"Everyone Wants to Talk to Me, But No One Invests": Scientist's IPO Journey Amid Investor Enthusiasm and Funding Hurdles

It was a year before I saw Professor Li Yuguang again. As I happened to be on a business trip in Beijing, with my days filled with meetings, we specifically arranged to meet in the evening. Professor Li not only accepted but also showed great enthusiasm, insisting that we must meet because he wanted to express his special gratitude for the support previously provided by Chengguo Bureau.

It was not until we met in person that I truly understood what he meant by “thanks.”

A year ago, when Orange Fruit Bureau was just established, we had the opportunity to conduct an exclusive interview with Professor Li Yuguang, focusing on his scientific research achievements. The article generated at least 30 partnership inquiries on the day it was published, with venture capital firms seeking investment opportunities, enterprises looking for collaboration, and government agencies offering support for implementation. Venture capital interest was by far the most prevalent.

When I presented these requirements to Professor Li Yuguang one by one, he appeared quite surprised. “I didn’t expect that simply publishing a paper would have such a significant impact. Had I known earlier, I would have prepared more thoroughly.”

After that, I had little communication with Professor Li Yuguang, exchanging only occasional brief remarks. It was not until our in-depth conversation during this recent meeting that I learned he had ventured into a world entirely unfamiliar to him over the past year.

“After connecting on WeChat, we initially arranged to chat online. Following our conversation, they asked when I would be available for an in-person visit. I agreed. However, the laboratory was indeed quite busy during that period. I had little time during the day, and I felt it was inappropriate to engage others in discussions during evenings and weekends. Therefore, I suggested that we revisit the matter after my current workload eased. Nevertheless, they insisted that evenings and weekends were also acceptable to them, making it difficult for me to decline further, so I eventually consented.”

Recalling the scene of his first meeting with investors, Professor Li Yuguang felt as if he were in a job interview.

“Usually, I’m quite casual—I’ll wear sandals, grab the nearest clothes and pants from my closet, and sometimes can’t be bothered to style my hair. But for my first meeting with an investor, I made a special trip to get a haircut the night before, deliberately dug out a white shirt, and polished my leather shoes as much as possible, thinking that I should dress more formally. In addition to preparing my outward appearance, I also prepared myself internally. Since I wasn’t sure what exactly to discuss with the investor, I specifically sought advice from colleagues who had prior experience in securing financing.”

Nevertheless, Professor Li Yuguang was not entirely satisfied with his first “interview.”

“The investor and I sat in my office, where I presented my research findings to him much like I would in a regular lecture. He listened attentively. I felt quite comfortable during this initial phase, but became less at ease during the subsequent Q&A session. He asked me numerous questions, primarily focusing on technology and business model aspects. While I was able to address the technical inquiries, I struggled with those related to the business model, as some of these considerations had not occurred to me at all at that time.”

A few days later, Professor Li Yuguang received a response from the investors. The gist of it was, “Your research achievements are impressive, and your technology is at the forefront. However, there are still some issues to be addressed at this stage. We recommend further refinement before initiating fundraising.” Professor Li joked, “It feels like I didn’t pass the job interview.”

Thereafter, many investors approached Professor Li Yuguang, but what left the most lasting impression on him was their perseverance.

“Ever since I published an article on Orange Fruit Bureau, the number of friend requests on my WeChat has been increasing. At its peak, I remember receiving as many as 15 in a single day. However, I’m not someone who checks their phone frequently, and when things get busy, I sometimes forget to accept these requests. Nevertheless, people still find ways to reach out—through mutual friends, via email, or even by flying in just for a brief conversation. One investor, for instance, bought a plane ticket specifically to chat with me for half an hour in the airport lounge. At that moment, I couldn’t help but reflect: their efforts to connect with me might even surpass those of someone looking for a partner.”

Throughout the year, Professor Li Yuguang held discussions with numerous investors. While these conversations were generally pleasant, they ultimately failed to yield any follow-up.

“After failing the first ‘interview,’ I met with several other investors. The conversations went well, but the final feedback was always ‘no investment.’ To be honest, it was quite discouraging. Throughout my scientific research career, I had consistently received positive feedback, so this sudden barrage of rejections was somewhat difficult to adjust to.”

Yet Professor Li Yuguang was not discouraged by this. In fact, throughout the process of facing repeated “rejections,” he continued to strive, or as he put it, to transform himself into the kind of founder investors want to see.

“After my first conversation with investors, I took time to summarize and reflect on how best to respond to their questions—what to disclose, what to withhold, which questions required thorough preparation, and how to prepare for them. I even made detailed notes. Meanwhile, I also observed these investors by reviewing relevant materials and industry articles to understand which sectors they were currently focusing on and identify common characteristics among their past portfolio companies. This process was quite interesting, and I assume investors likely conduct similar preparations before meeting with me—though undoubtedly, they do far more than I do.”

Yet, the closer Professor Li Yuguang got to investors, the more he realized that they were, in fact, all correct.

“Each time, investors provided lengthy explanations for their rejections. I could sense that they were trying to be considerate of my feelings and avoid discouraging me. Although their wording was tactful, the underlying reason for not investing remained glaringly obvious. Later, I compared these ‘reasons’ and found them to be largely identical. This prompted me to reflect calmly: if I were truly to embark on entrepreneurship, these issues would indeed exist. If you fail to address them, even if you eventually launch your startup and secure financing, your progress will likely stall at that stage, making further growth difficult to achieve.”

Therefore, in the later stages, Professor Li Yuguang also adjusted his mindset, striving to engage with investors with a learning attitude, which truly made him feel much better.

“I wasn’t fully aware before that institutional investors must go through so many procedures when investing in a project. I used to think it was simply a matter of an investor reviewing a project, liking it, securing the funds, and then making the investment. So there is indeed an information asymmetry; everyone tends to view issues from their own perspective. Scientists, in particular, may be more prone to extreme viewpoints. Over time, I gradually came to realize this. In the process, I made friends with some investors who occasionally asked me technical questions, and I provided them with answers. Therefore, I believe that scientists and investors should interact in this way: through communication, scientists can gain some industry knowledge, while investors can acquire some technical understanding. This can be seen as another form of ‘exchange.’”

In the latter half of our conversation, Professor Li Yuguang broke down the numbers for me. He said that over the past year, he had spoken with more than 50 investment institutions, including in-person meetings with around 30 of them. However, these interactions were largely concentrated in the period immediately following the press release; he has had virtually no contact with them since.

“I remember that at my busiest, I met with four investors in a single day. To be honest, it was quite exhausting, though the investors were even more worn out than I was. Throughout this process, I underwent several shifts in mindset. Initially, I found the experience novel; after being rejected a few times, I became strongly driven to prove myself; and later on, I came to realize that what they were saying was, in fact, correct. Once I recognized that their assessments were accurate, I no longer wished to meet with investors, as the underlying issues remained unresolved, making further meetings futile. I preferred to devote the time spent on investor pitches to actually solving those problems.”

Although Professor Li Yuguang spent considerable time and energy communicating with investors without making any substantive progress, he did not consider it futile; rather, he felt that he had learned a great deal.

“Why do I say we should thank Chengguo Bureau? In essence, it is because, through Chengguo Bureau, I gained valuable experience in engaging with investors. Of course, I am also deeply grateful to those investors. At this particular juncture, having someone point out the issues and shortcomings in your work is actually providing you with clear direction, helping you avoid unnecessary detours. I believe this is especially critical for scientists, particularly when aiming to commercialize their research outcomes. It is imperative to continuously listen to perspectives from the industry, and the earlier, the better. Therefore, I have been consciously encouraging some of my friends to engage more in conversations with investors and interact more closely with the industrial sector, as such interactions will undoubtedly yield significant benefits.”

However, in the process of engaging with the industry, Professor Li Yuguang’s advice to scientists is that they should not listen to or accept everything uncritically; instead, they must remain rational and follow their inner voice.

“In the past, I felt quite free, but over the last year or two, things have clearly changed. The university is watching you, investment firms are watching you, and you’re invited to all sorts of conferences. In this process, many people will tell you how excellent your research findings are and how promising your future prospects seem. However, as a scientist, I believe it’s crucial to remain rational at such times. Listen to diverse perspectives, especially those that may be less flattering, before making judgments. Based on these considered judgments, selectively engage in certain activities and decline others.”

At the end of our conversation, I jokingly asked Professor Li Yuguang, “Now that you have accumulated so many insights, would you like to do another exclusive interview?” Professor Li Yuguang replied with ease, “Let me take some more time to reflect and consolidate my thoughts. For now, I’ll focus on doing well what’s right in front of me.”