American History 1988
Chapter 139 - 133 Rocket Man

Chapter 139: Chapter 133 Rocket Man

"I was one of the participants in the NSF network privatization," Dean said, brandishing tiger’s skin as a banner, but in a sense, it wasn’t wrong. It was enough to bluff the people at Compuserve.

Dean had to digest this for a while before Macy uncertainly broke the silence, "Are you saying you hold a position at the National Science Foundation office?"

"No," Dean chuckled, shaking his head, "I’m a Stanford student, and Stanford is one of NSF’s major nodes. My teachers and professors are all old friends with the NSF’s director, Stephen.

Many of the technical verifications of the NSFnet were carried out in Stanford’s laboratories, and I was responsible for the interconnection issues between different network operators. I wrote the technical agreement."

"So, Dean, you have access to Stephen at the National Science Foundation, right?" Robert Macy quickly seized on the important point.

"I have access to more than just the people at the National Science Foundation; I can even decide which operator can be included in the interconnection list. You still haven’t grasped what I mean, Robert."

This time Dean spoke more straightforwardly, and of course, he had also started calling Robert Macy by his first name.

"OK, I understand," Robert Macy now had a better grasp of Dean’s capabilities, "Can we meet, Dean? Compuserve can’t miss this opportunity, you know, it would be beneficial for Price’s List as well."

"I’d be happy to help, but I’ve got more important things to do right now," Dean was not in a hurry, "I’ve just established a new company in California, and it’s a critical moment."

"When will you be available? Dean, this is very important for Compuserve and Price’s List!" Robert Macy was very eager now.

Especially after seeing the reports in the newspapers and Compuserve’s inability to get through to NSF.

"When I’m finished with my work, I’ll call you, Robert." With that, Dean hung up the phone leisurely.

He needed to let Compuserve stew a bit longer; otherwise, they wouldn’t realize their importance.

Only when they were desperate and couldn’t find any more support, would it be the right time to discuss some deals.

To ensure everything was foolproof, Dean made another call to Price’s List in Ohio, instructing John and Simon to keep an eye on Compuserve’s every move.

As for Professor Donald Knuth, there was no need to rush into things; Dean needed to coordinate the timing with him.

After dealing with Compuserve’s things, Dean then focused on checking the sales volume of the Teams software over the past two weeks.

With the involvement of a major distributor, the sales volume of Teams software had picked up recently. Over six thousand copies in half a month, even better than the numbers in January.

However, don’t celebrate too soon, as from this month onward, the profit margin of Teams software will drop significantly.

Situations like before, with 1.5 million in sales and 1.2 million in profit, will never happen again.

Because now the labor costs have increased dramatically, and the distributors have taken nearly 30% of the cut.

A volume of six thousand copies in half a month would leave Byte Software with less than 200,000 US dollars in after-tax profit.

This rate of profit is far less than the speed at which Byte Software is currently burning through cash.

As the pace of expansion quickens, it may not be long before Byte Software has to consider a second round of financing.

"Boss, there’s a Mr. Valentine outside, he claims to be your friend," Anna suddenly knocked on the door and came in, as Dean was contemplating Byte Software’s future, and reported unexpected news.

"No need to announce me, I’ve already come in," Valentine’s rugged voice, as memorable as his rugged look, left an impression as he leaned on the door frame and shrugged at Dean.

"Forgive my intrusion," he said, walking over to the sofa and sitting down without waiting for an invitation, "Lovely lady, could I have a coffee, please, thank you."

Under Anna’s enquiring look, Dean nodded, signaling her to go ahead with her tasks.

"Mr. Valentine, I didn’t expect to see you again." Dean might forget the voice of Robert Macy from Compuserve, whom he had met once, but he had a vivid memory of Valentine from the Carriage Wheel Bar.

Some people naturally stand out more than others; their every action exudes personal charisma, which might also be one of the reasons for their success in their careers.

"Dean, I’m sorry that our friendship only lasted as long as a drink," Valentine complained unabashedly while examining Dean’s office.

Dean spread his hands, puzzled, "Mr. Valentine, why would you say that?"

"I remember you promised me, if Teams needed financing, you would contact me. We drank together at the Carriage Wheel Bar, didn’t we?"

Although it was only one drink, Valentine remembered it all very clearly. Of course, he also remembered the business plan for Teams very clearly.

Especially after seeing the reports about Dean in the newspaper and the fact that Cisco was also using the Teams software.

Mother Fucker, as the president of Cisco, he didn’t even know his own company had purchased this software.

But he couldn’t be blamed for that, Cisco was going public in about three months, and Valentine had been in contact with those financial institutions on Wall Street recently.

It wasn’t until he returned from Washington that he heard about Byte Software’s fundraising news.

After learning about Byte Software’s recent development, Valentine went straight to them without a doubt that this was yet another company with tremendous potential.

"Mr. Valentine, I certainly remember our pleasant communications. But Teams has received help from many people, you know, and usually, that help requires some payback."

Dean didn’t deny that he remembered Valentine, nor did he forget about Sequoia Capital. But what he said was the truth, Byte Software naturally had to consider their own people first when it came to fundraising.

"OK, I understand," Valentine took the coffee from Anna’s hand, "But before we start our conversation, please allow me to make a small suggestion."

"Please, go ahead~" Dean gestured for him to speak freely.

"Either call me Valentine or Don, but drop the damn ’Mr.’," Valentine gulped down a large mouthful of coffee, nonchalantly, "I’ve heard that term too much from the suit-wearing dickheads over on Wall Street recently."

Valentine was different from all the other investors whom Dean had encountered; he was rough and aggressive, and his speech was almost always blunt and direct.

This might have related to Valentine’s experiences when he was young: his father was a truck driver, and their family never had any savings.

Valentine dropped out of high school himself and, as a child in a Catholic school, had suffered abuse at the hands of the nuns.

A tough upbringing, coupled with his robust physique, made Valentine seem like an irritable and hot-tempered boxer. He was easily offended and always quick to compete and fight with others.

He often disdained military discipline while in service and later joined companies like Fairchild Semiconductor and National Semiconductor before gradually getting into venture capital.

According to Silicon Valley rumors, Valentine despised people whose surnames contained hyphens or Roman numerals. It meant that their ancestors were accomplished, giving them a higher starting point than the average person.

Also, the descendants of those who arrived on the Mayflower, those who loved the East Coast lifestyle, and the people who wore Hermes ties, braces, cufflinks, signet rings, and shirts adorned with monograms.

In essence, Valentine loathed all pretentious formalisms, especially old money from the East Coast.

Like that time he went to negotiate a deal at the investment bank Solomon Brothers in New York, and the staff there, who didn’t recognize him, asked upon registering his information, "Which business school did you attend?"

"I attended ’Fairchild Semiconductor Business School’!" replied Valentine angrily, and they looked at him like he was a heartbroken lunatic.

But this reaction from the other party actually pleased Valentine—he enjoyed the feeling of breaking the rules.

The constant ’Mr.’ from Dean’s mouth now reminded him of his experiences on the East Coast.

"Alright, if you insist, Valentine," Dean shrugged indifferently, "Americans’ personalities are always so diverse."

"Good!" Valentine finally felt much more comfortable with this address. "Dean, your Teams is great, but I like you even more.

I understand your father was also a truck driver, and you are the first in your family to go to college. You and I come from the same working-class background; we should have a lot in common."

"I’m glad we share similar backgrounds, but Valentine, it’s too late; Byte Software has already completed its first round of fundraising." Dean knew why he was there, but Byte Software had just finished fundraising and couldn’t possibly start a second round immediately.

"Byte Software is expanding too slowly!" Valentine stood up and came to Dean’s desk, leaning over the surface and looking down at him, "Morgan Tailer and Mayfield are too conservative in their approach; they haven’t found the right managers for you.

Teams is unique! You just need to remember that, Dean! Across all of North America, the whole continent, we need to seize the market at all costs, leaving no opportunity for any potential competitors!"

Valentine’s expansion strategy was as aggressive as his personality, "Believe me, Dean, Byte Software needs more funds. Morgan Tailer and Mayfield are just wasting opportunities!"

"Valentine," Dean hesitated before speaking slowly, "I can’t promise you anything right now, but I’ll give you my word. If Byte Software starts a second round of fundraising, Sequoia Capital can join in."

Valentine stood up, slightly disappointed, "Dean, don’t waste a golden opportunity."

And with that, he put down his coffee and left the office directly.

Was Byte Software expanding too slowly? Dean looked at the sales report on the desk, possibly a bit, but the pace was already more than double what it had been before.

However, Valentine’s visit had made Dean decide to discuss Teams’ sales strategy once more with Chief Operating Officer Jimmy Trebik.

Perhaps it was indeed time to accelerate. Key moments required being ready to burn through cash.

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