng's proposal is to emulate the two companies in future generations and let the company control in the hands of several people.

......

Sure enough, Li Feng stood on the sidelines for the next verbal swords, mainly Yang Zhiyuan and Tim.

On the one hand, we want to reduce the valuation and increase the shares. On the other hand, we want to keep the valuation as usual and share as few shares as possible. Therefore, it is not lively.

In the end, we first reached an agreement on the valuation, valued at 400 million, and then the issue of shares.

At the same time, Yang Zhiyuan and others felt that they had to take at least 30% of the shares, and were only willing to give up 20% of the shares. Finally, Yang Zhiyuan put forward the issue of voting rights and options, promised that 20% belonged to voting rights and 10% did not have voting rights, and reached an agreement to raise 100 million yuan.

Yang Zhiyuan and David Philo took out an additional 2.5% of their shares and cashed out 10 million each to improve their lives.

After all, before the two were students, life was still very hard. At the same time, it is determined that this share also has no voting right.

The 2.5 shares were finally obtained by Silicon Valley venture capital Gemini KPCB and Sequoia Capital.

Li Feng, who is familiar with history, is certainly unwilling to cash out. It's a big deal to find a bank loan. This is Li Feng's psychology.

......

Finally, the five investment companies each took out 20 million yuan, each with 5% shares, of which 4% were voting shares. KPCB and Sequoia Capital received 7.5% of the shares. An additional 10 million was paid to Yang Zhiyuan and David Philo.

Li Feng was diluted to 15%, Zach to 3.5%, Yang Zhiyuan to 27.5%, and David still had 24% shares.

After it was finalized, Zach drafted the financing documents on behalf of Yahoo and a group of legal representatives of venture capital. Yang Zhiyuan signed on behalf of Yahoo and several other big men on behalf of venture capital, promising that $100 million would arrive within three days.

At the same time, it will send personnel to Yahoo's board of directors and promise to help Yahoo grow.

For example, AOL promises to help Yahoo build a personal free email, and the other companies will help Yahoo in human resources and technical talents, which is also one of the reasons why Yahoo values most.

Yahoo financing officially ended with the signing of both parties, and everyone applauded. With the applause in the small conference room, there was also a burst of cheers in the garage outside, especially the employees in Yahoo.

......

As they walked out of the meeting room, everyone in the garage stood up and looked at the group. Yang Zhiyuan came to the front at this time.

"Guys, now I announce that the company has a valuation of US $400 million and a financing of US $120 million, including the company's development fund of US $100 million and cash out of US $20 million. The agreement has been officially reached."

As Yang Zhiyuan's voice just fell, everyone cheered.

"At the same time, sitting at each Yahoo employee, speaking, there are exactly 10 employees. After the discussion of several founders, they take out 4% and each person gets 0.4 percentage points. Although it's not much, I hope you will be considerate and continue to work hard."

This is the result of the previous negotiation. A total of 5 points were taken out. Tim won one point alone and the other 4 points were divided equally. Originally, I wanted to wait until the next financing, but Li Feng thought that if the next time is not financing directly, but listing financing, it is still necessary to distribute equity now.

Sure enough, with Yang Zhiyuan's announcement, all the remaining 10 Yahoo people cheered and screamed. There was no way. According to the current valuation, it was more than 1 million. I believe it will be more valuable in the future. Everyone was very sure.

Similarly, the small Luo Luo of those companies also envied those employees of Yahoo.

......

Li Feng took out 1 of the 5 shares, and Yang Zhiyuan and David each had 2 points, which was proposed by Yang Zhiyuan.

Therefore, in the end, Li Feng still has 14%, Yang Zhiyuan 25.5%, David 22%, Zach remains unchanged 3.5%, employee stock ownership 5% and venture capital 30%.

Just after Yang Zhiyuan cheered, a large banner went on the Yahoo website so that everyone on the Internet can see it.

"Warmly congratulate Yahoo on the successful completion of the first round of financing, with a valuation of US $400 million and a financing of US $120 million. Yahoo will get better and better!!!"

Similarly, with the hanging of the banner, Yahoo financing information came out instantly, and Yahoo is famous all over the United States.