186: Chapter 186 3 million, 40% share

Chen Fan remained silent for a few seconds, his face expressionless as if he were seriously considering what Xu Yi had said.

The reason he spoke that way was simply to lower the other party's psychological expectations and to drive down the price.

He was also worried that Xu Yi would demand an exorbitant price once he heard Chen Fan wanted to invest.

Calling them a ragtag crew and acting as if he didn't want to invest were all tactics to make them feel his investment intent was low.

Therefore, he wasn't the least bit angry at the indignation Xu Yi displayed.

"Fine, I take back what I just said. You have a point; the data does speak for itself. I'm a blunt person and say what I see, so don't take it to heart."

Xu Yi was stunned for a moment, and his tense shoulders relaxed slightly. "I don't mind."

"Since we've reached this point, I won't beat around the bush." He looked Xu Yi in the eye, his tone serious. "I can invest in your website."

Xu Yi's pupils shook slightly, and his fists clenched a bit tighter.

"Then how much do you want to invest?" Xu Yi tried to make his voice sound calmer.

"3 million," Chen Fan stated the figure, pausing for a second. "For seventy percent of the shares."

As soon as this condition was voiced, the room fell silent again. 3 million for seventy percent of the shares meant the founding team would only have thirty percent left.

Xu Yi's expression changed, and he let out a heavy breath, forcing himself to speak through his frustration. "President Chen, your offer is too harsh. You invest 3 million and our team is left with thirty? Would this website even be ours anymore?"

"The valuation is negotiable," Chen Fan said.

"It's not a matter of negotiation." Xu Yi shook his head, his attitude firm. "70% is already beyond our bottom line."

Chen Fan wasn't surprised by Xu Yi's reaction. He never expected to get seventy percent of the shares; he had intentionally quoted a high number.

"Then what do you think is appropriate?" Chen Fan asked.

Xu Yi was silent for about five seconds, quickly calculating in his head. "2 million for 30% of the shares."

"30%?" Chen Fan raised an eyebrow. "A website with less than thirty thousand daily active users and zero revenue, valued at over six million?"

"Valuation isn't just about current data," Xu Yi immediately countered, his speaking speed picking up again. "President Chen, you are investing in the future. In the current direction of bullet-chat websites, we are the only ones doing this in the country. According to current trends, we will soon reach hundreds of thousands or even a million daily active users."

Chen Fan smiled after hearing this. "You said it yourself, it's the future. Whether it can develop that many daily active users isn't certain. Why should it be worth over 6 million?"

"5 million for 60% of the shares," Chen Fan continued, raising his offer.

Xu Yi quickly converted the numbers in his head—5 million for sixty percent meant an 8 million valuation.

Hearing this offer, he felt a flicker of interest. An 8 million valuation was significantly higher than he had expected.

But he still shook his head. "40%, at most 40%," Xu Yi said. "3 million for 40% of the shares. This is the bottom line our team can accept."

Hearing this offer, a flash of pleasant surprise crossed Chen Fan's mind.

However, he remained impassive, pretending to look troubled.

Only after a good while did he speak.

"3 million for 40%. I agree. However, I have one condition."

"What condition?"

"Bringing in other investors later requires the consent of both parties, and I have the right of first refusal for subsequent financing rounds."

Regarding these two conditions from Chen Fan...

Xu Yi thought about it; these two conditions weren't excessive in an investment agreement. "Fine." He nodded. "All of this can be written into the contract and reviewed by a lawyer."

"Of course." Chen Fan stood up and extended his hand. "Then it's a deal?"

Xu Yi looked at the extended hand and took a deep breath.

What this hand was about to grasp wasn't just 3 million, but the future direction of Bilibili. He didn't know if this step was the right one, but for now, it was his best choice.

He reached out and gripped it firmly.

Over the next period of time, the group began to finalize the specific details of the investment point by point.

The first problem on the table was the corporate entity.

Up until now, Bilibili didn't even have a proper company.

From start to finish, it was just Xu Yi leading a few tech geeks huddled in a rented apartment in an old residential area in Hangzhou. The servers were rented, the domain name was bought, and the website's operation relied on passion and electricity bills. In a legal sense, this website didn't even have a 'legal representative.'

Without a company, equity couldn't be transferred. So the first step was to register the company.

Chen Fan's plan was clear: after the company was established, the investment funds would be injected under the name of 'capital increase and share expansion,' and the industrial and commercial registration would be updated. The process was compliant and the risk was lowest; it was the most stable path currently.

But Xu Yi was stuck on a very awkward problem—

Registering a company required 500,000 in capital, plus renting an office, getting seals made, opening a corporate bank account... all in all, it would require at least 600,000 to 700,000 to start.

Xu Yi couldn't come up with this money.

Although Bilibili's users were growing fast, its revenue was almost zero. The money for servers and bandwidth was all paid out of Xu Yi's own pocket.

Forget 500,000; it would be a struggle for him to produce 50,000 in cash right now.

"How about this?" Xu Yi thought for a moment and proposed a compromise. "We'll sign the shareholder agreement first and open a dedicated 'company preparation fund' account. President Chen, you deposit 1 million into the account first, and I'll use that money to complete the registration. Once the company is registered, you deposit the remaining 2 million, and finally, we'll do the equity registration."

This plan carried zero risk for Xu Yi.

But for Chen Fan, the risk was significant.

If he transferred 1 million and Xu Yi got greedy and ran off with the money, it would be a huge hassle to track him down.

While he could sue with the agreement in hand, how much time and energy would that consume? Just hiring a lawyer and going through the legal process would take half a year.

Chen Fan leaned back in his chair, his fingers lightly tapping the table twice.

He looked into Xu Yi's eyes.

There was no dodging or guilt in those eyes; instead, they held a very frank sincerity.

Chen Fan made a judgment: this person had built Bilibili from scratch on his own and had persisted for so long without giving up. It was unlikely he would destroy everything he had painstakingly built for the sake of 1 million.

Besides, 1 million really wasn't much to Chen Fan.

Compared to the potential future gains, the current risk was negligible.

"Fine, let's do it your way." Chen Fan nodded, his tone decisive.

With the plan settled and the details finalized one by one, the two chatted for a few more minutes about the subsequent timeline. Only then did this negotiation, which had lasted several hours, truly come to a close.

Chen Fan stood up, and Qiao Linlin followed suit.

After getting into the car, Qiao Linlin buckled her seatbelt, and the vehicle slowly pulled out of the parking space. Holding the steering wheel, she couldn't help but glance sideways at Chen Fan.

"Boss, is it worth it..." she chose her words carefully, "to invest three million in such a small website?"