Scholar's Advanced Technological System - Chapter 102
Chapter 102: Investing Five Million
“… I’ll try and invest five million first.”
When he said those words, his tone was so casual as if he was buying a bicycle.
This was the first time that Lu Zhou had met such a wayward investor.
He 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…
The things that Mrs. Yang taught Lu Zhou did not come in handy.
Poverty once again limited his imagination.
Liu 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.
There were templates for these types of contract, so he only had to modify the template.
According 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.
Of course, the five million would not be given all at once.
According 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.
This 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.
However, 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.
Of course, this type of things usually would not happen.
The 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.
Just like this, the investment letter of intent worth 5 million was signed.
Lu Zhou counted. It did not even take him an hour…
As the money was wired from a VIP channel, he quickly received a message from ICBC.
500k yuan total.
Lu Zhou placed the pen on the table. He was confused and asked, “Don’t you want to look at our business plan?”
Liu 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?”
Lu Zhou was completely speechless.
Maybe, this is what rich people are like?
He 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…
Suddenly, there was an indescribable pleasant feeling blooming in his heart.
Liu Wanshan talked a bit more with Professor Li before he left. After all, he had other important people to talk to.
Professor Li looked at Lu Zhou who was immersed in the knowledge of the five million yuan worth of investment and he asked, “What, surprised?”
Lu Zhou nodded slowly.
“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.”
Professor Li looked at Lu Zhou’s face of disbelief and did not say anything. Instead, he merely smiled and walked away.
Even though the tables were filled with delicious food, Lu Zhou was unable to taste anything.
The 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.
Lu Zhou was forced by some researchers to drink. After a few rounds, he was already drunk.
Lu 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.
Fortunately, it was not him that collapsed first.
The red-faced Brother Qian collapsed on the table.
Everyone finally slowed down on the drinking.
They ate until eight o’clock before leaving.
After they left, Chairman Liu called two drivers and sent Lu Zhou back to campus.
Liu Bo said goodbye to Lu Zhou before he carried the drunk Brother Qian to his graduate dorm.
As 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.
He stood under the parasol tree and shook his head before he took out his phone. He then called Fat Wu.
“Hello? What’s up?”
The voice from the phone was noisy like he was in a subway station.
Speaking 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.
However…
It seemed that Lu Zhou was the MVP.
“It’s done.”
When Fat Wu heard Lu Zhou’s words, he asked, “What’s done?”
“Financing, Zhongshan New Materials invested 5 million.”
The other end of the phone went dead silent.
After a while, Fat Wu coughed and spoke.
“How much? I didn’t hear you.”
“Five million.”
Fat Wu took a deep breath.
Five million!
Five million in angel financing!
According 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…
However, they got five million just from one angel found.
Lu Zhou coughed and broke the silence, “Say something, it’s awkward that you’re not saying anything.”
Fat 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.”
Lu Zhou asked, “What about Yuan Liwei?”
Fat 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?”
Lu 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.”
Fat Wu controlled his breathing and said, “Okay, would you like me to message them at the chat group?”
“Let me tell them,” said Lu Zhou. He paused for a second before saying, “A phone call looks more official.”
Lu 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.
Five million investment.
What did it mean for a bunch of entrepreneurial students?
It meant the whole world…
In some sense, Lu Zhou felt like he changed the lives of eight people.
He did not know if this was a good thing. If it was not for him, those people would have had a completely different life.
He knew that a lot of people would not be able to fall asleep tonight.
