Chapter 125 Financing Results
Going public is a good thing for the vast majority of companies, but there are a small number of companies that choose not to go public even though they can, because for them, going public is full of negative effects.

Guangjia Aerospace is such an enterprise.

Even if he could raise the most money by listing on NASDAQ, Chen Yuanguang would not go.

First, it is the overall environment. Going there is equivalent to handing a handle to others and being controlled by them. Nasdaq can ask Didi to hand over the data, and it is not certain what requirements it will make.

Second, before it is listed, the pricing of the entire target is entirely decided by Chen Yuanguang. As long as investors agree, there is no problem with the pricing. After it is listed, the market will have its own pricing. When you have run out of money, you can only raise funds according to the market pricing.

The difficulty of convincing the entire market is incomparable to that of convincing a few investment institutions, and investment institutions will tolerate some premium considering their previous sunk costs.

For a company like Guangjia Aerospace that needs to raise a lot of money and cannot see returns in the short term, going public has a purely negative effect.

Therefore, Chen Yuanguang flatly rejected the group's request.

Even though Goldman Sachs and Morgan said they could convince the White House to remove Guangjia Aerospace from the list, Chen Yuanguang did not agree.

While you have expectations for American Capital, they are also eyeing your business.

"How's the data?" Chen Yuanguang asked after hanging his suit on the back of the chair after returning to Guangjia Aerospace's office in Shenhai.

Lin Jia sat on the sofa in Chen Yuanguang's office holding a laptop computer and said to the data sent by the staff on the computer screen: "745 investment institutions came to the site.

In the end, only 13 companies wrote down their intended amounts on paper. A total of 236.7 billion RMB was raised in this round, which is about 100 billion short of our expected value.

It’s not a lot, but Guangjia Aerospace is not listed and has limited means of financing.

Furthermore, considering the nature of Guangjia Aerospace, even if we have to raise money from the market, we will try to use long-term bonds as much as possible.”

When Chen Yuanguang heard the number of 236.7 billion yuan, he felt that this was within his expectations. After all, there was indeed great uncertainty in this round of financing.

This number was unexpected.

Until there is a breakthrough in space mining, it will become increasingly difficult for Guangjia Aerospace to raise funds.

Because everyone originally thought that you were just joking and shouting slogans. We are all thousand-year-old foxes and have seen similar routines many times.

Before their IPOs, these listed companies in A-share market all said that the purpose of their listing and fundraising was to enable better development of the business. However, after listing, they all competed to make the most of the profits.

Cut in different ways.

What you say is not important, what you do is important.

Especially for these foreign investors, Silicon Valley is the place with the most investment projects in the world. Since SpaceX opened the commercial space era, many companies in Silicon Valley have claimed that they want to do space mining.

They say so, but in fact, privately and investors will say that we are only doing preliminary preparations and preliminary research. At best, we are investing R&D personnel to accumulate data and patents, and making money by using patent walls and selling data.

The best outcome is that in the future, when there really is a company planning to engage in space mining, we will acquire them.

This is a common tactic used by Silicon Valley companies that claim to be involved in space mining. Therefore, before participating, American Investment Institution thought that Chen Yuanguang was doing similarly, except that Guangjia Aerospace's technology was more advanced and had achieved results.

They thought that this round of financing would mainly be used for the optimization of reusable rockets, which is a good topic. With the benchmark company SpaceX in front, your valuation is easy to estimate.

They also asked experts in the aerospace field to estimate that the gap between Guangjia Aerospace's technology in reusable rockets and SpaceX is only three years at most. This is already the fastest progress in the world, including among major national teams.

It is not too much to enjoy one-tenth of SpaceX's valuation. Wall Street values ​​SpaceX at 1800 billion US dollars, and Guangjia Aerospace can at least enjoy a valuation of 180 billion.

Unexpectedly, Chen Yuanguang was serious about it and really planned to engage in space mining. All the funds raised would be invested in the bottomless pit of the space station.

The annual operating cost of the International Space Station is US$30 billion, and the revenue is negligible compared to the operating cost.

From the initial construction of the space station to the subsequent annual operating costs, this is a huge pit.

Unless Chen Yuanguang can really achieve space mining, and can dig out precious metals.

Ordinary mining cannot make back the investment.

First of all, asteroids are divided into earth asteroids and metallic asteroids, and you have to find the metallic asteroids.

Secondly, not all metal asteroids contain precious metals. In the asteroid belt surrounding the Earth, the majority of the metal asteroids are composed of iron. Going into space to mine iron ore is no different from Dubai transporting oil back to Russia.

There are so many difficulties that it is obviously not a project that can make a profit.

Lin Jia looked at the data and said in surprise: "Among the investment targets in this round, in addition to Shenhai Urban Investment, Shenzhen Capital Group and Hefei New Industry Guidance Fund, which raised the most funds for us in the last round, the ones that raised the most funds were Mihoyo and Tencent. These two companies gave us 2 billion each."

Tencent is easy to understand. Since Jenny was replaced, Lin Jia has established a certain personal relationship with Tencent executives. With the rapid development of Guangjia-related companies in China, the level of Tencent executives who are in contact with Lin Jia is also gradually rising.

Although 20 billion yuan investment by Tencent is a lot, it is not surprising. Tencent is not short of money, and 20 billion yuan is just a small amount of money for them. It is enough for them to just write a sentence in the financial report to enrich their investment portfolio.

But it is different with miHoYo. They have no connection with miHoYo. Lin Jia has heard that miHoYo invested in companies engaged in controlled nuclear fusion, but he did not expect that they were also interested in commercial spaceflight.

Lin Jia complained in his heart that it was too easy to make money in the two-dimensional industry, and MiHoYo didn't feel any pain at all when investing in a project that would have no prospect of paying back the investment.

Chen Yuanguang was still thinking about where to make up for the remaining gap of more than 10 billion yuan, and then he said casually: "This is a good thing, which shows that our project is still attractive."

Lin Jia rolled his eyes at him and said, "If you said that the fundraising was to be used for research on reusable rockets and subsequent large-scale production of reusable rockets, the 350 billion RMB would have been raised long ago."

Chen Yuanguang was unwilling to do so: "Isn't this just fooling people?

When we use the money to build a space station, how will we answer the audit? We are ignoring the subsequent problems in order to solve the current problems. "

Lin Jia said helplessly: "This is called tactical. To be honest, our main goal is to build a reusable rocket, and our secondary goal is the space station. After the main goal is achieved, there is nothing wrong with using the extra money on the secondary goal, right?"

Lin Jia and Chen Yuanguang have very different styles of doing things. Lin Jia will try every possible way to achieve his goals and has a flexible bottom line, while Chen Yuanguang's bottom line is much higher.

This has nothing to do with the golden finger. This was Chen Yuanguang's style of doing things when he was in college. Everyone's final papers for elective courses were translated from English to Chinese, but Chen Yuanguang would write them himself. However, his final score was not as good as the English-Chinese translation, so he would continue to write them himself the next time.

Lin Jia always felt that Chen Yuanguang was terribly rigid in this regard.

Later, after Chen Yuanguang achieved great success in scientific research, Lin Jia brainwashed himself again, wondering if it was because of his previous rigid persistence that he developed such an unparalleled scientific research intuition.

When Lin Jia was teaching at Jiaotong University, he talked with some professors. Their evaluation of Chen Yuanguang was that Chen Yuanguang had an innate talent in scientific research, and could grasp key problems and provide solutions. This required not IQ but intuition.

Chen Yuanguang shook his head: "No, we don't need to do this. If we only need to raise funds this time, then this method is feasible. We will have two larger rounds of financing later. The method you proposed can only take care of the present and not the future."

Lin Jia feels that Chen Yuanguang’s ideas at some point are still stuck in the Middle Ages: “This is an era that values ​​results.

If the results after the second phase of financing can give investors hope, then naturally someone will follow up with investment in the third and fourth phases. If there is no hope, even if you explain the risks clearly before investing, it will be of no avail, as no one will invest in this project in the future.

This is not the Middle Ages. No one cares about the moral level of entrepreneurs. Everyone only cares whether entrepreneurs can bring benefits to others.

You are just tactically hiding some facts. In this era, this can be considered a moral flaw at best. Ali Ma separated Alipay from Ali and turned it into Ant Financial. Baidu's Li asked the founder who started the business with him to resign on the eve of the IPO, and he didn't even have the opportunity to ring the bell at Nasdaq. Tencent imitated other people's games pixel by pixel. The means used by the big guys to achieve their goals are endless. Who would not cooperate with them because of this? "

Perhaps because he was born into a merchant family, Lin Jia was used to such intrigues and had become desensitized to them. However, Chen Yuanguang's father became completely wealthy after making a fortune from house demolition, which made Chen Yuanguang much less accepting of similar things.

Chen Yuanguang didn't want to argue about it anymore: "Okay, maybe you are right, but I still don't want to do this."

Lin Jia said, "Yuan Guang, I'm not saying your idea is wrong, I just think you can be more flexible in dealing with the problem.

The reason why I pointed it out afterwards is because I think your approach will not have much impact. The gap is only 10 billion, and there are many ways to fill it, such as long-term bonds, asking banks to use perovskite technology as collateral, etc.

Moreover, with more than 2.0 billion yuan, it will not affect the early stage work. If there are outstanding results in the early stage, this time can be regarded as the 2.1 round of financing, and the next 2.2, 2.3, and 10 rounds will be ready. I have raised funds times, and it can be regarded as the second round of financing.

It’s nothing more than a different name. In recent years, companies have become more and more cunning. They can create a pre-A round between the A round and the angel round. If they can create a noun, why can’t we? "

Lin Jia's expression and sitting posture showed that she was very relaxed. Raising 20 billion in this round was beyond her expectation. She thought that only Shenzhen Capital Group and Shenhai Urban Investment, two local state-owned enterprises with deep interests tied to them, would invest in this round.

If she were an investment manager, she would not dare to invest in the Guangjia Aerospace project because the uncontrollable risks are too great.

She stretched, stood up, ran to Chen Yuanguang and put her arms around him: "Small problem, China has money but can't spend it now.

Global inflation and China's deflation are such a rare situation that it is impossible for good projects on the market to lack money.

Although there are only 13 institutions that have written down their investment amounts in this round, there are many institutions that have sent emails expressing their hope to have in-depth negotiations before giving the specific investment amount.

There are more than 50 institutions including Sinopec Capital, National Manufacturing Upgrading and Transformation Fund, Legend Capital, Bohua Capital, BOC Investment, Sequoia China, Hillhouse Capital, etc. that want to have the next round of communication with us.

With so many institutions, I am confident that I can raise 100 billion yuan.

Besides, Duan Zhizhong came to see me before he left."

Chen Yuanguang stood up and hugged Lin Jia, then let go of his hand and asked, "Who is he?"

Lin Jia said: "The investment manager of Hefei Emerging Industry Development Fund said that if this round of fundraising is not enough, as long as Guangjia Aerospace places its headquarters in Hefei.

Hefei will take up the remaining financing quota of this round, as well as the uncollected funds in each subsequent round. "

Hefei has always wanted to introduce light armor aerospace, and Chen Yuanguang was not surprised. When he went to Yanjing for a meeting, he also discussed this issue with the Anhui Province. They were very positive about introducing light armor aerospace.

Chen Yuanguang has also heard a lot about Hefei's courage in investment. In 07 alone, they sold everything they had and invested one-third of the annual fiscal revenue in BOE. Chen Yuanguang was deeply impressed by this legendary story.

This investment brings BOE's cumulative investment in Hefei to more than 08 billion yuan since 1600, which can be considered a two-way effort.

"What do you think?" Chen Yuanguang asked. He wanted to hear Lin Jia's opinion.

Chen Yuanguang strongly advocated placing Guangjia Aerospace in Pengcheng. The main reason was because Pengcheng was close to the border, and it was very convenient to go from Pengcheng to Hong Kong and then use Hong Kong as a springboard to cause trouble.

In China, your upper limit is locked, and Chen Yuanguang feels this more and more. However, if you go abroad, you will have a much higher degree of freedom.

It’s just that his current biological technology is not enough, so he has to stay in the country to develop.

If it weren't for this reason, it might be a good idea to move Guangjia Aerospace to Hefei.

“I think there is no difference. There is no essential difference between Pengcheng and Hefei. The best headquarters for domestic light armor aerospace should be Yanjing.

Yenching has rich educational resources, administrative resources, and a number of start-up commercial aerospace companies. We can directly discuss acquisitions and mergers and acquisitions.

At the same time, Yanjing is very close to both Chang'an and Yantai, and can siphon talents in the aerospace field from Chang'an. It doesn't even take a two-hour flight to Yantai to launch a rocket.

I have never thought that Pengcheng is a good place in the field of aerospace. First, there is no history, second, there are no universities, and third, there are no industrial clusters. "Lin Jia said bluntly: "If you hadn't insisted, and Shenzhen Capital Group had indeed shown enough sincerity, the R&D center should not have been placed in Pengcheng.

However, what makes Pengcheng better than Hefei is that Pengcheng is more receptive to talent when it comes to siphoning it in, while Hefei is a little worse in this regard.

For those who can join Guangjia Aerospace with a master's degree, there is not much obstacle to settling down in Pengcheng. They do not need to do any psychological preparation. As long as they can afford to buy a house, they are willing to stay. If it is Hefei, except for people from the same province, people from other provinces have to have a psychological struggle even if they can afford to buy a house.

This is the benefit brought by the city's energy level. Hefei's urban energy level is definitely not as good as Pengcheng's.

When I was studying for my master's degree at Columbia University, we did a research project on why most technology companies are in California and the number of entrepreneurial companies in California is also much higher than in other states.

Texas and California are the best comparison cases. Compared with Texas, California's corporate tax is abnormal. Texas does not have personal and corporate income tax. They only have 1% business tax, while California's corporate tax rate is a uniform rate of 8.84%.

At the same time, Texas also has ETT and SDI. ETT is the employment training tax with a tax rate of 0.1%, and SDI is the disability insurance tax with a tax rate of 0.9%. Texas also does not have this tax.

The cost of running a business in California is much higher than in Texas. The same is true for personal income tax, which is much higher in California than in Texas. Therefore, you can often see in the news that companies are moving away from California.

In fact, only the marginal businesses of large companies were spun off and moved to Texas, while the core businesses are still in California, and the vast majority of innovative companies are still in California.

The two reasons I summarized at the time were the talent and business cluster effects. California's rich university system and large number of high-quality companies made these companies choose to stay even in the face of such high corporate taxes.

By the same token, Pengcheng's advantage is its concentration of talent. If you go to Hefei, the funding problem will be solved, but the stability of talent will decrease.

That's the only difference.

If you go to Yanjing, you won't have these problems. Yanjing is the Jerusalem in the minds of most northerners, although I don't like it." Lin Jia talked freely.

After listening to this, Chen Yuanguang said, "Let me think about it carefully."

Lin Jia patted his shoulder and said, "If you don't want to, there's no need. There are so many companies waiting for us to talk to them one by one. After the talks, there is no way to consider Hefei's suggestions."

She thought that the reason why Chen Yuanguang was so persistent in choosing Pengcheng was because he was born in Yangcheng and had a deeper sense of belonging to Pengcheng.

Chen Yuanguang did not explain, "Okay, there is still time."

The news of this round of financing spread very quickly, and all the investing companies knew the results in almost a week. Some felt that this result demonstrated Chen Yuanguang’s strong appeal.

"Under this environment, there are still so many institutions willing to invest more than 20 billion yuan in him. Chen Yuanguang is worthy of being the Musk of China. His appeal is too strong."

Some also believe that this was a rare Waterloo for Chen Yuanguang:
"This is the first time I saw Chen Yuanguang fail. He was too arrogant and thought he could make his wish come true. 350 billion yuan is easy to say. This is close to half of China's annual aerospace expenditure in 2022. How can it be so easy?

Being young means you are easily distracted. ”

There are also people who are interested in this project and want to talk more:
"If the battle line is extended and there is a clear expectation for listing, I think this project can be invested in. If Chen Yuanguang wants to go public, Guangjia Aerospace will definitely be able to go public. Not only will the village give him the green light, but investors will also recognize it.

If you only think about not going public and want to learn from OpenAI's model to innovate your organizational structure, you will inevitably face new problems if you want to innovate."

　Still available today.

　　In addition, I want to correct some typos pointed out by everyone, but it seems that the chapter is locked, because some sensitive content has been automatically modified by Qidian. Please forgive me.

　　
　
(End of this chapter)