The morning after the series A financing was confirmed, Lao Shan announced it in the company. In the Internet industry, financing is driving business and market impact to the next level, as well as the expansion of teams, which is exciting news from any perspective. Looking at those young and excited faces, Lao Shan first introduced Lao Fang’s identity as a shareholder and supervisor of the company, responsible for external financing, equity and other matters. Two more things were announced, one is that equity incentives are being designed and the other is to better prepare the company for the next expansion of the business, there will be teams of people in the company, both of which will be announced to you this week. In everyone’s crazy applause howling, old flash let everyone continue to work, and then called the promotion group leader T, operation group leader O, product manager P, technology group leader J together for a meeting.
Lao Shan first took out a sketch of the organizational structure that he had drawn in advance to let everyone have a look.
Everyone’s actual work content has not changed, it is only the first time for the old Flash to officially confirm from the perspective of the company, so in addition to the name change makes young people a little excited and curious, but there is no opinion. Lao Shan said, “After the A round of financing, we have more money and the company will set higher business goals. In order to strengthen the strength of all departments, we will launch A new round of recruitment to expand our team. Under the above organizational structure, we will set aside a day tomorrow to discuss the specific number of people to be added to each department.”
Then Lao Shan let Lao Fang presided over the discussion of equity incentive plan, Lao Fang also posted two pictures.
As expected, seeing everyone’s confusion, Lao Fang began his lecture:
“Here are all our core staff, we will share weal and woe, weal and woe, I will just talk about the more energetic financing details of the background with everyone synchronization. Since our last round of investors focused on the angel round, we completely exited in Round A, and above that, our ownership structure changed.”
“There are several key pieces of information. The first is that our financing quota for this round is 3,000 yuan, and investors take 25% of the shares. Based on the proportion, the company’s current estimate is 120 million yuan. At present, the company allocates 1% equity to each of you. According to the company’s estimate, each of you is worth 1.2 million RMB. Congratulations!”
“PSST…” A few people suddenly realized that they had become millionaires. They looked at each other and all kinds of feelings came together, excited, uneasy, unreal.
After everyone calmed down, Lao Fang continued:
“Lao Shan and I will set up an esOP within the next month to complete the industrial and commercial changes related to the equity structure. We will become the company’s formal shareholders and management members. As ordinary shareholders, we will have the right to participate and vote in the company’s decision-making.”
After the experience of the last time, this time we accepted a little higher, soon calm down, listen to the old Fang continued:
“But let me pour cold water on this. Under the terms of our financing, you can’t cash out these shares now, which means you can cash out, and the company will take them back if you leave within the next four years. This is a common practice in the industry. You can only cash out gradually, starting with the next round of the current round, and no more than a certain percentage at a time. Of course, me and Flash are the same. So in order to make everyone’s equity more valuable, we have to continue to fight.”
“In addition, while awarding several equity shares, we will also launch an option incentive plan covering all employees of the company. The 6% of the total option pool held by Lao Shan in the esOP company will be used as the option reward for performance appraisal, promotion, new employee entry and outstanding contribution. But options, unlike stock options granted to some of you in the room, have the right to benefit but no vote on corporate decisions. The detailed details of the option incentive plan will be notified by email after I negotiate with The flash.”