MindField Page 10
Jon said, “It means we’ll have to try and use him. Remember, our primary target is probably InTelQ. They’re owned by your CIA.”
Chapter 16
Stanford University Student Union cafeteria,
Palo Alto, CA
September 16, 10:57 a.m.
Ann had just completed her early morning class in computer auditing. She paid for a cup of coffee and sat at a table near the door. Her cellphone buzzed and she took a quick look at its screen. Mom. Shit. I’m not ready to talk to her. She left the call unanswered, and wasn’t surprised when she found a voicemail in her inbox. Later!
Glen was becoming her best friend. But so far, it seemed that it wasn’t going anywhere besides friendship. She sighed. And it didn’t surprise her when he sat down next to her a few seconds later.
“Hello, Ann.” She looked up and saw he wasn’t smiling. In fact he seemed deeply worried.
“Hey. You seem bugged. Whazzup?”
“Your friend Jon called. He offered me some weird kind of ‘exciting opportunity’ if I volunteered to help him. I told him to fuck off.”
Ann nodded. “Good, good. You’ll be safer this way. But I’m also worried about your deal with Mr. Lucessi.”
“How bad could it be? Every venture capital firm brings with its image a long list of nightmare stories. But I have to find funding somewhere or MindField will remain a school project and die a short painful death.”
Ann nodded again. Glen was right. Everything involves some level of risk. “The key is to select the most prominent VC. The one with the most to lose if they cheat you.”
“Wow. Ann, that’s a lot more depressing than anything you’ve told me before.”
She simply stared back, lost in thought about what to say to her mother.
* * *
The three spies sat together in the Stanford Student Union. “That little stinker,” Cassie repeated. “When I get hold of her—”
“You’ll do what?” said Lee. “Ann’s our daughter and she’s over eighteen. She has her own world and if I know what she’d thinking, it’s that we’re intruding. So, we should look for ‘pretenders’ elsewhere. For all you know, this Glen may end up being our son-in-law.”
Cassie turned away, her anger still visible but now fading from her face.
Jon looked like he’d lost his best friend. Lee asked him, “What’s wrong, Jon?”
“I just realized I don’t know enough about venture capital to pull off this mission. I’ll have a steep learning curve. I’m going to get a guest pass for Stanford’s main library. I’ll have to visit the campus bookstore, too. The research might take me a couple of days.”
Cassie forced a smile. “I used to be an angel investor. It was about five years ago, but how much could things have changed?”
She knew Lee was a geek, and when he shook his head, she asked, “What?”
Lee said, “According to Moore’s Law, everything associated with the changes in high tech itself changes every eighteen months. So no, your old knowledge might more likely be useless. I go with Jon. You should come with us to the bookstore. We’ll all need a refresher.”
They all rose from their table outside the cafeteria and left by the front exit.
* * *
Frank Lucessi read over his list of prospective deals. He’d completed eleven of twelve. One more and he could report back to Robert Randall. He still needed to get the signed contracts from MindField. According to Glen Sarkov, the contracts had been signed by him and all his cofounders and were ready to be picked up. While their first set of docs were letters of intent, these would stand up in a court of law, according to his handler.
He also wanted to see Laura Hunter again. Their date last night got him into bed with her. He wondered if he was in love. No, that can’t be. My first relationship of any kind in over fifteen years. But, I’m unable to think of anything or anyone else right now, so maybe it’s just lust.
He parked the car in one of Stanford University’s student parking lots and headed off to the Student Union cafeteria. Soon, I’ll finally have MindField complete.
When he reached the cafeteria, he selected an empty table by the entrance, so he could see who was arriving before they saw him. He punched Laura’s cell number into his phone and pressed the Call button. But it went to voicemail. “Hi, Laura, it’s Frank. Are you free for dinner again? Call me.”
He bought a cup of coffee and sat, waiting for Glen.
* * *
Cassie visited the Student Union bookstore and scanned its computer index, noting books she thought would deliver the venture capital knowledge Jon, Lee and she needed. There were so many. Given Jon’s desire for some basic texts to start with, she compiled a short list from the bookstore’s index before visiting the library for a list of current studies and articles.
Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, by Brad Feld and Jason Mendelson
The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies, by Mahendra Ramsinghani
The Entrepreneurial Bible to Venture Capital: Inside Secrets from the Leaders in the Startup Game, by Andrew Romans
Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms, by Jeffrey Bussgang
Venture Capital for Dummies, by Nicole Gravagna and Peter K. Adams
Zero to One: Notes on Startups, or How to Build the Future, by Peter Thiel and Blake Masters
Venture Capital 101, by Bill Snow and Amber Cordova
Venture Capital Valuation, + Website: Case Studies and Methodology, by Lorenzo Carver
Venture Capital Deal Terms: A Guide to Negotiating and Structuring Venture Capital Transactions, by Harm de Vries and Menno van Loon
Masters of Corporate Venture Capital: Collective Wisdom from 50 VCs, Best Practices for Corporate Venturing, How to Access Startup Innovation, and How to Get Funded, by Andrew Romans and William Kilmer
The Masters of Private Equity and Venture Capital: Management Lessons from the Pioneers of Private Investing, by Robert Finkel and David Greising
Venture Capital and the Finance of Innovation, 2nd Edition, by Andrew Metrick and Ayako Yasuda
Venture Capital and Private Equity: A Casebook, by Josh Lerner, Felda Hardymon, and Ann Leamon
The Little Book of Venture Capital Investing: Empowering Economic Growth and Investment Portfolios, by Louis C. Gerken
Fundraising Field Guide: A Startup Founder’s Handbook for Venture Capital, by Carlos Espinal and Matthew Cobb
No Dead Monkeys: The Communications Survival Guide for Startups, by Jonathan Englert and Jeremy Kirk
There were many more, but she had enough to get her the basic concepts. She then visited Amazon and bought a few of these as ebooks, so she wouldn’t have to lug physical tomes around. She knew that as a computer forensics major with an economics minor, Ann might have read some of these and wondered if she should talk with her daughter about what she knew of venture capital and investing. But then she realized that until Ann and she had reached a more comfortable point, it might be better to wait.
* * *
Glen trotted down Palo Alto city streets from his apartment along the pathway to the Student Union cafeteria. He’d overslept and was running late for this, the final prefunding appointment with Lucessi. It was beginning to rain and he didn’t want to stop, even to open an umbrella. As he reached the doorway to the Student Union cafeteria, Ann stepped into his path. He almost tripped over her.
“Stop, Glen. I need just a minute before you meet with Lucessi.”
“Why? What’s so important?”
“I just read the contracts he wants you to sign.”
“How’d you do that?”
Ann looked away for just a second. She then seemed to muster her courage and stared back at Glen. “I’m a hacker, remember?” When Glen nodded, she continued. “There are still two clauses I think you need
to understand. First, a majority of the accredited investors can vote to devalue the shares held by the unaccredited investors as a group. That means your venture capital group can vote to revalue your shares, which are owned as ‘unaccredited,’ to a thousandth of their current worth, and more or less take over total ownership of the company. Since most of your salary is being paid in stock shares, effectively, you’d be working for nothing. Got it?”
Glen nodded, his face showing surprise.
“Good, good. Also, Mr. Lucessi’s firm has the right of first refusal on any other investor buying into your company. In effect, they can reject anyone else as an investor, so their vote to devalue would be fiat.”
Glen nodded again. “How come your Mr. Marotta didn’t tell me this?”
Ann took a few seconds before answering. “Mr. Marotta has seen these in almost every venture capital funding contract he’s ever reviewed. I just wanted you to understand that your ownership after signing is tentative. It depends on your ability to perform according to their standards. Seller beware. Got it?”
Glen nodded. “Anything else?”
She shook her head. “Good luck, sweetie.” She pecked him on the cheek, turned, and left him standing there.
Glen thought for a while about the things he’d missed and wondered, Is there more? This is like Odysseus’s trip. So much hidden under the waves. He shook his head to clear it and entered the building. But as he walked toward the table where Frank Lucessi sat waiting, Glen felt increasingly unsure of himself.
* * *
Frank smiled at Glen as he extended his hand. “At last, we can conclude our business.”
Glen shook Frank’s hand, then sat across the table from Lucessi.
The expression on Glen’s face left Frank feeling unsure of what might happen next. Frank cocked his head. “You still have misgivings?”
Glen shrugged. “I’m a beginner at this. We have a great product and it’s just the start. I’m not very sure I understand your rights as a venture funder and oncoming member of our board of directors. Seems you can literally make us vanish any time you feel like it.”
Frank’s jaw opened a bit. He wasn’t sure of a venture capitalist’s rights, because he wasn’t really a venture capitalist. He felt unsure of what to say.
Glen watched Frank’s confidence evaporate, and it hit him like a bullet. The silence between them grew like a disease.
Chapter 17
Stanford University Student Union cafeteria,
Palo Alto, CA
September 16, 11:38 a.m.
Glen picked up his pen and steeled himself to all that he didn’t know and couldn’t find out. He had already signed the documents where Frank had placed a “SIGN HERE” sticker. Now he handed them back to Frank.
Glen faced him. “So, I’ll schedule our first board meeting in three weeks. That will give us time to deposit your check, find offices, buy furniture, and refine the computer models of our first product.”
Frank nodded as he placed the contracts in his attaché case and handed Glen the signed check.
Glen rose and extended his hand. “Thanks, Mr. Lucessi.” After they shook hands, Glen left the cafeteria.
Frank remained behind.
* * *
As the rain continued falling in a steady stream, Laura Hunter approached the Student Union cafeteria. She pulled to a stop about ten feet from the door and thought furiously about what she was about to do. She and Frank had enjoyed the restaurant last night, with its glorious food. Then they had taken a walk and somehow ended up at Frank’s hotel, where they sipped a few drinks in the bar. And then they enjoyed each other’s bodies. She wasn’t sure why she had gone so far with him.
But now she was certain he would want to take another step. She wasn’t sure what it was, but she believed it could change her life forever. After her failure in the art restoration class, she feared she would ever amount to much in the art world. Maybe this meeting today is a sign?
Drenched, she stepped inside the cafeteria and saw Frank speaking with Glen. She couldn’t hear what Frank was saying but decided not to interrupt. She sat at a nearby table and watched their conversation. Frank handed Glen two thin, clipped documents and Glen folded them and placed them in his book bag. One appeared to be a check. Then Frank flashed a smile. Glen didn’t appear to be happy. He rose and extended his hand. After they shook, Glen walked from the cafeteria. When he passed Laura without noticing her, she could see he was uneasy.
Laura took a deep breath and walked to the table where Frank sat. She smiled and sat across from him. “Hi.”
Frank smiled at her. “I was hoping I’d see you here. Last night took my breath away.”
“Well, I came as I promised. Uh, no pun intended. I, ah, also enjoyed last night.”
“Yeah. But I wasn’t sure. Look, tonight is my last night here. I’ll be traveling back to Paraguay. I’d like you to come with me.”
Laura’s mouth fell open. “What?”
“Come with me. Live with me. I think I’m in love with you.”
She sat totally still, thoughts and emotions rushing through her head and her heart. “I need to think about this.”
Frank nodded. “Yes, of course you do.”
Laura abruptly rose and left the cafeteria. Frank remained, stunned at what had just happened. He hadn’t intended to tell her he loved her. He wasn’t even really sure he did. He was even more surprised she had just disappeared. And, now, what should he do? He hadn’t any idea.
* * *
Laura could hear the noise of Ann’s fingers typing before she even reached their apartment. She unlocked the door and entered. Ann looked up from her work and nodded. Then she went back to her work.
Laura smiled absently and sat on her bed. As she sat and thought, she broke into tears.
Ann looked up from her work. “Hey, what gives?”
Laura shrugged. “I need to make a decision. One that will change my life forever.”
Ann rose and crossed the room. She sat at the edge of Laura’s bed and touched Laura’s shoulder. “You might as well tell me. Maybe I can help you figure it out, maybe not. But give me a try.”
Laura nodded but remained silent. She grimaced. “This morning I realized that I’ll never amount to much in the art world. I mean, maybe if I learn everything I can, well, maybe I can become mediocre. But I’ll never produce work that makes people gawk and gasp. I just don’t have that much talent. And I don’t just want to sell art from other artists’ galleries. Ugh, what a waste.”
She saw Ann shake her head and begin to open her lips to speak. “No, Ann,” said Laura. “Let me finish. I recently met a man who seems interested in me. I like him a lot. He’s a venture capitalist and he’s been talking to your friend Glen. His name’s Frank. Tonight, he offered me the opportunity to move in with him. But not anywhere near here. He lives in Paraguay.”
Ann’s mouth opened slightly. She shook her head. “You can’t be at all sure about your future. This all seems premature. It will short-circuit any chance you have of growing your talent. But there’s something more. I don’t think you understand who Frank really is.”
“What? What do you mean, Ann? What do you know about Frank?”
“Glen has been trying to work a deal for funding from Frank Lucessi. His venture capital firm is called InTelQ. My mom and dad think his firm isn’t what it seems. If they’re right, neither is Frank. I’ve warned Glen about Frank and his business.”
“What are you talking about?”
“A few weeks ago, two startup cofounders both died in the house where they lived. But the truth is they were really Mossad covert operatives, and their deaths weren’t a murder-suicide as it appeared to the police. My mom, dad, and one of my friends think they were terminated so the venture capital firm that funded them could gain total ownership of the intellectual property of the startup. They aren’t sure yet, but it looks to me like the venture capital firm funding the startup was InTelQ. If so, then Frank is a part
y to a double murder, and there may have been more startups whose execs suffered the same fate. The investigation is just beginning.”
Laura moved away from Ann. “You’re crazy. Stay away from me.” She opened her dresser and packed clothing into a suitcase. “I’m out of here. Now.” She slammed the suitcase shut and ran from the apartment while Ann sat on the bed, a shocked expression on her face.
Chapter 18
Four Seasons Hotel Silicon Valley,
Palo Alto, CA
September 16, 1:48 p.m.
Frank Lucessi was packing his suitcase when his cellphone buzzed. He scanned its screen and smiled. “Laura! I was hoping you’d call.”
“I owe you an explanation and an answer.” She paused and he thought the call was dropped. But then she spoke. “Well, here goes. I’m not sure whether what you proposed is workable, or even if I want it. But, I am willing to give it a try. At the university my professors hate my work. I’m so frustrated I can’t stand it any longer. I doubt I’ll ever achieve what I’d hoped. And it’s too humiliating to keep trying after all their feedback over my first two years. So, my feeling is, I have nothing to lose. But don’t get your hopes up. I might easily fail at the relationship you propose.”
Frank stood and paced the room while he thought. “Okay. But give me a chance. I’ve been single my entire life. Never even thought I’d ever find someone I wanted as a mate. So, my desire to have you by my side is as much a surprise to me as it is to you.”
This time her answer came immediately. “Where do you want to meet? My suitcase is packed and I’m ready to leave right now.”
“Sure. First, I’ll buy you a ticket for the plane. Where’s your apartment? I can drive my rental there in about a half hour.”
“I’m no longer at the apartment. Why don’t we meet in the student cafeteria?”
* * *
There was a knock at the door to Ann’s apartment. She opened the door and saw Glen waiting outside. “Come in.”
Glen scanned her face. “You look like something truly awful just happened.”