14: Chapter 14 Investors

At 2:45 PM on Wednesday, Chairman Wang Shunyi stood at the base of that office building in Gangnam District and looked up.

The glass curtain wall reflected the light, making him squint. People were coming and going in the lobby—men in suits and leather shoes, women in business suits and high heels, everyone walking with a sense of purpose. He looked down at himself—a dark jacket, casual pants, and leather shoes bought on sale last year, their toes already scuffed.

Forget it. It's not like I'm here for a blind date.

The elevator reached the twelfth floor. As soon as the doors opened, the hallway was lined with signs for investment firms, one after another. Their storefronts weren't large, but they were polished to a shine. Seoul Venture Capital was at the very end. Pushing the door open, he saw a young girl at the front desk looking down at her phone.

"Hello, I have a three o'clock appointment with Manager Han Xiuzhen."

The girl looked up and scanned him, picked up the phone, whispered a few words, and hung up. "Manager Han will be here shortly. Please have a seat."

He sat down on the sofa and idly flipped through a magazine on the coffee table. Several logos of invested companies hung on the wall—some in software, some in consumer goods—names he had never heard of.

A few minutes later, a woman walked out. In her early thirties, with short hair and a deep gray suit skirt, her pace was neither fast nor slow. She smiled and extended her hand. "Mr. Wang? I am Han Xiuzhen."

"Hello." He stood up and shook her hand.

"Please, come inside."

The conference room wasn't large, with a long table, a few bottles of mineral water, and a view of the Gangnam District streetscape outside the window. The two sat down facing each other.

Han Xiuzhen didn't bother with pleasantries and directly opened the folder in front of her.

"La Ziyou, specializing in fire chicken noodles, river snail rice noodles, and self-heating hot pot. Currently, monthly sales are about fifteen million, with a net profit of around three million. Am I correct?"

Chairman Wang Shunyi nodded. "About that. But it's been dropping recently."

"I know. Canhe Foods released imitations and is competing for your market." She looked up at him. "For an investor, information gathering is a basic skill."

Chairman Wang Shunyi didn't respond. He knew this wasn't a compliment; she was showing her hand.

"Canhe has been around for over thirty years; their channels and capital are both stronger than yours." Han Xiuzhen's tone was flat, as if she were stating the weather. "For a startup, this is indeed a hurdle."

"Then why are you still interested in us?"

"Because I've eaten your products." She leaned back in her chair. "I've tried both your fire chicken noodles and Canhe's spicy chicken noodles. The difference is obvious. Your spicy sauce has layers, with a sweet aftertaste following the heat. Canhe's is just dry spice; after eating it, all that's left is a burning sensation. Anyone who knows their food can tell the difference immediately."

She paused and added, "Moreover, you have a reputation among young people. There's a high level of discussion on social media; eating fire chicken noodles has become a challenge, a trend. This brand value is something Canhe can't copy."

Chairman Wang Shunyi was silent for a few seconds before asking directly, "How do you plan to invest? What are the terms?"

Han Xiuzhen pulled a sheet of paper from the folder and pushed it over.

"An initial valuation of three hundred million. We invest one hundred million for a 33% stake. We will help with resource matching, channel expansion, and brand marketing—anything we can do."

Chairman Wang Shunyi picked up the paper and read it twice. A valuation of three hundred million, one hundred million in cash, and a one-third stake.

The terms weren't bad, but they weren't great either. He knew his company's annual profit was over thirty million; based on the P/E ratio, it should be worth at least four or five hundred million.

"Can I think about it?"

"Of course." Han Xiuzhen nodded. "However, market competition doesn't wait for anyone. Canhe won't give you much time."

He had heard those words too many times lately. He stood up, shook hands, and took his leave.

It was nearly five o'clock by the time he returned to the office. Zhang Junhao was still hunched over his computer. Seeing him come in, he swiveled his chair.

"How did it go?"

Chairman Wang Shunyi explained the valuation and terms. Jun-ho frowned after hearing them. "Three hundred million? That's a bit low, isn't it?"

"Yeah. It's worth at least five hundred million."

"So what are you thinking? Negotiate? Or find other investors?"

Chairman Wang Shunyi didn't answer directly. After thinking for a moment, he said, "I'll ask someone first."

He took out his phone and sent a message to Park Min-ji: "Are you free tonight? I'll treat you to dinner; there's something I want to ask your advice on."

Minji replied quickly: "Sure, 6:30? The usual place?"

"Okay."

The "usual place" was a small restaurant near Dongdaemun. Their army stew was good and the prices were cheap. Chairman Wang Shunyi used to go there often after finishing his stall work, and after taking Minji there a couple of times, she remembered it.

When he arrived at 6:30, Minji was already sitting inside. She had taken off her coat and draped it over the chair next to her, looking through something on her phone.

"You're here?" She looked up. "Sit down. I ordered the army stew and added two portions of luncheon meat."

"Sure."

When the pot was brought out, it was bubbling away, and the steam clouded his face. Chairman Wang Shunyi picked up a piece of luncheon meat and explained today's events while he chewed.

After listening, Minji put down her chopsticks and took a sip of water from her glass.

"A three hundred million valuation is indeed on the low side," she said. "When I was at the e-commerce company, I saw plenty of investment deals. For a company like yours with stable income and growth potential, the valuation should be at least ten times the annual profit. With over thirty million in profit a year, four to five hundred million would be reasonable."

"So you mean I should negotiate with them and push it up?"

"You can negotiate. But valuation is only one aspect." Minji looked at the instant noodles in the pot. "You need to think clearly about whether they want money or resources. Some investors only provide money and don't get involved. Others not only provide money but also help you connect with channels and introduce customers. The latter is more useful for a small company like yours."

"Which type does Seoul Venture Capital belong to?"

"I'm not very familiar with them. You can look up the companies they've invested in before and call those founders to see how much help they actually provided."

Chairman Wang Shunyi nodded, taking her words to heart.

Minji added, "And one more thing—think clearly about the purpose of this financing. Is it to deal with Canhe, or for long-term development? If it's just to settle this immediate score, you don't necessarily have to raise capital."

"Then what else can be done?"

Minji thought for a moment. "Find a partner. Not an investor, but a strategic partner. For example, a company with advantages in channels or branding that you can work with. That way, you can get resources without giving up control."

Chairman Wang Shunyi's eyes lit up.

"That's an idea."

"I'll let you figure out the specifics; I'm just offering a suggestion." Minji smiled and picked up another piece of luncheon meat. "By the way, my aunt wants to partner with you."

"Sister Jin?"

"Yeah. Her night market stall is doing well, but she's just selling spicy rice cakes and fish cakes over and over. She wants to add some new items. I mentioned your fire chicken noodles and river snail rice noodles, and she's very interested. She wants to talk to you."

Chairman Wang Shunyi laughed. "Sister Jin has helped me so much; I'd be more than happy to. When?"

"Tomorrow night. I'll pick you up, and we'll go together."

"Okay."

The next evening, around seven o'clock, the Dongdaemun Night Market was bustling.

A crowd had gathered in front of Sister Jin's stall. The iron plate for the spicy rice cakes was sizzling with heat, and the pot of fish cake soup was bubbling. Sister Jin wore an apron, her hands moving deftly as she flipped the rice cakes while greeting customers.

"Sunyi's here?" She looked up and saw Chairman Wang Shunyi and Minji, her voice loud enough to be heard halfway down the street. "Sit down, sit down! Grab a stool from over there yourself."

Chairman Wang Shunyi dragged two plastic stools from the side and sat down behind the stall. After finishing her current order, Sister Jin wiped her sweat and turned around.

"I heard from Minji that you've run into some trouble lately? Someone's trying to steal your business?"

"It's alright, I can handle it."

"That's just how business is." Sister Jin stood with her hands on her hips. "If you're selling well, people will get jealous. The key is how you respond."

Chairman Wang Shunyi nodded.

"Anyway," Sister Jin pulled over a stool and sat down. "I want to partner with you. My stall won't get much further just selling spicy rice cakes and fish cakes, no matter how many repeat customers I have. I want to add your fire chicken noodles and river snail rice noodles to my menu. A 70-30 split on the profit—you get seventy, I get thirty. How does that sound?"

Chairman Wang Shunyi was taken aback. "Sister Jin, you're the one selling them for me, why are you only taking thirty percent? It should be seventy for you and thirty for me."

"Oh, you silly boy." Sister Jin slapped his arm—it didn't hurt, but it made a loud sound. "The products are yours; I'm just providing the stall and the labor. At 70-30, I'm already getting a good deal."

"But—"

"No buts, it's settled." Sister Jin waved her hand, giving him no chance to speak. "Starting tomorrow, bring the goods over, and I'll put them right out front."

Chairman Wang Shunyi looked at her, a wave of warmth rising in his heart. He opened his mouth to say thank you, but felt the words were too inadequate.

"Sister Jin, then—"

"Stop with the 'thens'." Sister Jin stood up and returned to the iron plate, picking up her spatula. "We're family here; no need for formalities."

Family.

Chairman Wang Shunyi sat on the plastic stool, surrounded by the noise, smoke, and smell of charcoal from the night market. He glanced sideways at Minji; she was looking down at her phone, the corners of her mouth slightly curled up.

He didn't say anything, just sat there for a while.