Becoming Rich with Daily Scavenging APP-Chapter 568: Silicon Valley’s Investment Approach

Chapter 568: Chapter 568: Silicon Valley’s Investment Approach

Chen Yiyang guessed correctly.

Although the company Lyten keeps a low profile in North America and hasn’t been hyped as the future of European batteries like Beifu,

essentially, it’s no different from Beifu.

Of course, their focus on lithium-sulfur batteries does sound more plausible than Beifu’s technology, but it’s also more challenging to achieve.

Under these circumstances, Lyten must showcase some results to investors to secure ongoing investments.

"How do they intend to collaborate specifically, like Beifu, by purchasing nearly finished components directly from me, or?"

"It’s best to discuss the detailed cooperation in North America face to face, as this matter needs direct communication. Otherwise, they fear leaving evidence detrimental to them."

Schaefer’s words made sense.

In such fraudulent partnerships, leaving any evidence could change the nature of the matter if it’s uncovered later.

Therefore, these collaborations are always discussed in person to avoid leaving any evidence via calls or emails.

"I’m currently in Silicon Valley, so you can come to Silicon Valley. Don’t worry; Silicon Valley is one of the significant tech regions in North America, and the public safety here is trustworthy."

Schaefer thought that Chen Yiyang was hesitant because of concerns about public safety in North America.

"Not that." Chen Yiyang contemplated and shared the incident of acquiring a copy of the North American Declaration of Independence accidentally.

"Your luck in trading artifacts makes me envious," Schaefer mused, "But since you’ve sold it, those people no longer have a reason to target you.

Well, just to be safe, let’s meet elsewhere. How about Japan?"

Schaefer initially wanted to persuade Chen Yiyang to come to North America.

But thinking closely, North America is politically unstable due to various partisan conflicts.

He couldn’t be certain that Chen Yiyang wouldn’t be targeted upon arrival.

After all, the federal government is desperately in need of money.

Even giants like Apple must present 24k gold gifts to win the favor of the Great Commander.

Chip giants are even required to surrender some revenue to gain access to the Huaxia Market.

If Chen Yiyang’s identity is uncovered after his arrival, his fate could be on a whim.

Thus, Schaefer suggested meeting in Japan.

Japan falls within the sphere of influence of North American capital, and neither Lyten executives nor Chen Yiyang have objections to meeting there.

After deciding on the meeting time and place, Chen Yiyang embarked on another journey to Japan.

Tokyo, inside a high-end hotel.

Chen Yiyang met with Schaefer and the Lyten executives Schaefer brought along.

"This is Mr. Miller, who used to be responsible for investing in unicorns in Silicon Valley and was later hired by Lyten."

Schaefer introduced the representative sent by Lyten.

After shaking hands, Chen Yiyang found a corner.

Mr. Miller placed a jammer on the table between them.

"For security."

"Understood." Chen Yiyang nodded.

Thinking that a Silicon Valley executive is indeed cautious.

"Due to the current relationship between our two countries, we can’t directly import battery components from Huaxia on a large scale."

Miller said, "But rerouting through Southeast Asia or other third countries might require traceability."

"So how do you resolve this issue?" Chen Yiyang inquired.

Since Lyten proposed the partnership, Chen Yiyang only plans to sell the battery components via the method offered by them, without worrying about other problems.

"We plan to collaborate with Beifu to build a factory in North America." Miller said, "Then import battery components from Beifu."

Chen Yiyang understood.

Lyten is much more cautious than Beifu regarding white labeling.

They’re even willing to add more steps to increase costs.

Beifu’s costs are already high enough, yet Lyten is willing to go even higher.

Chen Yiyang doubted whether Lyten could actually sell the batteries produced.

"So I’m nominally selling products to Beifu, but in reality, they’re delivered to you."

"Exactly." Miller said, "But to avoid being too similar to Beifu’s batteries, ours need to be customized."

Costs are rising yet again.

Chen Yiyang did a rough calculation of these costs. 𝘧𝘳𝘦ℯ𝓌𝘦𝒷𝘯𝑜𝑣𝘦𝓁.𝒸𝘰𝓂

After several handovers.

The final battery cost produced by Lyten is almost twice Ningde Era’s original cost.

One could say there’s almost no profit margin.

"Since we’re partners now," Chen Yiyang couldn’t help but ask curiously, "does this mean the batteries produced won’t be profitable?"

"That’s not really your concern, is it?" Miller said.

"I’m just worried that you might go bankrupt too quickly while I’m unnecessarily customizing goods for you."

"Don’t worry, as long as our company can demonstrate a continuous growth trend, the investments we receive will be sufficient to sustain the company’s operations."

After finalizing the partnership, Miller was in a great mood and directly introduced the Silicon Valley game plan to Chen Yiyang.

"In Silicon Valley, most investors suffer from a fear of missing out. They’re all worried about missing good opportunities, about not being part of the creation of star companies.

This is because, in recent decades, Silicon Valley has witnessed the rise of numerous new giants.

During their development, these new giants face the issue that their breakthrough models and technologies often exceed the understanding of traditional businessmen.

Thus, these new giants find it extremely difficult to secure investments in the early stages, making fundraising very challenging.

But correspondingly, anyone who invested in these companies during this period could gain hundreds of times in returns in the future.

Under these circumstances, when current Silicon Valley investors encounter many emerging companies, as long as the company seems somewhat reliable, they can continually secure investment.

Of course, while acquiring initial investment is straightforward, if the company cannot achieve normal profits later, it must demonstrate its continued operational potential to investors.

Lyten is now facing this situation.

They secured tens of billions of US Dollars in initial investments.

But now, since lithium-sulfur batteries haven’t achieved large-scale commercial use, investors are becoming skeptical.

Therefore, the high cost of batteries isn’t Lyten’s focus; as long as Lyten can demonstrate the capability for large-scale battery production, further investments will naturally follow.

"What happens after securing additional investments?" Chen Yiyang asked.

"Continue the research and development of lithium-sulfur batteries, of course." Miller said, "You’re in the energy industry, so you naturally understand the huge potential once lithium-sulfur batteries are commercialized.

As long as Lyten gets large-scale commercialization of lithium-sulfur batteries done before the funds run out, Lyten will become yet another giant in the energy sector, and every investor will reap the rewards!"