Chapter 38: There Was Definitely Something Off About Him
Generally, startup investments occur in stages, often referred to as ‘rounds’, with the term ‘series’ itself coming over from Silicon Valley in the United States.
In reality, there are no strict guidelines for distinguishing each series.
Sometimes, the labels A, B, and C might be assigned based on the number of investment rounds or the size of the investment.
Typically, Series A investments range from hundreds of millions of won and cover the period from product development up to just before a full-scale market launch.
Series B investments happen when a startup has secured a substantial user base and is attempting to expand its business.
At this stage, the investment amount increases exponentially, often ranging from 5 billion to as much as 50 billion won.
In very rare cases, a startup can skip the Series A stage and go straight to Series B-level investment. This only happens when the startup’s service has rapidly validated its market, experienced explosive user growth and established stable revenue.
“Ten… ten billion?”
The previously lively atmosphere froze at the mention of such a staggering number.
“Where did the call come from?”
I asked, still in shock and Lee Jang-won, still in a daze, answered my question.
“It was from a place called DUK Ventures… They said they were impressed by our presentation and wanted to congratulate us on the award. They also mentioned wanting to set up a meeting to discuss an investment.”
“Hmm… DUK Ventures… huh?”
The sudden turn of events left Lee Jang-won and the rest of the team visibly stunned, unable to hide their surprise.
You might think that receiving such a large investment offer would bring joy, but when the amount jumps from a few million to billions won, it’s more likely to cause anxiety than excitement.
Especially considering it had only been a little over three months since we launched the app service.
It was too soon, far too soon.
“W-What should we do?”
Lee Jang-won asked, his eyes trembling with uncertainty.
What was funny was that the other team members were also looking at me with the same expectant gaze.
“What do you mean, ‘What should we do?’ We need to meet with them, of course.”
“You’ll come with us, right?”
“Can I even be there?”
“Of course you can! You’re practically a member of our team.”
“Isn’t it a bit shameless for me to claim that? I didn’t do much when you guys were working your butts off, aside from giving the seed investment.”
Lee Jang-won suddenly got serious at my words.
“What are you talking about? There were so many problems we couldn’t solve, and it was your advice that helped us figure them out. Isn’t that right, guys?”
The other members of the Beslo team nodded vigorously.
“That’s right. Whenever we hit a roadblock, you always gave us the hints we needed to move forward. Thanks to you, ‘Thumbs Up’ made it this far. If you’re not a team member, then who is?”
“I’m actually a bit upset; I thought you naturally consider yourself part of the Beslo team. I even thought about asking you for advice when I fought with my girlfriend.”
Why would you come to me for that, you idiot?
The words welled up in my throat, but when I saw them looking at me with moist eyes like baby birds, I couldn’t say anything.
Even though it hadn’t been that long, I had grown quite attached to these guys.
Perhaps because they had spent so much time studying, these guys still retained a certain innocence, a naivety that I found rather endearing.
But as I thought about it more, a wave of anxiety washed over me, like I had left a child alone by the water’s edge.
This was a meeting where tens of billions won was on the line.
Sending them in alone to handle that kind of pressure could lead to who knows what kind of disaster.
In the end, I couldn’t help but nod.
“Alright, I’ll go with you. I can’t let you guys go in there alone—I’d be too worried.”
“Guys, it’s settled! He’s coming with us!”
“Yeah! Let’s have a toast to celebrate!”
I couldn’t help but laugh at the sight of them celebrating on their own, banging on the table like they were playing drums.
They were the kind of guys you couldn’t help but want to tease a little.
The celebration continued until the restaurant closed.
The conference room was surrounded by frosted glass walls, making the atmosphere inside feel a bit tense.
A middle-aged man sat there, staring intently at the screen with sharp eyes.
He had introduced himself as Jang Seok-hyeon, a VC 1Venture Capital from DUK Ventures.
“That concludes our presentation on ‘Thumbs Up’. Thank you.”
After finishing the thirty-minute presentation, Lee Jang-won looked at Jang Seok-hyeon with a nervous expression.
Watching from the side, I couldn’t help but smile with satisfaction.
‘He hit all the points we emphasized.’
This wasn’t a pitch about technology.
It was a presentation that needed to be delivered from the perspective of a ‘business owner’, not just a ‘developer’. The focus was on market understanding, business strategy and the business model.
“If you have any questions, please feel free to ask,”
Jang Seok-hyeon, with his unusually large eyes, rubbed his eyes before looking directly at Lee Jang-won and asked.
“I listened to your presentation carefully. So, if I understand correctly, you’re projecting a revenue of 3 billion won for this year?”
“Yes, that’s correct.”
“The growth has been very steep, especially considering it’s only been around four months since the launch. This is a very rare case.”
“Thank you.”
Jang Seok-hyeon crossed his legs and tapped the table with his pen.
“Hmm… But don’t you think the market size is too small?”
“The… market size?”
“Even if you gathered all the middle and high school students in South Korea, you wouldn’t get more than 3 million. Don’t you think that’s too small a market? I’m concerned that your company might hit a wall as it grows. Do you have any plans to address that?”
“Uh… well… about that…”
Jang-won stammered, clearly flustered.
When they originally planned this service, their target audience was students.
They had tried marketing to college students as well, but they hadn’t seen any meaningful results yet.
“We do have a plan.”
Jang Seok-hyeon’s gaze shifted toward me.
“If you only look at the South Korean market, of course, it’s small. But can you really say the same when considering the global market?”
“Go on.”
“While cultures may differ, the curiosity about how one is perceived by others during school years is a universal truth, transcending culture and religion. That means global expansion is entirely feasible.”
“Hmm… Is that so? It sounds a bit too optimistic.”
After that, Jang Seok-hyeon continued to offer feedback, throwing in various pieces of advice that were easily found through a simple internet search.
He presented these numbers and statistics as if they were insights drawn from his own experience, talking at length with an air of authority.
He was the type who excelled at spinning sophistry. 2궤변 (gwebyeon) refers to “sophistry” or “fallacious reasoning”—arguments that may seem logical but are actually misleading or deceptive
“And about the business model you mentioned earlier, it seems a bit weak. I see a lot of potential to generate more revenue. For instance, instead of just giving hints about who voted for someone, why not reveal their identity for an additional fee? Or you could push more flattering questions to users who spend more money. Wouldn’t that encourage more spending? A simple tweak in the algorithm would make that entirely possible, wouldn’t it?”
“Well… doing that might undermine the trust in our service…”
“Who’s going to find out as long as the developers keep quiet?”
“No matter what… that’s a bit…”
“Hmm… let’s discuss that issue after the investment is finalized.”
Seriously?
I couldn’t help but laugh at how he was already trying to dictate terms.
“The truth is, DUK Ventures has already finished evaluating ‘Thumbs Up’ internally. We’ve determined it to be a promising and potential-filled service. Now, the only matter left is the investment amount and the equity…”
“If you have no more questions, can I ask CEO Lee Jang-won to take a seat?”
“Ah, of course. Please, have a seat, CEO Lee.”
I interrupted Jang Seok-hyeon, who was still speaking, to call Jang-won back to his seat.
It seemed like my interruption might have annoyed him; I noticed the corners of his eyes twitch slightly.
“As you might not know, the investment market is in a pretty bad state these days. Interest rates are rising, the global economy is in recession. For startups, securing investment is like trying to catch a star in the sky. Just look at the companies going public these days—IPOs are practically dead. The term ‘financial arteriosclerosis’ 3(‘돈맥경화‘ (donmaekgyeonghwa) = literally, “financial arteriosclerosis.” This is a metaphor referring to a severe lack of money flow in the investment or financial market, much like the medical condition where blood flow is restricted due to hardened arteries) isn’t being thrown around in the industry for nothing. The money flow has practically dried up. Tsk tsk”
The way he was building up his speech made me feel uneasy.
“Even so, DUK Ventures has evaluated the value of your startup, Beslo, very highly. That’s why we’ve decided to skip Series A investment and propose an investment equivalent to Series B investment.”
The conversation was starting to feel like it was going around in circles, so I decided to get straight to the point.
“I appreciate the positive evaluation, but how much are you planning to invest and what percentage of equity are you asking for?”
Jang Seok-hyeon seemed to glare at me, but I didn’t flinch. Instead, I met his gaze squarely.
“You’re quite to the point, I see. Well, the biggest strength of a startup is quick decision-making. Very well. DUK Ventures has valued Beslo’s post-money valuation at 20 billion won. The investment amount we offered is 5 billion won in exchange for 40% equity.”
A heavy silence fell over the room.
Jang Seok-hyeon’s expression was full of confidence, while Lee Jang-won looked visibly shaken.
“But I thought you mentioned 10 billion over the phone…”
“I said we were considering up to 10 billion. As I mentioned earlier, the current investment market isn’t in great shape right now. Honestly, even this level of investment in a startup like Beslo is significant. Just look around—how many companies have secured this kind of funding recently?”
Sensing an opportunity, Jang Seok-hyeon began to shower Lee Jang-won with flattering words.
But something else caught my attention.
‘All of a sudden?’
A dark aura like a black smoke began to seep out from Lee Jang-won, something I hadn’t seen since my days at the nursery with Myung-soo Hyung.
And Myung-soo Hyung had ended his own life because of gambling debts.
This didn’t feel right and I really had a bad feeling about this.
“Even so, asking for 40% equity seems excessive. And where exactly did you come up with a 20 billion won valuation?”
Jang Seok-hyeon frowned slightly, as if he were about to scold a child and spoke to me in a patronizing tone.
“It sounds like you’re not familiar with this industry yet, but where else would you find a VC willing to invest this much in a company that’s only been around for three months? We’re taking on significant risk here, so it’s only fair that we receive a commensurate reward, don’t you think? And the 20 billion valuations? That’s actually quite generous on our part. Achieving that level of revenue in such a short time is impressive, yes, and you deserve credit for that. But even so… That’s just pocket change from kids. They’re not exactly a demographic with strong purchasing power. Considering that, we’re being extremely generous with this offer.”
Jang Seok-hyeon went on, delivering a lengthy speech about how much goodwill they were extending to us.
I stared at him intently before breaking into a sly smile.
“Alright then.”
“What?”
Lee Jang-won looked at me with wide eyes.
“I just wanted to see how far we could push it. You know, the internet says you should always try to negotiate like this. We appreciate that you think so highly of us. I’ll discuss it with the rest of the team and get back to you as soon as possible.”
Though momentarily taken aback by my sudden shift in attitude, Jang Seok-hyeon quickly regained his composure, flashing a sinister smile, likely convinced that he had outmaneuvered us.
“Understood. But I suggest you make your decision quickly, before the investments are redirected to another startup. Otherwise, you might lose out entirely.”
“Yeah, yeah, I got it.”
And with that, the unpleasant meeting finally came to an end and as soon as we left, I pulled out my phone and made a call.
“Hello, Sang-cheol Hyung, it’s me. Can you do me a favor again? I need you to dig up some dirt on someone. There’s this guy named Jang Seok-hyeon at DUK Ventures. Can you find out everything you can about him? Another round of samgyeopsal, huh? 4(A playful and exaggerated way of expressing annoyance or disgust with something that is repeated. It’s like saying, “Not that pork belly again!”) You must have really pissed off a pig in your past life. Okay, let me know soon.” 5(Another humorous and exaggerated expression to convey strong dislike. It literally means “Did you have a grudge against pigs in a past life?”)
There was definitely something off about that guy.
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