"President Zhou, I founded this company back in 2006. It's been five years now, starting from nothing. We've worked hard every step of the way to get here, and it hasn't been easy. Some companies have reached out to us, but to be honest, we haven't reached an agreement—some of their terms were really harsh."
With that, Wang Tao looked solemnly at Zhou You.
"The decision-making power has to stay with me."
Zhou You saw how serious Wang Tao was and felt like laughing inside. *You want me to take charge? I wouldn't even if you asked. I don't need that headache.*
"Here's the thing, President Wang. I'm not that kind of professional investor. My main focus is on film and documentaries. I have zero interest in running a company."
Hearing this, Wang Tao breathed a sigh of relief.
"Thank you for understanding, President Zhou. After all, this company is like my child—I raised it with my own hands. I don't want it to end up with someone else's last name," Wang Tao joked.
"Name your price, and I'll see if it works for me," Zhou You said, straightening up.
"Based on our company's cash flow and future growth prospects, our preliminary valuation is 50 million," Wang Tao said, his face flushing slightly. After all, calling a nearly bankrupt company worth 50 million was a bit ridiculous.
Zhou You couldn't help but smile. *If I didn't know your company would be worth over a hundred billion in the future, I'd think you were full of it too.*
Still, business is business. Zhou You couldn't just let him name any price.
So he stayed quiet, watching them as they mulled things over.
After a long silence, when the atmosphere grew increasingly awkward, Zhou You spoke up. "So, how much are you looking to raise this time?"
The moment he said that, the whole office perked up again. Just when everyone thought the deal was about to fall apart, it took a sudden turn.
"Our initial plan is to raise 5 million. That should be enough to get us through our current difficulties. But if you want to invest more, we'd certainly welcome it," Wang Tao said with a sheepish grin.
Zhou You laughed too.
"Alright, I'll invest 10 million."
Wang Tao nearly jumped out of his seat with excitement, and the others in the office looked stunned. It was like you're developing a game, your company is on the verge of collapse, and suddenly someone shows up and says, "Here's 10 million, keep going."
"But I have one condition. I'm not sure if you can accept it," Zhou You added.
"Go ahead. We'll do our best to accommodate."
"The 10 million is split into two parts. The first 5 million gets me 10% equity, no strings attached. You use it however you need. Even if later rounds dilute it, we follow the same process." Zhou You took a sip of water.
"As for the remaining 5 million, I want another 10% equity, but this batch won't be diluted by normal financing. It'll enjoy the same terms and conditions as President Wang." Zhou You wasn't an expert on investment policies, but as long as he matched Wang Tao's standards, he figured he wouldn't lose out too much.
Hearing this, the room fell silent.
After all, shares that can be diluted and shares that can't are two completely different things.
If they later raised billions, no matter the valuation, Zhou You would always enjoy the same treatment as Wang Tao.
Seeing their hesitation, Zhou You said, "Look, I know this condition is a bit tough. How about you step out and discuss it for a while? Get back to me later."
"President Zhou, this is indeed a bit sudden. We'll go talk it over and get back to you," Wang Tao said, and the founders left.
They gathered in a small office to discuss.
"I don't think it's a big deal. After all, we don't even know if the company will make it. We need to get through the immediate crisis first," the VP said.
"Honestly, I didn't expect him to invest 10 million. I'm not even confident myself," the tech director chimed in.
"So, that's 20% total equity. We'll deduct it proportionally from everyone's shares. Since no one objects, let's go back and keep talking," Wang Tao finalized.
Back in the meeting room, Zhou You was also nervous. He wasn't a professional investor and had never done this before. He only knew the basics, and whether they'd accept his terms was uncertain.
But he couldn't think of a better plan. If they later raised tens of billions, his small stake wouldn't matter. He might as well take a gamble at the startup stage.
If it worked, great. If not, he wouldn't lose much.
Worst case, he could cash out later.
Before long, they came back in. Seeing their relaxed expressions, Zhou You knew it was settled.
Sure enough, Wang Tao said with a smile, "We agree to your terms, President Zhou. But we also hope you'll keep your promise not to interfere with operations or technology."
Zhou You beamed.
"Don't worry about that. I never interfere in the projects I invest in. Plus, I can integrate resources. If you make a tech breakthrough soon, I can work with CCTV to feature your latest tech and equipment in their documentaries. That's free advertising."
"I've also invested in a few films. We can place some of your equipment in the scenes to boost brand recognition."
That made them even happier. In this day and age, even great products can go unnoticed without good marketing.
They were techies at heart, clueless about promotion and lacking connections.
At that moment, Zhou You realized he really needed to set up an investment firm. At least someone could handle the paperwork for him, so he wouldn't be flying blind. If he ran into legal issues or tax problems, that would be a mess.
He wasn't clear on that front, but for now, this investment was a done deal.
They drafted a preliminary investment agreement. Zhou You had done this enough times to know the key points were covered.
He transferred 5 million that same day. For the remaining 5 million, he'd need a legal advisor to double-check the documents for loopholes and see if a supplementary agreement was needed.
He'd only proceed once everything was airtight. After all, the potential return was huge.
Preliminary estimates put it at least 2 billion in revenue, not counting future dividends and growth.
Signing the agreement and getting the funds transferred so quickly set a record in the investment world.
It left Wang Tao and his team deeply impressed.
Especially when they heard Zhou You had also invested in several documentaries and planned to keep doing so, they were stunned.
Zhou You breathed a huge sigh of relief. The most critical move was made. Now, it was mostly about reaping the rewards.
He'd originally planned to fly back that day, since Shenzhen was boring with nothing to do.
But Wang Tao and the others insisted he stay. It was rare to meet such a laid-back investor—they had to build a good relationship. What if they needed more funding later?