From valuations 100 million to one night separation: a once-existing education

Leon | Reprint please indicate the source 36 krypton as well as the article link.

I don't know when to start, bubble noodles. The introduction of Krypton became "an educational product that once existed".

Half a month ago, it was an overvalued company.

The transition node appears on the bubble surface. The night before the signing of a round of Termsheet, June 17, several founders, because of the eventual absence of a plan to clarify the distribution of equity, led to a break in the team we see now.

Here is a brief summary of the entire history of the bubble surface bar: Things to go back to the bubble surface when the first product prototype. In fact, this product code similar to Codecademy was originally born in 92, Illinois at the University of Champagne in computer science 俞昊ran wrote, and then gradually continued to participate in the product development and iteration, until Hao ran the 8th member Shing, 10th member Wang joined, The team had a fixed three partners. His role is to be responsible for the company's administration, and Wang is responsible for content, BD, and financing for the previous experience of the investment organization.

Last year to get the angel financing, Wang and Ji Yue suspended and gave up the original work back home, focused on the operation of the company, Hao ran because to complete his studies, continue to stay in the United States. Until nearly one months, bubble surface bar began to seek a round of financing, there are four VC gave the Termsheet, the highest conditions for the bubble surface of the value of more than 100 million.

But on the night before signing Termsheet, Wang, Hao ran and Ji Yue because of disagreement, leading to the last five or six years of partners decided to split up business. So what happened that night? Why did you come to this last step? 36 Krypton and two parties Wang, 俞昊ran have chatted, the following we will take the king to 36 krypton restoration of the event after the version, as well as Hao, and he commissioned to restore the facts of the Yang version are written down, from both sides to restore the event.

Wang version:

That night, is last week, 17th night, we discuss in the company to take which Termsheet, decided to which one. Finally, start to discuss the details, and then finally said the shares.

In this side my shares are now the highest, Hao is about 20%. (Note: Wang later said that the specific shares he accounted for more than 30, Hao ran 20, option by Wang)

Because the earliest, the project is from Hao ran out of the hand, is the product prototype is from Hao ran out of the hand. Then he wrote a similar thing like the MU system in the Celestial Kingdom, which stipulates that after all, the shares are essentially equally divided. I think this thing is not very mature idea, because I have invested before, know this will create a relatively unhealthy share ratio.

But in the end, angel investors There is also a request, (said to a full-time can start in the domestic business, but Hao ran in the United States to complete the study), so in order to get the money, everyone hit, (agreed to this division, I am a major shareholder). At that time, we all admitted that there was no problem.

But since there was an idea of equal sharing at the earliest, I finally had a thought at the end of the night that I would take the next round of shares out of my hands. Take it from me, and I'll take it from me and Hao. Hao ran and I took the case from Ji Yue where to take, so in fact, we end up with the same. Because I think in such a team, Hao ran and Ji Yue always deserve more shares. It's a compromise I made.

Then the same night Hao ran forward to say, "Eh, why can't I be the biggest shareholder?" "I said no problem, but I think why do you propose today?" You've been back 1.5 months, haven't you?

And he said, no, we were talking about a swap. I felt so depressed, because I and all the people said is, we finally split the shares, including Ji Yue has been very impulsive, then she said that everyone is not always said to be equal, then you have this idea no problem, why not earlier? On such a critical time node.

Then Hao said, do you still recognize that I am the founder of the current project, I am in charge of the project? Ji Yue was more impulsive at that time, when Ji Yue said such a word, she said, "Chong now more important than you, in the future more important than you rush." ”

Hao ran completely angry, after his left hand holding a screen, right hand holding a keyboard, said I do not do, you play it, then we will not listen to how to persuade, must go downstairs. We rented an old house next to our staff dormitory, he returned to the dormitory, in fact, particularly convenient, three minutes to. We can't stop it, let him go back.

Go back after about 15 minutes of time, I am here to advise Ji Yue, including Yang, Yang He also in, the same night is we four people. I still advise Ji Yue not sad ah Balabala.

Then after 15 minutes, Hao ran back, he came back and said such a word: My head a hot, done a few more radical things. This is the climax of the whole story.

He said, first of all, I removed all the code on the GitHub, I'm the only one who has a copy, the second I deleted all the items on the Teambition, and the third I blocked all the emails from all our staff, I wrote two emails, and the first one was sent to all the staff, The second one is sent to all the investors we met, in which we enumerated the Wang, as the first company to set up, how with our company's angel investors to me framed, want to kick me out of such a thing.

Then these two emails will be sent in 1.5 hours, and now we'll sit down and talk.

Then my heart was dead, and suddenly I realized that it wasn't one of the things you could do in 15 minutes, it was a carefully set bureau, it must have a script. Then I also realized that this evening, not Hao ran quarrel with Ji Yue, but a long time ago prepared, Hao ran in and I was against. At this time I was particularly uncomfortable, particularly uncomfortable, (that is, these two weeks actually grew a lot for me).

Then after this thing, Ji Yue has been crying, and then we said a lot of things. Hao is probably a meaning, he will return to school in the second half, he will be CEO, the third he wants to holding. I said Hao, these three can not be achieved at the same time, this is a relatively naïve idea, and then he did not feel that this project is his, I took it from here to take away the and so on and so on.

And then he was talking about an agreement on our angel clause, because he is unwilling to give up his studies, OK, he has to study no problem, we then have such an investment agreement, there is a limit to him, is the first he will return before June 30 this year, the second allowed him to return to complete the second half of graduation, I think that's fine. If he fails to comply, he will take the shares he has already cashed, but he will not be able to get the latter, and we will find another CTO. In fact this is to let him back, is the investor Wang Yu They then put forward the terms.

In fact, I said the words, investors who vote for you a part-time person? What makes a bunch of full-time brothers and a part-time guy do it? So I and Ji Yue said sacrifice on the sacrifice, I said I dropped out of school, and then he graduated in the United States, is a teacher's work, the salary is very high, a year has four months of holiday. But at that time I said in the group, the angel has been almost, after half an hour later, Ji Yue took a ticket out, is flying back to Beijing ticket. Ji Yue said: "Sister resigned, back home." "So generous, so happy." But Hao ran he began to learn, said he belonged to an academic home, to give parents an account.

So Hao then came to say that this is a clause set up by Wang and angel investors to kick him out. I mean, what's the good of kicking him out? It's a great situation right now. Then he said no, the stake is not settled, Termsheet he will not sign, because a round termsheet need all the shareholders to sign.

I didn't want to say anything because I knew it was a well-designed bureau.

In fact, I was slightly passive later. Because the day basically people are talking over and over, in the noisy, from 10 o'clock to the next day 3:30 A.M., everyone is saying this thing, anyway, finally we did not agree, and then the night under the special big Rain, Yang and Hao ran back to the staff dormitory, Ji Yue drove me back to the trade side.

After what happened, basic staff and Hao ran they eat and live together, and then I learned that Hao gave them a lot of negative news, including what he said, he said that investors and he stood together, and then say what Wang, and repeatedly in their indoctrination. I think this is what I did not immediately and staff to communicate to.

The next thing is that we negotiated with the investors, but basically the first day we discussed the agreement, Hao ran the second day to overthrow, and then finally the end of the investment people are unbearable, said Hao how can every day in the deception every day.

Then Hao ran said such a word, he thought I and Ji Yue should resign, read in me and Ji Yue to the company's important contribution, and then will give me and Ji Yue a point to two points of the shares. I think frankly, I know Hao is also five years, he was not such a person, I have many aspects of his recognition, including his ability and so on. In fact, the real culprit is the person behind him, I believe he came back from the United States, see the company's situation is a psychological gap, and others behind the instigation, finally have a state of obsession.

Hao while chatting, I asked him if he could restore the scene, he asked me to ask him the question directly (later he commissioned Yang to repeat to me after, Yang said content written in the next part), so the following is my and Hao's dialogue:

Q: I think you wrote in the bulletin that Wang initially had a 65% stake.

Hao: Wang version is like this: So set up shares is to meet the needs of angel investors, must be a full-time in the country to do the streams, or do not vote.

Angel Investor's version is: Need a person to do full-time in the country, the proportion by the team within their own agreement.

Wang has changed his story several times before, such as the option pool, with 15%, 10% and 20% three agreements successively. In addition, when signing an angel, I had and Wang reached an oral agreement, you can swap, that is, by the king accounted for the big head of my small, adjusted to my big head king accounted for the small.

When signing an angel, there are a few agreements specifically directed at me. For example, I have to return to the full time before the end of June, otherwise they can completely deprive me of my shares. In this case, we had a lot of Skype exchanges when we signed the agreement, and I offered to sign it because both sides knew I was graduating in December and could not be back full-time until June. But in the end it was signed and it was a breach of the agreement. All of these protocols can be queried in the mail.

Q: Now you can't do it full-time, will it have a big impact on the project?

Hao: I have suspended, will be in the country until the whole project normal operation, away from me will go to the United States to continue to complete their studies. Before I started a part-time business in the United States, the workload can top 3 engineers, in addition to technology, products and market most of which I am in charge.

Wang before the external data is not real, three months time, bubble surface of the valuation how can be from 6 million to 100 million, turn over 16 times times? Now we do a round, I want to stop, one is that we do not need so much money, the second is the Angel stage there are too many not clear, such as forged signatures.

(Note: Then I asked Wang why it was so much money, Wang said that because he has also invested, how much can feel the current capital market a situation, he can judge that the first half of the online education is very hot, also have capital to invest a lot of money, but in the second half will be cold down, into the winter State, So he thinks it's not easy for the co-founder to get this condition for the company when it's still so much money and overvalued.

Here's what Yang repeats:

That night nine o'clock, everyone sat together, and then it seems to be Wang this initiative first mentioned, said our side form a good, got termsheet, we need to talk about the equity of these things.

Wang said that this round of dilution from his beginning, has been diluted to more than Hao 1%, on the stop, and then two people again diluted, and then diluted Shing.

Then Hao then put forward, in the end who accounted for large shares? Wang means that he accounted for more than 30%, but the generation of holding a part, Hao ran 20%, Ji Yue accounted for 10%. Then said, Hao ran to say that is not so said, why not agree with me as a major shareholder?

Hao ran said that is the angel so request the original share ratio, but agreed to a round when will be transferred over, said such a word. Then Wang said they didn't say that. So I can see Wang and Hao's description of the same thing is diametrically opposed, so my own judgment is that one of the two of them lied, but to tell the truth I still have no evidence to say that the two of them who have lied.

Later, they talk about, then Hao ran his computer and keyboard, already is whimpered, go out, I still remember his words is "my father said yes, you are bullying me", can be said to be one side of crying to go out. At that time I felt a 92 years, 1.9-meter such a person said such words, at that time some distressed.

Including later when we talked privately, we would discuss that the founders would not be big shareholders. Everyone feels strange.

Update: Chonghao asked, I added his comments under the article to the article, here are some of his direct response:

The question about Wang's TS: I never said that the stakes don't work out, I'm not going to sign a-round TS, my statement has always been, "If I don't tell the truth to Angel investors and investors in a round, I will not sign it; You have to be clear before you can. In addition, in this also adds a bit, Wang do the media contact to say the lie, I've been wiping his butt, and today there are still a bunch of manuscripts on the Internet that have not been cleaned up, and a piece of paper has had to explain them before long. In the law, a trademark that has been told me to do registration has been registered in key categories; financially, The actual cost is not as much as it costs. Readers, as a number of people who know a little bit of law, it is not difficult to determine if a round of TS is signed, the following investigation has any possibility to pass? I'm afraid it's going to take some money off the bridge.

Questions about communicating with employees; in fact, Wang has said to reconcile, I also basically agreed, and then I went back and staff said: reached a settlement, we are very happy, for the things that are not standardized, we have decided to standardize down, we have been in the people's side of the typhoon shelter chat to Dawn I have also been and staff said that the night is my design of a play, that is, let Wang again to know their team in the end how much contribution, should be what position, we joked that I was "Houte". The second king rushed to communicate with the staff, the mood is very low, very desperate to call me to talk, said I am not kind, big night back and everyone in the house next to the overpass a little comb clear, only to get a clear, we are all science students, enumerate the facts to judge for team members, not become what big problem. Everyone in addition to now occasionally by some "no secret" inside the news disgusting, but also are together happy to rush checkpoint.

We negotiated this thing with the investors, the day before a directional constraint, I agree with this direction, and with investors said the need to further discuss the details. The next day, in order to ensure the legality of the matter, I took the lawyer to go, at that time an investor said some very inconsistent with the law, and even some contrary to the nature of angel investors (of course, after they apologized, they do not need too much investigation). For the night before the phone said the framework, we did not propose changes, but the details of the day we did not reach an agreement, I and Wang agreed to talk about 27th. 26th, I specialize in micro-letter looking for Wang Chongyo time, he said need and Ji Yue, since then until 24 o'clock no reply to me again. In this case, we finally declared the failure of the peace talks.

I really think Wang and Ji should resign, but I do not agree with the "significant contribution". If you don't mind, Wang Chong if also willing, I think can let Wang himself to enumerate how many of the specific work, then we can find a representative to follow his mail one by one verification, and then we can help him calculate the work time should be spent. In this way, perhaps everyone can understand whether he has a "significant contribution" or that he actually caused significant losses to the project. On the issue of Yue, I think I do not have to repeat. Previous comments have clearly described the misconduct and consequential losses.

Just now the staff called to remind me, let me say: The GitHub code was deleted at the time, but all the technical staff had most of the code in their hands, and Wang as a non-technical person who, without my permission and signature, claimed that he had (acquired an unknown) old version of the code in the course of the subsequent negotiations with the Angels, This violates our technical specifications and may be suspected of stealing trade secrets. Secondly, all the items on the teambition are well spent, the staff is very easy to verify, I believe that if necessary teambition CEO Zi Junhuan should also be willing to help me verify and explain. Mail does not exist blockade one said that the same day in accordance with the original plan in the request to strengthen the password intensity, just Wang a long time not in the company, do not know the things at that time, in addition to a colleague of the password reset is not the name of the whole spell, at that time before the password changes, everyone password has become the spelling of Go on, there were two e-mails, and I stated on the spot, a letter will be automatically sent to angel investors, a will be automatically sent to a round of investors, the contents of the previous talk about investment, lied and should be the facts, as well as the company's real development plan; But because later Wang showed a conciliatory attitude, and expressed the willingness to go with the investor to explain clearly to the face, I let another employee stuck the mail did not issue. If necessary, two of emails can be revealed back, with time, in the mailbox of the draft box lying.

All kinds of Xianzhanhouzou, about the company's problems all sorts of cheat me. To this moment I am still a contract or a state in which the word in the agreement has not been signed. And at that time Ji Yue sent me an email, let me copy and paste confirmed allow her to handle, but must be the client (that is, I) signed myself to recognize. After the words have not signed to tell me to finish, and then I came back to show me a forged signed investment agreement specific version, and then told me that the letter in the mail when the client means "by the client", is missing a word ... And then all my protests were said to be childish, to get A round, you have to keep lying according to the original version of the Lie; go to Hefei to my home, and my father said to keep the caliber of the same, lie together, can not let people know I am still reading, or a round will not enter. Sometimes a time to think, really a little angry, my father as a university teacher, every day to tell those masters, doctor to be frank, with what to two "liar" face to stick, just nonsense.

Something：

You might think, why would 36 Krypton write such an article? Is this a piece of gossip? No. In fact, from my point of view, I want to record a company that I've covered. It's a complete life course, why it suddenly loses its light when it's about to shine, and all the unexpected things happen. I want to figure out what's going on here, what's the psychological factor of the person involved, and that's the end of it.

To sum up, the most important thing is probably how the angel-round Agreement was signed and what was the verbal agreement? In combination with some of the experiences I've heard, it's best to have a clear paper agreement on the rights and responsibilities of the founding team before it comes to a critical moment.

In addition to this matter itself, my idea is that no one can be moral judgments, but in business, since the choice of entrepreneurship, it should be thought that all must also only follow the mature business logic to go on, even if it has a realistic or very cruel side. All can only choose to face, to fight, or, to choose to leave.

At present, Wang and Hao have not reached a final settlement agreement, or hope that they can properly resolve the matter.