My Age of Investment

Pre-A round of financing, as a non-mainstream transitional financing, the financing scale is generally not too large.

Because there are too many financings, all of them can be directly called A-round financing.

In addition, the business model has not been verified, and investors are not willing to take too many risks and make large bets.

However, since Xia Jingxing holds 51% of the shares in Lilith, which is left-handed and right-handed, he doesn't have so many worries.

However, there are some unspoken business rules, he decided to explain clearly to the second daughter.

Without looking at Abra, Xia Jingxing looked at the two women and said, "Don't ask me how much to invest, but how much money you need."

"How much does it cost? Is there any standard?" Shen Xinyi frowned.

Xia Jingxing nodded, "Yes, let's calculate how much money it will cost to achieve the scale of the company that can finance the A round from now on.

Just follow this standard to melt!

Considering that there will be discrepancies between the reality and the plan, we can blend in a little more. "

Gao Lili asked carelessly, "Can't you be more mellow?"

"If you raise too much, you will dilute too much shares in the early stage, which is not good for the founders and will overdraw the future returns.

In addition, raising too much money, but most of it is not used, this is a manifestation of inefficient capital utilization.

After the business model runs smoothly, when you raise the A round, you can raise several times or even dozens of times the funds with the same proportion of shares.

In this regard, you can refer to Facebook. "

Xia Jingxing's words were deafening. Both Gao Lili and Shen Xinyi felt as if they had opened a door to a new world.

Abra nodded approvingly. Darren Xia's career has grown so big, and he still has something in his stomach.

"What kind of enterprise scale do we need to reach the standard for opening the A round of financing?"

Shen Xinyi is very keen, and it is very important to realize this point. For them, it is also a blind spot in thinking, so she asked for advice.

"That's a good question!"

Xia Jingxing first gave a word of approval,

Then he said: "First of all, the business model is working. What is your business model?"

"Recruit influencers and let them make money for the company."

Gao Lili's words are concise and to the point, it sounds rough and simple, but there is actually such a truth.

"That's right, let me add a few more points, first of all, to discover and cultivate Internet celebrities on a large scale, this requires Lilith to establish a set of relevant professional mechanisms;

Secondly, tie up Internet celebrities and let them stay in the company willingly. After becoming famous, many Internet celebrities may jump out and do it alone, because no one will share their money.

The problems reflected by this are the uneven distribution of benefits, the mismatch between the value that Internet celebrities think the company provides for themselves, and the benefits they bring to the company, and so on.

In the end, it is the value creation of the Internet celebrity brokerage company.

You must accumulate rich brand cooperation resources, and you must also establish a set of mechanisms for maximizing the development of Internet celebrity resources.

This is a means for you to control Internet celebrities, and it is also a means to increase corporate revenue. "

"This is very similar to our traditional brokerage company!"

Abra boldly interjected, "We provide contracted artists with a series of exposure opportunities such as TV stations, magazines and newspapers, various charity activities, etc., and even help them publicize awards.

Then the fame of the artist increases greatly, and he can get more resources in the entertainment industry.

In addition, they have to help them choose and steal plays, and create scandals.

In short, everything they do is for money, the more the artist earns, the more the brokerage company will get.

However, Dai Lun, will there be internet celebrity brokerage companies offering high prices in the future? "

Xia Jingxing didn't show any embarrassment to Abra this time, and said indifferently: "For the time being, there is only Lilith, an internet celebrity brokerage company, as long as you seize the opportunity and develop rapidly.

In the future, it is other Internet celebrity brokerage companies that should worry about being poached, not you. "

"That's right, Daren, you said it very well. With so many resources and a first-mover advantage, we will definitely be giants in this circle by then."

Xia Jingxing ignored Abra who flattered him, and continued to say to the two women: "These sound corporate management mechanisms need to be shown to investors, and they need to be constantly reviewed and questioned.

The most convincing thing is the data, such as how many Internet celebrities have signed contracts, how many subscribers does each Internet celebrity have, and how much revenue does each person contribute to the company?

And, most importantly, can these revenues cover the initial investment costs?

This is the key to a successful business model, proving that it is a profitable business.

This is very important. When there is no business data, you can brag to investors about how the business makes money in the angel round.

However, after the product or service is launched, a certain amount of business data has been accumulated, and this is not the time to just say it and let it go.

Presenting data and presenting facts has investment value, and investors are actively investing.

And if it can't prove that it is a profitable business, investors will not take a second look. "

The two women looked contemplative, there was too much information to receive all of it for the time being, and they were still thinking seriously.

After a long while, Gao Lili nodded, "I understand, next we will seriously think and explore in the direction you mentioned.

What about now? Is there a clearer standard, such as how many Internet celebrities? How much revenue per year? "

Xia Jingxing pinched his chin, "Internet celebrity brokerage is a new product, and venture capitalists don't have much experience.

Therefore, they may apply the business cases and financial models that they have come into contact with in the past and are similar to those of Internet celebrity brokerage companies.

Since this project has nothing to do with the Internet, it is a high probability event to use Internet companies to apply and compare.

It doesn't matter if you can't make profits in the short term, but the financial statements you make must show a beautiful growth curve.

High growth rate is an important criterion for judging the potential of a business model.

Let me set a standard for you!

Taking the completion of this place as the starting point, within half a year, the monthly revenue will double from the previous month. "

"It's not difficult to double the growth!"

Abra looked calm and calm.

Different from Abra's ignorance, Shen Xinyi and Gao Lili are both Stanford students. They know that this is called exponential growth. One becomes two, two becomes four, four becomes eight...

It can be understood as from the first power of 2 to the sixth power of 2.

It's terrifying to kill people, and it's not so easy to achieve.

Seeing the two women's sad faces and lack of confidence, Xia Jingxing comforted him, "Just to give an example, in the first three months, double the growth, and in the next three months, achieve 90%, 80% %, 70% growth is also possible, and quite good.

In fact, a mature company, calculated on an annual basis, can achieve a growth rate of more than 10% per year, which is considered good. "

Hearing this, Gao Lili breathed a sigh of relief. The exponential growth just now was really too difficult. Maintaining a monthly growth rate of tens of percent can still work hard.

"You guys use the financial data generated by Lilith's current YouTube account to do an analysis and start to make growth plans.

Through the reverse derivation of the goal, you can calculate how many Internet celebrities you need to recruit every month with data similar to yours.

Then refine the goals, aiming at recruiting such a large number of Internet celebrities every month, what work to do, how to implement and complete.

Finally, collect the data to get a financial model, how much money is missing, ask me to get it. "

Gao Lili was completely convinced, and the other party's cocoon-like analysis had already illuminated the way forward.

It’s just that in the final analysis, the most difficult thing is the implementation. One link is passed on to another, and the effect is easy to decay.

However, during the implementation process, Xia Jingxing could no longer be counted on.

If the other party has done everything, why should they do it.

Xia Jingxing didn't say any more, and took a few people to visit every corner of the creative space.

The reason why he brought the three of them here to have a look is to cheer the three of them up and let them see how much Youtube supports vloggers and Lilith.

The goal he set for Lilith is not low, but at the same time, there is also a lot of corresponding support.

Entrepreneurship is destined to be a difficult and long journey. During this period, you may have self-doubt. This requires the encouragement and affirmation of your partners, and you also need to learn to self-regulate and turn pressure into motivation.

If you can't adapt and grow, you can only be eliminated, which is the same as the principle of natural selection and survival of the fittest.

After visiting the creative space, it was getting late and there was no rush for the night. Xia Jingxing found a high-end hotel in the center of Los Angeles, had dinner with the three of them, and arranged for the three of them to stay.

He also stayed, planning to return to Silicon Valley the next morning, safety first, and avoid driving late.

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