White Software made a remarkable debut. Many companies were taken by surprise. Apple users were very satisfied; their computers finally felt useful. It seemed that it wasn't the computer's fault but rather the software that was lacking!
The venture capitalists finally understood. There was a good reason for not wanting to invest. Not to mention that the company had plenty of money, even if it didn't, they wouldn't let anyone take advantage of them. Their product was already polished and refined.
Venture capital seemed to quiet down, but several investment banks began to stir. This company was impressive and would eventually need an IPO. They were looking to see if they could secure Series A funding.
No money? If he wanted rapid growth, financing was essential.
The situation was almost exactly how they had assessed it. They were open to bringing in strategic investors.
Well, the only difference was that the dozens of banks in New York were cast aside.
This showed just how petty this guy was. When someone refuses to lend you money, there's a reason, and just like that, he blacklisted them. That was a bit excessive.
Okay, maybe those banks didn't care.
You were just an ant back then. What could they lose by turning you away?
Now?
Now, you're just a stronger ant.
Does an elephant worry about the feelings of an ant?
Clearly not!
That said, this situation was enough to make them feel uneasy. The influence of a bestselling author was no joke. If the opportunity was right, they still hoped to mend their ties.
In just a few days, they had thousands of software units shipped. This performance certainly caught the industry's attention.
This was hundreds of thousands of dollars in revenue. Based on Apple's shipping numbers, this company would break a million in revenue within a month.
By now, a ten million dollar valuation seemed clearly unreasonable. As long as that fellow wasn't a fool, he wouldn't agree to such a price.
Meanwhile, Apple's shipping volume began to surge as well. Given the current situation, it wouldn't be impossible to ship 20,000 units in a month.
Morgan Stanley clearly underestimated the current situation. An increase in valuation was practically guaranteed. If sales continued to rise, the valuation would need to increase by at least 50%.
Regarding White Software, their initial valuation felt more like a joke. Forget about a million dollars, even two million might be hard to pin down.
Simply put, they weren't just working for Apple. They were involved with nearly all the mainstream systems on the market.
Apple might hold only thirty percent of the market share. This year's revenue likely operated in the millions. Next year, it could be in the hundreds of millions.
What? You talk about costs!
There might be some in research and development, but what costs are there once it becomes a product? The real question is, what is the product's lifespan? Will competitors enter the scene?
Regardless, there was only one player in the market right now. If competitors couldn't catch up immediately, they would miss their chance.
Ultimately, everything remained uncertain. The big IT giants showed no interest in getting involved. If HP and IBM stepped in, other companies would only find themselves out of luck.
The IT giants didn't see the potential of PCs?
It was clearly not that simple. The big computer business was thriving and profits were good. There were also pesky antitrust laws in the U.S., which made comprehensive development risky.
...
"Fulton, go find a villa for rent. Hotels aren't comfortable. A month is fine, but any longer and I'll go crazy."
"Sure thing, sir. I'll send someone to the Bay Area tomorrow to check."
"Thanks, Fulton."
He stayed at the Waldorf Hotel, which was quite nice. This guy just had his rich-kid attitude kicking in again; how could a five-star hotel not be comfortable?
"Fulton, arrange a celebration in the next couple of days. Let's hand out some bonuses to celebrate."
"Sure, sir. How big of a bonus?"
"Two thousand dollars should do. There won't be many people, anyway."
"Understood, sir."
...
Everyone, except William White himself, was left stunned by the current situation. Even the few guys he had hired in Texas were no exception.
White Software rocketed to fame overnight. The advantages were obvious. It was now much easier to find recruits.
With many people wanting jobs, opportunities were scarce. Aside from highly specialized software engineers, other positions had long disappeared.
Many were regretting their decisions now, thinking that this new company wouldn't be reliable. They feared it would close down in no time.
They were aloof back then. Now, getting in is tough. While it's not a famous company, it was still quite impressive in Silicon Valley.
The reason was simple; their benefits were extremely generous. Now, everyone in Silicon Valley knew that their boss was a Texas oil tycoon, quite different from most folks around here.
Most entrepreneurs in Silicon Valley started from nothing. White Software truly stood out.
Fairchild Semiconductor was the pioneer of Silicon Valley. Every company had some connection to them. White Software, however, was born on a farm -- quite a unique software company.
It had to be said that this was humorous and had a touch of legend to it.
Texans were not well-liked in America, or anywhere else for that matter. Rude, impolite, tough -- that's a true picture of them.
Several security staff at White Software were also Texans. When they saw their boss, they just tipped their hats. But this wasn't some security hat; it was their cowboy hats.
You wouldn't think twice seeing that on a farm. But here in Silicon Valley, it was perplexing how William White thought this was acceptable.
This was likely due to someone's peculiar tastes. Anyway, everyone knew he was a bit eccentric. Suddenly changing so drastically wasn't exactly right.
Moreover, no rich person could be without some eccentric tastes. Once you had a certain status, no one would criticize you for it. Even if they did, who cares?
...
The new elite of IT had yet to draw much attention from the outside world. After all, it wasn't exactly a major industry.
It must be said that the ones who know you the best are your enemies. Others might not care, but the Hunter family certainly had to pay attention. The two families were effectively locked in a rivalry; it was unrealistic not to keep someone on watch.
The outcome was naturally quite grim. If they dared to play the acquisition game, the Hunter family would take a hit.
How could some mysterious company be worth fifty million? The world really was strange.
That fifty million valuation was casually tossed out by their familiar investment banks. They flat out said this price had no problem with bank guarantees. If it came down to stock financing, fifty million wouldn't hold.
Now they had to consider cashing out. If William White ultimately reclaimed the company, the fate of their shares was pretty predictable. If they could get half of their money back, they'd consider themselves lucky.
*****
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