Chapter 46: The Angels’ Underworld

After dinner, he escorted Su Yun home, encouraging her to relax for tomorrow and to reach out if she needed anything. This meeting had left him newly impressed by the girl; she knew gratitude and how to repay kindness. Zhuang Chen didn’t mind lending her another hand. From here on, everything would depend on her own efforts. He could only hope the entertainment industry would prove as beautiful as her dreams—nothing more.

That afternoon, he went swimming at the club, followed by a massage. Later, with time on his hands, he planned to learn some martial arts from Xia Long. The sooner one embraced a healthy lifestyle, the better. The greatest tragedy in life, after all, was dying with unspent wealth.

Suddenly, he received a call from Old Tan, who mentioned there was a high-level investment circle banquet that evening. Nearly all the prominent figures would attend, and he hoped Zhuang Chen could come along. Zhuang Chen readily agreed. After all, his primary identity was that of an angel investor; expanding his network in the circle could only be beneficial. He drove to the Sheraton’s VIP hall, met Old Tan, and the two entered the venue together.

“Angel investors in our country are really quite different from VCs,” Old Tan remarked, surveying the not-so-crowded hall before pulling Zhuang Chen aside to sit down, have a drink, and chat. “Venture capitalists fall into two categories: investment institutions and industrial capital.”

“For example, investment institutions like Sequoia Capital, Matrix Partners, and GSR Ventures, the big players—they raise funds from various channels. From an investment standpoint, they pursue caution and have lengthy processes. From first contact to actual investment and fund disbursement, it often takes more than half a year.”

“Often, the funding isn’t even secured before a project is dragged to its death. This happens all the time. The fundraising process generally takes at least three to six months; anyone who claims they can wrap it up in a few weeks is just blowing smoke.”

“Even with close friends you fully trust, it usually takes two months—thirty days to negotiate, another thirty to finalize documents. It’s time-consuming and thus extremely costly.”

Zhuang Chen had looked into Old Tan’s background. His family had some influence; he was comfortably situated in the circle—neither at the very top nor at the bottom—boasting a net worth in the billions, with several small projects under his belt.

Old Tan had already resolved to cling tightly to this diamond-tier connection. It was rare to find someone in investment with such potential, and he was eager to demonstrate his worth. “Industry giants like Alibaba, Tencent, and Xiaomi are prime examples of industrial capital. The money is their own, and their strategy is often to use small investments to bet on uncertain outcomes.”

“So their processes are relatively simple. Lei Jun from Xiaomi once said: Investment isn’t the goal; it’s a means to an end. Through investment, you build moats to keep competitors out, which is very valuable.”

“Industrial capital is made up of behemoths. They don’t just look at whether a project has future potential; more important is whether it’s strategically synergistic or useful for broader positioning. Sometimes, it’s even about hedging risks.”

“As for angel investors, in our circle we jokingly call them the ‘3 Fs’—fools, friends, and family, with the last one being those who stick around so long, they become family.”

He gestured toward a group of leggy beauties not far away, joking, “Honestly, angel investing is a bit like a fling—a few chats, a drive, a meal, and you’re already in bed.”

“Because the investment is relatively modest, what catches your eye might just be a single sparkle in the entrepreneur—maybe a great figure, a sharp tongue, something like that. After a few rounds, when the novelty wears off, you lose contact and become the most familiar strangers.”

“VCs, on the other hand, are like lovers—they have many options. Shopping sprees, luxury bags—whatever is required. When she tries on a dress and asks if it looks good, you say, ‘Turn around… hmm, yes, beautiful!’”

“The cost of keeping her is high; without tens of millions, you can’t even play. Of course, she may have more than one lover—several VCs investing together. You gift her Gucci, someone else brings LV; everyone is fighting for the popular girl.”

“PE is like the one who takes over in the end—the professional closer, who must have a high degree of awareness. When she’s troubled by trifles, you take her for a Michelin-star meal. When she’s feeling jaded, you bring her to the carousel.”

“You find new ways to delight the goddess, without complaint or regret. These are big projects—tens of millions of dollars at stake. You can’t succeed without putting in the effort.”

Zhuang Chen burst out laughing—everything could be compared to women, it seemed. There was no need to discuss VCs; Wei De was certainly the expert there. No matter how impressive, no one could handle it all alone. He was content to quietly remain an angel investor.

“In the end, it’s all about fate. For entrepreneurs, finding an investor is like finding a partner—shared values, compatible temperaments.”

Seeing Zhuang Chen’s amusement, Old Tan continued, “On the first meeting, if both sides like what they see and recognize each other, then you can look forward to a lasting, mutually supportive relationship, right?”

“Those high-and-mighty international funds are the classic rich beauties—everyone pursues them, but their standards are high. Before marriage, they have you sign all sorts of preferential and restrictive clauses. Even after a divorce, you walk away with nothing.”

“Before marriage, her suitors line up from the tech hub in the west all the way to Zhongguancun. Want more attention and resources from the goddess? Sorry, she just doesn’t have that much energy!”

“Unless you’re a unicorn of a man—handsome, well-endowed, and not clingy—but that’s a luxury reserved for the B or C rounds. You’ll have to wait your turn.”

Counting on his fingers, he began to introduce the big players, “There are really only about a dozen truly formidable people in this circle. For instance, one of the original three from New Oriental, now founder of ZhenFund, Xu Xiaoping.”

“A former teacher, a gifted speaker, and a natural influencer—he attracts followers faster than any entrepreneur’s own press conference, and for free, saving you a fortune on marketing.”

“His investment standard is all about the person. If you’re an MIT grad with overseas experience and a dramatic entrepreneurial story, your odds of winning his favor rise considerably. He’s especially keen on reading faces.”

“Zhang Ying, founder of Matrix Partners, is known as a daredevil, with a great reputation and powerful post-investment resources—even providing medical services for entrepreneurs and their families. He has a protective streak.”

“He likes investing in social and consumer-facing projects—like Momo and Ele.me. They drive a hard bargain, though. If you’re willing to fight, following Zhang can be worthwhile.”

“IDG’s Xiong Xiaoge was the country’s earliest VC pioneer, working in tandem with Zhou Quan to form the institution’s golden duo. Old Xiong is the spokesman, while Zhou handles project evaluation and execution.”

“Xiong came from a media background, and his approachability is unmatched. IDG Capital controls over 60 billion. If they like a project, they can follow it from angel round all the way to IPO—a true lone wolf.”

“When Cai Wensheng first met IDG, he didn’t dare wash his hand for three days after shaking theirs—that’s the kind of status they once held. Especially regarding the internet, few can match their understanding, and they have close ties to many tech tycoons.”

Zhuang Chen found this all fascinating. A new circle was unfolding before him. Though he himself controlled tens of billions, his experience and connections were still lacking. There was no harm in listening more, learning more, and remaining humble.

“Shen Nanpeng at Sequoia Capital—cunning, laconic, never one to ramble. His team is almost entirely made up of overseas investment bankers—the fabled elite class.”

“Even if they missed a project before the B round, they’d still invest later, even at a high valuation. But they generally won’t endorse or promote a project, and insist on absolute control in negotiations—always looking to make a strong entrance.”

Old Tan paused to sip his champagne, his mouth dry from talking so much, then continued with a laugh, “There are a few more familiar faces, like Cai Wensheng, whom I just mentioned—he came from humble beginnings, is quick-witted, and truly understands youth psychology.”

“From 265.com to 58.com and Meitu, he’s always ahead of the trend. Though he’s from the ‘70s, he has a sharp grasp of what young people want.”

“Zhu Xiaohu, the ‘Gunslinger,’ has been through the subsidy wars of Didi and Ele.me. Now, when it comes to effective subsidies and market expansion, he’s definitely an authority.”

“Then there’s Liu Qin and Lei Jun, both well-connected. Their funds, Morningside Venture Capital and Shunwei Capital, often co-invest or take over each other’s projects. Their networks run deep, not just in investment but in the entrepreneurial world as well.”

“YY, Xiaomi, Xunlei, UC—these are Liu Qin’s signature deals, all entered at Series A. Other investors might be all about prestige, but Liu Qin really mingles among entrepreneurs.”

“Last year, the hot internet mutual aid platform 17 Mutual Help, Kuaishou, and Miaopai—he was in at the angel round too. When it comes to unique vision, I admire him the most!”

Old Tan raised his thumb in admiration, “He’s called ‘the Sniper’—never misses a shot!”