Chapter 83: Chapter 80: Dust Settles
When Academician Pan took out two application forms, Xu Yun and Zheng Zu quickly figured out the cause and effect:
Before today’s three-party...or rather four-party meeting, Tian Liangwei and Academician Pan had already prepared everything!
The commercial prospect of the Fifth Generation Imidacloprid is indeed very alluring, but ultimately it’s just a type of biopesticide, far from reaching the level of Lipitor, Ibuprofen, or the blue pill.
Therefore, having the Secretary of a fund like New Creation personally attend, is already quite a high specification.
Eight million cash flow plus attachments, accounting for 43%.
In other words, New Creation Fund values Xu Yun’s company at around eighteen million.
New Creation Fund, being a tech innovation fund of a university, involves rather ambiguous specifics.
Generally, it’s either VC or angel investment, occasionally Series A and rarely Series B.
Xu Yun’s current situation can be considered between angel and Series A, as he doesn’t yet have a commercialized product.
This round’s valuation at twenty million Huaxia Coins, what does this mean?
Here’s an example.
In 2012, a company raised just thirty thousand US Dollars during its angel round, and approximately a few million US Dollars in its Series A round in 2013, with Sequoia and Morningside leading the investment.
And the peak market value when that company went public?
1.2 trillion Hong Kong Dollars! (Of course, it has fallen to 300 billion now)
Similarly, Bilibili’s financing in 2013 was also about a million US Dollars.
Another example, the SpringWorks Therapeutics project is similar to Imidacloprid, also in the biotech field.
They have a γ-secretase inhibitor called nirogacestat, which has been granted orphan drug status for treating desmoid tumors by the Eagle. The valuation for its Series A was merely 600,000 US Dollars.
Thus, even for Series A, the valuation given by New Creation is definitely not low.
However, while New Creation values this highly, the interest parties it represents are not solely from the Science Institute, as previously introduced, it’s no longer mentioned here.
Considering Xu Yun’s sole technical equity would have a limit not meeting his expectations, Academician Pan who learned about this matter as a vice president at the Institute, along with Tian Liangwei, prepared a fallback.
Aren’t you betting on Xu Yun lacking cash flow?
Well, now he has it, you can’t stop him from investing money, can you?
"Academician Pan, oh Academician Pan..."
In the office, Zheng Zu pondered in silence for a long time, finally sighing:
"You certainly care deeply about your student
Double institute’s 500,000 entrepreneurial support, I remember the last time someone at our school received such treatment was the god of the mathematics department, Pang, right?"
Academician Pan confidently flicked his sparse hair at his forehead, though he loved washing his hair, it always seemed greasy and limp:
"Both have a GPA of 4.3, if Xiaopang could secure double institute support, why not Xiaoxu?
Secretary Zheng, you should know as well.
This scale of entrepreneurial support isn’t something Elder Tian and I can just grant; getting recognition is also a skill."
Aside, Tian Liangwei nodded cooperatively.
As Academician Pan said.
Giving out 500,000 personally and obtaining 500,000 through institute approval are entirely different matters.
Both he and Tian Liangwei own various businesses, some patents yield considerable annual licensing fees, giving Xu Yun 500,000 on their own wouldn’t be difficult.
However, this could bring unnecessary trouble to Xu Yun.
In terms of speech, or political review.
But institute support is different, this implies Xu Yun got the institute funding through his own efforts.
The source of the funds is perfectly clear, there’s no loophole for conspiracy theories, at most someone might gripe he has good teachers.
Then Zheng Zu looked up at those present, suddenly feeling an overwhelming sense akin to Lu Bu battling three heroes:
"In that case, Academician Pan, Academician Tian, Dr. Xu, let’s discuss the equity distribution."
As soon as Zheng Zu finished speaking, Academician Pan crossed his legs:
"Secretary Zheng, our institution has just one requirement, the equity proportion matches the School of Life Sciences, in addition, funds will be available as needed, and resources provided as necessary."
"..."
Academician Pan stated this lightly, but Zheng Zu was instantly burdened:
"Academician Pan, isn’t your request a bit much..."
"This was the consensus of the institute leadership before I came, Dean Shen and Academician Ouyang share this stance."
Zheng Zu: "..."
It’s underappreciated.
The Science Institute is a university heavily biased towards disciplines.
For example, in the fourth round of national discipline evaluation results, the humanities and social sciences ratings are just C, but physics ranks alongside Yan University as one of the only two A+ in the country.
Moreover, this is reflected in recruitment ads:
Others like Zhejiang University, Renmin University, Shanghai Jiao Tong University feature pure and pretty female students, while the Science Institute showcases two dogs running in the snow...
Currently, the Science Institute Physics Department boasts 17 academicians and over 200 with senior titles, among them, Dean Shen and Academician Ouyang are authoritative representatives.
Thus, upon hearing these names, Zheng Zu was instantly deflated:
"This...this...well, alright, we’ll go with your opinion."
As the saying goes, "seize the courage to pursue the retreating enemy," seeing this situation, Tian Liangwei quickly followed:
"Also regarding Xiaoxu’s equity, Secretary Zheng, how much do you think a 1 million cash flow stake should hold?"
Seeing the two academicians clearly backing Xu Yun, Zheng Zu had to abandon his prior unrealistic thoughts, pondered seriously, said:
"Academician Tian, Academician Pan.
The fund values Dr. Xu’s product at around 18 million, with 1 million cash flow added, the proportion is 5.555%...let’s round it to 5.6%.
Adding to the previous 28%, theoretically, it’s a 33.6% share..."
Tian Liangwei slightly nodded, turned to Xu Yun:
"Xiaoxu, what are your thoughts?"
Xu Yun was silent for a few seconds, then said:
"I’m okay with the cash proportion, but I can’t accept the proportion for the equity; the two combined should be at least 40%."
"Dr. Xu, that’s really not feasible....."
Facing Xu Yun’s demand, Zheng Zu helplessly rubbed his temples, and warily glanced around, lowered his voice:
"Given the circumstances, I’ll be upfront.
As you all know, although our fund’s authority is relatively independent, it ultimately answers to the Science Institute.
Recently, the Mu Family incident had a big impact, so now our investment involves certain restrictions, hence it’s not me fixating on these points, but simply the current situation..."
Tian Liangwei blinked:
"Which Mu Family?"
Zheng Zu shrugged, straightforwardly said:
"Which else could it be, the Mu Family involved in computers."
Tian Liangwei showed realization, turned his head towards Academician Pan.
Academician Pan understood the hint, nodded, said:
"What Secretary Zheng mentioned is indeed true. Xiaoxu, Secretary Zheng, so how about we all compromise?
I’ll suggest a number, Xiaoxu 38%, Class A and B shares, reduce employee options a bit, Secretary Zheng should be able to report this."
Zheng Zu pursed his lips, swiftly calculated:
After a few seconds, he sighed deeply, saying:
"Alright, we’ll go with Academician Pan’s suggestion."
38%, slightly off from Xu Yun’s desired 40%, but compared to the initial 23%, it’s tremendously better.
Xu Yun is not someone without sense; with AB equity at hand, the company’s decision-making power firmly in his grasp, this is undoubtedly the best possible result:
"I have no objections either, let’s sign the contract."
At this point, the collaboration issue was settled. Zheng Zu transmitted the situation back to the foundation, and once officially approved by the nominal chairman, the agreement could be formally signed.
While awaiting feedback, the relaxed Zheng Zu couldn’t help but strike up a conversation:
"By the way, Dr. Xu, do you have any thoughts on the company’s name?"
Xu Yun nodded:
"Yes, I indeed have an idea..."
"Oh? What is it?"
"One Mantis Extinct, what do you think?"
Moments later, three voices screamed in unison inside the office:
"Are you not afraid of being beaten to death by readers?"
.....