Convertible bond financing sounds cool Chinese venture companies can not try

Editor’s note:

Convertible notes (CB) originated in the United States, has become an important form of early financing of entrepreneurial enterprises, but this kind of financing way in China business circle has not been widely used, usually used only foreign architecture companies will, and in the structure of the company is less used, why not? If the use of convertible bond financing, entrepreneurs also need to pay attention to what? Jane help will give you eleven analysis.


recently, in the vortex Jia Yueting to re-examine the music system of LeEco rapid expansion of the non-listed company, in a "sea of fire and water: LETV flame is engulfed by the waves of the sea, or boil?" the internal open letter, reflect on the problems in the process of LeEco development:

"LeEco rhythm too fast. Music as the first stage of ecological strategy to the main sub business lines, supplemented by platform business. But we all burn, blind pursuit of scale expansion at the same time, the global front suddenly pull too long. Correspondingly, our capital and resources are very limited. A car as a huge upfront investment, has spent about 10000000000 of its own funds, directly lead to lack of my personal LeEco financial support; on the other hand our financing capacity is not strong, single, unreasonable capital structure, external financing scale is difficult to meet the rapidly put a large demand for funds.

The result is

, we can not concentrate on one point, although you win a game and a battle, opened up a piece of land, but the food supply is not timely, stamina has obvious weakness."

, the audience is not easy to understand is "financing ability is not strong" this sentence, if said LETV financing capacity is not strong, may have doubts not only stocks aunt, even entrepreneurial rookie who did not dare to believe, this is Jia Yueting, the new generation of China Internet entrepreneur idol true? Let countless entrepreneurs envy is from the mall, mobile phone, music as ecological sports, film to the cloud, which is not in million units of A or

round B round of financing?

especially Jia Yueting music as cars announced in September 19, 2016 the first round of financing, although A is round, but the amount of financing has reached 1 billion 80 million dollars, or, a global automotive industry’s first round of financing record, let countless Unicorn target entrepreneurs feel weak burst!

of course, LETV car financing process is full of rumors and twists, 4-5 months of 2016 there was news that LETV cars are on a Pre-A round of financing, the convertible bond financing plan, one of which was widely circulated and still can search on the web to a financing picture as follows:


picture of the convertible bonds agreed interest rates (annual interest rate of 12%) and other matters, in particular, is the right to convert the text, the basic meaning