Hong Kong Movies: You Hongxingzi, what the hell is the charity king?

Chapter 879 American Side Story 5: Investing in Google

July 1998.

Taking advantage of the nationwide uproar against churches, the Democratic Party quickly pushed forward with its efforts to prosecute churches.

The Democratic Party's law firms took the lead, with the legal departments of Happiness Property and Umbrella Property also participating, forming a large legal team plus a logistical investigation team.

A formal lawsuit has been filed against the church.

With their broad public support and lightning-fast investigation speed, Happiness Property and Umbrella Property have gained widespread fame, attracting the attention of many law firms, who have begun to cooperate with them.

Rudy, who had just joined the legal department of Happiness Property Management, was extremely busy, but he was also very happy with it and felt that he had found his direction in life.

In late June,
He officially faced off against his former boss, Leo, in court.

The specific details of the case are as follows: Donnie, a young man who had been drug-free for 12 years, was admitted to Beicheng Hospital for the flu and then died. Beicheng Hospital wanted to cover up the incident, claiming that the cause of death was drug overdose (morphine was found in his blood). However, the deceased had clearly been drug-free for 12 years.

With solid evidence gathered by Happiness Property Management, Rudy successfully helped the deceased's mother defeat North City Hospital and Leo, the lawyer at Britt Law Firm, securing her first victory in life.

The arrogant Leo was naturally very unhappy.

However, he knew Rudy would win the case, partly because Rudy was indeed smart, and partly because Happiness Property Management's investigative capabilities were too strong.

……

……

South of San Francisco Bay.

San Jose International Airport.

"Brother Zu~~~"

Li Jie, Chen Guozhong, Brother Leopard, Li Qiao, and others were waiting outside the airport.

After watching the spectacle for a month, Guan Zu got bored and decided to take Ruan Mei back to Hong Kong Island.

At this moment, Li Jie, who was in San Francisco, suddenly said that he had found a search website, thought it was good, and asked Guan Zu if he wanted to get involved.

Guan Zu checked the website address provided by Li Jie in the email.

what.

A familiar page.

Google.

(Image: Google Page from 1999)

Guan Zu was naturally very interested in Google, after all, the company would later generate more than $2000 billion in revenue a year through its advertising business.

A terrifying money-harvesting machine.

At this point, getting involved and acquiring shares would be a very good thing.

By the way, at this time, Google had not yet officially launched commercial services; it was still in the testing phase, with only about 1 active users per month.

On the first night, we checked into the hotel.

The next day, Guan Zu, along with Li Jie, Li Qiao, and two bodyguards, arrived in Menlo Park in a black Chevrolet.

This city is located south of Silicon Valley and is where Google started.

Li Qiao: "We found out that Google founders Larry Page and Sergey Brin are currently renting a garage from a woman named Susan Wojcicki for $1700 a month..."

"You could say that this garage is Google's office."

Guan Zu: "Are there any other employees?"

Li Qiao: "No."

quickly,

Guan Zu and the others arrived at their destination—a garage.

A real garage.

Guan Zu said to Li Jie, "You can negotiate later and try to lower the price... If that doesn't work, bring in the Democratic Party. If that still doesn't work, then we'll find someone to make a similar search website ourselves."

Li Jie nodded: "Okay!"

Push open the door and get out of the car.

Li Jie, dressed in a suit, walked towards the garage with his secretary, Li Qiao.

Knock on the door.

Hello~~ Is anyone there?

"Who?"

Larry Page quickly opened the door.

The door opened, revealing a slightly cluttered garage with computers, printers, switches, cardboard boxes, keyboards, and more.

"Hello, both of you..."

Li Jie smiled and said, "Mr. Page, Mr. Brin, I am Li Jie, the president of Umbrella Corporation. I am honored to have the honor of visiting you today..." "Umbrella Corporation?"

The two founders were taken aback for a moment.

Umbrella Properties is a well-known name in California.

"Excuse me, Mr. Li..."

“I recently used the Google search developed by your company and am very interested in Google. I would like to discuss investment matters.”

Larry Page accepted the business card: "Thank you for your consideration, Mr. Li. However, we already have angel investment, and we are more focused on technology research and development. We haven't given much thought to commercial investment yet."

"I know that. I heard it's Jeff Bezos, the founder of Amazon..."

Li Jie pulled up a chair and sat down: "However, I heard that his investment was only $10. But nowadays, the Internet is developing rapidly. Only when a company has sufficient funds can it expand its scale and improve its technology more quickly."

"Doesn't Google need these funds now? Subsequent promotion and server expansion will require substantial financial support."

Sergei Brin and Larry Page exchanged a glance.

“We have no shortage of investment opportunities, but many investors want to influence our technology direction, and we will not compromise.”

"As a newly established company, we naturally don't want others to tell us what to do."

Li Jie laughed heartily: "Rest assured, gentlemen, we will not interfere with Google's technological research and development; we will only make financial investments. Moreover, you are both well aware of the reputation of our Umbrella Corporation. In addition, I can introduce you to some of America's top billionaires for subsequent Series A and Series B investments..."

"Furthermore, I've noticed that giants like Yahoo are also paying attention to the search field. Only by making early moves can Google seize the initiative."

On April 12, 1996, Yahoo! officially went public on Wall Street, with its shares reaching a total value of $500 million on the first day of trading.

By 1998, it had grown to a market capitalization of $231 billion, making it a true internet giant.

exactly,

When Guan Zu went public in 1996, he bought up a large number of shares and accumulated a large position.

This put immense pressure on the two founders.

What they fear most is competition from their peers.

Li Jie smiled and said, "We can offer you a valuation that will satisfy you both, and we will also introduce you to high-quality capital investments in Google."

Sergei Brin and Larry Page exchanged a glance.

"What are your investment intentions? What are your requirements regarding the shareholding?"

Li Jie sat up straight and said seriously, "Our initial intention is to invest $50 and hope to obtain a 15% stake. Part of this $50 will be used to recruit more technical personnel and quickly upgrade the technology, and the other part can be used to build an initial marketing team."

Why not just ask for 50% or 80%? That's impossible.

The financing process in the United States is very mature. Generally, the angel round only requires a small number of shares, and then the founders will gradually distribute the shares in the A, B, and C rounds.

If shares are distributed in the angel round, what happens in subsequent rounds A, B, and C?
Retaining sufficient equity for the founders and team is crucial to maintaining control and motivation within the company, enabling better operation and development in the future.

If a large number of shares, such as 50% or 80%, are given up in the angel round, the equity of the founders and team will be severely diluted. When subsequent rounds of financing such as A, B, and C are raised, the number of shares available for dilution will be very limited, which may make it difficult to attract subsequent investors and is not conducive to the long-term stable development of the company.

Therefore, Li Jie's 15% is a fairly common shareholding percentage.

"15%? That's too much!"

"Google has huge potential for the future, and at this stage, this shareholding ratio is unreasonable."

“Mr. Page, $50 is not a small amount these days, and what we can bring is not only capital, but also extensive connections and market channels. We believe that this 15% stake is a reasonable risk-reward ratio.”

The two sides went back and forth, with the price and share ratio being pulled back and forth in repeated negotiations.

"How about we go out for a meal and continue our conversation?"

"In addition, Jeff Bezos is also an investor, and I hope to call him over to discuss this together."

Li Jie nodded: "Okay!"

……

A week later,

Li Jie and the two founders signed an investment agreement.

$80 for an 11% stake.

In addition, there are some additional clauses, such as the right to know about decision-making and the right to priority investment.

……

Meanwhile, Guan Zu was already in Los Angeles, having dinner with Xiao Fu and the others.

……

March,
Guan Zu returned to Hong Kong Island.

--------------

P.S.: The approach to the American subplot wasn't ideal. Any suggestions from fellow readers? How about giving the protagonist a suitable angle, and what identity?
(End of this chapter)