How to do equity design and how to do equity financing?

First of all, you have to understand the steps of equity financing, and Ruirong's G·SSC is very professional in this aspect:

Determine the amount of financing.

If the financing amount is too small, it will be impossible to promote the normal development of the enterprise; If you raise too much money, you will have nowhere to use it. Therefore, the founder should determine a reasonable financing amount according to the development needs of the enterprise.

Determine the company's valuation.

The valuation of the enterprise is the core of equity financing, and after the valuation of the enterprise is determined, the financing amount and the proportion of the investor's shares can be estimated according to the valuation. Corporate valuation negotiation is a milestone in equity financing, and this threshold has been crossed, as long as the investor is not too ruthless, such as asking for repurchase rights or VAM, the transaction can always be completed.

Generally speaking, how to value a company is the result of the game between the two sides of the equity financing negotiation, although there are some objective criteria, but it is essentially a subjective judgment. For businesses, the higher the valuation, the better. Unless the company is confident that it will go public directly after the completion of this round of financing, a round of equity financing with a high valuation is quite detrimental to the company's next round of financing.

Many companies are stuck after completing a round of financing, the main reason is that the previous round of financing raised the ** too high, and the company was subject to anti-dilution clauses and was not good at lowering prices for follow-up transactions, so they had to freeze.

Find investors.

Sign the letter of intent to invest.

After the investment and financing parties have reached an agreement on the valuation and financing amount of the enterprise, they can sign a letter of intent to summarize the results of the negotiation and prepare for the next stage of detailed investigation and negotiation of the investment agreement.

The Letter of Intent is a general legal document that states that it is non-binding, except for the confidentiality and exclusive lock-up periods. The purpose of signing the letter of intent is to reassure the negotiating company that it will concentrate on exclusive negotiations with the investor for at least the exclusive lock-up period (usually 2 months). After signing the letter of intent, the parties may still overturn the transaction at any time for various reasons, and there are many cases where the letter of intent is signed but the transaction is ultimately aborted.

I add, I hope it helps!

There are generally four types of equity financing:

1. Increase capital and shares.

For example, Zhang San and Li Si partnered to open a company with a registered capital of 1 million, and when 1 million was used up, funds were needed, and it happened that Wang Wu was optimistic about this project, so Wang Wu and Zhang.

3. Li Si agreed that he would invest 200,000 shares and occupy 20 (20+100)=1 6 shares. In this way, Wang Wu can also become a partner and enjoy 1 6 equity. Zhang San and Li Si also have funds to develop their careers.

2. Equity pledge.

For example, if you ask Zhang San to borrow 1,000 yuan, Zhang San is afraid that you will not be able to pay it back, so he will mortgage your ID card to you.

When you return the money to him, the ID card will be returned to you.

The same goes for equity pledges.

For example, company A has a registered capital of 1 million, and in order to expand its scale, it needs financing. Because there were no previous items, company A used 80% of its equity as collateral and mortgaged it to financial institution B, financing 400,000 yuan, and completed the equity pledge procedures. Then, if company A does not pay off the money at 400,000, the equity of company A cannot be changed again at this time.

Once Company A is unable to repay the loan on time, then Financial Institution B has the right to auction and transfer 80% of the equity of Company A.

3. Equity transfer.

Equity transfer, well understood.

It is to transfer the equity of the original shareholder to someone else.

For example, company A has 3 ** East A, B and C, which contribute 500,000, 200,000 and 300,000 respectively, each accounting for equity. Now, due to personal reasons, shareholder C negotiates with A and B to withdraw, and transfers his equity to D, agreeing to transfer **300,000. The payment is completed and the transfer agreement is signed.

Then he becomes a shareholder of company A, and shareholder C withdraws.

4. Private equity financing.

Private equity financing is financing through the exchange of equity from private equity investment institutions.

So how do private equity firms make money?

For example, Company A has not yet been listed, but its prospects are very good, and it just needs capital to expand at this time. It happened to be favored by private equity investment institution B. Private equity firm B invests 10 million yuan to account for 20% of the shares of company A, and agrees to sell ** as an exit mechanism after company A is listed.

We can see that the profit model of private equity institutions is to invest in companies that are about to go public, and sell them for profit after they are listed.

I saw all of this on Ruirong's G·SSC*** "President's Business Wisdom Library", in their words: equity, which can be used as collateral to finance. Not only can it be financed, but it can also finance talents and resources.

These are obtained by dividing out the shares. The clever boss knows how to divide the shares, and at the same time does not lose control, and also has access to talents, resources, and funds.

Looking for Fa Caida, professional things are left to professional institutions to do

Today, I will mainly talk about what are the ways of equity financing:

1. Private Equity Financing Private equity financing (abbreviated as PE) refers to the financing of the equity of a specific investor through negotiation, bidding and other non-public methods. Private equity financing has some notable characteristics: First, in terms of financing, it is mainly raised from a small number of institutional investors or individuals through non-public means, and rarely involves the operation of the public market; second, equity-based financing; third, private companies and non-listed enterprises are the majority; Fourth, the financing period is longer, generally up to 3 to 5 years or longer; Fourth, diversification of investment and exit channels.

According to an authoritative report, the total scale of private equity financing for small and medium-sized enterprises in Hubei Province is between 300.4 trillion yuan, accounting for 50.55 of the total financing of small and medium-sized enterprises in Hubei Province. Private equity financing has become the first choice for more and more SMEs.

2. Venture Capital (VC) Venture capital (VC) refers to the investment behavior of venture companies using the funds they raise to invest in industries and industries that they believe can make money. Venture capital** invests in high-risk high-tech innovation enterprises. The selection and decision-making of risky projects are also very rigorous.

In foreign countries, the final signed project generally accounts for only about 1% of the total number of applied projects.

3. Listing and financing The current small and medium-sized board and gem also bring new hope for the financing of small and medium-sized enterprises, but the listing of enterprises is a huge system project, which requires enterprises to make various preparations one to two years (or even longer) in advance. He is also a highly professional worker, for example, there are more than 40 kinds of documents and materials that need to be prepared. Therefore, according to international practice, in the process of enterprise share reform and listing, it is necessary to hire a professional consulting agency to help operate.

Finally, for the successful use of any of the above financing methods, the premise is that the enterprise must have a clear equity structure, the improvement of the management system and other capabilities, so the improvement of the company's own management ability will be the primary task of various financing preparations.

Enmei Roadshow.

In order to reduce the risk of capital loss, entrepreneurs usually choose equity financing, which is mainly used to expand their business, form a larger market scale, and accelerate the development of enterprises.

Equity financing intermediaries can assist the creators to find suitable equity financing institutions, and entrepreneurs need to carefully choose equity financing intermediaries in the process. The role of intermediaries is to bridge the gap between entrepreneurs and investors, helping both parties to get in touch and increase the possibility of equity financing.

Compared with the traditional way of finding financing institutions, investment and financing platforms are a method that entrepreneurs choose more in the current era. The main advantage is that entrepreneurs and investors can directly deliver projects and provide information feedback. Some investment and financing platforms will help entrepreneurs match with suitable investors, and even establish corresponding dating circles, reducing the energy spent by entrepreneurs and investors when looking for each other.

Equity financing method: equity pledge; Equity transfer; Equity capital increase and share expansion; Private placement. Equity financing refers to the financing method in which the shareholders of the enterprise are willing to give up part of the ownership of the enterprise, introduce new shareholders through the capital increase of the enterprise, and increase the total share capital at the same time.

[Legal basis].Article 178 of the Company Law of the People's Republic of China.

When a limited liability company increases its registered capital, the capital contribution of the shareholders subscribing to the new capital shall be implemented in accordance with the relevant provisions of this Law on the payment of capital contributions for the establishment of a limited liability company.

When the shares are issued to increase the registered capital, the shareholders subscribe for the new shares, and the relevant provisions of the payment of shares are implemented in accordance with the relevant provisions of this law.

Corporate financing is generally divided into debt financing and equity financing, debt financing is divided into financial institutions and private financing, the two loan interest is not the same, but both need to repay principal and interest, there are many ways to equity financing, there are equity transfers, the introduction of new investors to increase the registered capital, employees into shares, these three belong to the identity of investors, enterprises do not have to bear the responsibility of repaying principal and interest.

One. Partner management.

A partner is to put his own net worth and life into it, and the partner mentioned here is a shareholder in the legal sense. The registered capital of the company in the early stage should not be too much, and the registered capital should be prudent, as far as possible within 1 million. (1) Entrepreneurial ability + entrepreneurial mentality + entrepreneurial persistence.

2) Resources complement each other, stand alone, and be harmonious and different.

3) Back-to-back.

4) Preferably co-financed.

2.Design of equity mechanism.

3.How to retain top talent.

Two. Business model.

Three. Shareholding structure and option pools.

Four. Persons acting in concert.

Five. Corporate governance structure.

The corporate governance structure, in accordance with the provisions of the Company Law, consists of four parts (three committees and one floor):

1.The shareholders' meeting or general meeting of shareholders, composed of the shareholders of the company, reflects the ultimate ownership of the company by the owner and is the highest authority of the company.

2.The board of directors, elected by the general meeting of shareholders of the company, makes decisions on the company's development goals and major business activities, and protects the rights and interests of investors, and is the decision-making body of the company.

3.The Board of Supervisors is the supervisory body of the Company and plays a supervisory role in the Company's finances and the actions of its directors and operators.

4.Managers, appointed by the board of directors, are the operators and executors. It is the executive body of the company.

Six. Board of directors.

Seven. Critical resource control.

Eight. Capital map.

Business plans, project feasibility reports, project proposals, etc., have only one purpose: to stimulate investors' interest in learning about your project. Investors may be taking on dozens of projects a day, and if your business plan can make their eyes shine, then the goal will be achieved.

If you want to find a ** agency, try to find one with a senior team. A business plan that can impress investors is not something that can be completed by applying a template, but should be written by professionals with many years of experience in the capital market, and analyzed and optimized from the perspective of investors. There are many platforms for business plans on the market, entrepreneurs must be cautious, and it is recommended to choose a professional team of large platforms.

With more than 20 years of experience in the capital market, our experienced team can not only assist companies in formulating business plans, but also simulate roadshows and develop investor Q&A strategies, making companies more popular with capital. "

Legal analysis: Equity financing refers to the financing method in which the shareholders of the enterprise are willing to give up part of the ownership of the enterprise and introduce new shareholders through the capital increase of the enterprise, and the total share capital increases at the same time. Equity financing can be mainly carried out in the form of public market offerings and private placements.

Legal basis: Article 71 of the Company Law of the People's Republic of China The shareholders of a limited liability company may transfer all or part of their equity to each other.

The transfer of equity by a shareholder to a person other than the shareholder shall be subject to the consent of more than half of the other shareholders. Shareholders shall notify other shareholders in writing to solicit consent for their equity transfer, and if other shareholders do not reply within 30 days from the date of receipt of the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; If you do not purchase it, you will be deemed to have agreed to the transfer.