Chapter 93 A Difficult Battle 1
"First of all, thank you for the quick decision, Professor."
"Oh no, this is an opportunity, so I shouldn''t miss it. I''m even more grateful for the chance you''ve given me."
Professor Shashua appeared after dinner time. It waste, but it seemed like he couldn''t bear to wait another night.
As it waste at night, most of the hotel guests who would usually enjoy their evening were gathered at the bar, leaving the lobby lounge rtively quiet.
"I''m curious about your response to my proposal."
Professor Shashua took out a neatly folded piece of paper from his pocket.
"This is the initial startup cost, and I''ve briefly noted the proposed ownership structure based on the investment."
When I quickly nced at the numbers on the paper, I almost burst intoughter.
These numbers gave a good estimate of the scale of CogniTens, which was founded in 1995.
I could clearly see the difference between South Korean venturepanies and this proposal. South Korean ventures often show efforts to raise as much money as possible, but this single piece of paper showed traces of carefully considering how to save money.
The amount of money offered was minimal in my eyes.
I folded the paper and ced it quietly on the table.
"Professor, may I talk about something more important than money?"
"Of course."
"Do you have confidence that your research will be a reality?"
"Yes."
Professor Shashua nodded confidently. His attitude showed no hint of pretense.
Belief in oneself, having what is absolutely necessary, I can move on to the next step.
"How will the coboration with the technology center be structured? Here it says that you give 3.7% of the stake to the university technology center..."
"Oh, usually it''s strong on the aspect of equipment provided by the university and costs for theb. Misceneous items like library books are also included."
Professor Shashua exined the university''s support when he noticed my sensitivity to the stake.
"Our university spares no effort in supporting startups. Even though research that may not yield meaningful results, they''ve already provided equipment worth over $200,000. 3.7% is by no means a significant portion."
"Oh, please don''t misunderstand. I''m not ming the university. I just wanted to know the extent of the university''s support."
Of course, this wasn''t everything.
"The initial funding needed until meaningful results are achieved is $700,000, and the second funding required untilmercialization is possible is $1.5 million. Is that correct?"
"Yes."
Professor Shashua, slightly nervous that I might think it''s too much, is now fixated on my words.
"And Miracle''s stake is 35%."
"Is that insufficient?"
"No, it''s reasonable. I''m sincere."
Professor Shashua rxed and showed a bright smile. He believed that the deal had been sealed.
However, it''s appropriate to reject the initial offer, whether it''s reasonable or not.
"Professor."
"Yes."
"Now I will share my thoughts. It may be unreasonable, but will you listen to the end?"
"Oh, yes."
Looking at the professor, whose smile had disappeared, I spoke slowly.
"I will give $400,000 to the university technology center. Also, I will leave all the equipment provided by the university to the ownership of the university. With this, the university won''t owe anything, so there''s no need to give up the 3.7% stake. Should I give more?"
his head might be spinning, but he can''t open his mouth. The second offer has more impact the more radical it is, just like Professor Shashua is shocked right now.
"And I will raise the first funding to $7 million. Please use it to procure all the necessary equipment, the most advanced, and gather as much manpower as you need. Even a Ph.D. from MIT in the USA is eptable."
"Mr. Jin!"
Before the first shock even disappeared, the second shock hit, causing him to stammer.
"And as for the second funding formercialization, we can decide that when the timees. Please don''t misunderstand. I''m not saying I won''t use the $1.5 million you mentioned, but I''m dying the decision to see if we need $15 million or more."
Maybe he''ll think I''m crazy. And he might consider this investment deal a futile endeavor.
Ten times the required amount, and it doesn''t end there. It could be read as a gesture to throw ten times, or even a hundred times, the desired amount.
In cases like this, there''s only one thing.
Either the potential for sess has already been recognized in the market, or it''s the right timing to grow an already sessful business even bigger.
But Professor Shashua has only written the first line of Chapter 1 in this novel, so to speak. Whether this novel will bepleted or sell well in the future is anyone''s guess.
However, I''m not crazy.
If Professor Shashua starts a startup with this item, a Russian investor with a keen eye will soon provide $10 million, securing a significant stake.
If I prepare in advance, there won''t be a chance for someone else to join the table uninvited.
"Mr. Jin, to be honest, this proposal is hard to believe. It''s true that I''ve budgeted conservatively, but to increase the amount by a whopping ten times..."
"My story isn''t over yet."
Professor Shashua appeared bewildered and seemed to have something to say, but I silenced him.
"Instead, I''d like to set Miracle''s stake at 60%."
As soon as the words "60%" were mentioned, the professor''s face wrinkled, but my proposal wasn''t finished yet.
"I will only hold the shares. All voting rights will be granted to you, Professor, and I will not interfere in the management in any way. We won''t even send routine audits, and there won''t be a need for separate reports on how the investment funds are used. Just focus on the sess of the business."
I finished my story and folded my fingers. Now it was time to hear Professor Shashua''s final response.
But he couldn''t speak. He blinked and stared at my face.
"Professor?"
"Oh, I see. I apologize. This is one of the most absurd investment conditions I''ve ever heard... Isn''t this almost like gambling?"