American History 1988
Chapter 87 - 82 My Money

Chapter 87: Chapter 82 My Money

Gary did have thoughts of investing in Price’s List, there’s no mistake about that, but to be honest, he hadn’t thought that far ahead.

As a private equity firm that struck gold in Silicon Valley, Morgan Tailer was even clearer about the federal government’s policies on the internet than Dean was.

Thus, Gary’s initial expectations for Price’s List were to make use of a private network, then earn a nice profit and call it a success. Certainly, if Price’s List could go public in a few years, that would be an unexpected delight.

This was his practice run, as the son of David Morgentaler, carrying on the family business was an inevitable outcome.

But now, Dean had painted him a picture that was completely out of his line of sight, his goals were much bigger than what Gary had imagined. This was somewhat beyond his expectations, but not too far-fetched.,

"Dean, although I really appreciate what you’re saying, I need more proof, more evidence that proves Price’s List is worth the investment."

Facing Gary’s piercing gaze, Dean probably knew what he wanted. Evidence that proves Price’s List is worth the investment? What could be more persuasive than the profits of the past few months?

Dean pulled out a report from his bag and handed it to Gary, "This is the revenue of Price’s List for the past three months, I think it will dispel your doubts."

Price’s List began to profit from the first month of its commercialization, though not much but profit is a fact. The revenue for the following two months showed steady growth, especially the past May, which saw a significant jump.

"Hmm~, looks good," Gary commented calmly. If it weren’t for the occasional gleams of light flickering in his eyes, Dean might really think that Gary wasn’t interested in Price’s List.

Yes, Gary was trying hard to contain his excitement. Over three thousand US Dollars in the first month, over five thousand in the second, and more than double in the third!

This is an internet company! Gary had never seen anyone profit from running a website before, non-profit websites and personal websites were currently the mainstream.

According to the current trend of Price’s List, even without financing, it could do very well on its own. But Gary was a venture capitalist, and what venture capitalists are best at is increasing small profits many times over.

Price’s List had proven itself in Cleveland, and if this model could be replicated across the whole of Ohio, the revenue could easily multiply several times over.

Even though the federal government’s restrictions on the largest NSF network hadn’t been lifted yet, this was enough to impress Gary.

Catching the message in his eyes, Dean further seduced him. "Ohio is just the first step in verifying our concept, who knows, by the time we complete this step, the federal government may have already liberalized the NSF network."

Gary was taken aback, he indeed heard such rumors. The reason was that more and more scientists and professors who hadn’t joined the NSF network were also eagerly wanting to experience similar network functionality.

For this, these scholars outside the system even offered a $250,000 loan to a service provider called UUNET to set up similar network connections.

UUNET was located in Virginia. Like the US Network in Ohio, it was a private product born out of the public’s desire for network connections. The birth of internet service providers one after the other indicated the huge demand for internet connectivity among the public.

More and more institutions, scholars, and businessmen were calling for the federal government to open up the NSF network. Although the various parties had not yet expressed their positions, Gary knew this was the trend of the future; the only difference was when it would happen.

With this in mind, Gary pulled a piece of tissue from the table and began to write and draw on it, head down. "Dean, you’ve convinced me. In addition to providing you with funds, Morgan Tailer will also contact the people you need. Set up the framework for Price’s List within a month and prove to me that it’s indeed worth our long-term investment."

"You’ll see that scene," Dean took the tissue and looked it over.

Gary, or rather Morgan Tailer, laid out the conditions on it: $50,000 to purchase a direct 8% share of Price’s List, this sum of money would not be recorded in the accounts, considered a personal gift to Dean. Furthermore, Morgan Tailer would invest another $100,000 to acquire an additional 13.75% share. This money would be recorded in the company’s books, and it was intended to support capital investment required for the expansion plans of Price’s List.

With a total investment of $150,000, Morgan Tailer would own approximately 21% of Price’s List. Since he planned to support it long-term, Gary naturally wanted to secure as many shares as possible.

To be honest, this offer was already a high price for a company that had been established for less than half a year. Of course, this generous condition was only because Price’s List was already profitable; three or four months ago, his offer would have been merely half of the current one.

Looking at the numbers on the tissue, Dean fell into deep thought. $100,000 was more than enough for Price’s List. Even if they started the layout in Columbus and Cincinnati right away, there would still be plenty to spare. This was because the only expenses for Price’s List currently were labor and server costs.

Three cities, arranging 3-5 employees in each place could maintain the normal operation of Price’s List. This part of the manpower expenditure wouldn’t exceed $20,000 a month, and the server rental fee couldn’t even compare to a fraction of the former.

So, one hundred thousand US dollars should sustain Price’s List operations for about half a year. With this six-month transition period, the Price’s Lists in Columbus and Cincinnati should also be on the right track.

By that time, Price’s List’s expansion plan should have completed its first step. As for the next step, Dean wasn’t in a hurry to consider it because the internet’s development is fast-paced and ever-changing—who knows what the next year will bring?

Having gone over the plan in his mind, Dean nodded in satisfaction. "Gary, welcome to Price’s List. The future will prove that your choice was the right one."

"I’m hoping for a home run as well, so let’s get moving quickly. I already know you’re heading to Stanford in the fall, so please finish up the work in Ohio before then." Gary was also going to Southern California, and in fact, he was about to depart.

Morgan Tailer Venture Capital’s headquarters had already moved to Palo Alto, and he needed to go and oversee matters. As for why Gary was confident in investing money in a Price’s List where the founders weren’t local, that was because he understood that an online company is different from traditional ones, and location isn’t a factor that restricts its growth.

As Dean stood up to shake hands with Gary, he didn’t forget to remind him, "To accelerate the expansion of Price’s List, I’ll need Morgan Tailer’s help. Don’t forget our agreement about recruiting staff—finance and legal are the top priorities.

However, for cost considerations, I suggest we first hire accountants and lawyers who are open to working part-time. This will save us a significant amount of money as Price’s List doesn’t need the full-time services of these professionals for the time being."

"Haha, Dean, I like your cost control. Morgan Tailer has collaborations with accounting firms and law firms here in Cleveland. They will recommend suitable candidates for us." After hearing Dean’s request, Gary laughed heartily, appreciating a founder who knows how to cut costs as a venture capitalist.

After meeting with Gary, Dean secured the first investment company for Price’s List. Morgan Tailer was currently the most suitable choice, both being part of the Cleveland camp and focusing on local development in Ohio. Their networking resources would offer the most intimate support for the expansion of Price’s List.

As for the Hillman Fund, which had once contacted him, it was temporarily not within Dean’s consideration. Pittsburgh might be close enough to Ohio, but after all, it belonged to Pennsylvania, and the Hillman family’s reach didn’t extend into Ohio.

And as the first venture capital firm to contact Dean, Morgan Tailer deserved some preferential treatment, especially since in a few months, Dean would be seeing them again in California.

After making a verbal agreement with Gary, Dean would have another fifty thousand US dollars coming in, even though the contract hadn’t been signed yet. Oh no, there was also the capital gains tax!

Damn! A tax rate of 15% to 20% is too high! Dean couldn’t even begin to imagine how the wealthy endured a 48% tax rate eight or nine years ago!

Dean was determined that once he had money, he would also donate to those congressmen. For what? To lobby Congress to lower the capital gains tax!

But gripes aside, Dean still gave a thumbs up in praise when he calculated that his personal account’s stash was about to breach the one hundred thousand US dollar mark. The light of the beacon, shining bright for all to see.

Only in America could he engage in various flexible operations, where the business environment made it possible to accumulate wealth in a short span of time. Of course, this window of opportunity wouldn’t last long, and he had to seize it.

With one hundred thousand US dollars in his possession, Dean would have more room for maneuver once he went to California. As for why he didn’t use this money to invest in Price’s List’s operations himself?

That was his money! Not Price’s List’s! Besides, that’s not how the game is played. If he wanted to be part of the 0.1% at the top of the pyramid, Dean had to learn how to make choices and sacrifices.

Walking on the streets of Cleveland, Dean finally felt a bit of scorching heat on his head. In the blink of an eye, it was already June, and the city by Lake Erie also entered the most beautiful season of the year, summer.

Speaking of summer, it brings to mind the summer vacation. Since receiving the admission notice from Stanford, Dean had already entered his own summer break in advance.

His coursework at Cleveland State University was already complete, and the only reason he hadn’t gone through all the procedures to move out of the campus housing was that he wanted to take advantage of the dormitory a bit longer, as it wasn’t worth renting a place for two or three months.

And as June gradually moved into the latter half, colleges around the college town were finishing up the school year’s work one after another, including Cleveland Institute of Music.

By this summer, Ophelia was set to complete a year of exchange studies. Her parents had already written to her, saying they would come from Europe at the end of June to take Ophelia home.

As the deadline approached, Dean had to prepare himself to say goodbye to Ophelia.

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PS: There’s more in the afternoon

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