Chapter 39#

The return trip was twice as fast. Just as the sun had completely set below the horizon, the two of them were seated in a private room at a restaurant. This time, there were no outsiders accompanying them, and the atmosphere was more harmonious than ever before. After ordering the food, Xiao Junyi leaned back in his chair and looked at the teenager in front of him with interest.

“Why the sudden interest in this?”

By now, Chen Yuanming’s excitement had faded, and he had returned to his usual calmness. Hearing this question, he smiled slightly. Indeed, if the Little Smart (PHS) was a flash of inspiration caused by the military factory, then VCD was simply too far ahead of its time. If he remembered correctly, the VCD prototype hadn’t even appeared yet, let alone become popular or hot. Sales of similar video recorders and laser disc players in China were just so-so. Even with forward-thinking, it was impossible to be that forward-thinking. How to make future partners trust him was the crux of the problem.

Stopping his fingers from gently rubbing the teacup, Chen Yuanming restrained his smile and answered seriously, word by word, “Because of what you said: ‘generational change’.”

Two words, crisp and concise, yet meaningful. Xiao Junyi was slightly stunned. Just based on that?

Seeing Xiao Junyi’s slightly puzzled expression, Chen Yuanming didn’t keep him in suspense anymore. “Don’t underestimate the word ‘generational change’. When tape recorders replaced radios, how many manufacturers rose directly? After the transition from tape recorders to CD players, how much profit margin was created?”

As if organizing his thoughts, Chen Yuanming’s speech wasn’t fast, but his logic was exceptionally clear.

“In modern society, knowledge is growing explosively. It took a hundred years for telephones and televisions to go from appearance to maturity. Vinyl records, cassette tapes, CD discs… in 50 years, just the audio reading and writing mode has undergone several revolutions. Every update and generational change means an unprecedented opportunity. If you don’t seize this, you will be eliminated by the times immediately. This is no longer the closed-door model of the past thousand years; imitation is no longer effective, innovation is everything. If there is something that can replace the current cumbersome and expensive videotapes and laser discs, I am willing to enter the first sequence and be the one to eat the crab.”

Listening seriously and pondering the meaning of these words, Xiao Junyi did not reply immediately. It was nothing else, but some things, even if Chen Yuanming had the idea and the will, could not necessarily be realized according to his expectations. The problem now was not whether this cake was delicious, but whether the person who owned the cake was willing to give up their share to others.

After thinking for a while, he shook his head. “The idea is indeed good, but as far as I know, that person has invested a considerable amount of funds in developing VCD. Even if you have money, they may not necessarily accept you. Doing business is not like trading stocks; it’s not just about having money and vision to succeed. It also requires more complex things, such as connections, technology, and management ability.”

And of these, I’m afraid you don’t possess a single one.

The words were not spoken, but Chen Yuanming knew them clearly. Shaking his head slightly, he said frankly, “What I want is not a controlling stake, not decision-making power, not actual control over a company, but an investment point, an opportunity for this huge sum of wealth in my hands to double and grow. Moreover, it’s not that I will inevitably inject capital into them just because I am optimistic about this project. I must see the person in charge of the project with my own eyes, talk to them personally, and only if they can meet my expectations will there be a possibility of the next step. Simply put, it is a venture capital investment.”

Coming from the Business School of Renmin University, how could he not understand what “venture capital” meant? Looking at the teenager in front of him with some surprise, Xiao Junyi felt that the feelings in his chest were hard to express. In fact, the boy in front of him had not yet fully grown up. Whether it was his figure or his appearance, he radiated a full sense of youthfulness; at a glance, he looked just like a teenager. However, his demeanor was completely different. His eyes shone with a maturity and determination inconsistent with his age. It seemed that in his eyes, this world was not the way ordinary people saw it, but a more direct and clear existence that could be grasped in one hand.

Should I help him? This question only flashed for a moment, and Xiao Junyi smiled. Actually, what could he help with? It was just making introductions and building a bridge. Leaving everything else aside, just based on his curiosity about him, this “small favor” had to be helped. Why wouldn’t he want to see how far this strange kid could go?

Seeing the smile on Xiao Junyi’s lips, Chen Yuanming’s suspended heart fell to the ground. In fact, he was not as confident as he appeared. In the next ten years, China’s VCD manufacturing industry would face countless difficulties and obstacles, and everything would be rooted in the hidden dangers buried when the first VCD was released. Now having the opportunity to trace back to the source was not only an opportunity but also a challenge. This was just the first hurdle he faced. Whether he could reshape this VCD empire, whether he could use this as an opportunity to open the prelude to the electronic age, still had to be taken one step at a time.

If successful, wouldn’t this also be a great cause beneficial to the country and the people…

&&&

That night, Xiao Junyi contacted his youngest uncle. After reporting the course of events, there was a long silence on the other end of the phone. After a long time, Xiao Yun’s somewhat emotional voice came from the receiver.

“To be able to think so far ahead just from the two words ‘generational change’, what else can I say… Alright, let’s help him. Although it’s a bit disappointing that it’s not the Xiao family cooperating with Yuanming in the end.”

The signal of the long-distance call wasn’t very good, making the voice a bit blurry, but the regret in it was unmistakable.

Xiao Junyi did not miss the main point in his uncle’s words. It wasn’t “you”, it was “we”. This matter changed from his personal relative relationship to the Xiao family’s repayment to Chen Yuanming. Even in the near future, for that unborn VCD industry, they would try their best to escort it. Whether Chen Yuanming wanted it or not, he had already successfully boarded the big ship of the Xiao family. Just this unexpected first step was so stunning.

Thinking was one thing, but Xiao Junyi turned to another question. “Hearing Yuanming talk about the issue of generational change today, I suddenly thought, when the new generation of products is made, will pagers be directly eliminated?”

BP pagers, or beepers, were considered standard equipment for fashionable people in this era. One could connect to the paging station via telephone and then send a message to the connected person. If strictly defined, it also achieved the goal of “semi-mobile”.

The phone on the other side was quiet for a few seconds, then laughed out loud. “You discovered it too? Recently, your dad and I have also been discussing this issue. It’s not that we don’t have production lines for manufacturing pagers, but in the long run, as soon as mobile phones appear, their elimination can be said to be inevitable. But fortunately, the lines we have laid out on this are not long. Before and after the new products appear, we can just shut down and transfer. Now this thing is hot, no worries about selling.”

Hearing his uncle’s explanation, Xiao Junyi also breathed a sigh of relief. This was the benefit of a family business. What one person couldn’t think of, someone would always fill in the gaps. He was still too young and had a lot to learn. But what about that younger child? Would he also have negligence and omissions? Hanging up the phone, Xiao Junyi was stunned for a moment, then turned around and dialed another number. It didn’t matter; this time he would definitely be by Chen Yuanming’s side. If the other party couldn’t think of it, couldn’t he lend a hand?

Three days later, after arranging the relevant matters, Xiao Junyi and Chen Yuanming got on the plane together and embarked on the journey.

&&&

Sitting at home, Meng Lisheng looked somewhat anxiously at the quartz clock hanging on the wall. Since receiving that phone call two days ago, he had fallen into this inexplicable irritability. The fact that he was developing VCD was not a secret among friends and relatives, but after spending a whole year, when the results were within reach, a stranger with the intention to invest suddenly appeared, which really made him somewhat distressed amidst his astonishment.

In any era, scientific research is a very money-burning thing. To transform an invention into an actual product requires not only technology and talent but also sufficient financial resources. Having left the research institute to go into business for so many years, he had some savings, but developing VCD burned nearly 500,000 US dollars in one year. This was only the initial cost. In the future, setting up a company, starting a business, establishing production lines, hiring employees, and even publicity and promotion—which part didn’t need money to support? Currently, the actual partners of this project were only himself and Professor Yan, the founder of the MPEG format. The total assets of the two added up to no more than 10 or 20 million. The constraints of funds meant needing bank loans and constantly running around for money.

But even so, they had no intention of looking for investors. Banks could be dismissed with interest, but partners could not. Capital injection meant diluting management rights, meant rich profits being swallowed and exploited. In case the partner was unreliable, they would face immeasurable losses. They didn’t intend to take this risk.

However, the investor who appeared this time exceeded his imagination. On the one hand, it was the face brought by kinship, and on the other hand, it was the temptation of “venture capital”. Nowadays in Europe and America, venture capital is also a quite avant-garde industry. There is no interest here, no need for collateral, and no need for repayment. It is just investing money in an industry one is optimistic about, exchanging high risk for high returns. If it succeeds, it is a huge profit; if it fails, it is nothing. For entrepreneurs, such a model is of course excellent, but for investors, it is truly a gamble.

It’s just whether this investor can make such a big decision, and what kind of reward his so-called “venture capital” needs to achieve. On the phone, he also heard the Xiao family boy say that this investor is very young, and the money basically comes from previous stock market profits. Can such a candidate really be trusted?

Thousands of thoughts were in his mind, and he couldn’t make a decision for a moment. Meng Lisheng got up and poured himself another cup of strong tea, continuing to stare at the quartz clock in a daze.

After getting off the plane, Chen Yuanming chose a bus as usual and headed towards the destination. Xiao Junyi shrugged and followed helplessly.

Along the way, the two chatted for a long time, covering everything under the sun. In this regard, he finally regained a little control over the topic, but chatting couldn’t stop his vigorous curiosity. Standing behind Chen Yuanming, he looked at the two large boxes the other party was carrying with great curiosity. It was true that the Lantern Festival had just passed, but weren’t they here to talk business this time? Why bring this kind of gift box? What kind of trick is this kid playing…

However, when he asked Chen Yuanming what was in the box, the teenager just smiled slyly, “This is a brilliant plan.”

Rolling his eyes towards the sky, Xiao Junyi curled his lips and didn’t ask any further. After spending nearly an hour transferring buses and walking, the two finally arrived at their destination. The VCD developer Meng Lisheng was the cousin of Xiao Junyi’s youngest aunt’s husband. The relationship was a bit convoluted, but at least they could claim kinship. Standing outside the door and ringing the doorbell, hurried footsteps came from the room after a while. The door was pulled open, and a figure appeared in front of the two.

“Uncle Meng, Happy New Year.” Xiao Junyi put on a suitable smile. But the other party’s gaze didn’t stop on him at all, but stared wide-eyed behind him.

Chen Yuanming also smiled and extended his right hand in a friendly manner. “Hello, Mr. Meng. I am Xiao Junyi’s friend, my name is Chen Yuanming.”

Little Xiao’s friend, Chen Yuanming… Meng Lisheng didn’t react for a long time, until he was pushed by his wife from behind, and then he suddenly shuddered. This must be the investor mentioned on the phone, but… is this something “young” can describe? This is clearly just a child!

Where exactly did it go wrong? Blankly extending his hand, Meng Lisheng held that palm which carried warmth, his heart filled with confusion.