If Huimin Bicycle establishes its absolute dominance, I think it will be beneficial to everyone here."

There is nothing wrong with what Zhang Yida said. Venture capital institutions actually do not want Huimin Bicycle to fail.

If it fails, it will be of no benefit to anyone. Even the shares held by venture capital institutions will be worthless.

Debt financing is guaranteed by Zhang Yida, so it will not be wasted.

The equity financing part is miserable, there is no guarantee, you bear the risk at your own risk.

"Then add some more! $30 million!"

The SoftBank investment representative thought for a while and then increased the price.

Just this little, Zhang Yida would not agree.

Zhang Yida personally guaranteed US$550 million in debt financing for the company's development.

If Huimin does not develop smoothly in the future and fails to repay the loan, Zhang Yida will be responsible for the loan.

"Then let's just raise US$450 million in debt financing, and I won't personally guarantee the company."

The benefits are not proportional to the effort, so Zhang Yida is ready to make a move to make progress by retreating.

"How can that be done? Mr. Zhang, didn't we say it right? US$1 billion in debt financing.

Why are you backing out now? No, no, you can’t be a man without keeping your word.”

SoftBank investment representatives somewhat guessed Zhang Yida’s intentions, equity + debt financing, totaling US$1.5 billion.

Such a large amount of funds is enough to defeat all opponents.

Of course SoftBank is happy to see the results, but what if it loses US$550 million and the business is not completed?

SoftBank neither wants to suffer losses from the bet, but also wants Zhang Yida to successfully complete the bet.

"Then if you increase the equity incentive, I want US$240 million."

Zhang Yida also took a step back and asked for US$10 million less.

Several parties argued for a long time, one side reduced the amount and the other increased it. In the process, several major venture capital investors went to seek instructions from their superiors.

Finally, the equity incentive for completing the bet was determined - US$120 million.

Approximately 3.43% of the company’s total shares.

It is equivalent to Zhang Yida and the management completing the bet within one year. The B+ round investors must each transfer 24% of their equity to Zhang Yida and the management for free.

If the gambling conditions are not fulfilled, the founders and management team will compensate the B+ investors with equity based on the pre-investment valuation of US$2 billion in this round of financing.

Approximately 5.71% of the company’s total shares.

Regarding this point, Zhang Yida did not argue too much.

It is the uncle who pays the money. If you want absolute fairness, it is impossible.

Then several parties started a fierce debate over the interest rate and term of debt financing, and the repayment method.

“The loan term is three years, with one-time repayment of principal and interest upon maturity, and an annual interest rate of 4%.

This is my bottom line!"

Zhang Yida refused to give in, and became very knowledgeable in debt financing. An interest rate of one point is equivalent to US$10 million in interest per year.

There is also knowledge about the repayment method. The intention is to repay the loan in one lump sum when it is due, so that the capital utilization rate is the greatest.

"Equal payments of principal and interest" and "pay interest every month and repay the principal when due" will put a lot of pressure on business operations.

"We agree in principle with the three-year loan term. However, the repayment method cannot be a one-time repayment of principal and interest. It must be changed to monthly interest payments and principal repayment upon maturity.

The interest rate is too low, and the most preferential annualized interest rate for Yimin Travel is 8%.”

SoftBank's investment representative also refused to let go. The interests involved were huge and he had to be responsible for the company.

The negotiations were deadlocked for a long time, and finally each side gave in. The employer lowered the annual interest rate on the loan to 6%, and Zhang Yida agreed to the borrowing method of "paying interest monthly and repaying the principal upon maturity".

After all the agreements were drafted, several parties signed the "Yimin Travel B+ Series Equity Financing Agreement", "Yimin Travel US$1 Billion Debt Financing Agreement", "Performance Gambling Agreement", "Debt Financing Guarantee Agreement"... etc.

Waiting for more than a dozen agreements, large and small.

With this financing, Yimin Travel will receive an equity financing of US$500 million, a financing of US$1 billion, and a total of US$1.5 billion in joint equity and debt financing.

Among them, SoftBank invested US$250 million in equity investments and US$500 million in debt loans;

Warburg Pincus invested US$100 million in equity and US$200 million in debt loans;

Silver Lake Capital invested US$75 million in equity and US$150 million in debt loans;

GIC has an equity investment of US$75 million and a debt loan of US$150 million.

Equity changes to:

Zhang Yida:38.85%

Option pool:4.57%

Huayi Capital: 2.29%

Blackshirt Capital: 11.43%

Zhenke Fund:2.85%

Jinsha River Venture Capital: 5.72%

Matrix Global:5.72%

Penguin Industry Fund: 4.77%

Gaoling Capital:2.37%

Qiming Venture Partners:2.37%

GGV Capital:2.37%

Didi Chuxing: 2.37%

SoftBank Investment: 7.14%

Warburg Pincus:2.86%

Silver Lake Capital: 2.14%

GIC Sovereign Wealth Fund: 2.14%
Chapter completed!