Chapter 167: 5 million is not enough? I'll give you 30 million! (ask for monthly votes)
"Brother Dong, do you think Chen Yansen would be interested in our business plan?"
In the conference room, Pei Yi looked at Kang Guodong and couldn't help but ask in a low voice.
Both of them are graduate students majoring in computer science at Luzhou University of Technology.
I accidentally discovered that due to the large area of Emerald Lake University Town and the large number of students, many people have the habit of ordering takeout.
But people mainly rely on business cards and phone calls to place orders, which is very inconvenient.
Kang Guodong wanted to use his professional knowledge to integrate the information of restaurants, milk tea shops, and bakeries around the university town online and create a food shopping guide website similar to "Hao123".
But Pei Yi, who was from Shanghai and was in the same dormitory, said that Shanghai already had products like Dianping.com, so it would be better to create an order system, recruit some students to work part-time, help businesses deliver meals to school, and directly earn the difference in shipping costs.
The two hit it off immediately, and Kuaipao was born!
But what Pei Yi did not expect was that when he proposed this idea, a graduate student at Shanghai Jiao Tong University had come up with a similar idea two years ago.
It’s just that Ele.me was small at the time, with no venture capital attention and no media coverage, so they had no idea about it.
At the beginning of the year, Ele.me received an angel investment of 1 million US dollars from Sands Venture Capital. After it was reported in the news, Kang Guodong and Pei Yi realized that although they thought their business model was very creative, others had already been doing it for two or three years.
However, by then, Kuapao was already well-known in the university town, with more than 2,000 registered users, daily order volume fluctuating between 600 and 1,000 orders, and more than 30 part-time college students.
Relying on the difference in freight and service fees, after deducting the expenses of servers and part-time staff, they can earn more than 2,000 yuan a day, and the two of them live a comfortable university life.
Before, the two had never thought about making Kuaipao bigger and stronger. After learning about the development history of Ele.me, they immediately came up with the idea of expanding the scale and allowing Kuaipao to enter the white-collar market.
After all, the frequency of office workers ordering takeout is at least 3 to 5 times that of college students.
Purchasing equipment, servers, upgrading the website, and hiring delivery staff all require a lot of money.
The hundreds of thousands of yuan they have on hand are not even enough for advertising. They can't just hire dozens of college students to hand out flyers on the streets of Luzhou, right? This is too inefficient.
"It should be possible. I've studied Ele.me. Its order volume is only slightly higher than ours. Sands Ventures is willing to give it 1 million US dollars. It's not too much for us to ask Senlian Capital for 500,000 US dollars, right?"
Kang Guodong said confidently.
But Kang Guodong overlooked one point: Ele.me had not received venture capital for a year and was also facing the problem of capital shortage.
“Knock, knock, knock—!”
There was a knock on the door.
"Mr. Kang, Mr. Pei, our boss is here." Gao Weilin pushed open the door and reminded with a smile.
"Oh, okay." Kang Guodong and Pei Yi hurriedly stood up. Their originally calm mood suddenly became nervous.
The two followed Gao Weilin out and looked outside curiously.
An Aston Martin Rapide slowly drove in from the park gate.
Pei Yi's eyes were filled with envy, he recognized this car, which cost nearly 4 million yuan, and he had been eyeing it for a long time but couldn't afford it.
It would be barely enough unless I sold the two houses in my family.
But if he really did that, his father might have to break off the father-son relationship with him.
Chen Yansen got off the car and saw Gao Weilin and two strange young men at the door.
"Boss, these two are the founders of Kuaipao, Kang Guodong and Pei Yi," Gao Weilin introduced.
"Mr. Chen! I'm Kang Guodong."
"Hello, Mr. Chen, I am Pei Yi." The two of them greeted each other hurriedly.
"Let's go in and talk. Did you bring your business plan?"
Chen Yansen could see that the two men were young and immature, and had nervous and awkward expressions on their faces.
"Mr. Chen, we brought it." Kang Guodong replied hurriedly. Just as he was about to hand the business plan to Chen Yansen, he realized that he had forgotten it in the meeting room.
"Let's talk inside." Chen Yansen said in a flat tone.
Pei Yi secretly looked at Chen Yansen. He was five or six years older than the other, but their achievements were worlds apart.
Among the Hui'an college students, Chen Yansen's popularity is definitely among the best.
He founded FoxTao at the age of 18 and sold it to Ali at the age of 19. He made more than 10 billion in a year. He is a true business genius and a billionaire.
He then entered the mobile phone industry. After the release of the Orange mobile phone, sales across the entire network reached nearly 7 million units in less than four months, making it the most popular smartphone in 2011.
DST Capital invested 1.35 billion U.S. dollars in Orange Technology, with a valuation of up to 9 billion U.S. dollars.
Pei Yi felt that Chen Yansen's business resume was at the cheating level, even better than Lei Yijun of Xiaomi.
After all, when Chen Yansen was the same age, Lei Jun was still staying in his dormitory writing code.
The four people walked into the conference room. Chen Yansen sat down first, followed by Gao Weilin who sat down on his right.
Kang Guodong and Pei Yi pulled out chairs and sat opposite Chen Yansen.
"Mr. Chen, this is our business plan, please take a look." Kang Guodong handed over the document carefully.
Chen Yansen responded, took the document and flipped through it, one page per second, and in less than a minute he reached the last page.
Kang Guodong and Pei Yi looked at each other and felt that Chen Yansen's attitude was perfunctory, and they felt disappointed.
Chen Yansen just maintained his daily reading habit and even deliberately slowed down his reading speed.
He looked at Gao Weilin and thought, "No wonder Gao brought them from Luzhou. This business plan is very standardized. Although Kuaipao is small in scale, its business model has been established."
"How much do you want?"
This was Chen Yansen’s first question, and it was also a test for both of them.
Kang Guodong was going to say 500,000 US dollars as planned, but when he saw Pei Yi desperately winking at him, he immediately changed his words: "Mr. Chen, I want to use Kuaishou to buy 10% of the shares in exchange for 800,000 US dollars."
Pei Yi stared at Chen Yansen and saw him smile with the corners of his mouth slightly raised. He wondered in his heart: Does this mean you agree?
"That's more than 5 million Chinese yuan. Do you think Kuaipao is worth 50 million? Shanghai's Ele.me was valued at only 30 million six months ago, and its business volume is more than three times yours."
Chen Yansen did not comment and asked back.
For him, 500,000 US dollars is not enough to buy a car. This is another test for Kang Guodong and Pei Yi.
When meeting investors, don't be afraid to make requests. As long as you have sufficient reasons, there is room for negotiation.
If you don’t even dare to ask for money, how can people believe that you can make the project a success?
"Mr. Chen, I think Kuaipao is worth 50 million. Ele.me has more business than Kuaipao, but it just started early, which doesn't mean it can go far. Kuaipao's biggest advantage is that we have independently developed an intelligent order distribution system that can make the best match based on information such as the distance between the restaurant and the recipient and the urgency of the order."
Pei Yi took over the conversation and said confidently.
"Boss Gao, ask the administration to bring a computer over."
Chen Yansen has always been decisive in his actions, and he gave instructions to Gao Weilin.
"Okay, wait a moment." Gao Weilin got up and went out. When he came back, he had a laptop in his hand.
"Mr. Chen, this is the order matching backend of Kuaipao. It can match the merchant's orders with the deliveryman's service range to improve the efficiency of delivery."
Pei Yi explained while demonstrating the operation.
Chen Yansen smiled. This function was too simple. To put it simply, it was to divide Luzhou University Town into grids and assign the orders from merchants in the grids to fixed deliverymen.
This is a shitty smart order distribution system! It's barely better than Ele.me's order distribution system, but its value is limited! Chen Yansen looked at Pei Yi, a little disappointed, and shook his head secretly: This kid is really good at bragging.
"Mr. Chen, as long as the funds arrive, we can also obtain the GPS data of the deliveryman, match the order according to the real-time location, and integrate the information of Baidu and Amap to plan the best route for the deliveryman."
Seeing Chen Yansen's disdainful look, Pei Yi hurriedly explained.
In fact, he has an optimization plan, but he suffers from lack of funds and manpower for research and development.
"How do you plan to spend this 5 million?" Chen Yansen nodded slightly and continued to ask.
"We will start by recruiting people, mainly operations, technology and delivery personnel, preferably former employees of group buying websites, with a budget of 1 million."
Pei Yi blurted out, paused for a moment and said: "Take another 1.5 million yuan to develop websites and mobile applications to lay a solid foundation."
"1.5 million will be used to expand merchants and subsidize new customers, 500,000 will be used to purchase delivery vehicles and incubators, and the remaining 500,000 will be reserved as reserve funds."
"Who of you two can make the decision? I can give you 30 million, but I want 80% of the shares."
After listening to this, Chen Yansen asked with a smile.
To him, there is no difference between 5 million and 30 million.
But investing 30 million yuan is undoubtedly sending a signal to the outside world that he is optimistic about the food delivery track.
Chen Yansen wants to use his own influence to push the food delivery track forward in the tide of the times.
When they first met, Gao Weilin introduced the two people, Kang Guodong in front and Pei Yi in the back, and Chen Yansen knew that Kang Guodong was the major shareholder.
But when faced with difficult questions, Pei Yi would come forward to deal with them.
Obviously, these two entrepreneurs with technical backgrounds, one is good at R&D, while the other understands the market better.
Kang Guodong and Pei Yi looked at each other in surprise. Chen Yansen's answer was beyond their expectations.
First, the investment amount increased from 5 million to 30 million, and second, the other party demanded 80% of the equity, which was far beyond the bottom line of the two.
Only 20% left, wouldn't they be no different from workers? "Mr. Chen, we can only sell 20% of the shares at most." Pei Yi said after a long while.
"In that case, there's nothing we can do." Chen Yansen smiled, stood up and prepared to leave.
With Kuaipao’s current scale, it would only cost a few million to achieve the same effect, and it would just waste a few months on recruitment and R&D.
Pei Yi panicked when he saw Chen Yansen's firm attitude. The talks had been going well, but suddenly they broke down, which was hard for him to accept.
"Mr. Chen, can you give us a day to consider it? I will reply you tomorrow." Kang Guodong had been silent until he saw that the negotiations were about to break down, so he quickly stood up and said.
"No problem, Mr. Gao, please entertain Mr. Kang and Mr. Pei for me."
Chen Yansen gave the instructions with a smile, then left the meeting room and walked towards the elevator.
Gao Weilin took Kang Guodong and Pei Yi on a tour of Orange Technology.
At noon, I took them to the restaurant at the east gate of Xuyuan for lunch, and then returned to the Science and Technology Park.
Kang Guodong and Pei Yi returned to the hotel, both frowning, not knowing what to do.
The financing was in sight, but Chen Yansen wanted too much equity.
Once they accept investment from Sunlink Capital, they will lose controlling stake in the company.
"Old Pei, what do you think?" Kang Guodong asked Pei Yi while sitting on the sofa.
"Brother Dong, you are the major shareholder, and I only own 30% of the shares. I will follow your instructions on this matter."
Pei Yi said after thinking for a moment.
"Actually, I wanted to agree, but I felt that Chen Yansen wanted too much equity, so I deliberately delayed it for a day."
Kang Guodong explained slowly.
"No way! Brother Dong, don't you want to be your own boss?" Pei Yi was stunned, feeling helpless.
"We are doing well now. We can earn hundreds of thousands a year. If we divide it up, we can buy a house in Luzhou in two years. But you also said before that if Ele.me starts to expand, we will have no money and no people, and we will probably go bankrupt. In this case, we might as well find a strong backer."
Kang Guodong spoke his true feelings.
"Okay, then we'll go find Mr. Gao tomorrow morning." Pei Yi saw that he had made up his mind and stopped trying to persuade him.
In his opinion, only by following Chen Yansen can Kuaipao develop rapidly.
If Yikuai falls into his hands and becomes a multi-billion dollar enterprise like FoxTao, then he and Kang Guodong would both be billionaires.
The next day, the two found Gao Weilin and signed the equity transfer agreement without hesitation.
Gao Weilin was very happy as this was the second investment project he completed after taking charge of Sunlink Capital.
"Next week, I will arrange for two financial officers to move into Kuaipao. You should quickly secure the office space and set up the company structure."
Gao Weilin was worried and gave special instructions.
To put it bluntly, Kuaipao is still a makeshift team.
Since we have taken the money from Senlian Capital, we have to speed up the expansion and the company has to be formalized, especially in terms of finance.
Kang Guodong and Pei Yi nodded to show that they understood, and finally set out on the return journey with satisfaction.
Two days later, Senlian Capital disclosed that it had invested RMB 30 million in a food delivery project called "Kuaipao", but the specific equity ratio has not yet been announced.
Everyone in the industry knows that Chen Yansen has a venture capital company under his name. Apart from the acquisition of Yunsu Express, this is the first time he has invested in a new platform, which immediately attracted the attention of the venture capital industry! (End of this chapter)
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