Chapter 20 The willows are dark and the flowers are bright: Softbank sends charcoal in the snow

God is always critical and harsh on successful people.Mencius said: "Heaven will send a great mission to the people of Sri Lanka, and they must first suffer from their minds and wills, exhaust their muscles and bones, starve their bodies and skins, empty their bodies, and disturb their actions. Therefore, the hearts and minds are moved and forbearance, which has benefited what they can't do. "Yongyi's "failure" never made Jiang Nanchun discouraged, but the lack of funds made Jiang Nanchun restless. However, God is still fair. After accepting the "looking back" smile from the "opposite" capital, Jiang Nanchun, who had burned through the years of passion, once again died and survived.

It is absolutely impossible to have no imagination, but imagination alone is still far from success.Jiang Nanchun, who is somewhat "conservative" in business, still lacks some "illusion-like imagination". In his early expectations for the focus model, it is far from the scale it is today. Today's powerful focus is Jiang Nanchun's constant struggle with his own personality The result of compromise. Jiang Nanchun said that he is a person who lacks the spirit of adventure and is used to living a healthy life of petty bourgeoisie. Another conservative of Jiang Nanchun is that he "does not accept borrowing money". He never thought that he would go out to raise funds for his own company. "I'm used to working in a company by myself. I didn't expect to raise funds or borrow money. The equity is taken away by others. This is obviously not acceptable."

However, in the face of subtle changes in the market structure and the financial pressure brought about by expansion, the conservative Jiang Nanchun began to think of financing.In fact, Jiang Nanchun's financing path went smoothly.He told the author that the smooth contact with venture capital for the first time is entirely due to two things, one of which is the geographical advantage of working on the same floor as Softbank China, and the other is his perseverance. Difficult things in the world must be done with ease; great things in the world must be done with care.There is no doubt that Jiang Nanchun, who works like a desperate Saburo but still meticulous, has given SoftBank good expectations, but a first-class investor not only invests in people, but also depends on the rate of return after investment.

For this reason, Jiang Nanchun prepared a story for Yu Wei. According to Jiang Nanchun's description, SoftBank's investors at that time hoped that Jiang Nanchun could make a description of the market size and wanted to know how big the data was. "Actually, this story shows how big the outdoor TV advertising market is. I made a simple analogy, saying that a white-collar worker stays at home for 8 hours a day and watches TV for 1 hour. The advertisement will be transferred to the channel, and these 5 minutes have created a 50 billion advertising market in China. From another perspective, if within 16 hours of the day, in the office, in the restaurant, and in other focus groups, we can reach and get in touch with our advertising media Assuming that you are exposed to it for 5 minutes a day, if the 50 billion advertising market is too big, can you see the 5 billion?"

Obviously, investors have seen this market. Judging from the bullish performance of Focus Media, Jiang Nanchun's market forecast is not exaggerated.According to Jiang Nanchun, as early as the end of 2003, Focus Media’s one-month performance reached 10 million. In 2004, it rose from 10 million to 40 million, and the last month was 42 million. "At the beginning of 2005, it was more than 30 million, and at the end of 2005, there will be basically 70 million per month." The metaphor of a 5 billion prospect won the favor of "opposite capital", and Jiang Nanchun, who was backed by a "big tree" to enjoy the shade, thus established and consolidated Focus Media's well-deserved "dominant" position in the new field of outdoor building TV advertising.

In-building TV needs both staking and staking, and needs to quickly find the balance point of investment profit and loss.The middle of the day will move, and the moon will lose money when it is full.In this regard, Jiang Nanchun quickly realized that there was only one thing he had to do—there was nothing that could not be won by four or five billion yuan, and he had to rely on external forces.At the same time, the corporate risks brought about by the expansion of land enclosures also aroused Jiang Nanchun's attention and worries, and the capital investment in building TVs in the early stage did not bring the expected benefits.What's more, the other two competitors, Juzhong Media and Oriental Pearl TV, followed closely.

The staking requires a new capital model.Therefore, the introduction of new funds has become an important part of the next development of building TV and Jiangnanchun.However, what does Jiang Nanchun use to persuade others to invest? In China’s IT and advertising industry, which has experienced the cold winter of the Internet, facing the lessons learned by .com companies, the terrifying speed of building TV enclosures and this brand-new business model are still doubted by many so-called experts and industry personnel. question.After all, a year ago, .com took the road of financing and burning money, but a year later, .com was in turmoil.

Any company can be an industry speculator, because every industry has its ups and downs, and only by grasping the opportunities in the industry can companies create wealth and value.There is indeed such a way of life in the real business environment, which makes the industry, which has been frightened by the .com economy, tend to be rational. Faced with Jiang Nanchun's building TV development method based on "staking horses and enclosing land", they naturally have doubts Heavy.When another vigorous "burning money" campaign is ignited in the advertising industry, people in the industry will naturally feel a chill.As a result, more and more people began to question: After experiencing the hustle and bustle and fanaticism of .com, will Jiangnanchun become a .com-like bubble?

Compared with the excitement and impulsiveness before 2003, the huge initial investment and frequent acquisitions of real estate make the industry keep a cautious and low-key attitude towards this emerging industry spawned by Jiangnanchun's "empty bus theory". Is Jiang Nanchun's in-building TV like Chen Tianqiao's Shanda Game, which remains unchanged in the online game industry, or is it a short-lived Internet and advertising company like .Therefore, when advertisers are still on the sidelines and dare not move forward, many domestic and foreign financial institution groups and companies will not easily invest in Jiangnanchun under the influence of the world.

The cruelty of reality told Jiang Nanchun that without attracting foreign investment and timely injection of funds, the success of Focus Media was just a fantasy that remained deep in his heart and was difficult to realize.But Jiang Nanchun is not in vain. He has his own coup to "lure" financial institutions to willingly provide funds to help him consolidate his position and occupy the emerging advertising market of outdoor building TVs. Amidst the doubts, the far-sighted Jiang Nanchun began to fight back with practical actions.Jiang Nanchun once publicly stated that Focus Club is committed to creating a more three-dimensional and focused platform, "We will create different audience groups in different locations, and use the lowest cost to impress all our consumer groups and all those who are optimistic about our risks. investors".

Segmented markets, professional services, and a diversified service system, from blind expansion of "horse race enclosure" to "intensive cultivation" around customer needs, providing tailor-made services, and then to selective and strategic enclosures, buildings The market prospect of TV has finally been praised by industry experts. At the same time, in-building TV also relies on the good innovation of its advertising form, uses "boring" to attract eyeballs, promotes the popularity of advertising products, and stimulates consumers' desire to buy, thus gradually occupying a prominent position in the minds of major advertisers.Jiang Nanchun tried his best to prove that in-building TV is not a bubble, and the new concept of building TV’s fragmentation will also attract more foreign consumer groups. Facts can prove that investing in in-building TV means guaranteed income. Jiang Nanchun was anxiously looking forward to the arrival of "life-saving funds".Finally, he was favored by venture capitalists, and it was the joining of these venture capitalists that helped Jiang Nanchun a lot.From then until its listing, Jiangnanchun's Focus Media has always been the darling of venture capitalists, and Jiangnanchun no longer has to worry about the lack of funds. "Mountains and rivers are full of doubts and there is no way out, and the willows are dark and the flowers are bright and another village", this sentence is really suitable for Jiang Nanchun, who suffers from insufficient funds to realize his media dream, and "accidentally" gets the help of "noble people".Because just when Jiang Nanchun was under the greatest pressure and was about to be overwhelmed, a person with a large amount of venture capital took the initiative to find Jiang Nanchun.This person is Yu Wei, the chief representative of Softbank's Shanghai office.What's even more comical is that the God of Wealth who came to the door is actually opposite Jiang Nanchun's office (28th floor, Zhaofeng World Trade Center, Jiangsu Road, Shanghai, when you get out of the elevator, turn right and you will see Jiang Nanchun's Yongyi Communication, and turn left to Softbank China ).It is no exaggeration to say that it was Yu Wei, the chief representative of Softbank and its Shanghai office, who made the miraculous turning point between Jiang Nanchun's life and death. Yongyi Communications is located in Zhaofeng World Trade Center on Jiangsu Road, and this building used to be the headquarters of Softbank China. Meet and chat with friends. "In 2001, Jiang Nanchun, who was still the general manager of Yongyi, rented the office opposite us and used some hardware from our office incubation base." Yu Wei said, "So we have the opportunity to meet often, in the elevator, in the We met at work in the company and gradually got to know each other better.” First-class investors and commercial investors, second-rate investors and commercial investment projects.At first, Yu Wei didn't pay much attention to the advertising company opposite, but this 29-year-old young boss aroused his interest. "We sometimes have meetings very late. On Saturdays and Sundays, I sometimes come to the office, and every time I see Jiang Nanchun's car parked downstairs." Yu Wei said, "I feel that he works from 8 o'clock in the morning. Until 12 o'clock in the evening, there is no weekend. When I met him in the elevator, he always carried a notebook and planning book." Yu Wei still clearly remembers Jiang Nanchun's license plate number - 3844, and remembers "that is a car Not-so-new old Mercedes." At that time, Yu Wei only knew that Jiang Nanchun was advertising.And in 2002, by chance, Jiang Nanchun and Yu Wei chatted about what kind of media he was doing, which was unprecedented.The speaker has no intention, but the listener does. Yu Wei began to pay attention to those new gadgets that Jiang Nanchun "twirled".At that time, Jiang Nanchun went everywhere to install his LCD screen, and Yu Wei also bumped into it. "I went to the field to see their LCD playing in an office building. I saw many people waiting in the elevator for a few minutes when commuting or visiting this building. Everyone is very concerned about such an advertising platform. Anyway, there is nothing to do while waiting for the elevator.” Yu Wei began to have a premonition that this form of digital outdoor media and the dynamic publicity means formed by billboards and multimedia will form a network, or the number of people covered will reach a certain scale. , the future is probably limitless. The shrewd Yu Wei also learned more about Jiang Nanchun's original new media project and his 10-year entrepreneurial experience from other channels.In April 2003, one quarter after Jiang Nanchun's in-building TV system was officially launched, Yu Wei asked him in the elevator if his project had started to make money.Jiang Nanchun replied that it was okay, that the monthly expenses and income were equal, and he started to make a profit. As a result, the capital on the opposite side began to have a "spring heart". After careful and detailed investigation, Yu Wei decided to have a chat with Jiang Nanchun.Yu Wei asked Jiang Nanchun many questions—"How much money have you invested now?" "How about the income?" "What is your purpose for doing this project?" Are you interested in building a large platform for a completely new type of media?" "If funds allow, how do you see the prospect of such a new type of media, how long will it exist, and can it play a certain role in this industry?" Yu Wei said: "I want to understand his perspective. If he only stays in doing a few advertisements and earning some money, then he will not see far, and I will not invest." Jiang Nanchun's answer obviously made Yu Wei very upset satisfy.First of all, he had a very detailed feasibility plan when he invested in this project. Jiang Nanchun was able to realize short-term profits by utilizing the customer resources accumulated over a long period of time.Then, his great ambition made Yu Wei nod frequently.After chatting for three hours, Yu Wei and Jiang Nanchun reached a preliminary financing agreement. In this regard, Yu Wei said: "There are very few business models that will start to make profits in a short period of time. This is a point that I am very interested in. The greatest value of this project of Jiangnanchun lies in the originality of its entire business model. What others don’t have. He has the vision and organizational ability to discover such a platform, which is a value. So I quickly made a decision, I want to invest in this project.” He also said: “1999 Since I joined SoftBank China in 2010, this is the first time I have taken the initiative to spend money to pursue a project.” Yu Wei commented on Jiang Nanchun: “First of all, Jiang Nanchun is a very dedicated CEO and entrepreneur; He has a deep understanding of the industry, the business model of the company he founded, and the media industry he is engaged in. This also objectively deepens my confidence in Jiang Nanchun and my investment in Focus determination." As soon as Yu Wei made a decision, he approached Jiang Nanchun again and asked, "How much will it cost if you want to create such a nationwide media advertisement?" Seeing that this neighbor who often meets in the hallway and bathroom unexpectedly Jiang Nanchun couldn't believe it when he took the initiative to come to the door to give money. Jiang Nanchun: "At that time, investors were a very unfamiliar concept to me." Just when Jiang Nanchun was about to explain to Yu Wei in detail what Focus Media is, Yu Wei had actually understood this business model by heart.Because after all, he had spent two weeks conducting on-the-spot investigation and investment analysis of Jiang Nanchun's project before coming to the door, and the last conversation with Jiang Nanchun had actually strengthened his confidence in the Focus model. Yu Wei: "A very innovative model will have dozens of times the return." Since everything is in harmony, the final "marriage" is naturally a matter of course.The final substantive negotiations between the two sides took only one week.During that week, what Yu Wei really wanted to know was the entrepreneur's determination, passion and business ability. The self-owned investment of 25 million yuan is almost desperate for Jiang Nanchun, which is enough to show his determination for this project. "In terms of passion, when he described the project to his clients and me, I was convinced by his delighted devotion." Yu Wei said. In addition, Jiang Nanchun was able to recite all the billboards within a radius of 500 meters from the center of Xujiahui, which made investors appreciate his professionalism and professionalism. "He is already running a domestic top 50 advertising company. There are many things that he does not necessarily need to personally do, but he still goes to the front line to face his clients and capture some feelings, which keeps him sharp in the industry. .” Yu Wei said. "Actually, it didn't take a week to actually make a decision." Yu Wei said, "Before I formally talked with him, I had already done a lot of understanding of the whole project. I ran to the bottom of the building to see how many people were looking at him. I’m already analyzing the advertisements (not that he can make a profit if he says he can make a profit), for example, he has 10 advertisements, what kind of customers are they. Calculate his income and operating costs, including his hardware costs, rent …I already have his entire business model in mind.” But all these qualities are not the most critical in Yu Wei's opinion: "The combination of these things can make him make money, and it may also cause a sensation, but it is not enough to ensure the continued success of an enterprise." Yu Wei said The last item examined is the entrepreneur's ambition.And it was at this point that Jiang Nanchun gave him a very special feeling. "Generally, small projects or those who want to raise funds want money, not the value of professional knowledge, professional advice, and experience in the entire operation that we can provide, but these are what Jiang Nanchun cares about most." Yu Wei said "When we talked about many terms, rights, and capital amounts, Jiang Nanchun didn't care about our price, but talked about the help we can provide and the value that our investors can provide. What he wants It’s the value that we can really help him with.” After talking again for 3 hours, Jiang Nanchun obtained the investment commitment from Softbank and decided to expand the business from Shanghai to 4 cities.Softbank's investment came at the right time for Jiang Nanchun. In May 2003, with the help of Softbank, Jiang Nanchun formally registered and established Focus Media Holdings Co., Ltd. and served as CEO.SoftBank then announced its investment in Focus. Later, Yu Wei said: "Actually, out of our original intention, we hope to invest more." But Jiang Nanchun thought: "In order to avoid asking for money, the shares are also absorbed, so my attitude is to still maintain control." Chun is worried that accepting too much venture capital will make him a migrant worker for others.In fact, this decision made Jiang Nanchun quite regretful, which made him lose the favorable opportunity to dominate the world.Jiang Nanchun commented that he politely rejected Yu Wei's request at the time: "Excessive caution, in fact, I rarely have the courage to put everything in one basket." This may be what Jiang Nanchun hates most about himself. In less than a year, Jiang Nanchun completely changed his original mind. He accepted more venture capital, and the favor of investors often fell on Jiang Nanchun and the Focus Media he led.Thus, the second round of financing began in this context. On June 19, 2004, Focus Media received capital injection again, and signed a second investment agreement with internationally renowned venture capital institutions such as CDF CDH International Investment, TDF Huaying Investment, DFJ DFJ Investment, WIEC, and Maidun International Investment. round of $12.5 million financing agreement. When evaluating the cooperation with Focus Media, Chen Wenliang, the person in charge of the TDF project, said: "Focus Media's LCD TV network is a unique media concept, and it is only natural that it has attracted the attention of investors." Ru Linqi, director and general manager of TDF Venture Capital Management Company, said: "Jiang Jiang is a handsome talent. He founded the business model of building TV, and has strong contacts and execution capabilities in the advertising industry. The success of Focus not only comes from proposing He has the ability to quickly turn the concept into a profitable model for a new concept, and to make this model quickly recognized by the market.” Jiang Nanchun, who has changed his mind, said when talking about the cooperation between Focus Media and international financing institutions: "When CDH International invested in us, it required us to have an operating profit of US$8.6 million for the year, otherwise our shares would be diluted. It seems to be a very tricky and even harsh condition, but I agreed without hesitation. Because I am very confident in the income of Focus, the task was completed in September of that year." Good luck followed. In November 2004, Focus Media completed the third round of financing. Goldman Sachs of the United States, 3i Company of the United Kingdom, and Weizhong China jointly invested 30 million US dollars in Focus Media, and took the "last train" before Focus Media went public.Cornell, director and general manager of the direct investment department of Goldman Sachs, said: "Goldman Sachs conducted a detailed and in-depth analysis of Focus Media, was surprised and appreciated its performance, and is optimistic about the market prospect and business model of the new media for commercial buildings created by it. It can fully ensure that it will continue to maintain extremely high growth in the future development process. Goldman Sachs generally only invests in companies that have strong competitive advantages and high entry barriers in their fields, and Focus Media is the most ideal Investment object. Therefore, Goldman Sachs dares to make this bet.” Jiang Nanchun, who got the funds, held the press conference in the Great Hall of the People. As the model of Jiangnanchun's second start-up has been recognized by more and more people, Focus no longer has to worry about funding.And after each financing, Jiang Nanchun launched a new Focus Media building network in major cities across the country at lightning speed. "Suddenly, some people from all over the country called and said they would do this too." Jiang Nanchun recalled. Through private equity financing, the cost of Focus advertising began to be equal to the cost of TV advertising. By the end of 2004, when the number of buildings controlled by Focus reached tens of thousands, the advertising cost of Focus was equivalent to 1/2 of the cost of local TV stations, and the monthly income began to exceed 40 million yuan. While Focus has benefited from the financial support of investors, it has not disappointed many investors.Mr. Chen was one of the early investors of Focus Media. In July 2005, after Focus Media successfully landed on NASDAQ, Mr. Chen received extremely generous returns. "In our circle, the greetings when we meet are what good projects have been discovered recently, whether there is any investment, and how much investment." When talking about the information transmission between venture capitalists, Mr. Chen said: "As long as you find a good project For investment projects, I contacted several overseas investment funds through a financial company to do several rounds of private placements, participated in some shares, and then allocated some options. Once I successfully listed overseas, the rewards will be considerable. Focus is a good project I discovered. " On July 13, 2005, Focus Media was listed on NASDAQ in the United States, with an IPO financing of 172 million US dollars, which created the highest record for Chinese companies listed overseas.Within one or two months after its listing, Focus Public announced that it has acquired the second-tier advertising company in the border shopping malls in Shenzhen and the LCD screen business of Frame Media. In mid-October, Focus Media announced that it will acquire 100% of the equity of Frame Media, the largest elevator print media advertising operator in China, at a final price of US$183 million.Focus, which has no financial troubles, is even more frantically staking.