Chapter 77: The Intrigues of Financial Institutions
"We didn't talk about much substantive stuff. Maybe it was because it was our first meeting, so we just kept chatting."

On the way back to Shenhai, Chen Yuanguang said this in response to Lin Jia's question.

After the interview with Lin Qinghua, the atmosphere at the family dinner became noticeably more harmonious.

After learning that Lin Jia's partner at Jiangda was Chen Yuanguang, Lin's mother quickly realized that there was no better partner.

Chen Yuanguang is a first-generation rich man, and his entrepreneurial direction is technological innovation, which is the most advocated by the country. He has no original sin and no family power to hinder the development of his company. In just over a year, the valuation has exceeded 10 billion.

The two met in college, when Chen Yuanguang had not yet become successful. Their emotional foundation was deep enough, and Lin's mother thought it was a match made in heaven. She was so enthusiastic that she almost treated Chen Yuanguang as her own son.

"Really?" Lin Jia asked. Because she was going home for the holidays, Lin Jia had abandoned her usual professional style and was wearing a dark blue dress that showed her ladylike demeanor.

Lin Jia obviously didn't believe it. In her impression, Lin Qinghua was cunning and would not let go of the opportunity to examine Chen Yuanguang so easily.

Chen Yuanguang said: "We really didn't talk about anything substantial." He felt that if the scene happened again, Lin Jia would have a big fight with her father again.

Seeing that Chen Yuanguang was unwilling to talk, Lin Jia did not insist: "If you don't want to talk, forget it.

We finally chose the Marriott Hotel for this investor conference, which has the largest venue and can accommodate 2,200 people.

“It’s great to see so many top investors from all over the country here.

I believe that everyone has received an introduction to Light Armor Technology before coming here, including some data from our first phase of clinical trials and analysis conclusions from frontline doctors.

Everyone has a preliminary understanding of what Guangjia Technology is going to do. Our current core product is human hibernation technology, or to be more precise, short-term human hibernation technology. The longest hibernation period for a subject has been five days.

This round of fundraising is mainly used to conduct clinical trials on a global scale and obtain sales licenses.

Human hibernation technology has particularly significant effects in the fields of analgesia, some mental illnesses, hyperthermia, etc., and eliminates the side effects of other drugs.

It can be used not only in the medical field, but also in aerospace and other fields. This is our subsequent exploration direction.

The valuation of this round of financing is secondary. We need partners who can help us expand into the global market.

I can clearly say that this round of fundraising will be the last round of fundraising before Guangjia Technology goes public. The first round of clinical trials will be completed this year, and the license for the second round of clinical trials will be approved soon. After approval, we will promote Guangjia Technology to be listed on the Science and Technology Innovation Board.

The funds raised from the IPO will be mainly used for research and development, because our current research on human hibernation technology is still at a very basic level. Controlling the hibernation time, long-term human hibernation, and even human freezing will all be our research directions."

Chen Yuanguang was wearing a suit and a red plaid tie. This outfit was custom-made by a master craftsman in Shenhai Lane that Lin Jia had taken him to two months ago.

After getting the clothes, Lin Jia sighed that he had such a good taste. When he put them on Chen Yuanguang, his calm and composed temperament was fully highlighted.

You can't tell at all that Chen Yuanguang is only in his early twenties.

There were more than a thousand people in the entire venue, and the venue that could accommodate two thousand people did not look empty at all.

When Chen Yuanguang was speaking, everyone was taking notes, as this was first-hand information.

The company will be listed in the next round, Chen Yuanguang said so confidently. Considering that Guotou is the second largest shareholder, it means that investing will earn money.

Unlike some companies, which are well-known, have revenue, profits and stories, but have raised 22 rounds of financing and are almost using up all 26 English letters.

This is also a kind of destruction for investment institutions. Their shares are constantly diluted in rounds of financing, and they can't make much money even if they invest early. It is better to be like Guangjia Technology, which can make money even if it is listed on the A-share market. Companies like Guangjia Technology that really have technology can be hyped up by listing on the A-share market.

Therefore, when Chen Yuanguang said that this was the last round of financing before listing, the eyes of the financial elites in the audience lit up.

“This round of financing plans to sell 15% of the shares and introduce up to five investment institutions, with unequal shares.

The valuation of this round starts from 100 billion US dollars. What you need is to write down on paper your valuation of Guangjia Technology, how many shares you hope to invest, and what kind of help you can provide in clinical trials.

We have left paper and pen at each location for everyone. Please remember to sign your company name and give it to the service staff."

After Chen Yuanguang finished talking about the valuation, discussions broke out from the audience.

"I heard that the valuation in the last round was 100 billion RMB? Did they convert RMB directly into US dollars in this round?"

"Does this mean that this round of financing will cost $15 billion for overseas clinical trials? For major regions like America, the EU, ASEAN, and East Asia, it will cost about $10 billion."

"Not only that, you have to consider that it affects the interests of too many pharmaceutical companies. You have to know that the global market size of analgesics is as high as 900 billion US dollars, and the small amount of shares it has sold is not enough for overseas regulators to give them a green light.

It can easily delay the process for two to three years, especially in America and the European Union, two regions with strong pharmaceutical industries.

Dr. Chen is very strong in the field of technology, but he is not decisive enough when it comes to making concessions.

I think we need to capture at least 30% of the market share in this round, and another 30% after clinical trials, so that we can conquer the world."

No matter which country it is, it will give priority to protecting its own industries. America, which is famous for its free trade, has done a much more direct job than China in protecting its own industries. It has forced Japan to open the door to America's semiconductor industry, forced American companies not to sell high-tech products to China, and helped General Electric acquire Alstom.

Many times, when Chinese companies want to go overseas, they have to introduce overseas investors, and pure state-owned assets cannot beat overseas trade protection policies at all.

Huawei also has to make concessions, but they make them to the overseas dealer system rather than by bringing in investors.

"100 billion US dollars, this valuation is amazing. A company that has been established for more than a year can enjoy such a high valuation."

"Will you vote or not?"

"I won't vote."

“I don’t vote either.”

"What do you write if you don't put it on paper?"

“I’ll try writing a price lower than $100 billion. Now that it’s here, I’ll do it.”

“Then I’ll try writing it.”

This is a zero-sum game, and everyone is scheming against each other.

Is 200 billion US dollars a lot? The analgesic market in China alone is close to billion RMB, plus other applications, technological advantages, monopoly business, and the imminent market launch, it is obviously not much.

(End of this chapter)