If everyone is reborn, who will work for capital?

Chapter 77 Capital with a Human Touch

Zhang Xuhao was very happy to have a pleasant chat with Geng Zhi, and then made a request:

"Boss Geng, I've roughly figured out the direction we need to focus on, but we urgently need a programming buddy to help us build an online ordering system."

"Could Mr. Geng recommend a programming expert?"

Upon hearing this, Geng Zhi began to think seriously.

In the hazy fragments of his past life, Zhang Xuhao's team did indeed bring in a technical partner and build the first-generation order system.

He now needs to think about what kind of person to recommend, one that is both responsible to Zhang Xuhao and beneficial to himself.

Suddenly, Geng Zhi's eyes lit up, and he snapped his fingers: "I've got it! I have a first-year graduate student who's technically sound, reliable, and a good fit for your team. How about I make the connection and you two can talk?"

"Oh! Thank you so much, Boss Geng!" Zhang Xuhao immediately beamed with joy.

The three of them immediately raised their juice glasses again, toasting Geng Zhi with utmost sincerity, as if offering a toast.

The dinner fell into a brief silence.

Geng Zhi guessed that Zhang Xuhao's treat today was definitely not just about asking for help recommending computer talents; the real focus was on the doubts surrounding investment.

Now that the chicken pot was almost empty and two large bottles of orange juice were gone, before the other person could even speak, he took the initiative to start a conversation: "Haozi, you seem hesitant to speak. Is there something else?"

Upon hearing this, Zhang Xuhao organized his thoughts again before speaking:

"Mr. Geng, you explained the business model very thoroughly during the last roadshow. We really admire you."

"We'd like to ask, if our 'Food Delivery' goes out to find investors, how exactly should we package concepts like 'moat,' 'scale advantage,' and 'first-mover advantage' to impress those discerning investors?"

Geng stared at Zhang Xuhao for several seconds before suddenly laughing: "Haozi, you have the same problem as me."

"Huh? What does Boss Geng mean?" Zhang Xuhao asked, puzzled.

"Terms like 'moat' and 'scale advantage' might be useful for impressing students and winning awards at campus competitions. But if you actually use these phrases to knock on the door of professional investors, they might listen with a smile on the surface, but in their minds they'll already label you as someone who only talks the talk..."

Zhang Xuhao was taken aback at first, then suddenly realized what was going on and a wry smile of deep empathy appeared on his face.

In the past month or so, he met with many investors, each time refining his terminology and speaking with more passion, but what was the result?

Often, after a few minutes of initial enthusiasm, the conversation quickly cools down and ends abruptly.

"Then what should we say to really resonate with them?" Wang Yuan asked impatiently.

"Let's talk about what investors care about most right now." After saying this straightforwardly, he smiled and looked at Zhang Xuhao, "Haozi, you've been rejected by so many investors, you must know that, right?"

"Orders." Zhang Xuhao smacked his lips and continued, "Their biggest reason for refusing to invest is that the order volume isn't big enough, so it's not profitable at all."

Geng Zhi nodded and began to analyze the situation meticulously:

"That's right. Essentially, it's that investors either don't believe in your startup direction at all, or they're skeptical and waiting to see what happens."

"For those who don't believe, no amount of eloquent explanation will change their minds. Those who are observing need to see some solid evidence to strengthen their investment confidence, and the most powerful evidence is order volume."

He picked up a chopstick and drew a rising curve on the table:

"When you can prove that orders are growing steadily and healthily, investors will believe that there is huge potential for future profits. At that time, with data to support it, you will be able to convincingly talk about 'moats,' 'scale advantages,' and 'first-mover advantage.'"

"But we don't have a lot of orders right now! This vicious cycle means we'll never be able to secure any investment!" Kang Jia asked, puzzled.

"It doesn't matter if it's not there now. The key is to let investors see the trend and believe that the order volume will explode in the future. This is commonly known as 'promising a pie in the sky'."

Zhang Xuhao listened and quickly digested the information.

He suddenly realized that what Geng Zhi said was essentially the same as Zhu Xiaohu's definition of "1000 orders per day"!

Geng Zhi added, "Investors focus on vastly different things at different investment stages. Simply put, angel rounds are about 'people and ideas,' Series A and B rounds are about 'business model and growth,' and only from Series C onwards do they really look at 'monopoly and profits.'"

"I understand that your project is currently in its Series A stage, and the core is to prove that the business model is viable and has huge potential for order growth. The story and the path are more important than the current absolute numbers."

Upon hearing this, Wang Yuan slapped his thigh and exclaimed, "Brother Hao, if we can learn from 'Jiaotong University Matchmaker' and plan out the three-step strategy that Boss Geng talked about, combining online and offline efforts, wouldn't we be able to paint a rosy picture of rapidly growing orders for investors?"

"That's right!" Zhang Xuhao nodded hurriedly, looking at Geng Zhi gratefully once again.

He already knew in his heart what the key points of the next communication with Arctic Capital should be.

"Boss, another bottle of Minute Maid!" Zhang Xuhao was a little excited and ordered another bottle of Minute Maid, which made Geng Zhi shake his head.

Three students who don't drink alcohol, if they really have to do large-scale promotions or business entertainment in the future, relying on orange juice won't be enough to support them... Geng Zhi shook his head inwardly.

When the boss brought over the newly opened drinks, Kang Jia first filled Geng Zhi's glass and humbly asked, "Boss Geng, how do you know so much about the ins and outs of investors?"

"Listen more, observe more, and think more," Geng Zhi then lowered his voice. "Besides, our 'Jiaotong University Matchmaker' is currently negotiating with venture capitalists."

"Wow!" Wang Yuan exclaimed softly.

"That's not surprising," Zhang Xuhao commented. "You've already achieved scale and reputation, so financing is an inevitable choice for rapid expansion."

"Yeah, the competition is forcing us to." Geng Zhi sighed. "A 'Fudan Matchmaker' has already emerged over at Fudan University, completely copying our model. I heard they're backed by Century Family Network. If we don't quickly invest money and expand our market share, we're doomed."

He then offered seemingly heartfelt advice: "You also need to accelerate your fundraising and solidify your position. Otherwise, if you slow down, all the hard work you've put into developing a good model will end up benefiting others."

Upon hearing this, the three men looked solemn and nodded in agreement.

"Boss Geng, which organization did you contact?" Zhang Xuhao asked tentatively, and Kang Jia and Wang Yuan also perked up their ears.

"Well..." Geng Zhi's face showed just the right amount of embarrassment, "It's a kind of capital with warmth. We just got in touch, and it's still in the confidential stage, so it's not convenient to say more."

He then added, seemingly unintentionally, "However, I definitely won't go to Jinshajiang Venture Capital."

"Why?" Zhang Xuhao quickly asked.

Geng Zhi shook his head: "We've dealt with Jinshajiang a few times. President Zhu is too shrewd. His eyes are full of interests and calculations. He even tries to get our data, but he just won't invest any money. He lacks human touch."

Seeing the complicated expressions on the three men's faces, Geng Zhi guessed that they must be having a deep conversation with Zhu Xiaohu, so he continued, "When looking for investment, you must find capital that shares your vision and has a certain warmth, because you'll be fighting alongside them for the long term."

If Zhang Xuhao, who had achieved great success a few years later, heard these straightforward words, he might scoff at them, since the business world is all about profit.

But for him, who is still struggling for recognition and enduring cold shoulders, it really hit the nail on the head!

Boss Geng is absolutely right!