That night, Shanghai TV's evening news broadcast a briefing about the college student entrepreneurship competition. It only lasted about two minutes. Thanks to his handsome appearance, the photo of Qin Hao receiving the trophy stayed on the screen for about ten seconds.
As for the publicity effect of Youth Home, it can only be said that it is better than nothing.
Of course, Qin Hao didn't care, his goal had been achieved.
"Mr. Zhu, welcome to the Youth Home."
Zhu Xiaohu shook hands with Qin Hao with a smile on his face: "Your place is pretty good."
"It's better inside." Qin Hao said confidently.
Zhu Xiaohu smiled even more heartily. One of venture capital is choosing the track, the other is investing in people, and the second is the team and business model. Therefore, the leader of the entrepreneurial team is very important. As a leader, if you don’t have enough confidence,
How can you lead your team out of trouble?
While talking, Qin Hao began to take Zhu Xiaohu and others to visit the company.
"Mr. Qin, according to what you said, the number of registered users of Youth Home has exceeded one million. I think you only have seven or eight programmers here. Isn't there not enough staff?" Zhu Xiaohu questioned.
In fact, one of the most important purposes of Zhu Xiaohu's trip is to find out whether the millions of registered users of Youth Home are real.
Qin Hao smiled and explained unhurriedly: "For now, it's actually enough, because our Youth Home users are different from other software users. We only log in when there is a need, so we
The pressure on the server is not great. Only during the winter, summer and summer vacations and the beginning of the year will the server experience a certain amount of pressure."
In fact, this is one of the reasons why Qin Hao wants to get the shares of Ele.me. The attributes of Youth Home determine that its users will not be too active, and the consumption frequency of Ele.me users is much higher than that of Youth Home.
This is a traffic entrance that cannot be ignored. The reason why Alibaba will spend a lot of money to acquire Ele.me in the future is actually for the same reason.
Zhu Xiaohu thought about it carefully and felt that it made sense, but he was still a little worried: "Mr. Qin, is it not convenient for you to bring up the background data and let me see it?"
"No problem at all."
Real gold is not afraid of fire, so Qin Hao naturally has no reason to hide it.
Wang Zhe quickly called up the background data and gave up his seat to Zhu Xiaohu.
Zhu Xiaohu looked at the beating numbers in the background, with a hint of excitement in his eyes.
As Qin Hao said, the users of Youth Home are not active, but compared with other software, Youth Home has an advantage that others cannot match, and that is its unit price. The monthly rent for a house is basically 1,000 yuan.
The amount goes up, and some even reach tens of thousands. The Youth Home has more than 2,000 properties on hand, and the monthly rent exceeds one million. This is sales, and capital likes to hear stories like this.
Standing up from the computer, Zhu Xiaohu said to Qin Hao: "Mr. Qin, let's find a place to chat."
"Clean up the conference room." Qin Hao turned to Liu Xin and said.
"Um."
There were only two people in the conference room, Qin Hao and Zhu Xiaohu. Zhu Xiaohu took a sip of instant coffee and didn't mind it. He tapped his fingers on his thigh and said seriously.
"The operation of the Youth Home has reached a considerable scale, but I have a question, what is its business model, and how will you make money in the future? As you said yesterday, you have burned more than 20 million so far
, it is possible that more will be burned in the future. Such a large investment is very risky."
Qin Hao smiled leisurely: "Actually, Mr. Zhu has probably guessed something. Whether a project can be continued depends not on how much profit there is on the books, but how much cash flow there is on the books. I can
It is no exaggeration to say that the cash flow of Youth Home is definitely the richest among Internet products of the same magnitude."
Zhu Xiaohu shook his head: "But the money does not belong to the youth home, but to the landlord."
"Yes, the Youth Home is still in the development stage, so most of the agreements we signed with landlords are for monthly payments. The cash flow we retain on hand mainly comes from users' deposits. However, when the Youth Home reaches a certain scale, we will
You can definitely sign a longer term contract with the landlord, with a one-time payment of three months or even half a year.”
Zhu Xiaohu was already a little excited in his heart, but there was no expression on his face: "I believe you can do this, but you still haven't solved the problem of profitability."
"Mr. Zhu, if you have one billion in cash, it shouldn't be difficult to achieve a 3% profit point. What is the annual profit?" Qin Haoyun said calmly.
Zhu Xiaohu's right hand, which had been placed under the table, clenched his fist unconsciously, and he was roaring in his heart. In their industry, if someone makes an annual profit of one billion in cash to only three points, they will probably be laughed to death by their peers. It is better to exist.
Banks have high profits, so what else do they need to do?
Not to mention a profit of three points, a profit of seven or eight points is normal. As Qin Hao said, with huge cash flow, there are many places to operate. There is no need to charge user agency fees.
If you make money in such a low way, how much money can you make?
"But how do you guarantee that it will be large enough?" Zhu Xiaohu suppressed his inner excitement and asked calmly.
Qin Hao spread his hands: "Does Mr. Zhu know why I chose long-term rental housing as a business project?"
"Because there is no opponent!"
These six words struck Zhu Xiaohu's heart hard, instantly defeating his last hesitation.
As Qin Hao said, compared with traditional housing agencies, the advantage of Youth Home is that it does not consider profits and everything is based on improving user experience. The Internet industry is naturally not interested in such asset-heavy and high-investment projects.
interest.
There is no end to the giants, and other small companies cannot afford the initial investment costs. This is a natural moat. By the time those giants react, Youth Home has already won enough market share, and it wants to join this game again.
It's already too late.
Even Internet giants like Alibaba Penguin will not risk huge investments and the risk of not receiving anything, and enter the market rashly. Investment, cooperation or even direct acquisition are more likely.
Zhu Xiaohu asked the last question: "If one day, Ali or Penguin, which one would you choose?"
"Penguin." Qin Hao doesn't have much fondness for Penguin, but Ali's appearance is too ugly. The final result of all companies controlled by Ali is that the founding team will be kicked out. Penguin is relatively open in this regard, not only investing in
The money is returned to traffic support, and the key is not to interfere with the actual operation.
"I have no problem, just make a price!" Zhu Xiaohu spread his hands. The young man in front of him didn't feel like a fledgling entrepreneur. He was too mature. With such a good project, he didn't have any
The reason for not investing money.
Qin Hao thought for a moment and said slowly: "The valuation is 500 million, and I can give up 15% of the shares."
Zhu Xiaohu was no longer calm now and almost jumped up from his chair: "It's impossible. The number of users and size of Youth Home cannot give such a high valuation, and 15% of the shares is too small. I am doing
For venture capital, risk and return must be directly proportional!”
Qin Hao smiled and spread his hands: "15% of the shares is already a lot. The business model of the Youth Home is already very clear. There is no need to explore how to make a profit in the dark. This greatly reduces the risk. 500 million yuan is already a lot of money."
I think the valuation is not too much and is very fair.”
Zhu Xiaohu cursed in his heart, "How fair is it? Which Internet company with one million users can get a valuation of 500 million? If this project hadn't really made him excited, he would have slammed the table and left."
"The valuation of 200 million is the highest, and I want 25% of the shares. It cannot be lower, otherwise I will not be able to explain to the shareholders!" Zhu Xiaohu gritted his teeth.
Qin Hao still shook his head: "I can make certain concessions on the valuation, but the maximum number of shares is only 15%, not a single point more."
According to Qin Hao's estimation, at least four rounds of financing will be conducted before Youth Home is listed. In order to ensure that he will not be kicked out, he must hold no less than 20% of the shares.
Zhu Xiaohu's face turned dark immediately, and he wanted to say some cruel words, but when he thought that Qin Hao could invest more than 20 million to build the youth home to this scale, if he was more ruthless and continued to invest tens of millions, he would think about it next time
The investment may not be at this price, and Qin Hao is also likely to find other investments. After all, there are too few projects that have matured like the Youth Home.
"I need to discuss it with the shareholders before I give you an answer."
"no problem."
"Three days at most!"
Qin Hao and Zhu Xiaohu shook hands with each other. Both parties knew that the valuation was actually a small issue, and it was not something they could just talk about. The asset appraisal would definitely take effect in the future. The real difficulty lies in the shares.
, venture capital institutions are all about small and big, otherwise there are so many messy projects on the market, and only very few can become unicorns in the end. If there is not enough return, venture capital institutions will go bankrupt long ago.
After Zhu Xiaohu returned, he immediately found several partners for a meeting.
Looking at the project information of Youth Home, several partners were very surprised: "Mr. Zhu, where did you find this project? Which angel round was invested by it? Why haven't I heard of it?"
Zhu Xiaohu smiled bitterly: "This company has never gone through the angel wheel at all. It was built by the founder with his own money."
"Paid out of his own pocket? Rich second generation? Or is he so confident in himself?"
Seeing that the topic was going off track, Zhu Xiaohu quickly knocked on the table: "Don't worry about his background. What do you think of this project? Do you want to invest?"
"Then you must invest. Why should you hesitate for such a clear project?"
This point has been unanimously affirmed by several partners. In the venture capital industry, sometimes it is like buying a blind box. You never know what is in the blind box you bought. It is not easy to come across such a blind box.
It’s a “clear card”, so if you don’t take it, what are you waiting for?
However, when Zhu Xiaohu finished explaining Qin Hao's conditions, several partners became silent. This condition was indeed a bit harsh.
"Can't we talk about the shares again?"
Zhu Xiaohu shook his head and sighed: "If we could talk about it, I wouldn't be so entangled."
One partner hesitated for a moment and said: "How about this? You can make a detailed summary of this case, and then we will discuss it at the meeting. If half of the votes pass, we will vote."
"It can only be the."
Three days later, Qin Hao received a call from Zhu Xiaohu.
"We need to do an asset assessment of the Youth Home in advance, and we also need to audit the accounts of the Youth Home."
"No problem, you can do it anytime."
Qin Hao put down the phone and couldn't help but waved his fist excitedly, finally taking this step.
A week later, the asset appraisal report came out, and the account audit was also completed, which gave Zhu Xiaohu some relief. Judging from the audit results, the financial situation of the Youth Home was still relatively healthy.
The next step is arduous negotiations. In terms of valuation, the difference between the two sides is still very big. Zhu Xiaohu insists that the valuation cannot exceed 300 million, while Qin Hao grits his teeth. A valuation lower than 400 million is for young people.
Disrespect of family.
In the end, after intense push and pull, both parties agreed on a price of 350 million. At the same time, Zhu Xiaohu proposed to send a financial team to the youth home.
This request is not too much. After all, when you invest money, you must know where the money is spent. It is a normal operation, so Qin Hao agreed.
"When will the funds be received?" Qin Hao asked.
Zhu Xiaohu asked: "What are you going to do after you get the money?"
"The youth home has already reached a certain scale in Shanghai, and it's time to go out."
“The first payment will be due next week!”
Zhu Xiaohu was very satisfied with Qin Hao's answer.
In the next month, Qin Hao traveled north and south, opening youth home branches in Beijing and Yangcheng. Zhu Xiaohu also used his contacts in the industry to help Qin Hao recruit a group of middle-level managers, and brought two
The framework of the branch office is established.
The Youth Home has not become acclimatized in Beijing and Yangcheng. Facts have proved that Qin Hao's business model is completely correct. The arrival of the Youth Home is a complete dimensionality reduction blow to the local housing agencies.
In just one month, it has gained more than 300,000 new users in two cities. This is due to the fact that there are too few houses in Youth Home. It can be foreseen that there will be another six months of development period. By then, these two
How vast will the regional market be?
Zhu Xiaohu smiled so hard that he couldn't close his mouth. In just one month, the number of new users increased by 30%, which is equivalent to a 30% increase in valuation. Now if he gives up his shares of Youth Home to his peers, at least
All profits are above 30%.
Of course, let alone 30%, he would not sell even 50%. After finally getting a money tree, there is no reason to sell it. He still has to wait for this money tree to thrive and increase in value.
On September 1st, Qin Hao finally set foot in the Magic City again. If Professor Dong's teaching assistant hadn't called to urge him, he would have almost forgotten the time of reporting.
He has traveled through several worlds, but this is Qin Hao’s first graduate school experience.
I wonder if there will be any surprises waiting for him.
