With the rise of investment power, the game between founders and capital has gradually surfaced. But no matter who you are, you must abide by the spirit of the contract. Therefore, the contract becomes the key to the game.
Under the lure of interest, the lack of rational entrepreneurs often fall into the trap of investment institutions.
At the end of June, from an anonymous email that "had to stand up and expose the ugly face", said that the departure of NVC Lighting's former chairman and CEO Wu Changjiang was "the founder and CEO of the venture capital shareholder Saifu Asia." Schneider Electric teamed up with a double-edged drama. The e-mail sighed the "four sins". In response to this, NVC lighting spokesman Shi Yongjun responded that the "conspiracy theory" was based on the assumptions and could not respond, and said that NVC Lighting "runs everything smoothly."
Although Wu Changjiang passed the increase, the total shareholding increased to 19.19%, becoming the largest shareholder of NVC Lighting. However, the shares of Safran Asia and Schneider Electric reached 18.48% and 9.21% respectively. After taking over as chairman, Zhang Kaipeng from the German company Schneider Electric was appointed as CEO of NVC Lighting. In addition, the company's strategic business system, overseas sales system, and crisis management team are all managed by Schneider Electric personnel. Some insiders pointed out that the Germans have begun to gradually dominate NVC lighting.
Under the law of the result of the determination of capital will, the encounter with Wu Changjiang sometimes occurs. At this time, "as an entrepreneur, you should learn to protect your own interests and protect your right to speak in the company." Hua Fan Capital founder and CEO Bao Fan pointed out. After experiencing this storm, Wu Changjiang also pointed out that "if it is not urgent to wait for the rice to go down, we must carefully choose foreign investment."
After resigning, Wu Changjiang did not change his arrogance and vowed that "I have devoted my life to NVC, and I will never give up."
Step by step
Founded in 1998, NVC Lighting has become a professional lighting company in five major areas of business, architecture, office, light source appliances and home after more than 10 years of development. It was successfully listed in Hong Kong in May 2010. Even in 2011, when the industry was fiercely competitive, raw material prices and labor costs rose, the company's sales revenue still achieved 22.4% growth, reaching 460 million US dollars.
However, the development of NVC lighting is not smooth sailing. In 2005, due to differences in business philosophy, the company's co-founders Du Gang, Hu Yonghong and Wu Changjiang reached an agreement to complete the equity transfer with a total of 160 million yuan. This money gave Wu Changjiang 100% control of NVC lighting, but also took great risks. According to the data, after paying the first 100 million yuan, the company has only a few hundred thousand yuan left in the book, and problems may arise at any time. Looking back at the risks at the time, Wu Changjiang described it as "saving lives, I want to save my life."
As a last resort, NVC Lighting began to raise funds. Yasheng Investment CEO Mao District Jianli took the lead in purchasing 300,000 shares (30%) for $9.44 million. In July 2006, Softbank Asia (the predecessor of Safran Asia) purchased about 55.5 million dollars for $22 million. Ten thousand shares (35.71%). At this time, Wu Changjiang had only 34.29% of the shares in his hands.
Changes in shares were reflected in the subsequent board of directors. In the new board of directors formed in 2006, Safran Asia has three seats as the largest shareholder, and Wu Changjiang has only two seats. Mao Jianli did not occupy a seat on the board of directors because he transferred the shares to other investors. Even so, the 3:2 gap allows Yu to have more say in Wu Changjiang.
It is worth mentioning that capital predators bring not only "money bags" but also a series of additional terms. One of them is, "If NVC Lighting fails to go public before August 1, 2011, then Softbank Saifu (then name) has the right to ask Wu Changjiang to repurchase investment shares and pay accrued interest on investment."
Perhaps due to pressure from the agreement, or Wu Changjiang said, "I want to optimize the shareholder structure." NVC Lighting introduced a more promising capital, Goldman Sachs, in the second round of financing that began in 2008.
In August of that year, Goldman Sachs invested $36.55 million in NVC Lighting for a 9.39% stake. Since then, Safran Asia has also increased its capital by 10 million US dollars to maintain the total shareholding ratio at 30.73%. After this dilution, Wu Changjiang's shareholding ratio was further diluted to 29.33%.
After two financings and acquisitions of multiple companies, NVC Lighting has grown further in both capital and size. Even in 2009, which was affected by the financial crisis, it achieved $306 million in revenue and $14.7 million in net profit. Finally, in May 2010, the Hong Kong stock market was launched, and the shareholding ratio of the three major shareholders decreased again, but the order remained unchanged.
At this time, the lighting industry has also changed, and traditional products are being upgraded to energy-saving products. In the new LED lighting field, NVC lighting related products accounted for only 0.8% of the total revenue in 2009. In this regard, Wu Changjiang believes that "LED commercialization will still be a long time"; the attitude of Wu is revealed after Wu Changjiang leaves away - NVC Lighting announced that LED lighting is the company's future growth point.
At that time, outsiders only saw that NVC Lighting once again introduced Schneider Electric, one of the world's top 500 shareholders. As of the end of 2011, Wu Changjiang's shareholding ratio decreased to 15.9% as the second largest shareholder. Softbank Safari still ranked first with 18.3%, and Schneider Electric and Goldman Sachs held 9.1% and 5.67% respectively. What can't be seen is that the new CEO of NVC Lighting, Zhang Kaipeng and his classmates, and the introduction of new shareholders are a sure-selling business.
As Yuan Runbing, managing director of Zero Venture Capital, pointed out that for Safran Asia, "Importing a company that is very positive about the company's business and has the financial ability, I have done a good job in my exit from the secondary market. If I don't do well, I also have value. Selling my shares to Schneider, this is definitely better for me." So, there is a scene from the beginning of this article.
Entrepreneur dysentery
"All founders must deeply remember this point. The company belongs to the shareholders and does not belong to the founder." In the face of Wu Changjiang's exit, Zhao Wenquan, president and CEO of the domestic famous public relations company Blue Cursor, pointed out that "shareholders decide the fate of the company, this is rule."
"This is the embodiment of the will of capital." An investment analyst expressed the same meaning. "In the share of equity, Safran Asia is the largest shareholder, Wu Changjiang is second. At the same time, the agreement between the two, the priority terms are also occupied by the former, Wu Changjiang is therefore very passive."
This statement was confirmed in an interview with Wu Changjiang. "We have some differences and contradictions with Softbank (Saifu Asia), including investment and investment, but they have the right to give priority, there is no way."
It is worth mentioning that in the process of attracting investment many times, Wu Changjiang had been paying attention to the company's control, but he was confident that the capital side was "not him." Even after leaving NVC lighting, he still said on Weibo, "When I adjust for a while, I will still come back, and I will never give up for NVC." I will never give up."
Wu Changjiang paid a price for his overconfidence. Like his fate, he was found by Li Tuchun, the founder of Prince Milk, and Li Qiuping, the owner of Yongle, and Chen Xiao, who was in charge of Gome.
In 2008, Li Tuchun signed capital injection agreements with investment banks such as Goldman Sachs, Morgan Stanley and Yinglian Investment. According to the statement, the financial crisis hit, the investment bank forced him to repay the loan in advance, and the company fell into a financial crisis. Earlier in 2006, Yongle Appliances failed in the agreement with Morgan Stanley and Dinghui Investment to sign a net profit of more than 750 million yuan in 2007, and was eventually acquired by Gome.
In addition, strategic development and the strategy of the funder are at the same level, which is also one of the main reasons for entrepreneurs to go out. In February of this year, Hou Yijiang, chairman and CEO of the luxury goods B2C Zunku, who was seized by the board of directors, recalled his own experience. "The entrepreneur has reached this point, including the lack of experience, the urgency of entrepreneurship, blindness, etc. Reasons."
The same thing happened to Li Yang, one of the founders of the red baby in the domestic maternal and child supplies B2C website. At the beginning of 2011, the Red Kids faced a transformation. Li Yang advocated focusing on the maternal and child products market, while Xu Peixin, who represented the employers, insisted on expanding the product line and transforming into a comprehensive B2C. In the end, Li Yang was kicked out of the board by the board, and Xu Peixin took the power.
Why is it always the entrepreneur side? A foreign fund partner who asked not to be named explained, "Compared with ordinary entrepreneurs, the capital in the market has experienced refining, the sense of smell is more sensitive, the horizon is wider, and the business is running. The concept of management is more modern. When the management team has made a fundamental mistake, it is inevitable that substitution or intervention will be carried out."
Honey or arsenic
Despite the frequent contradictions, there are still people in the investment community who point out that investors and companies are not entirely interested.
With the support of venture capital, the dairy giant Mengniu received 470 million yuan of funds and successfully listed on the Hong Kong main board in June 2004, which strongly supported the rapid development of its business. Jingdong Mall has grown from a small store in Zhongguancun to an e-commerce giant with annual sales exceeding 10 billion US dollars. "The basis for success is to continuously exchange and make adjustments in the investment process." A PE industry person pointed out that "in the capital world, the company's business growth is always the primary pursuit, and the founder of capital chasing profit maximization. The game with investors is inevitable," said the person mentioned above.
In the process of the game, the founders of domestic companies that can take the lead in their own hands are basically realized through high shareholding ratios and agreements.
Netease, Sohu, Shanda, Alibaba, etc. are all representatives of the founders with high shareholding ratio. Among them, after the privatization of Shanda Network 100% under the control of the Chen Tianqiao family, Ding Lei holds more than half of Netease's stock, and Zhang Chaoyang still holds about 20% of Sohu after the reduction. Alibaba uses the agreement to achieve control. Before Ma Yun spent $7 billion to buy back 20% of Alibaba's equity owned by Yahoo, he had already passed the shareholder agreement to stipulate that Yahoo could not participate in the company's operations, and that the dominant position was firmly in his hands. In the equity of NVC Lighting, SAIF Asia has realized the shareholding priority of NVC Lighting through the agreement.
"Only if the interests of both parties and the strategic vision are the same, they can make the enterprise bigger and better. If the investors and entrepreneurs are in a stalemate, they lose both sides and there is no real winner." Vice President of the China Finance Research Institute of Shanghai Jiaotong University The square pointed out.
Before the reporter's deadline, Yu finally accepted an interview on Wu Changjiang's resignation and said something meaningful. "NVC Lighting's stock price plummeted because of Wu Changjiang's sudden resignation, and our shareholders also suffered a lot of losses, but we also Did not complain about him, but worked together to stabilize the company."
Since the resignation of Wu Changjiang, NVC Lighting's share price has fallen by 30%.
Under the lure of interest, the lack of rational entrepreneurs often fall into the trap of investment institutions.
At the end of June, from an anonymous email that "had to stand up and expose the ugly face", said that the departure of NVC Lighting's former chairman and CEO Wu Changjiang was "the founder and CEO of the venture capital shareholder Saifu Asia." Schneider Electric teamed up with a double-edged drama. The e-mail sighed the "four sins". In response to this, NVC lighting spokesman Shi Yongjun responded that the "conspiracy theory" was based on the assumptions and could not respond, and said that NVC Lighting "runs everything smoothly."
Although Wu Changjiang passed the increase, the total shareholding increased to 19.19%, becoming the largest shareholder of NVC Lighting. However, the shares of Safran Asia and Schneider Electric reached 18.48% and 9.21% respectively. After taking over as chairman, Zhang Kaipeng from the German company Schneider Electric was appointed as CEO of NVC Lighting. In addition, the company's strategic business system, overseas sales system, and crisis management team are all managed by Schneider Electric personnel. Some insiders pointed out that the Germans have begun to gradually dominate NVC lighting.
Under the law of the result of the determination of capital will, the encounter with Wu Changjiang sometimes occurs. At this time, "as an entrepreneur, you should learn to protect your own interests and protect your right to speak in the company." Hua Fan Capital founder and CEO Bao Fan pointed out. After experiencing this storm, Wu Changjiang also pointed out that "if it is not urgent to wait for the rice to go down, we must carefully choose foreign investment."
After resigning, Wu Changjiang did not change his arrogance and vowed that "I have devoted my life to NVC, and I will never give up."
Step by step
Founded in 1998, NVC Lighting has become a professional lighting company in five major areas of business, architecture, office, light source appliances and home after more than 10 years of development. It was successfully listed in Hong Kong in May 2010. Even in 2011, when the industry was fiercely competitive, raw material prices and labor costs rose, the company's sales revenue still achieved 22.4% growth, reaching 460 million US dollars.
However, the development of NVC lighting is not smooth sailing. In 2005, due to differences in business philosophy, the company's co-founders Du Gang, Hu Yonghong and Wu Changjiang reached an agreement to complete the equity transfer with a total of 160 million yuan. This money gave Wu Changjiang 100% control of NVC lighting, but also took great risks. According to the data, after paying the first 100 million yuan, the company has only a few hundred thousand yuan left in the book, and problems may arise at any time. Looking back at the risks at the time, Wu Changjiang described it as "saving lives, I want to save my life."
As a last resort, NVC Lighting began to raise funds. Yasheng Investment CEO Mao District Jianli took the lead in purchasing 300,000 shares (30%) for $9.44 million. In July 2006, Softbank Asia (the predecessor of Safran Asia) purchased about 55.5 million dollars for $22 million. Ten thousand shares (35.71%). At this time, Wu Changjiang had only 34.29% of the shares in his hands.
Changes in shares were reflected in the subsequent board of directors. In the new board of directors formed in 2006, Safran Asia has three seats as the largest shareholder, and Wu Changjiang has only two seats. Mao Jianli did not occupy a seat on the board of directors because he transferred the shares to other investors. Even so, the 3:2 gap allows Yu to have more say in Wu Changjiang.
It is worth mentioning that capital predators bring not only "money bags" but also a series of additional terms. One of them is, "If NVC Lighting fails to go public before August 1, 2011, then Softbank Saifu (then name) has the right to ask Wu Changjiang to repurchase investment shares and pay accrued interest on investment."
Perhaps due to pressure from the agreement, or Wu Changjiang said, "I want to optimize the shareholder structure." NVC Lighting introduced a more promising capital, Goldman Sachs, in the second round of financing that began in 2008.
In August of that year, Goldman Sachs invested $36.55 million in NVC Lighting for a 9.39% stake. Since then, Safran Asia has also increased its capital by 10 million US dollars to maintain the total shareholding ratio at 30.73%. After this dilution, Wu Changjiang's shareholding ratio was further diluted to 29.33%.
After two financings and acquisitions of multiple companies, NVC Lighting has grown further in both capital and size. Even in 2009, which was affected by the financial crisis, it achieved $306 million in revenue and $14.7 million in net profit. Finally, in May 2010, the Hong Kong stock market was launched, and the shareholding ratio of the three major shareholders decreased again, but the order remained unchanged.
At this time, the lighting industry has also changed, and traditional products are being upgraded to energy-saving products. In the new LED lighting field, NVC lighting related products accounted for only 0.8% of the total revenue in 2009. In this regard, Wu Changjiang believes that "LED commercialization will still be a long time"; the attitude of Wu is revealed after Wu Changjiang leaves away - NVC Lighting announced that LED lighting is the company's future growth point.
At that time, outsiders only saw that NVC Lighting once again introduced Schneider Electric, one of the world's top 500 shareholders. As of the end of 2011, Wu Changjiang's shareholding ratio decreased to 15.9% as the second largest shareholder. Softbank Safari still ranked first with 18.3%, and Schneider Electric and Goldman Sachs held 9.1% and 5.67% respectively. What can't be seen is that the new CEO of NVC Lighting, Zhang Kaipeng and his classmates, and the introduction of new shareholders are a sure-selling business.
As Yuan Runbing, managing director of Zero Venture Capital, pointed out that for Safran Asia, "Importing a company that is very positive about the company's business and has the financial ability, I have done a good job in my exit from the secondary market. If I don't do well, I also have value. Selling my shares to Schneider, this is definitely better for me." So, there is a scene from the beginning of this article.
Entrepreneur dysentery
"All founders must deeply remember this point. The company belongs to the shareholders and does not belong to the founder." In the face of Wu Changjiang's exit, Zhao Wenquan, president and CEO of the domestic famous public relations company Blue Cursor, pointed out that "shareholders decide the fate of the company, this is rule."
"This is the embodiment of the will of capital." An investment analyst expressed the same meaning. "In the share of equity, Safran Asia is the largest shareholder, Wu Changjiang is second. At the same time, the agreement between the two, the priority terms are also occupied by the former, Wu Changjiang is therefore very passive."
This statement was confirmed in an interview with Wu Changjiang. "We have some differences and contradictions with Softbank (Saifu Asia), including investment and investment, but they have the right to give priority, there is no way."
It is worth mentioning that in the process of attracting investment many times, Wu Changjiang had been paying attention to the company's control, but he was confident that the capital side was "not him." Even after leaving NVC lighting, he still said on Weibo, "When I adjust for a while, I will still come back, and I will never give up for NVC." I will never give up."
Wu Changjiang paid a price for his overconfidence. Like his fate, he was found by Li Tuchun, the founder of Prince Milk, and Li Qiuping, the owner of Yongle, and Chen Xiao, who was in charge of Gome.
In 2008, Li Tuchun signed capital injection agreements with investment banks such as Goldman Sachs, Morgan Stanley and Yinglian Investment. According to the statement, the financial crisis hit, the investment bank forced him to repay the loan in advance, and the company fell into a financial crisis. Earlier in 2006, Yongle Appliances failed in the agreement with Morgan Stanley and Dinghui Investment to sign a net profit of more than 750 million yuan in 2007, and was eventually acquired by Gome.
In addition, strategic development and the strategy of the funder are at the same level, which is also one of the main reasons for entrepreneurs to go out. In February of this year, Hou Yijiang, chairman and CEO of the luxury goods B2C Zunku, who was seized by the board of directors, recalled his own experience. "The entrepreneur has reached this point, including the lack of experience, the urgency of entrepreneurship, blindness, etc. Reasons."
The same thing happened to Li Yang, one of the founders of the red baby in the domestic maternal and child supplies B2C website. At the beginning of 2011, the Red Kids faced a transformation. Li Yang advocated focusing on the maternal and child products market, while Xu Peixin, who represented the employers, insisted on expanding the product line and transforming into a comprehensive B2C. In the end, Li Yang was kicked out of the board by the board, and Xu Peixin took the power.
Why is it always the entrepreneur side? A foreign fund partner who asked not to be named explained, "Compared with ordinary entrepreneurs, the capital in the market has experienced refining, the sense of smell is more sensitive, the horizon is wider, and the business is running. The concept of management is more modern. When the management team has made a fundamental mistake, it is inevitable that substitution or intervention will be carried out."
Honey or arsenic
Despite the frequent contradictions, there are still people in the investment community who point out that investors and companies are not entirely interested.
With the support of venture capital, the dairy giant Mengniu received 470 million yuan of funds and successfully listed on the Hong Kong main board in June 2004, which strongly supported the rapid development of its business. Jingdong Mall has grown from a small store in Zhongguancun to an e-commerce giant with annual sales exceeding 10 billion US dollars. "The basis for success is to continuously exchange and make adjustments in the investment process." A PE industry person pointed out that "in the capital world, the company's business growth is always the primary pursuit, and the founder of capital chasing profit maximization. The game with investors is inevitable," said the person mentioned above.
In the process of the game, the founders of domestic companies that can take the lead in their own hands are basically realized through high shareholding ratios and agreements.
Netease, Sohu, Shanda, Alibaba, etc. are all representatives of the founders with high shareholding ratio. Among them, after the privatization of Shanda Network 100% under the control of the Chen Tianqiao family, Ding Lei holds more than half of Netease's stock, and Zhang Chaoyang still holds about 20% of Sohu after the reduction. Alibaba uses the agreement to achieve control. Before Ma Yun spent $7 billion to buy back 20% of Alibaba's equity owned by Yahoo, he had already passed the shareholder agreement to stipulate that Yahoo could not participate in the company's operations, and that the dominant position was firmly in his hands. In the equity of NVC Lighting, SAIF Asia has realized the shareholding priority of NVC Lighting through the agreement.
"Only if the interests of both parties and the strategic vision are the same, they can make the enterprise bigger and better. If the investors and entrepreneurs are in a stalemate, they lose both sides and there is no real winner." Vice President of the China Finance Research Institute of Shanghai Jiaotong University The square pointed out.
Before the reporter's deadline, Yu finally accepted an interview on Wu Changjiang's resignation and said something meaningful. "NVC Lighting's stock price plummeted because of Wu Changjiang's sudden resignation, and our shareholders also suffered a lot of losses, but we also Did not complain about him, but worked together to stabilize the company."
Since the resignation of Wu Changjiang, NVC Lighting's share price has fallen by 30%.
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