Chapter 102 - Investing Five Million
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nTranslator: Henyee Translations Editor: Henyee Translations
n“… I’ll try and invest five million first.”
nWhen he said those words, his tone was so casual as if he was buying a bicycle.
nThis was the first time that Lu Zhou had met such a wayward investor.
nHe did not look at bullet points or PowerPoint nor did he even asked for the business model. Without even flinching, he opened with five million straight away…
nThe things that Mrs. Yang taught Lu Zhou did not come in handy.
nPoverty once again limited his imagination.
nLiu Wanshan was a busy person, and he did not like to waste even a single day. He casually asked his secretary to come over, took Lu Zhou to the hotel manager’s office, and printed a contract.
nThere were templates for these types of contract, so he only had to modify the template.
nAccording to the agreement between Chairman Liu and Lu Zhou, Zhongshan New Materials would finance 5 million yuan and obtain a 20% stake in Campus Assistant.
nOf course, the five million would not be given all at once.
nAccording to general financing practice, the two parties would first sign an equity transfer agreement, and then the first batch of 500,000 yuan would be sent to the Campus Assistant’s account. After that, 500,000 yuan would be paid at the beginning of each month, for 10 months.
nThis type of financing method was to protect the rights and interests of investors and to prevent entrepreneurs from abusing the funds or causing any legal problems due to extreme behavior.
nHowever, if the investor refused to fulfill the financing agreement and delayed the payment for more than one month, a so-called “divestment” occurred. The equity held by the investor would be recovered. As for the money already invested, it would depend on the startup’s ability to pay.
nOf course, this type of things usually would not happen.
nThe letter of intent was signed immediately. The specific agreement on equity and financing would be completed in three days. When the time arrived, Zhongshan New Materials would send someone to the university to sign the contract.
nJust like this, the investment letter of intent worth 5 million was signed.
nLu Zhou counted. It did not even take him an hour…
nAs the money was wired from a VIP channel, he quickly received a message from ICBC.
n500k yuan total.
nLu Zhou placed the pen on the table. He was confused and asked, “Don’t you want to look at our business plan?”
nLiu Wanshan smiled and waved his head, “What’s the point of that? Bullet points? Powerpoint? Those are all for fooling people. I don’t invest in businesses, I invest in people. I think you’re talented and worthy of my investment. Even if I made a mistake, I would lose what, a car’s worth of money?”
nLu Zhou was completely speechless.
nMaybe, this is what rich people are like?
nHe thought about that half a month where Fat Wu and Yuan Liwei were struggling and failing to get 2 million. And now, he chatted a few words and secured five million…
nSuddenly, there was an indescribable pleasant feeling blooming in his heart.
nLiu Wanshan talked a bit more with Professor Li before he left. After all, he had other important people to talk to.
nProfessor Li looked at Lu Zhou who was immersed in the knowledge of the five million yuan worth of investment and he asked, “What, surprised?”
nLu Zhou nodded slowly.
n“It’s just five million, what’s so surprising?” said Professor Li Rongen with a smile. He then added, “If you help me with a couple of projects, I could even help you with Series A funding.”
nProfessor Li looked at Lu Zhou’s face of disbelief and did not say anything. Instead, he merely smiled and walked away.
nEven though the tables were filled with delicious food, Lu Zhou was unable to taste anything.
nThe year-long research had finally produced results, and everyone was very happy. Research, entrepreneurs, company executives, and everyone was having a great time as they congratulated each other.
nLu Zhou was forced by some researchers to drink. After a few rounds, he was already drunk.
nLu Zhou had always thought that he could manage his alcohol pretty well. He would always drink with his roommates, which made him think that he could drink.
nFortunately, it was not him that collapsed first.
nThe red-faced Brother Qian collapsed on the table.
nEveryone finally slowed down on the drinking.
nThey ate until eight o’clock before leaving.
nAfter they left, Chairman Liu called two drivers and sent Lu Zhou back to campus.
nLiu Bo said goodbye to Lu Zhou before he carried the drunk Brother Qian to his graduate dorm.
nAs Lu Zhou walked alone on a path covered with sycamore trees, he felt the cold winds blowing by and he could hear singing coming from the gymnasium.
nHe stood under the parasol tree and shook his head before he took out his phone. He then called Fat Wu.
n“Hello? What’s up?”
nThe voice from the phone was noisy like he was in a subway station.
nSpeaking of which, Wu Dahai and the managers were working their as*es off for the startup, yet Lu Zhou was doing his science research project, not contributing at all.
nHowever…
nIt seemed that Lu Zhou was the MVP.
n“It’s done.”
nWhen Fat Wu heard Lu Zhou’s words, he asked, “What’s done?”
n“Financing, Zhongshan New Materials invested 5 million.”
nThe other end of the phone went dead silent.
nAfter a while, Fat Wu coughed and spoke.
n“How much? I didn’t hear you.”
n“Five million.”
nFat Wu took a deep breath.
nFive million!
nFive million in angel financing!
nAccording to their original plan, they were happy to get two million in angel financing. With 200k per month for promotions, they would have a six-month runway and get six million users. Then they could do another round of financing…
nHowever, they got five million just from one angel found.
nLu Zhou coughed and broke the silence, “Say something, it’s awkward that you’re not saying anything.”
nFat Wu leaned against the pillar in the subway station. His fingers were trembling with excitement, and he was about to take out a cigarette when he noticed the no smoking sign. With a smile, he said, “Say what? I don’t want to say anything, I just want to smoke in silence.”
nLu Zhou asked, “What about Yuan Liwei?”
nFat Wu, “I split up with him, he should be out right now… I’ll call him and tell him to go back to campus. Oh yeah, did you sign the contract? Or just the letter of intent?”
nLu Zhou took a deep breath and said, “Just the letter of intent, but the other party is sincere. I already got a 500,000 yuan advance payment. The contract will be signed in three days. Let’s have a meeting tomorrow night. Go and book a classroom.”
nFat Wu controlled his breathing and said, “Okay, would you like me to message them at the chat group?”
n“Let me tell them,” said Lu Zhou. He paused for a second before saying, “A phone call looks more official.”
nLu Zhou took the investment letter of intent and went straight to his dorm. He then called Yuan Liwei, Rong Hai, and all the other club members. He also told them of the meeting tomorrow.
nFive million investment.
nWhat did it mean for a bunch of entrepreneurial students?
nIt meant the whole world…
nIn some sense, Lu Zhou felt like he changed the lives of eight people.
nHe did not know if this was a good thing. If it was not for him, those people would have had a completely different life.
nHe knew that a lot of people would not be able to fall asleep tonight.
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