Flash Sale's Next Round of Financing

Chapter 520 Flash Sale's Next Round of Financing

That's not right.

Ernst suddenly realized what was going on, his thoughts snapped back to reality, and his gaze fell on Massim across from him.

The guy in front of me has an undisguised thirst for knowledge in his eyes. Why is he so concerned about flash sales?

"You're not thinking of investing in flash sales, are you?"

Massim nodded without hesitation, making no attempt to hide his feelings.

That eager look in his eyes was like a puppy seeing a bone.

"But Flash Sale isn't planning on getting funding yet?" Ernst said.

At present, Flash Sale's cash reserves are sufficient to support its normal operation for a period of time, and there is no pressure of a funding gap in the short term.

To put it bluntly, there's enough money to burn through flash sales right now.

If planned well, burning through the fire for another two or three months is absolutely no problem.

But what she got in return was a resentful look from Massim, as if she had been widowed for many years and her husband had finally returned, only to have him hand over his homework to the widow next door.

"Don't try to fool me. I know you're in contact with people from Coast Investments," Massim said firmly, his face darkening considerably. "You need to understand, we're more sincere than they are."

Ernst does not deny this; in past collaborations, the Boston consortium was indeed more sincere than the California consortium.

Strictly speaking, he had hardly ever been in contact with the California conglomerate.

Coast Investments is an investment company that was established less than half a month ago.

This investment company may seem insignificant in size, but its shareholder lineup is not to be underestimated.

Led by the Jaylen Brown family, it is backed not only by the Donkeys movement in California, but also by California conglomerates.

Massim clearly interpreted Ernst's contact with Coast Investments as a signal of goodwill towards the California consortium, but that was not his true intention.

There are three main considerations for talking to Coast Investment.

Firstly, this is to lay the groundwork for the future development of the flash sale and prepare for subsequent financing.

Flash sales are not short of money now, but they will increase the rate at which they burn through cash soon. These funds will eventually run out, which is tantamount to paving the way for the future.

The second one is Jerry Brown. Since he chose to cooperate with the Brown family, he needed to offer some benefits to make them understand how much profit he could bring to the Brown family.

Coast Investments was spearheaded by the Brown family. As long as the flash sale can bring substantial returns to the shareholders behind it, the Brown family will inevitably reap greater rewards in exchange for their development in California's political circles.

A governorship of California is a certainty, and other important positions will also be filled by members of the Brown family.

At that time, the Brown family will become the most powerful political family in California.

You have to feed a dog before you buy one to guard the house; this is the bone Ernst threw out.

Finally, there was the exchange of benefits between Ernst and the other party.

If Coast Investments leads the next round of financing, they will push hard for the California Public Employees Retirement System (CPERS) and California Teachers Retirement System (CPTS) to invest in flash sales.

These two institutions are the two largest pension systems in California that serve public employees, with a combined fund size of nearly $200 billion.

What Ernst valued was not the money itself, but rather the nature of the money.

Just like Saudi Arabia's sovereign wealth fund, these funds are all long-term investments and are very stable.

Flash sales are just the beginning. When flash sales can bring huge returns to these funds, how far away will it be for these funds to enter their other companies?

Wall Street?

Perhaps Ernst valued their financial support.

But what he values ​​even more are these public service funds across the federal government.

By controlling these funds, not only can they become the ballast of the various companies under their control, but it is also equivalent to controlling the vital interests of one-third of the American people.

Because their retirement benefits will be directly linked to the development of Ernst Enterprise.

"You're right, I was in talks with people from Coast Investment about Flashbuy's next round of financing." Ernst didn't hide anything and openly admitted to the contact with Coast Investment. "However, we have significant differences on the terms of cooperation, and it will be difficult to reach a consensus in the short term. The negotiation process may continue for some time."

"But I agree that Coast Investment is key because only if Coast Investment acts as the lead investor will the California Public Employees' Retirement System (CPERS) and California Teachers' Retirement System (CTRS) follow suit."

Ernst had made his point quite clear, and he believed that Massim would understand.

First, tell the other party that the price of the flash sale is very high, otherwise there wouldn't be such a big disagreement.

Secondly, tell them that even if Flash Sale starts its next round of financing, it won't be immediately; it might take two or three months.

The third point is to tell the other party the purpose of doing this, which is obviously for the purpose of securing the ballast.

These funds are the ones that companies prefer, compared to Wall Street.

Wall Street is willing to stab companies in the back for its own profit, but these funds won't.

This also sends another signal to the other party: if they want to invest in flash sales, they need to show sincerity. Although Massachusetts' public fund is not as large as California's, every little bit helps.

"Follow-up investment?" Massim grasped the key point. "So, there are other people joining?"

Ernst waved his hand dismissively and said, "Forget about it, that's a share for Middle Eastern consortia."

After the flash sale's launch data was revealed within a week, Mohammed called Ernst every few days to check in, and you could feel the other party's generosity even over the phone.

The implication was clear: Old En, are you short of a wife... or money?

I.

Middle Eastern tycoons.

Camel is a fool.

If you need money, just say the word, I have plenty.

These bigwigs don't really understand the internet, but now, whether they're radicals or conservatives, they're all standing at attention, completely dumbfounded.

It's often said that the Middle East is a money-making machine, with oil constantly gushing from the ground like flowing dollars.

Even when it comes to criticizing the US dollar, there are differences in speed.

Within just one week of its launch, the initial investment of $6.8 million had yielded at least a 50% return.

Within a month of the flash sale's launch, this money had at least tripled.

That's $6.8 million, not $6.8.

The Federal Reserve's printing presses are smoking; can they keep up with this rate of wealth growth?

Son of the Internet?

Now, in their eyes, Ernst is definitely the internet's father.

Mohammed said, "Just name your price, go ahead and say it, I won't argue."

Talking back would ruin our precious friendship, so you have to send money directly.

Ernst had to respect Saudi Arabia's sincerity, even if it meant giving them money.

Therefore, Flash Sale is raising funds again, and Saudi Arabia must get a share of the profits.

Ernst also intends to use Saudi Arabia as a brand, so that Saudi sovereign wealth funds can reap huge profits by investing in his companies. What do other Middle Eastern tycoons think?

You know, there's the even richer UAE to the north, and Kuwait, a powerful dog country, to the east.

Therefore, the Boston consortium's desire to get involved in flash sales is unlikely to succeed, at least not in this round of investment.

Ernst picked up his coffee and, before taking a sip, comforted them, "Securing the Series A funding from iTech has already made you guys a fortune. You have to give others a little something, right?"

"Besides, both the Premier League and the Everett real estate project are enough to feed you for a while. Compared to the internet, those are the most stable investments."