Chapter 19: Sowing Seeds
Chapter 19: Sowing Seeds
First, I sowed the seeds.
I studied American companies and the economy to prepare for my investments.
Apple, Amazon, Microsoft, Google, Johnson & Johnson, Walmart, ExxonMobil, and so on.
These massive corporations, with market caps in the hundreds of billions of dollars, had either changed people's daily lives or wielded global influence.
‘I like the look of Tesla.’
The car of the future.
It felt years ahead of internal combustion engine cars.
I hadn't tried features like autonomous driving since they weren't to my taste, but I figured I'd get used to them over time.
‘I like the company, but it has its share of problems.’
It had been operating at a loss since its inception.
Every time it ran out of money, it sought new investment, and rumors of bankruptcy would circulate. The slow increase in production volume was also a critical weakness.
In Korea, it was taken for granted that a car factory could produce hundreds of thousands, even millions, of vehicles.
They pursued economies of scale to lower production costs and invested that money into technological development.
Tesla, being a tech-first startup, was different from traditional car companies.
Its production process was so fraught with issues that any increase in output was treated as headline news.
‘They sell well when they can actually make the cars, but they can’t seem to manage mass production.’
Even their approach to factories felt different from Mirae Motors.
Their emphasis on automation led to numerous problems in the early stages of factory operations.
‘The direction seems right, though.’
I hesitated to invest in Tesla.
It had the media attention, the technology, and the product appeal—all the hallmarks of a world-changing company, a common trait among global giants.
Would it solve its mass-production issues and skyrocket, or would it collapse under the weight of its trial and error? At this point, the future was impossible to predict.
‘For now, I'll just keep an eye on it.’
Unlike crypto, stocks required a great deal of knowledge about the companies themselves.
It wasn't an area where you could invest blindly.
Fundamentally, however, both were ruled by greed.
‘The moment I see any sign of a surge, I’ll buy in fast.’
I had come all the way to San Francisco only to sit in front of a computer every day, searching online and watching YouTube, but thanks to that, I had accumulated a wealth of knowledge in a short time.
Besides, I had a friend by my side who could help whenever I needed.
“Myeong-woo, how do you invest in a startup?”
“You’re going to invest the money you made from crypto? You know it’s risky, right?”
“I know. But I want to try it for the experience.”
“There are plenty of ways. You can start a venture capital firm, put money into a fund that specializes in startup investments, or invest directly.”
Starting a venture capital firm seemed like too big of an undertaking.
Joining a fund didn't seem very appealing either.
One thing I'd learned while studying the economy was that very few Korean funds generated proper returns or possessed real expertise.
Fund managers had high turnover rates, and I'd seen a firm's flagship fund get cut in half after a massive investment in China went south.
American funds might be different, but I wanted the experience of investing directly.
It would broaden my perspective on the world.
“How do you invest directly?”
“If you know the founders, you can invest.”
“Can you introduce me to some good founders?”
“I can look into it.”
I had only hoped he could connect me with some founders or give me some insight into startups.
But Oh Myeong-woo was far more connected and well-informed about the inner workings of these companies than I had expected.
“I know because I’ve worked with them. Aurora. They’re incredibly fast.”
“How fast?”
“About three times faster than other companies. Those guys are workaholics.”
When a venture capital firm invests, they base their decisions on business models, technology, ideas, and talent presented on paper.
They couldn't possibly know a team’s work speed, cohesion, and morale as well as someone who had worked directly with them.
“Even when startups grow, the core team is usually just two to seven people.”
“Really? That’s smaller than I thought.”
“Well, I don’t know every company, but even Apple and Microsoft had small core teams in the beginning. The abilities and personalities of the core members are crucial.”
If even one of the seven founding members was lazy or neglectful, it could cause major disruptions to their work.
On the other hand, if one of those seven was a true, awe-inspiring genius…
If there was a genius who wasn't publicly famous or hadn't yet shown incredible results, the company's chances of success would be much higher.
“The places I know are less like internet companies and more focused on specific fields. A lot of them are in the auto industry. Aurora, for example, is involved in autonomous trucking.”
“Investing in specialized companies is fine too.”
Silicon Valley was a cradle for all sorts of venture companies.
The Da Vinci surgical robot, which I’d learned about while working at the pharmaceutical company, came to mind.
It performed surgery by making small incisions in the body, inserting an endoscope and a laparoscope, and manipulating robotic arms.
Compared to open surgery, it resulted in fewer complications and faster recovery times. That, too, was created in Silicon Valley.
‘The machine costs over 2 billion won. I heard the salesperson’s incentive for selling just one was pretty substantial.’
I remembered how envious everyone was of what they considered an easy sales job.
Arcor was also a monopolistic company, which made sales relatively smooth, but there was a clear difference between that and a company that dominated the entire global market.
Oh Myeong-woo's skills were on full display when we met with the founders.
“We’ll give you a 10% stake for $700,000.”
“Chris. Aren’t you lowballing my friend a bit?”
“Khan, quiet down. We’re talking important business here.”
“I know your situation. Give us 20% for $900,000. You want a Double-Double, don’t you? How long are you going to keep eating cheeseburgers?”
“Damn it. If you’re going to put it that way, I guess we have no choice.”
I was worried the investment opportunity would fall through.
But Chris just grinned and extended his hand.
“Khan’s best friend. We’re partners now.”
“Great. As an investor, I look forward to watching the company grow.”
I shook his hand.
We had a local lawyer draft the contract and I wired the money immediately.
I didn’t know if the investment would be a success, but I had taken a successful first step.
An investment that would have been impossible without Oh Myeong-woo's connections and abilities.
“Myeong-woo.”
“Yeah?”
“I love you, man.”
“Cut the crap.”
Through Oh Myeong-woo’s introductions, I invested in several more startups.
Each investment was under a million dollars, and I focused mainly on Series A funding.
Startups had a seed money stage in their early days.
Series A was the stage where they developed a business model, honed their technology, created a product, and tested its market potential.
In Series B and C, they would seek funding to seriously expand their market share or aim for market dominance.
I thought of Helena, whom I had met while eating a hamburger.
She seemed quite close with Oh Myeong-woo.
“What about that company that makes clothes from eco-friendly materials?”
“Their progress is too slow. I’m not even sure if their business is viable. The CEO is always running around trying to get investments. He’ll probably try to squeeze $3 million out of you for a tiny stake.”
“You’re ruthless.”
“Of course. We’re talking about money here.”
For a moment, I had forgotten what kind of guy Oh Myeong-woo was.
This was the same guy who, back in our semi-basement days, threw a fit because I bought ramen that was 20 won more expensive.
We had bonded so easily because we both had that broke mindset down to our bones.
“You have more money than I thought, though.”
Oh Myeong-woo said that after my total investment in startups exceeded seven million dollars.
“I did make quite a bit.”
“I won’t ask how much. But from now on, you’re buying the meals.”
“Deal.”
Investing in startups was like planting seeds with high potential.
I didn't know which seed would blossom, but I looked forward to the future.
* * *
The price of Ripple, which had fallen below 4,000 won, continued its steep decline.
It kept dropping by 100, then 200 won, and soon it was at 3,500 won.
“Huh. This isn’t right.”
Kim Sang-gi was startled into full awareness.
The mood in the group chat with his colleagues was full of hope, and the crypto forums were the same.
So why was Ripple still falling?
“Why is it dropping?”
The price in Korea was 3,500 won, but overseas, it was only 2,400 won.
The Kimchi Premium made it more expensive to trade in Korea, but it had fallen much further abroad.
- Looks like a healthy correction has begun. Let's hold on tight.
- I think there’s some big news about Ripple coming soon.
- Let’s goooo!
Even though Ripple was falling, its December rally had been so incredible that the forums were still buzzing with investors.
- Holding from the 44th floor. Feeling quite calm.
- Enjoy the view now lol. Once we hit the 200th and 300th floors, you’ll all be on the ground floor.
- I bet all the banks in Korea will start using Ripple for transactions.
- Out with the expensive and slow SWIFT!
Browsing the crypto forums wasn't enough to calm his nerves. Although he had invested early enough that he was still far from his break-even point.
Unable to overcome his anxiety, he tried calling Kim Shin for advice, but the call wouldn't go through.
It seemed he often had his phone off in the US.
‘I think I’m screwed.’
The pattern was eerily similar to when he had lost money investing in stocks.
‘It’s cheap compared to the company’s value. A perfect chance to buy low!’
He would buy a stock thinking it would go up, and it would fall.
‘Yes! A chance to average down!’
He would buy more to lower his average cost, and it would fall even further. He should have just stayed put.
‘It’s over now.’
He would sell, thinking the price would keep dropping, and it would suddenly surge.
Right now, he was feeling...
‘There might be a temporary correction, but Ripple will bounce back soon. It’s such a good coin.’
With that thought, Kim Sang-gi decided to hold on for just one more night.
The next day at 7 a.m., the first thing he did after waking up was check the crypto prices on his phone.
< Ripple: 2,800 won >
It had dropped another 700 won while he slept.
He logged onto the crypto forums without even properly washing up.
- It’s dropping in real-time.
- Ripple and Ada are getting hammered ㅠ
- Ripple…
- Where’s the bottom?
- Why is everyone so impatient?
- Ripple will rise again.
Reading the forums felt like it rekindled his lost hope.
‘Is this a chance to buy the dip? To average down?’
A moment later, Kim Sang-gi snapped out of it.
‘Sell it all. I’m an idiot, so I shouldn’t trust my convictions.’
* * *
Mirae Motors was a corporate giant that manufactured and sold over 8 million vehicles a year.
It was famous for its vertical integration, encompassing everything from its own R&D to steel, parts, logistics, and finance.
Recently, sensing a paradigm shift in the auto industry, the company had been actively preparing for acquisitions and investments in fields like autonomous driving, artificial intelligence, sensors, batteries, and robotics.
Jin Yoo-kyung was in charge of a new car commercial as well as the acquisition of promising Silicon Valley startups.
“What did you say? Aurora rejected our investment proposal?”
“Yes. It seems they recently sold a stake to a new investor.”
As a corporate behemoth, Mirae Motors had to go through multiple stages of internal review for any acquisition.
The company had passed through the initial assessment of potential, the verification of its business model and marketability, and even the validation of its technology.
While they were trying to haggle for a better deal, someone else had swooped in.
“What about Metawave?”
“It seems they’ve also received an investment. They said they won’t be accepting any new investments for the time being.”
Of the ten companies Mirae Motors had targeted, they had already lost three.