[126] Jab, then a Straight 1
“What?”
“What did you just say?”
I just smiled at the two who hadn’t quite caught on.
“You two are lucky. This time, I’ve really let go of my greed.”
Watching their hesitant expressions, unsure of what to say, I chuckled softly.
“How about we do it this way?”
The two leaned in closer.
“I’ll invest up to $30 million in stages. If you need more investment after that, it means the company has either grown significantly or you’ve lost all the money, right?”
The latter, of course, means failure. If Google fails, it’s not because their algorithm was wrong, but because something else went awry.
“If the company grows and needs more funding, investors will flock to you. Take their funding—on good terms.”
“Wait, Howard. I have a question… Can you hear me out without misunderstanding?”
The initial shock of hearing the $30 million figure had worn off, replaced by a puzzling curiosity.
“Anytime. Go ahead.”
They exchanged glances before cautiously speaking up.
“If the company grows and needs more funding, it means it’s doing well. So why stop investing? Didn’t you say you had enough money?”
“Money comes from various places. These are people with a lot of investment experience, who’ve witnessed countless successes and failures in Silicon Valley. Additional funding means it’s time to heed their advice. Don’t push away those who nag; they’ll have invaluable insights.”
They probably didn’t expect to hear this. Engineers usually dislike investor interference.
“But don’t abandon your own values. As the company grows, your goals might shift, but it’s best not to do anything that would shake your core beliefs.”
“Alright, then what about the latter case? If our business fails, are there conditions for recovering the investment?”
“In that case, I’ll keep pouring money in until you succeed. Even if it takes a hundred million or a billion dollars. How’s that for an answer?”
It must have been a satisfactory answer. Their faces were filled with waves of emotion.
“Howard, you really believe our Google will succeed, don’t you?”
I wanted to say, “Don’t be silly. Google has to succeed for the fourth industrial revolution to begin,” but I just nodded instead.
“I understand your intentions. But we can’t invest based on abstract beliefs alone… Can you give us some concrete numbers?”
I still get their names mixed up. Both have dark brown hair, so I can only tell them apart by their looks. Is the better-looking one the Russian, Sergey?
“Alright, Sergey. As you already know, I don’t intend to hold voting rights. The voting rights for the shares I hold will be exercised jointly by you two. And in return for the $30 million I’ll invest, I want an average of your shares.”
At the word “average,” they blinked at each other.
“What? You two didn’t make some childish vow to always split everything equally, did you?”
In America, even founders can be ousted. Co-founders’ shares can diverge significantly based on their circumstances. Isn’t this the paradise of capitalism?
Fortunately, it seems they hadn’t made such a childish vow. They accepted the term “joint” instead of “average.”
“So, we start with equal shares among the three of us?”
“Exactly. You two bring the brains, I bring the money. Seems fair, right?”
They shook their heads.
“It’s not fair; you’re getting the short end of the stick, Howard. For that kind of investment, asking for 50% wouldn’t be unreasonable.”
“Right. Even if you wanted to buy us out for $30 million, it wouldn’t be an outrageous demand.”
“Alright then. Just ensure my shares are protected in the future, whether through paid or unpaid capital increases. Always maintain the average of your shares.”
Sergey suddenly extended his hand.
“Let’s seal the deal before you change your mind.”
“I’ll have the contract ready for you to review tomorrow. And a million dollars along with it.”
I shook his outstretched hand with a smile.
And as I listened to their dreams of the internet world, I sipped my beer. They hadn’t yet mentioned the groundbreaking ideas they would create, like Google Earth, Maps, Translate, the Gutenberg Project, AI, or autonomous driving.
These innovations would come not just from them but as a result of merging with the services of many geniuses to follow.
We talked until dawn and then got up to leave.
“Here’s my New York office, Korean office, and personal phone number. Contact me anytime you need.”
They took my business card, unable to hide their surprise.
“You’re Korean?”
“What? Did you think I was Japanese?”
“No, with the surname Jin, we thought you were from Hong Kong.”
Leaving the two who wouldn’t sleep tonight in their garage, I stepped outside.
I declined their offer to drive me to a nearby motel. I wanted to enjoy the cool night air with a leisurely walk.
As I walked away, I heard a voice calling from behind.
“Hey! Are you really just twenty?”
They didn’t even glance at the contract.
The two Google founders were busy examining the million-dollar check, even playfully slapping each other’s cheeks.
“Are you sure you didn’t make a mistake this time?”
Rachel, who had been handling the contract and check preparations since morning and had flown to the Silicon Valley garage, looked at me with skepticism.
It was only natural not to believe that these two, who seemed like a pair of bumbling fools, would one day own a company that would surpass Microsoft and boast the highest market capitalization in the world.
“Trust me. This isn’t just about making money from stocks. We’re witnessing the moment when the pioneers of a new world are acting like clowns right before our eyes.”
No matter how grand my words were, Rachel just shook her head and sighed.
“You were the one who told me to pull out of dot-com companies. Are these guys different?”
“I told you, by 2000, dot-com companies will start collapsing. These guys are the real deal in a deflated Silicon Valley. Watch closely. The ones emerging now are the real players, filling the void left by the scammers.”
Even so, she couldn’t stop sighing. She slammed the desk and shouted.
“You guys! That check is real, so stop gawking at it. Check the contract and sign it. I don’t have time to watch you fool around!”
“Oh, sorry.”
Sergey and Larry hurriedly put the check in a drawer and faxed the contract somewhere.
“Hey! It’s basic that a third party shouldn’t see the contract. Where are you sending it?”
When Rachel asked in surprise, they smiled and replied.
“Don’t worry. It’s to the school’s startup support center lawyer. They check everything until we contract with a separate law firm. They know confidentiality better than anyone.”
Ah, Stanford.
They provide unwavering support for student startups.
Rachel took my hand and led me out of the garage.
“Howard, about Amazon.com that you mentioned in the meeting. Why aren’t you investing there? You said it was promising. It seems more certain.”
“Of course, that company has tremendous potential.”
“Then why?”
“I’ve shifted my focus from making money through stock prices to building relationships with geniuses like them. Amazon’s business structure doesn’t really benefit me.”
“So, are you giving up on investment returns?”
When Rachel asked with a worried look, I shook my head.
“Do you have to invest in stocks to make money? There are plenty of other opportunities.”
“Like what?”
“Think about where the money will flow when the dot-com bubble bursts. The devils on Wall Street won’t let the money sit idle.”
“The next target after dot-com?”
As Rachel tilted her head in thought, a voice called from the garage.
“We’ll sign right away. The school lawyer says they’ve seen hundreds of Silicon Valley contracts, but never one this groundbreaking. They’re urging us to sign.”
“Our Howard is incredibly generous. You’ve met a real angel.”
There was no time to celebrate becoming Google’s first investor.
“Let’s head back quickly. By now, your father should have finished the meeting with DreamWorks. I’m too curious about the outcome to wait any longer.”
Hearing Rachel’s words, the two men’s eyes widened.
“D-DreamWorks?”
“Howard! Are you investing in Hollywood too?”
I puffed up with pride as I replied to them.
“Make sure to watch ‘Saving Private Ryan.’ I invested 35% in that movie. Ha ha.”
Rachel added another comment.
“Once you get the $30 million, spread the word. If you say Miracle invested, investors will line up with money in hand. We’re the symbol of an undefeated legend on Wall Street.”
When we returned to LA, my father took me to Santa Monica Beach. In a Rolls-Royce provided by the hotel.
“Why the beach all of a sudden? It’s scorching hot…”
“Let’s have a quiet conversation. I have a lot to ask.”
We plopped down on the sand with a cold beer each.
“Did the talks with DreamWorks go well?”
“The atmosphere was good. They responded positively.”
Then why did my father’s expression seem so tense?
“Did DreamWorks make any unreasonable demands?”
“Unreasonable? Well, they asked for something obvious, but for me, it’s a stretch.”
“What kind of…?”
“They want us to establish a distribution network in Asia, excluding the Middle East.”
“I see. That’s a reasonable request.”
Half of the movie business is distribution. The three giants at DreamWorks aren’t foolish enough to hand over distribution rights just for money.”
“I heard just securing the distribution rights for Asia costs half a billion dollars. And if you want to build a proper distribution network and expand into secondary platforms, you’re looking at astronomical sums. The problem is, if things go south, you could lose all that money in the blink of an eye.”
If the investor hadn’t been his son, the father might have embarked on this venture with a much lighter heart. After all, investors are destined to live with the risk of loss.
But the disgrace of being a father who squandered his son’s money is far worse than being a foolish son who lost his father’s money.
This fear holds the father back.
“If you’re not confident about succeeding, you can stop. But don’t let the fact that your investor is your son hold you back. Money doesn’t come with a name tag. It’s good to be cautious since it’s my money, but still.”
“It’s going to take quite a bit of money.”
“I still have plenty of money. And I’ll keep making more. Don’t worry about the money.”
“That money is meant for something big, isn’t it? No matter how much you have, it won’t be enough to take over the Sunyang Group.”
Oh, he’s being so blunt that it stings a little. Why is the conversation heading in this direction?
“There are things money can’t buy, no matter how much you have.”
“You’re right. Just buying up all the stocks on the market won’t change the corporate governance to seize control.”
What can’t be bought with money must be taken. And the minimum weapon needed for that is money.