northernbook Chapter 74 Turning Point
Chapter 74 Turning Point
4 month.
Su Chen arranged to meet Shen Yumeng at a quiet coffee shop in Nanshan District, Shenzhen. He didn't bring a projector or a PowerPoint presentation.
He brought with him an engineering prototype of an industrial-grade flight control module, two real-world test reports (Palm Garden in Indonesia and high-voltage line inspection in Shaoguan), a letter of intent from China Southern Power Grid Intelligent Equipment Co., Ltd., and a letter of intent for long-term cooperation with AgriNusa.
Four items were placed on the table.
Shen Yumeng carefully read through each document. She spent the most time on the test reports—not looking at the conclusions, but at the data. RTK positioning accuracy, obstacle avoidance recognition rate, flight path coverage, and stability data under extreme wind conditions. She pointed to each number with her finger.
Ten minutes later she put down the materials.
"Mr. Su, you didn't come with a PowerPoint presentation. You came with the product and the customers."
"I've said it before—I won't raise funds when I don't have a product."
Have you considered valuation?
Su Chen leaned back in his chair.
"Three production lines are operating simultaneously. The consumer-grade F4 sold nearly 50,000 units last year, and sales are expected to grow this year. We have over forty clients in the agricultural SDK alliance, spanning four overseas countries. For industrial-grade products, we already have two clients with proven real-world applications, and the procurement process for Southern Power Grid Smart has commenced. The company is entirely self-sufficient, with no bank loans whatsoever. You can calculate the valuation yourself."
Shen Yumeng smiled. It wasn't a polite smile, but the kind of smile an investor would have when they see a good investment opportunity.
"I've done the calculations. The valuation was around 40 million during the Series A round. A year and a half has passed. Consumer-grade revenue has nearly tripled. The agricultural protection SDK has grown from zero to over forty companies. The industrial-grade has gone from concept to scenario verification. The team has grown from about ten people to over twenty R&D personnel. A conservative valuation is 300 million. If the industrial-grade contracts are finalized, 500 million shouldn't be a problem."
She paused for a moment.
"My condition is—after the Series B funding round, Mr. Su's equity stake must be no less than 65%."
Su Chen slightly raised his eyelids.
Sixty-five. Two percentage points lower than the system's red line of sixty-seven.
He quickly did the math in his head. If they raised 30 million based on a 300 million valuation, that would dilute the stake by about 10%. After the Series A round, he would hold 71.7%, and after deducting the 5% option pool, he would effectively control 66.7%. If they were diluted another 10%—
His actual shareholding will drop to about 64.5%.
It is two and a half percentage points below the system's red line.
This is the first time in three years that he has seriously considered letting the stock price fall below that line.
In every previous financing negotiation and every stock option issuance, he treated 67% as an inviolable bottom line. This line was a requirement of the system's aura of added benefits—clearly etched in his past life's memories. If the equity fell below 67%, the aura might vanish. The virtual disassembly lab, the added product quality, and all the advantages beyond reason would all disappear.
but--
Su Chen had never truly tested this line in the past three years. Was 67% a red line or a precipice? What would happen if it were one percentage point lower? Two percentage points lower?
he does not know.
He only knows two things.
First, industrial-grade technology is Hongyuan's future. And the future requires funding. Power line inspection, palm plantation inspection, photovoltaic inspection—each scenario requires specialized adaptation, and each adaptation requires R&D investment and time. Without Series B funding, the progress of industrial-grade technology will be at least half as slow.
Secondly, he calculated that once the industrial-grade contract was secured, the company's valuation would quickly jump from 300 million to over 500 million. Even if the equity stake were lowered by two or three percentage points at that time, its absolute value would still be far higher than it is now.
Shen Yumeng waited quietly on the other side. She didn't urge her.
Su Chen thought for a long time. Outside the window, cars streamed along the streets of Nanshan. The coffee had gone cold.
Then he spoke.
"Yes, but the financing amount cannot exceed thirty million."
Shen Yumeng nodded. Her expression didn't change, but Su Chen noticed that her fingers tapped lightly under the table—a habitual gesture she made when making a decision.
"Mingyuan will lead the investment. I'll try to secure one or two follow-on investors. I'll finalize the framework of the terms this week."
The two stood up and shook hands.
As Su Chen walked out of the coffee shop, he stood on the street for a while, lost in thought. It was already getting hot in Shenzhen in April. There was a humid warmth in the air.
He just made a decision he had been avoiding for three years—to voluntarily lower his shareholding below the system's red line.
Maybe the red line isn't a wall. Maybe it's just a safety margin. Maybe two percentage points lower won't cause any problems.
Maybe.
But what if something actually happens?
Su Chen took a deep breath and then walked towards the parking lot.
In any case—once it's done, it's done. Industrial-grade products can't wait.
On his drive back, his phone rang. It was a WeChat message from Li Hao.
"Mr. Su, I have some big news. Something might be wrong with Tianying. Would you mind making a call?"
Su Chen parked the car on the side of the road and dialed back.