2003: Starting with Foreign Trade

Chapter 442 Three-Year Bet
To be honest, Tan Jincheng was a little jealous of this guy; his life was just too good.

If you call him a top student, there are plenty of top students out there, but which top student has such good fortune? Lei Jun worked his way up step by step through hard work. He really did have benefactors supporting him all the way from the beginning of his studies.

If he weren't so unattractive, Tan Jincheng would have had some impure thoughts.

"This kid's going to fail sooner or later, but oh well, he's too lucky. It might be better if he fails."

They were the same age, but their experience and knowledge differed greatly. One of them was willing to learn from the other, and the other was not arrogant. They had a pleasant chat.

Tan Jincheng has already recognized his social status. Not to mention meeting these future big shots, he has also met quite a few powerful figures at present.

In a sense, Tan Jincheng's acceptance of the invitation to make a special trip at this time was more out of respect for Boss Ding than for Huang Zheng, because Tan Jincheng didn't really need to be overly enthusiastic towards a newly returned entrepreneur.

Even if he's a future big shot, every big shot has faced setbacks a few times.

However, once you actually meet, there's no need to put on airs. If you've given face, you have to give it your due. Tan Jincheng won't do anything that's thankless and exhausting.

Huang Zheng returned from the United States and worked at Google. His internet concepts are much more advanced than those of his peers in China, not to mention someone like Tan Jincheng who is not even a half-baked expert.

In terms of physical business operations, Huang Zheng is far inferior to Tan Jincheng. In addition, he is not as good as Tan Jincheng in terms of social status and temperament. They each have their own advantages and can learn from each other.

"Would Mr. Tan like to invest in my website?"

As they chatted, Huang Zheng brought up investment. In the internet industry, who would refuse more capital? He certainly didn't lack money or connections for running a small vertical website, but who would refuse more capital and connections?

Orange Technology has its own vertical website, which has been under development for some time. In terms of experience, it has more than him. Moreover, when it comes to marketing, Tan Jincheng is often able to find alternative approaches.

In addition, they are partners with SF Express in terms of express delivery, and SF Express has a considerable advantage in transporting 3C products.

"I'd rather not invest. If Mr. Huang needs my help in his next project, I can invest a little. But I can introduce you to Mr. Wang from SF Express. They have a lot of experience in 3C transportation."

Tan Jincheng certainly wouldn't be interested in a project that he clearly didn't have high hopes for. Even if it didn't cost much as a venture capital investment and could be sold in the future, the returns would still be too low.

"Is Mr. Tan so sure that my vertical e-commerce project won't work?" Huang Zheng was a little frustrated.

Tan Jincheng's vision and the timing of his involvement in many projects have always been praised. His Orange Technology is also doing e-commerce projects, but he doesn't have a good opinion of the 3C project that Tan Jincheng is going to do. He really doesn't give him any face at all.

Although it was their first meeting, Huang Zheng felt that the two had a pleasant conversation and were both optimistic about the future of the internet. Initially, Huang Zheng wanted to hear Tan Jincheng's experience in marketing, but so far they hadn't talked much about that aspect.

He originally thought he would talk more about physical topics with Tan Jincheng, so he did a lot of research on Flash Group to avoid the awkwardness of not knowing anything. Unexpectedly, Tan Jincheng did not mention Flash Group at all after he arrived, and only talked to him about the Internet.

Didn't they say that this person isn't responsible for the specific business of Orange Technology?
Tan Jincheng noticed Huang Zheng's expression and smiled, saying, "How about I make a bet with President Huang?"

"Huh? A bet? What kind of bet?"

"I'm betting on whether your 3C vertical website can succeed. By the way, have you named the website yet?"

As far as I remember, Pinduoduo was launched around 2015, around the same time as ByteDance, which is 8 years ago. It definitely wasn't called Pinduoduo.

"I came back around Chinese New Year this year. Before that, I was helping my mentor manage BBK's e-commerce business. After gaining some e-commerce experience, I thought about starting my own business. I haven't decided on a name yet."

"Alright, then let's ignore his name. I'm betting you that your e-commerce website won't survive three years."

"Not more than three years to live? Why are you so sure?" Huang Zheng was very surprised.

"In doing anything, you have to look beyond the surface to see the essence. The essence of the internet is monopoly, especially in the e-commerce industry. You should know this if you are in the United States."

"What I'm saying is that in the future, there may only be two or three leading e-commerce companies in China, but it's definitely not your 3C vertical website. Your business is too niche and you don't have any advantages."

Huang Zheng was taken aback for a moment, then said somewhat unconvinced, "Then Orange Products Club has it?"

"Chengpinhui may not survive for more than three years. Three years is the life cycle of a startup like ours. However, even if Chengpinhui can't continue, we have other businesses. The impact on Orange Technology will only be on the valuation, not on the company's normal operations."

Orange Products and Kaixin.com operate independently. Happy Farm will remain popular for at least several more years, and even after smartphones become widespread, it will still have a certain number of loyal users.

These past few years have been a golden opportunity for Happy Farm and other mini-games to make money. Games generate a lot of cash flow, and Orange Technology doesn't plan to grow too big, so the cash reserves from the games are enough for them to thrive. There are also quite a few mini-games available on smartphones; if Orange Games really can't make it work, they can just cut them.

In fact, what Tan Jincheng meant was that his so-called 3C e-commerce website would hardly survive for more than two years, or even one year. After Jingdong built its own logistics, its development speed was so fast that even the invincible Taobao system was afraid.

If you focus on his main business and make it so singular, how can you possibly grow big? Why would consumers choose your website with only one brand instead of going to Jingdong to buy 3C products from a wider variety of brands?

This is basically not vertical e-commerce. If you do it this way, you might as well just open a BBK brand flagship store on Taobao. It would be simpler and easier for you to survive.

"Then what should we bet on?" Huang Zheng's spirits were rising.

Having always had a smooth-sailing career, this was his first time starting a business, and he hadn't originally intended to seek the advice of this peer who was younger than him, but the conversation had just progressed to this point.

As a result, I was given this bucket of cold water.

"It's not really a gamble. If I can survive for three years and Mr. Huang still values ​​me when he needs financing, I can invest at a 15% premium over the valuation at that time. The extra amount can be considered as my apology to Mr. Huang."

If you manage to hold on for three years, you should be able to secure a Series B or Series C funding round. By then, even if you want to shut down, investors will let you hold on until you go public or sell to another company to cash out.

A 15% premium is definitely not a loss.

"What if I don't make it through? What will I have to pay?"

"I didn't make it, I didn't make it. If I don't make it, Mr. Huang, remember to include me in your next startup project. I can participate in the investment then."

That's called gambling, isn't gambling a two-way street?
Huang Zheng was also taken aback, but in his understanding, Tan Jincheng was rejecting his investment request in a more dignified way, allowing him to save face. Huang Zheng's expression softened.

He was somewhat touched that an entrepreneur of much higher status was able to refuse him in a dignified manner.

“Alright, let’s bet then,” Huang Zheng replied with a smile.

Seeking investment was never part of the plan for this meeting, so it doesn't matter if it doesn't work out.

"Then let's make a gentleman's agreement, okay? Mr. Huang won't go back on his word later, will he?"

"How could that be? I have to hold out for at least three years for Mr. Tan's 15% premium. I'm just afraid that Mr. Tan will renege on his promise then."

"No, Mr. Huang should know that I have an investment company. To be honest, I will be involved in some investment projects this time. If you have any projects in this area, you can help introduce me."

"Sure, no problem. I also have a lot of former colleagues and classmates who want to return to China to start their own businesses. I can introduce them to you, Mr. Tan."

In terms of internet connections, Huang Zheng is no less capable than Tan Jincheng. Even without seeking investment, he can introduce some outstanding talents who want to return to China to work. It's definitely a good deal for Tan Jincheng to meet with him.

With the three-year bet finalized, there's not much left to discuss.

After exchanging personal contact information, Tan Jincheng declined Huang Zheng's invitation to dinner, only saying that they should keep in touch often in the future. This guy was from Hangzhou and had spent several years in the United States, so Tan Jincheng wasn't sure what kind of food he could recommend.

I'll have dinner with him, and I'll just go to any McDonald's to coax Tan Jinyue.

Although Tan Jincheng declined his dinner invitation, Huang Zheng was not particularly disappointed. It was already quite rare for an entrepreneur of Tan Jincheng's stature to set aside a few hours to chat with him.

Generally speaking, if you want to have dinner with Tan Jincheng, you really need to make a reservation in advance.

He just said it casually, not expecting Tan Jincheng to agree. But it seems that Brother Ding has arranged a thank-you banquet, but not today. Should he go and join in?
In short, Xiao Huang, who had recently returned to China, was very satisfied with the outcome of today's meeting.

From Tan Jincheng's attitude, he could tell that the other party respected him quite a bit and was not condescending at all. The meeting was arranged by Brother Ding, but the opportunity was something he had earned himself.

This final three-year bet is essentially about establishing a network of connections with the other party. To put it bluntly, Tan Jincheng is saying that he will invest in himself three years later.

In investment parlance, they might not be optimistic about their project, but they are optimistic about themselves as individuals.

To Huang Zheng's surprise, other investors would still throw millions into projects they believed in, even if they knew the project wouldn't succeed, but Boss Tan wouldn't give a penny, which was quite unexpected.

(End of this chapter)