Chapter 306

"More than half a year has passed since Xiaomi was founded last year. As we all know, I didn't want Xiaomi to carry out round a financing too early. I didn't want capital to intervene too early. At the same time, I also hope that everyone's entrepreneurial achievements can have a reasonable return and Xiaomi can obtain a reasonable valuation." President Lei ignored the people's eyes to Fang Zhe, It's an explanation.

"However, now that we have released MIUI, we have taken an important step away from being a mobile phone. In the future, we still have to face many difficulties and challenges. Being a mobile phone is not like being a mobile operating system. MIUI only needs our own R & D team to make it.

But for mobile phones, in addition to our own R & D team, design team and sales team, we also need more external suppliers and partners. In order to ensure that we can establish good cooperative relations with more suppliers and partners as soon as possible, I decided to complete the round a financing as soon as possible! "President Lei told the entrepreneurs present, Explained why he wanted to carry out round a financing.

The founders of entrepreneurship here also understand the meaning behind Mr. Lei's words. Although Xiaomi's entrepreneurial team is luxurious, from Xiaomi's contacts with various mobile phone parts suppliers in the past, these suppliers are not very willing to cooperate with Xiaomi and count the major mobile phone manufacturers in China, whether Huawei, ZTE, cool Lenovo, Meizu Changhong and even those Shanzhai mobile phone manufacturers in the south are much stronger than Xiaomi in terms of scale and strength.

In other words, Xiaomi's current strength is not enough. Even some suppliers may think that the output of tens of thousands of units required by Xiaomi is not worth transforming parts, molds or production lines.

Therefore, Lei and Xiaomi urgently need a strong enough company to endorse Xiaomi, and Huizhong and Fang Zhe, who are closely related to Xiaomi and Lei, have become the best candidates. As one of the four major Internet companies in bath, Huizhong's ability to make money is obvious to all, so suppliers are worried about arrears of payment and so on, There will be enough guarantee.

Fang zhe remembered that in his previous life, Xiaomi also faced today's difficulties. Therefore, at that time, Xiaomi completed round a financing by introducing domestic powerful investment funds such as Chenxing capital. At the same time, it also used the method of booking first and then production to ensure that it can grasp the demand production in advance and prevent the risk of excessive production and overstock inventory, Later, after tasting the sweetness of this way, Xiaomi has also been using this way to sell mobile phones, so it has explored the sales model of hunger marketing.

On April 25, Xiaomi announced the news of round a financing of 40 million US dollars in a low-key manner. The investors include Huizhong, Shunwei capital and Chenxing capital. While there was an uproar, the outside world also speculated about the valuation of Xiaomi's round of financing. According to the financing practices of previous start-ups, round a financing generally accounts for about 10% - 20%, that is to say, Xiaomi's current valuation is at least about $200 million!

That's a little too high, isn't it? The entire domestic investment circle, the Internet industry and even many peers in the mobile phone industry feel that Xiaomi's valuation is somewhat falsely high.

You know, Xiaomi was founded less than half a year ago, and there is no profit. The only product that can sell is a smartphone operating system MIUI that has just been born less than half a month. A MIUI alone is valued at $200 million, which makes many people feel a little incredible, Even many people feel that the news of round a financing of $40 million released by Xiaomi is false!

Financing fraud also happens from time to time in many start-up companies in China. In order to expand their popularity and attract more investment, some companies sometimes dare to blow up 5 million for 1 million investment and 100 million for 10 million investment. Anyway, only the company's management and investors know how much money the company has financed, Both sides sing the double reed, and it is difficult for outsiders to verify it. However, considering the identity of President Lei and the identity of the three investors, most people believe that it is impossible to do such a thing in their identity.

Not to mention Mr. Lei's character and identity, Chenxing capital, one of the investors, is an old venture capital institution in China. Since its establishment in 1992, it has invested in Sohu, Ctrip, Phoenix and many other well-known companies. Chenxing capital is one of the top investment institutions in the domestic investment circle. It is absolutely impossible to do anything damaging to its own reputation just for Xiaomi.

Another heavyweight investor, Huizhong, although a rookie in the domestic Internet industry, has developed rapidly and has great potential. Now it is one of the four major Internet companies in bath. According to the history of Huizhong's past investment in JD or YY, it is not a big thing for Huizhong to invest tens of millions of dollars.

The last one is Shun capital. Many people and the media outside feel strange. How can such a silent investment fund invest in Xiaomi side by side with Huizhong and Chenxing capital in round a?

Fortunately, although Shunwei capital has little information on the Internet, many people in the investment circle know the inside story. Shunwei capital has not been established for a long time, only about a month, but its two founders, one is president Lei, the founder of Xiaomi, and the other is Xu Dalai, a famous investment broker in the investment circle. Therefore, we understand that this fund, To put it bluntly, the investment fund that President Lei paid for himself is not much different from the win-win capital that president Fang Huizhong did in China.

After some discussion and verification, people in the industry believe that the news of Xiaomi's round a financing of $40 million is not false. In other words, Xiaomi's current valuation is really as high as $200 million.

What is the concept of $200 million? At the current exchange rate, it is about 1.4 billion yuan. There are not a few companies with this valuation in China. However, Internet start-ups that achieved this valuation in round a financing can count with one hand. For example, when Tencent was listed in 2004, the market value was only $600 million. YY has developed from 2007 to now with hundreds of millions of users, The valuation has just exceeded $200 million!

Crazy, Huizhong and Chenxing capital, who invested in Xiaomi, must be crazy. The young boss Fang of Huizhong must be a fool. There is no place to spend more money!

Many people have this feeling after knowing the news that Xiaomi's valuation is as high as $200 million. Even some smart entrepreneurs have the same idea of starting a business to make mobile phones and smart phone operating systems. Entrepreneurs are like blood thirsty vultures. Wherever the capital heat flows, regardless of whether they can make mobile phones or not. Anyway, boss Fang Huizhong has a lot of silly money, Just get the money then.