American History 1988
Chapter 130 - 124 Investment Principles

Chapter 130: Chapter 124 Investment Principles

"Jim, I sense deep prejudice in what you just said," Glenn Miller didn’t let it go, "I am helping him—startups need our funds to scale.

They lack connections, don’t understand marketing, and don’t even have a lawyer. This is very dangerous, Jim—you’ve been through this. We help him make Byte Software into a qualified company, and in exchange, he gives up stock equity, which is a very fair deal."

"Aha~ Yes. It is precisely because I’ve been through all this that I wouldn’t do it," Jim Clark glared fiercely at Glenn Miller, "I will absolutely not be the villain!"

"Hey~" Watching Clark’s retreating back, Glenn Miller spread his hands in resignation. Well, he needed to make a trip himself.

Back in the office, the first thing Clark did was call Dean.

"Hi~ Dean, remember our past agreement?"

"Mr. Clark, your call doesn’t surprise me, why don’t we have a face-to-face talk? It would be great to solve this matter once and for all."

"Everyone?" Clark quickly caught on to the keyword.

"Yes, as you know, Mr. Clark, Byte Software has received assistance from many people."

"OK, I get it. When shall we all meet?" Clark quickly came to terms with this reality.

That’s how it works in Silicon Valley; once there’s a hint of a good idea, venture capitalists swarm in. Their complex interrelations might even be confusing to themselves at times.

"I’ll fax over a summary of Byte Software’s recent sales to everyone. Once we all have a consensus on its valuation, we can meet, okay?"

"Smart move," Clark admired Dean’s mature business tactics which effectively gave everyone a chance to make an informal first offer.

If the five people’s valuations of Byte Software were not far apart, they could sit together and close the deal quickly.

If two people’s offers significantly differed from the others, then, to maximize investment, Dean could communicate by phone with these two separately.

Even if they couldn’t close the deal in the end, the remaining three could still quickly come to an agreement. This not only avoided the awkwardness of disagreement but also spared many pointless communications.

After hanging up, Clark stroked his chin, pondering. The popularity of Teams software here in Silicon Valley had taken him by surprise.

Nearly every company he recommended, from Sun Microsystems to MITS, chose to place orders for Byte Software; yet Clark wanted to wait and see.

Because he wasn’t sure how much of a role his introductions played. However, when Oracle, 3Com, and the about-to-go-public Cisco also made consecutive purchases of Teams, Clark became restless.

Although a little over a month wasn’t enough for Teams to break out of Silicon Valley, its potential had been proven. Byte Software had managed to maintain its Silicon Valley clientele without any aid.

The software’s innovation had been recognized by the market, and the founders had withstood the test. It was a reliable startup company, so what was there to wait for?

Why did Clark refuse Miller’s request? To protect Dean from the exploitation of venture capitalists? No! He too wanted a bigger share of the original stock!

One less person entering the fray meant one less competitor! At this moment, he and Miller were both in the position of investors, both wanting to acquire more shares from Dean’s hands!

After completing his role transformation, Clark even started to understand Miller’s earlier actions. Questioning venture capital? Becoming venture capital?

Whir~ Whir~ Whir~ As Clark considered the investment, the fax machine on his desk slowly spat out a list.

With a jolt of excitement, Clark knew it was the Teams software sales details Dean mentioned, but when he saw the figures, he was stunned.

"Shit~!"

...

"Damn it! That kid Dean is going to make a fortune! Oh no~ Morgan Tailer is going to pay an even higher price!" Gary, who had also received Dean’s fax, clutched his head and screamed in his office.

A monthly sales revenue of nearly 1.5 million US dollars—what had he missed?!

"I have to call him," Gary put down the fax and quickly picked up the phone, pressing the buttons hurriedly.

"Dean, you should’ve told me earlier! I even sorted out the patent application for Teams!" As soon as the call connected, Gary couldn’t help but complain.

"But I came to you first before starting Byte Software," the voice of Dean on the phone sounded very innocent. He was stating the facts.

The more Dean didn’t say, the more Gary remembered how Dean had once come to see him on a cheap bicycle.

Dammit! Although he always knew Silicon Valley was full of legendary tales, Gary never thought he would one day be that shortsighted investor.

Thankfully, his relationship with Dean had always been good, and it wasn’t too late now.

"Morgan Tailer is in for Teams software, but I need to discuss the offer first. Remember what you promised me, Dean!"

"Of course, we’re old friends now~" Dean still had that much credibility.

After hanging up the phone, Gary hurriedly descended the stairs from the low office on Dune Road. He needed to return to San Francisco, where his father, David Morgentaler, was currently staying.

The half-hour drive from Silicon Valley to San Francisco was a breeze for Gary as he sped along California’s highways in his blue Corvette.

Twenty minutes later, he had arrived at the "Pacific Heights" neighborhood in San Francisco, a renowned affluent area in the North Bay. The residence of Larry Ellison, the founder of Oracle, was even less than 800 meters away from them.

Parking his car by the curb in front of his own lawn, Gary grabbed the fax and made a beeline for the backyard. He knew that his father was usually lying in a chair, soaking up the sun around this time.

"Father, remember Dean I told you about? I think we’ve found our next great business opportunity." Seeing David Morgentaler lying in a chair with a book in hand, Gary immediately handed over the fax.

"What’s this?" David Morgentaler put down his book and started looking closely at the fax.

"This is Teams’ sales over the past month, US$1.5 million! Father, its growth rate is even more astonishing than Apple’s was at first!"

"Dean Price? That name sounds familiar. Didn’t we meet him in Ohio?" David faintly remembered the event from last year.

"That’s right, we invested in his Price’s List. It’s now the most influential business website in Ohio." Gary felt his investment was a success, so he didn’t mind bragging a bit to his father.

"How much did we put into this Teams?" David was now more interested in the fax in his hands, as its potential seemed greater than that of the website.

"Uh..." Gary felt a bit embarrassed, "We’re just about to invest..."

David Morgentaler took off his glasses and looked at his son quizzically. "We met him in Ohio and even funded his first venture. Didn’t Teams come to you when he started it?"

"He did come to me, but at the time I thought..."

"Where is he now?" David Morgentaler didn’t care to hear the rest. He stood up from the sun chair, preparing to head back to his bedroom to change.

"He’s at Stanford," Gary followed David inside the house, "Father, are we going to meet him? Dean suggested we could start with an offer based on the fax, as there are other interested parties."

Upon hearing Gary’s words, David quickened his pace.

"Father...?"

"Gary!" David Morgentaler turned around to look seriously at his son, "Venture capitalists have different styles, but do you remember Morgan Tailer’s principle?"

"A great founder is sometimes rarer than a great idea." Gary repeated the concept that David often instilled in him.

"I’m glad you remember it," David said, putting on a white shirt and then a jacket. "Since you invested in his Price’s List and the outcome was satisfactory, you should not have hesitated when he came to you a second time."

David Morgentaler handed his tie to Gary, who dutifully tied it for him. "It proves he’s a competent entrepreneur, and even if you had doubts about his second idea, you should still offer him friendly support."

"Even if it’s just US$50,000," David shook the fax in his hand, "it wouldn’t have put us in such a passive position now."

"I understand, Father. About the offer..."

"Forget that damn offer! If we don’t act fast, our competitors will be breaking down his door, and we’ll lose our last chance!"

The white-haired David Morgentaler, in his sixties, was even more determined than the twenty-something Gary beside him. He may have entered the industry at forty, but he was always ready to jump into the game.

...

"Before we take the picture, how about we talk about Byte Software, or the people you started the business with?"

"You mean Dean?" Marcus, who had specially worn a polo shirt with the Teams logo for the photo, thought of Dean as soon as Peter Thiel asked the question.

"Yeah~ He seems to be the soul of your team?" Peter Thiel kept snapping photos while casually starting the interview.

"Don’t let this guy’s appearance fool you, he’s actually quite the ladies’ man. The girls who came to our first party, it was all thanks to his efforts..."

As Marcus went on about Dean’s glorious past, the female journalist taking notes beside them looked uncertainly at Peter Thiel, who shrugged his shoulders, signaling her to continue.

"So, he’s a playboy-type creative genius?" After taking another shot, Peter Thiel summarized Marcus’s description.

"Yeah~" Marcus clapped excitedly, "That’s exactly what I wanted to say!"

"Let’s get back to discussing Byte Software. I heard you guys made millions in one month?" Peter Thiel continued playing both photographer and journalist.

"Yes, that’s right, one million US Dollars! You see that red Ferrari parked outside? That’s the best proof!" Marcus adjusted his angle slightly, striking what he believed to be his most charming pose.

With that statement, he was confident that Stanford would be full of girls throwing themselves at him.