Jingwei China management partner David David revealed that the drip quickly as early as a year ago there are references to the merger

Jingwei China management partner David David revealed that the drip quickly as early as a year ago there are references to the merger. But it was not until January 21, 2015 in Shenzhen that the two sides entered the substantive negotiation stage. The core framework is in 13 hours, finally prepared a page, no signature, raised 9 cognition, including how to deal with the relationship between Ali and Tencent, mainly based on the core interests of the company for consideration, not to take sides with any shareholder.

He is the first contact and recognition of quick taxi investors, he close to witness the drip and fast merger of the whole process, he is Lu Zhunwei behind the financing strategist. He was in 2013, the city led the Jingwei venture to the quick a round of investment, in the B-round to continue to follow up, and helped set up the soft silver, Tiger fund, such as the fast $600 million trillion of huge financing. He is David David, a managing partner of Jingwei Venture.

Drops and fast merger, David David continue to remain in the new group of directors, attend the seven board of directors. David David's office in Beijing recently received an exclusive interview with Chinese entrepreneur to us depicts his eyes of Lu Zhunwei, Cheng Wei and Liu, told the rapid bumpy financing road, in-depth analysis of the rapid encounter market Zujizhan, burning money and other important nodes when the strategic deployment, as well as droplet rapid merger before the "13 hours" The behind-the-scenes story of the negotiations.

As with the rapid growth of investors, he also revealed that Ali sniper drops of financing is not so fierce Wang Gang said. In fact, "Investors have done similar things quickly."

The low-key, humble investor rarely speaks in public, just as the reason for his quick investment is that "a quick team is low-key and fits my style".

In addition to Quick taxi, Jingwei venture will focus on early start-up companies, in the 2014 the hottest o2o field, frequent movements. By the end of 2014, the investment of more than 20 enterprises, including quick taxi, hungry Mody, e generation drive, e bag wash, rabbit, Mr. Feng, delicious not to wait, rent a car and so on.

The following is a David David oral excerpt, more highlights, see "China Entrepreneur" magazine.

Drop and fast over the past two years, much like the 2005, 2006 video War, as well as the 2009, 2010 group Buying War, China's Internet arena, every two years three years to play once. Inevitably, capital will also be involved.

I think drip and fast two companies are very interesting, one in Beijing, the other in Hangzhou. Drop first start, drop of angel investor Wang Gang and Cheng Wei in Ali when he knew, go out to venture together.

Like Wang Gang, we are all participants in the whole story. We did not come together until the last one months, the past two years is more than two military confrontation, can be said to be a very fierce war game.

Why did you cast it fast?

We are 2013 April with the rapid formal contact, the completion of financing is in 2013 September. Each time period of financing history of both sides is to narrate some stories.

In fact, drip and quick reference are all Uber mode. Uber began in 2010, and 2012 began to receive great attention. Many Chinese entrepreneurs were inspired by the emergence of more than 10 of taxi software in the Chinese market, including the Shanghai Hornet. At that stage, there are a lot of people to get the money, but the drip and fast running in the front.

Before the investment was fast, we saw four or five. Because the Jingwei Chuang has three offices, Beijing, Shanghai and Hangzhou, so we have a very early attention to drop and fast, bumblebee start than these two late, but it is quite high.

These three companies are interesting, in a year, a round has been good early investors and investment, but there is a difference in time. Drop first, after most of the year we cast fast, and after a few months Bumblebee also got the investment. Seemingly months of time gap in the market is still influential, the growth of the Internet is very fast.

We and quick contact time, fast already is the market of the second. At that time, a drop of five thousand or six thousand bills per day, we are about 1000 single, about 5:1 of the state, so, when we vote inside, there are quite a lot of ideological struggle. Because, in the Internet circle, is generally inclined to vote first, and is the fastest one. More importantly, when the drop has been melted to more than 10 million U.S. dollars, then the pressure on the fast is quite large.

At the time, we had contact with the two fast-dropping families.

I have a lot of conversations with the Lu Zhunwei team and I love the style of the team and they are very focused on the product and the user experience. If you scan the past two years of media volume, you will find that the fast team is low-key, do things, and my own style is more similar. But also cannot say does not like drop the team, because at that time other family already voted, also was missed the early investment opportunity. The core is that we think the fast cost-effective, jingwei more attention to angels and a round of investment. These factors together, we decided to cast fast.

Cheng Wei is a very good one. He is very much like the old Lu, but old Lu older, calm a little. Cheng Wei is to do marketing origin, old LV is to do product origin. Cheng Wei in the depiction of the vision, there are strong ideas, strong appeal; He is very good at his team, including Liu, he is very able to master the overall situation, for relatively young founders, very rare.

Is the drip financing difficult?

Wang Gang's words I agree with most, except one word "they financing difficulty", this I and he has a different view. Ali Sniper drop financing This matter also did not report that so fierce, in fact, the drop of investors are also quick to do similar things.

Wang Gang's first angel cast drops, I feel very discerning. Later, in a very short time, Zhu Yuhu in 2012, it should be 2 million or 3 million dollars. From that time onwards, they have a capital advantage, fast late half a year to get the money.

By the 2013-year two quarter, the horse-general (Ma Teng) in person to the final vote drop, cast a 10 million U.S. dollars. However, at that time, the rapid integration of hundreds of thousands of Yuan Angel investment. Compared with the drop, from the financial operation, the fast is a step later than the drop, such as we melt the fourth round, they melt the sixth round.

Before the drop in Tencent investment, we had initial contact with the drop, but felt that the valuation was not cheap. The drip ran in the first place, so the valuation had an effect on the data. And drops want to melt a lot of money, and for Tencent, is strategically very good layout. Investment drops, plus the new Year's micro-letter red envelopes, really activate the micro-letter payment of high-frequency utility, Taxi is high-frequency, even more effective than red envelopes.

What role does Ali play?

On the fast, Ali played a very important role in the first year. Ali itself did not have the so-called high-frequency user port, and in the payment field has been leading, competitive demand is not so urgent.

As early as April 2013 to the end of 2013, the drop has a lot of strategic resources in operation. Quickly took the Jingwei a round of investment money, or completely independent development. Now think about it, that stage is pretty poised. In my opinion, should have experienced a short period of time, Ali also gave a lot of space to explore some play. Probably in the early 2014, Tencent Micro-letter with drops of the bundle, also stimulated Ali's morale and enthusiasm.

In fact, the taxi subsidy this battle is drip and Tencent picked up, is essentially to challenge payment. For Tencent, to encourage users to actively use this application, the simple and outrageous way is to subsidize. The subsidy promoted the drop of explosive growth, in a very short time, Ali realized that the drop has become the core mobile applications, and then began to have more cooperation, but also gave a lot of resources, including Alipay help.

Of course, it is not to fight subsidies, no one does it purely. At that time, the drop of the subsidy than we, we keep up, and then the drop is also overweight, we 10 he 11 pieces. Finally get every few hours to adjust the pace of subsidy, the amount of money every day is very frightening, I heard that the 2014 Spring Festival that time a lot of ladies go out to buy food taxis are no money. The money we invested, we thought we could use it for a year, and we spent less than four months away.

Looking back today, I think it is very efficient to spend money quickly. For High-frequency software, the rapid laying of the market, the use of scale to build barriers is of great significance. But the problem is that you need to know how to be smarter and more efficient in gaining market share. A good subsidy is when you set a goal, and the subsidy is able to do it quickly, and when the subsidy is suspended, the market can still grow. That makes sense, and now we look back and it's done well.

Of course, in the second half of 2014, more capital inflows also boosted valuations. This, in fact, is a higher requirement for all startups to finance than ever before.

Bidding for Bumblebee

Bumblebee is in our investment soon after the rise, the launch of the product should be 2013 7 August, faster than the slow. Nine, October time, we have decided to buy him, because the drop is fast North-south dispute. At that time we were the first in Shanghai, Bumblebee appeared in the presence of millions of U.S. dollars, but they are only in Shanghai, but also began to play subsidies, and suddenly a quick user was pulled over. We do not want to make the Three Kingdoms melee, how to put the city of Shanghai down, must talk to the bumblebee.

The drop also wanted to buy the bumblebee, the Bumblebee said, you bid for two. Finally communication down, the Bumblebee felt that the old Lu more sincerity, most of the Hornets stayed, and later formed a car team, become a fast in Shanghai's subsidiary. The whole running-in process is very short, within two weeks to talk about it.

Brutal competition

January 2014, February, the Spring Festival before and after the subsidy war, is two companies competition for the brutal period. This is unexpected, I think the drop itself is not expected. He started the subsidy, is to cultivate the market, but did not expect to join the bar after the fast, and intensified, engaged in that period of time the old Lu every day to see how much money the bank.

Prior to this competition, the main thrust was to persuade taxi drivers to give priority to using our software. At that time, only a few incentives to the driver, if the driver used more than five times a day, 10 times to subsidize some incentives, at that time did not directly subsidize the users.

Hangzhou is a quick place to start, drop to attack the city did not hit down. Beijing is the drop of the base camp, fast also did not hit down. This is itself a market model, the initial development of six months to one year, is the driver and taxi, car and user matching process. The more complete the match, the second and third home will be tired.

Liu in the drip job

Liu to the drip, in business development and financing to provide a lot of help. Before, Liu on behalf of Goldman PE contact drops and fast, but the last two did not vote, this is right. At that time, two at loggerheads, many large private equity funds did not vote.

Cheng Wei invited Liu to join the drip, is very good. It may be that Cheng Wei financing is also getting tired, and it needs a partner who will do business development and be more familiar with capital operations. Drop the last round of financing nearly 700 million U.S. dollars, more than 20 investors.

Later, I told Cheng Wei and Liu that you were so aggressive that you almost talked to investors who were investing in China, and the banner was the first drop. This financing strategy is very good, the drop in the fast start financing, before the preemptive advantage.

My quick job is a bit like Liu in a drip job, but I'm here to help as a shareholder. I mainly share the financial pressure of Lao Lu, including the selection of investors and exchanges, and give him some advice. Compared with the drop, our financing is more targeted, our shareholder table is very brief. 2014, a fast year to melt more than 10 billion.

When the drip started the latest sixth round of financing, we have just melted the C round, there is still a lot of money. Drop over there a start-up financing, we are worried about the drop of a violent market behavior. At that time I gave Old Lu's proposal is that we need to find two or three can invest a separate investment of 200 million or 300 million U.S. dollars, there is no need to communicate with small investors. At that time and the old LV discussed after the lock three investors name, including soft silver.

Many people say that the soft silver investment is because of the relationship between Ali, in fact, is quick to find the soft silver directly. Soft silver just in India to take the first place in India, also voted in Southeast Asia's first, I saw the news that should immediately contact them. Soft silver investment style is very strong and long-term, they are optimistic will continue to overweight. We spent two weeks communicating with them, and SoftBank soon decided to vote. In the process, they also found Ali, Ali firmly stood out and said, we will follow up to cast one to 200 million. By the time the drip announced that it would be 700 million, we were the first to complete 600 million of the financing on December 31.

The origin of the merger

War to war, Cheng Wei and Old Lu two CEO exchanges between many, including the push team in some cities to do too much, will be through high-level exchanges between the two sides to mediate. A year of the various government texts, most of the time is two people representing the industry, to the government departments to communicate, including what the bottom line can not be exceeded.

For both, the acquisition of the Bumblebee is an exploration: since it is possible to consider mergers and acquisitions of Hornets, two of them can be considered together.

The initial merger thought was dripping, "or we'll sit down and have a chat at two." After one months of contact, but for a variety of reasons did not talk about. At that time, a lot of things are not clear, both think you can do the first place, are not reconciled, two CEOs are very strong. And the market share has pulled quite close, few who is stronger than who, the whole process talk about, but not so easy to shake hands, although everyone is very sincere. Later, the Spring Festival hit more fierce, really pinch up, a dozen is nearly a year.

Formal negotiations

Two companies know that a subsidy battle can educate markets and users. But it is not wise to pinch each other, the pure subsidy battle is a kind of abnormal business behavior.

January 21, 2015 in Shenzhen, the two sides entered a substantive stage of negotiations, Huaxing capital of the package of general intermediaries, previously served as a drop of financial advisers, I found the package where the organization of the negotiations.

Why Shenzhen? Fast headquarters in Shanghai, Hangzhou, drop in the headquarters in Beijing, so picked a neutral city. We originally wanted to go to Chengdu, but there is a direct flight in Shenzhen, we are all convenient, in fact, in order to keep secret. We found a service apartment where I talked to old lv, Cheng Wei and Liu, and Baofan and his partner, six people in one room, 13 hours from eight in the morning to nine o'clock in the evening.

Liu at Goldman Sachs and has a wealth of experience in capital operations. The Fast management team is the technology and the product, they are missing such a person. The quick shareholder pushes me up, wants me to accompany, cannot let the management team suffer.

We talked mainly about a few big frameworks. The company continued to develop independently, the entire control authority is the management team, by Cheng Wei, Old Lu and Liu three key management team to decide. Business development also to Tencent and Ali without any partiality, Ali and Tencent although important shareholders, but they are not holding and leading. In the process, everyone is very sincere, Ali and Tencent have expressed neutrality, respect for the management team's decision.

Why do you end up together? The simplest explanation is that on January 21, two CEOs did not know each other in the past 1.5 years, and two decided to do it Better together than separately. Until today I personally do not feel that the pattern is decided, I may be biased pessimism, the battle is still behind. The internet industry is very competitive, the Shenzhou car hire, easy road with a lot of resources, Uber also invested heavily in China, so this merger is definitely not final. I like to mention the potato cool example, after two mergers, then the market also has a voice said that the Chinese video site may have a monopoly, in fact, the development of the latter is not the case. Our internal shareholders and management teams feel that competition is only just beginning.

On the January 21, the most talked about is how the business is parallel. We found that both sides are extremely short of people, even before the merger has been considered to dig each other person, fast this year originally wanted to recruit five to 600 people, drop also want to recruit a lot of people. The final solution is, the first we are short of people, the second of each job need a person, the third has a lot of business to develop, so the merger may also recruit more talent.

How do you stabilize the team? We have added new options, all of which are diluted from shareholders, and have also given more equity incentives to the merged executive team. The core framework is in this 13 hours, we finally prepared a page, did not sign, raised 9 cognition, including how to deal with the relationship between Ali and Tencent, mainly based on the core interests of the company for consideration, not to take sides with any shareholder.

January 27, the entire management team in Beijing, the second meeting, the first negotiation of six people, plus the two sides of the lawyers, audit, finance, about 77 people. January 27 was a real move, and lawyers from both sides began drafting the framework agreement. It took 21 days before and after it was officially signed on February 11, and Valentine's Day was announced together.

In terms of fast, investors are firmly in support of the old LV this team, including Ali. After the first talk back, Old Lu and Ma Total (Ma Yun), Cai (Cai), Peng (Pengley), and several core management, they all asked a word, "you are not think should and if you say and, we 100% support."

Not going public for a year.

As a financial investor, I care more about the communication mechanism with the new management team. I used to communicate with the old LV team on a simple phone call. Although there have been many exchanges with Cheng Wei and Liu, there is a need for a familiar process. From our fund, we are also concerned about the protection of the various rights and interests of the Fund after the merger, which is an investment level issue.

The structure of the seven-person board will not change for some time, the management team three people (Cheng Wei, Lu Zhunwei and Liu), financial investors have sent a representative, fast is my representative, drop the shareholders think Wang Gang is the most suitable, in addition Ali and Tencent each one vote, one is Alipen total, one is Tencent Liu Total, constitute seven people's board of directors.

After the merger, at least for a long time, the business of two companies will be in parallel. We're also thinking about innovating some new businesses, including some new products that haven't been announced yet. Later transfer part of the drop, fast people go to the new product department, it is possible.

1+1>2 In fact is not easy, although the merger process is very difficult, after the integration of consolidation, mainly between people and integration, it is not easy. During the Spring Festival this year, Cheng Wei, Liu and Lu also communicate with the team of the different departments with fast and drop.

About the spread of the uproar of the listing plan. In a short time certainly will not have, the next two years still has many things to do, the listing is certainly the thing which our investor wants to see, but, these two enterprises have not been founded three years, still have a long way to go.

I personally think that listing is to gather more capital to do bigger things. At present, the company in the bank has just a good financial capital, enough for the next few years of business development. If the time is ripe, will also consider the listing, but in a short time certainly not.