Deal with the capital, entrepreneurs must adhere to the "heart"

Data show that the market value of Jingdong reached nearly 30 billion US dollars, equivalent to two Suning +3 GOME. Prior to its successful listing, after four rounds of financing, under the chase of huge amounts of capital, Liu Qiangdong's attitude towards capital may well provide the guiding light for the broad masses of active entrepreneurs.

Today, capital is the first to invest in Jingdong venture capital agencies, fighters today is the capital founder and president Xu. On March 27, 2007, Jingdong issued 155 million "Class A redeemable convertible preferred shares" to today's capital with a total of 131 million share options. On August 15, 131 million share options were exercised. Two financing total 10 million US dollars. By the end of 2008, B round of financing in early 2009, capital is also involved today. Later, after the Jingdong re-issuance, holdings, capital today held in Beijing Jingdong 7.8% of the shares. Value has doubled.

"Jingdong was extremely short of money by the end of 2006. Because in 2006 just by selling multimedia, optical magnetic, gaming mouse what has gone, these things repeat purchase rate is too low, and users in the forum every day mention: Lao Liu How do you not yet start selling memory, I now need to upgrade the memory - then save the computer, are first inserted two memory, money, and then insert two - so I added memory, others said, I want to upgrade the hard disk, when do you sell the hard disk ah? - Because at that time has begun to popular storage disc, friends eat and drink with a hard drive to go, and then exchange the movie inside ah, so I sell the hard drive, A category of expansion, money is not enough soon. "After the listing of Jingdong, Liu Qiang East, like a piece, easy to describe the embarrassment of Jingdong year.

With Lao Liu's own words, no money, and then funny story came, and later became a blockbuster, "Rush Hour."

Because of the increasing influence of Jingdong, a forum users, but also users of Jingdong, send text messages to the old Liu, said: I'll find you VC (venture capital) OK? (Liu Qiang East can not remember the name of this user, according to Xu new argument, this user should be a VC intermediary.)

Liu asked: VC is doing?

- Give you money.

What he wants to guarantee?

- Do not guarantee, you want to give him a share.

- How much does he want me to earn for one year?

- He does not make money through you, in the future you want to market, people make money through the secondary market.

- That is 5 years, 10 years later, gave him 5 times, 10 times the return?

- Yes, but not you give him money, he made money through the secondary market.

This is the real response of Lao Liu when he first learned the concept of VC. But shrewd Liu Qiang East quickly understand this mode of operation of capital investment, began to tempted.

In this VC intermediary identity users referrals, Liu Qiang East first contact with Henan Ancai, Ancai was the world's largest manufacturer of color picture tubes, listed companies not bad money, its agent in Beijing Wang Xudong very optimistic about the mode of Jingdong , Said to be good to vote Jingdong 5 million yuan. An Cai gave Jingdong 2 million loan, take 30% of the shares, and signed an exclusive agreement.

However, some unexpected events, flat-panel TV technology overnight replaced CRT, An Cai itself is difficult to guarantee, would rather recover the 200 million that would have been, Wang Xudong angrily left. Until the eve of Jingdong IPO, it made contact with Liu Qiang East.

Liu complained to friends that: you find this person will not ah. The other answer: no longer find.

So there Liu Qiang East and the Chinese investment community "big sister" Xu Xin Shangri-La Hotel Beijing saw it. Xu Xin recognized Liu Qiang East and Jingdong is a good seedlings, much like the entrepreneurial style of the early years of Zong Qinghou, the boss of Wahaha who was born in Suqian, did not want to be cut off by others, and the next day, Liu Qiangdong went to Shanghai to see herself Partner, talk about investment matters.

Xu asked Liu Qiang East how much money, Liu Qiang East said 200 million. Xu Xin began a grand picture of Liu Qiang's big picture, telling him that 200 million was too small to buy servers, build warehouses, recruit and advertise, all of which cost money, and finally gave Liu Qiangdong 10 million U.S. dollars.

Subsequently, Xu Xian Liu Qudong loan to help 2000000 yuan, returned to the color, be ransom fees, the lifting of the contract, the remaining wages to employees. Then, Jingdong A round of financing 10 million dollars credited to the account. In return for the referrer, Liu Qiang East gave 600 million shares.

At the time, Liu Qiangdong, who was still unfamiliar with capital, was not without doubt about the generosity of Xu Xin, but the tight capital did not allow him much room for maneuver. Later, he beat the bush and got a lot of information Xu Xin, heart before peace. "She is very clever, I am very happy, 10 million US dollars more than 5 million yuan."

Xu Xin, of course, can not just feel at all, she sent people to inspect Jingdong, get the situation is: Jingdong no money advertising, but the monthly growth of up to 10%; account is temporary workers, the enterprise's ERP system is Liu Qiang East Own design, the financial is not standardized. But Xu spot checks Jingdong inventory and cash, found that every one is worthy.

Xu Xin and Liu Qiang East signed a "gamble agreement" - Jingdong annual growth rate can not be less than 100%, and Liu Qiang East only one condition - Jingdong control must be in his hands. In his opinion, "Investors and entrepreneurs are always equal partners, you are not disadvantaged when you are young, you can override investors when you grow up, and in fact, most investors I touch All support the founders' control. Stick to the bottom line and actively negotiate! "