hollywood billionaire

Chapter 324: Silicon Valley companies that are bound to win

“Silicon Valley?”

Han Yi already knew where Joshua Kushner's track was, but he still had to pretend that he had just heard about it.

After all, 2023 in the previous life cannot be used as a reference for 2016 in this life.

A Chinese rich man who can easily spend 3.5 billion US dollars to play music should not study a company of the level of Xingsheng Capital.

The role positioning must be accurate.

"Then you...are not operating on the correct coast."

Thrive Capital is headquartered on the seventh floor of the 1885 Parker Building in Soho, Manhattan, and Silicon Valley, as it's known, is located in the Santa Clara Valley in the San Francisco Bay Area on the west coast. Most venture capital firms that focus on investments in the technology and information industries choose to move their offices closer to their investment targets.

资产规模500亿美元往上的阿克塞尔合伙公司在帕罗奥图，280亿美元的红杉资本、350亿美元的安德里森-霍洛维茨、150亿美元的科斯拉，还有68亿的凯鹏华盈都在门罗帕克。130亿美元的指数风投、110亿美元的创始人基金、50亿美元的星火资本，以及30亿的首轮资本，皆选择旧金山市区办公。

Only super giants like the US$1540 billion SoftBank Vision Fund and the US$1250 billion Tiger Global Management, which do not need to discover start-ups themselves at all, and founders will come to them themselves, can set their headquarters in City of London and Central Park South, New York.

According to common sense, I am a prosperous capital for start-ups in the investment circle. Since I have chosen to invest heavily in Silicon Valley, I should go straight to the fight, stay in Santa Clara 24 hours a day, and get familiar with the territory and connections. That's right.

"Many people say that, saying that Thrive Capital was born on the wrong coast." Joshua Kushner glanced at Karlie Kloss, who was leaning against him and quietly listening to the conversation between the two, and smiled. Said, "But I don't think so. In my opinion, having the office on the East Coast actually gives the team a big competitive advantage."

"Competitive Advantage?"

"Yeah, first of all, I don't really feel like friends and partners have to live in the same time zone. For example, Yi, you should know the two co-founders of Instagram, Mike Krieger and Kevin Systrom . Mike and Kevin went to school at Stanford and worked as app developers in San Francisco after graduation. I went to Harvard and immediately returned to New York to work in finance after getting my degree. From the outside, we probably have nothing in common. right."

"But in fact, Mike was born in 86, Kevin was born in 83, and I was born in 85. They are less than three years apart. Our outlook on life, values ​​and career are very similar. At the beginning of 12, I The first time I met them in the Bay Area, the three of us sat in Instagram’s then-old office, which was Twitter’s old office at 164 South Park Street, and chatted from early morning until dinner.”

"I remember very clearly that Mike personally drove me back to the hotel. In the car, he patted me on the shoulder and said to me, 'Brother, Sequoia wants to invest in us and Greylock wants to invest in us. These two companies are too big. Yes, we have no position to refuse - but I will definitely leave a seat for you.'"

"I said, 'I'm really honored to hear you say that, but... why?'"

"And he said, 'Because, you're the one who knows us better than any of these bastards who are so old that they're going to drop their eggs.'"

"Incredible." Han Yi sighed softly, "Did he really use the description of being so old that his balls will fall off?"

"Word for word." Joshua nodded, "Silicon Valley is based on the spirit of innovation. Maybe all the companies in Palo Alto and Menlo Park are burning the money of the seventy-year-old man, but these people are burning the money. , but they are all souls in their twenties. Millennials, and even Gen Z entrepreneurs who are emerging on the stage, need not only cash, but also help, friendship from investors, and most importantly—— Agreed. Before the world sees their work, embrace them and become close friends with these technology geeks who are actually very insecure at heart. I can do this, but those who rely on investing in Cisco, 3Com and Bay The older generation of technology capitalists who started with Networks can’t do it.”

"They have been left in the 90s." Han Yi echoed with deep approval.

After all, in the industry he is deeply involved in, there are also many zombies who rely on the glory of the past and greedily devour new flesh and blood.

"Yes, that's exactly it."

"Nearly all the founders of the companies I work with Josh have met and dined with, and many of them even went on vacation with us. Lake Como, or St. Barth." Karlie Kloss said The boyfriend’s self-report provides a more detailed and credible third-party perspective, “I can say with great confidence that those people—dozens of entrepreneurs—can’t believe that Joshua Kushner is like this in reality. The person. A pathologically polite business partner and development advisor who remembers their favorite brands of whiskey and constantly reminds them how much he values ​​their friendship. Funding, logistical support, and pep talks at all times He will be there when they need him. It is difficult to hear boastful boasts and unpleasant criticisms from his mouth."

At this point, Carly brushed off the non-existent dust on Joshua's shoulders and looked at the other person with love in her eyes.

"I really like what one of the founders said about Josh, it was Mike, or Kevin, I don't remember. But he said, 'Joshua Kushner has a huge weight on his shoulders, but he has He completely hid it under a thick layer of goodwill."

"That's what I love about him."

"Aww, I love you too babe."

"Ah, look at you, what a sweet couple."

Facing the two people who were chatting with each other and playing PDA in public, Han Yi could only send insincere praise and blessings. The insincerity does not mean that he is not optimistic about the relationship development of the two people - yes, Carly and Joshua are indeed a bit deliberately performing, because in the United States, in addition to showing performance, ability and connections, the way to attract potential partners is It is through a warm and healthy family that you can highlight your beautiful personal qualities from the side. After all, this is what is done in presidential campaigns, and of course it is also done in private gatherings on weekdays.

But even if he used a little too much force, it was not difficult for Han Yi to see that the two were indeed two inseparable lovebirds. From 2012 to 2023, in 11 years, neither party had any scandals. Joshua went against his family for Carly and did not invite his parents to the wedding. Carly was also consistent and never forgot to bring her boyfriend with her wherever she went. After getting married, she gave birth to two children soon after, and focused most of her energy on running a family.

Falling in love at first sight is like a raging fire, and then we join hands to fight against the enemy, overcome thorns and thorns, and finally achieve righteousness and become united forever.

Han Yi's insincere words originated from this.

He is sour.

This is his ideal love life, but it is not the reality he is facing.

"I have a theory. A man who is full of care and love for his partner will definitely treat his partner just as well, and he will definitely have good luck."

"Did you hear that, Josh?" Carly patted Joshua's thigh, "I told you to be nice to me."

"I did the best I could, honey."

"Oooo... kay." He originally wanted to change the topic, but he didn't expect to be hurt even more. Han Yi grinned and decided to go straight to the point, "So, Josh, are you currently preparing a new investment fund?"

"Yes, preparations will be made after this round of fundraising." The interest shown in Han Yi's words cheered Joshua up. He cleared his throat and continued, "The next venture capital fund is expected to raise a total of US$10 billion."

"How much is the total amount of this fund this time?"

"Baby, you guys talk first, I have to take care of my friends, lest they say I'm stuck with you all day again." The smart Carly knew that her task had been completed, and she kissed Joshua's Cheek, waved to Han Yi, stood up, and walked towards the direction where Barbara and the others were waiting.

"OK, dear."

After glancing at Carly's back, Joshua took a deep breath and adjusted himself into full working mode.

"$7 million, Yi. The total is $7 million."

"Then just set the target at US$10 billion for the next round. It's very ambitious." Han Yi folded his hands on his knees and nodded slightly.

"Dream bigger." Joshua Kushner's answer was as vigorous as a newborn calf.

"If you don't mind, Josh, can you briefly share the basic situation of this round of fundraising?" Han Yi thought for a while and continued to ask, "What is the name of this fund, how many investors are there, are there... Important investors that can be disclosed?”

"Of course, I will answer you as detailed as possible within the scope of my authority." Joshua Kushner understood that Han Yi was doing a simple initial back-up, so he answered quite officially, "This is The fund is called Xingsheng Capital Investor Fund No. 71. As the name suggests, this is our fifth fundraising operation. In Investor Fund No. , there are a total of beneficial owners, most of whom request to remain anonymous, but there are also some Funds of Funds have disclosed the news of investing in us, there are five of them in total, these are the ones I can share with you."

“The first one, Duke University Employee Retirement Fund.”

This corporate pension fund registered in Durham, Durham County, North Carolina, is managed by Duke University's retirement committee. It is ranked eighth in the 2016 US News American University Rankings and has an annual budget of more than $70 billion. A top-tier university, since 1959, a single employer defined benefit fund for "nonexempt employees" who are not covered by Duke's faculty retirement plan.

In 2016, Duke ranked 411th in the world as an institutional investor, with a total of $127 billion under management. Most of the funds are tuition fees paid by recent students and donations from previous graduates. Therefore, Duke University, which has a stable source of income, has an extremely stable investment strategy. It does not seek to make money, but only seeks to outperform inflation. This employee retirement fund is no exception. We will not touch any risky funds and only cooperate with asset management companies with good historical records.

"Second, Washington Operating Engineers Trust."

This is a multi-employer union pension fund headquartered in Sparks, Maryland, with coverage in and around Washington, DC. Established in 1953, the program provides retirement and pension benefits to eligible operating engineers — construction workers who work as heavy equipment operators, machinists, surveyors and maintain buildings. and stationary engineers operating heating and other systems in industrial complexes.

The Washington Operating Engineers Trust Fund meets the criteria under Section 501(c)(9) of the Internal Revenue Code as an organization that pays life, sickness, accident or similar benefits to members or their dependents and designated beneficiaries. Therefore no income tax is payable. However, any net income earned by the organization during its operations cannot be paid to individuals in any form. Third-party financial institutions that are independent of members and their employers must be hired as trustees, and these institutions cannot charge more than a fixed management fee. Under the influence of this regulation, such multi-employer union pension funds will not put profits first, as long as they ensure that members' pensions can be paid on time. Therefore, what this foundation chooses to invest must be projects with extremely low risk coefficients and guaranteed yields despite droughts and floods.

The reason why Joshua Kushner put these two funds out at the beginning was simply to prove to Han Yi that the safety and stability of Xingsheng Capital had been recognized by these large institutions.

"I see." Han Yi rubbed his left thumb and index finger, "Are all major clients this type of investor?"

Han Yi’s meaning is also very clear. Safety and stability are important, but if an investor’s fund is filled with union pensions and retirement benefit plans, it only means that Joshua Kushner’s investment portfolio lacks Growth points that attract aggressive customers.

"Of all the clients of Investor Fund No. 15, mutual funds account for 501%, and 9(c)(25) and similar funds only account for 75%." How could Joshua Kushner not understand Han Yi? The subtext in his words, he looked at the latter and explained seriously, "We are very lucky. The other % of fund of funds customers, as well as the broader group of ordinary private customers, have many advanced investment concepts and considerable investment histories. Brilliant standout.”

"For example?"

"For example, the David Geffen Foundation."

"Oh, David Geffen..."

Hearing this name, Han Yi nodded slightly thoughtfully. For him who is sprinting towards the core circle of the entertainment industry, David Geffen's name is enough to be described as thunderous. Starting from the famous mailroom of William Morris Agency, David Geffen took only five years to become the vice president of CMA Agency, one of the two predecessors of ICM. In 1971, he left the artist management industry and founded his first record company, Shelter Records, signing the Eagles, Bob Dylan and Joni Mitchell and cultivating them into the defining music label. Music superstar of the era.

In 1980, he founded Geffen Records and reached channel distribution cooperation with Warner, trying to conquer a wider territory. This time, David Geffen takes it to the next level, Olivia Newton-John, Elton John, Aerosmith, Blink-182, Guns N' Roses, Nirvana, and Neil Young. The star-studded lineup under his command was such that he successfully sold the record company to MCA in 1990 and received US$5.5 million worth of stock. In 1991, Panasonic acquired MCA Records and spent another $6.5 million to buy the stock from David Geffen. In less than a year, he made a net profit of million.

In the film and television industry, David Geffen is also doing well. He founded Geffen Pictures in 1982, and in 1994, he joined Steven Spielberg and Jeffrey Katzenberg to develop it. Reorganized and named DreamWorks Pictures, the following story is a myth passed down by Hollywood. Eleven years later, DreamWorks was packaged and sold to Viacom at a valuation of US$16 billion. David Geffen finally became a poker player in the first five years of the 2016st century. entertainment capitalist. David Geffen, who ranked 73rd on the Forbes list in 67 and is worth $501 billion, certainly won’t be too shabby with the foundation he established for himself. In fact, in order to let his boss better understand the management methods of other capital giants in the entertainment industry on their assets, Antoine Jiashe gave Han Yi a detailed analysis of David Geffen's wealth structure as soon as he joined the company. The David Geffen Foundation, a non-profit organization defined as a 3(c)() by the IRS, is a tax avoidance tool for this wealthy Jewish businessman from Brooklyn Heights.

The combined balance of investment targets and cash accounts totals $495908752. The David Geffen Foundation is in charge of most of the capital that David Geffen himself can currently allocate. All of his external investments are basically completed through this foundation.

There are no investment restrictions and you can save an average of $414 million in taxes every year.

"It's really a great thing that you can win his favor." Han Yi gently waved his index finger and recalled, "I remember reading a report before that he invested in a technology company that ranks among the top in my motherland. company."

"Didi Holdings?" Joshua Kushner quickly searched for the answer in his mind.

"Yes, Didi." Han Yi confirmed, "A very smart investment, a very good relationship... extremely generous returns."

"Isn't it? Here in the United States, many investors indirectly hold Didi's shares by investing in Uber. Only a very small number of people can directly become shareholders, and Mr. Geffen is one of them." Joshua Kush Na smiled, "He spent US$750 million to invest in Didi, and the total value of the shares he still holds is US$975 million, which is almost within this range... And this year, he invested in No. 792 Investor Fund The funds stored there are US$ million.”

"What you mean is that your Investor No. 5 fund can get higher returns than Didi, so he will invest more money."

"I didn't say anything." Joshua spread his hands, "It's the data that speaks."

"Haha, I like what you said." Han Yi unbuttoned his suit jacket and laughed a few times, "What else? Are there any other important players that deserve my attention?"

"There are not many names that I can reveal. There are two that may interest you, the Richard and Susan Smith Family Foundation, and the Grantham Foundation."

"Richard and Susan Smith...owners of General Films and Neiman Marcus...former owners?"

"It's them."

"OG."

Han Yi's evaluation of the couple was concise but accurate. Richard Smith was indeed a legend who was active in the last century but has now retired from the business world. At its peak, General Film Company had 1500 screens, but it was sold to AMC in 2002. Its publishing company Harcourt was also sold to the British publishing giant Rex Group in 2000 for US$57 billion. Neiman Marcus is the flagship of the high-end department store industry in the United States and has influenced the luxury consumption habits of a generation. However, it has been eleven years since TPG and Warburg Pincus jointly acquired the group from Mr. and Mrs. Smith for US$51 billion. The past is a thing of the past.

"Josh, I don't know how to make the following sentence sound more tactful and friendly...but I seem to see a certain pattern in your customer group portrait."

"They're all Jewish, right?" Joshua Kushner cut to the chase.

Yes, although Richard Smith sounds like the most commonplace Anglo-Saxon surname, the Jewish imprint on him is extremely clear. His wife, Susan Smith, whose name was Susan Flakes before she changed her surname, is a full-blooded Jew. Their nephew, Jeffrey Lurie, the current owner of the NFL team Philadelphia Eagles, is also Jewish.

Throughout his business career, Richard Smith did business with Jewish interests. Otherwise, he would never have been able to buy Neiman Marcus or the Bergdorf-Goodman on Fifth Avenue.

"I didn't say anything, it was the data that spoke." Han Yi replied, "I'm not saying this is a bad thing. On the contrary, I have always looked forward to cooperating with investors from different communities, especially the Jewish community. You You know, the friendship between Chinese and Jews has been established since the Christmas holiday."

"Yes, this is indeed a fact." Joshua patted his thigh, and his laughter sounded hearty and joyful.

The Chinese, the Jews, and Christmas are a very strange combination in American society. The Jews don't celebrate Christmas, and neither do the Chinese. Chinese restaurants were the only shops open on the streets and alleys during Christmas decades ago. Therefore, going to a Chinese restaurant for dinner on Christmas Day has long become a cultural tradition for American Jews.

The reason why Han Yi said this, or in other words, the reason why he mentioned the topic of Jews at the risk of being politically incorrect, was to clarify his demands to Joshua Kushner.

Choosing him means choosing the Jewish forces standing behind him.

After all, if you want to gain a long-term foothold in the American entertainment industry and survive the successive attacks from the three major music groups in the next few years, you must reach some interest exchange agreements with the Jewish tycoons.

"There are quite a few Jewish capitals in the No. 5 Investor Fund. However, this is actually the current situation in the financial circle. If you go to any asset management company and look at the list, there will definitely be many family foundations with... With a Jewish surname." Joshua kept a gentle smile and lowered his voice to prevent anyone from hearing their overly sensitive conversation.

"Yes, I understand this very well." Han Yi glanced at Joshua. Judging from the other party's reply, it was not that the latter did not understand what he meant, but that he saw his appeal and began to play with it. "In fact, there are not only investors, but also many managers. The one who has the closest relationship with our family is Uncle David."

"Uncle David?" There are many Davids on Wall Street, but the one worthy of Han Yi's special mention as a talking point. In Joshua's opinion, there should be only one, "Rubinstein?"

"Rubinstein." Han Yi responded, "The Han family has been cooperating with him since the founding of the Carlyle Group... Ah, by the way, I was there at the last fundraising dinner for the Washington Monument... Are you the same? went?"

In fact, Han Yi had never seen him at the dinner. He spent that night battling wits with the congressmen and had no energy to pay attention to other people. But it didn't matter whether Joshua was there or not. He just wanted to use this question to show his close relationship with David Rubinstein.

Without disclosing any sensitive business information related to CEP-III.

"Fundraising dinner? Which hotel is it at?"

"Carlisle."

"Then I probably haven't been there." Joshua thought for a moment, shook his head, and smiled, "But I did meet Rubinstein a few times before. The social circle in Manhattan is really small, and Mr. Geffen and Smith Regardless of whether they are husband or wife, I actually met them through my father."

As expected, the way to exchange secrets is to share an innocuous secret with the other party in exchange. Han Yi vaguely informed Joshua Kushner about his relationship with David Rubinstein, hinting that he could help Joshua Kushner further his upward path on Wall Street. Joshua, who understood the situation, also The tight-lipped family influence revealed a little bit.

"I understand, it is indeed difficult to start a business without the support of the older generation. I understand this very well."

"Then, the Grantham Foundation you mentioned...I don't think I'm particularly familiar with this." Han Yi, who just gave up, did not continue the topic, lest the other party feel that he was eager to find a matchmaker with him, and the lion opened his mouth.

"Maybe it's because he doesn't appear much in the entertainment industry. Jeremy Grantham is from the UK. His company is located in Boston, called GMO, and it also does asset management work. The most amazing thing about this company is , since its establishment in the 70s, it has maintained a pessimistic view of the economy for a full four decades, thus making a fortune during the Japanese real estate bubble in the 08s, the Internet bubble in the s, and the credit crisis in . According to GMO Our own people said that the reason why they invested in us and these Internet unicorns that they were not optimistic about at all was just to hedge against the risk of being short."

At this point, Joshua observed Han Yi who couldn't help but nod. He was afraid that the other party would not get the key information, so he added another sentence.

"The Queen personally awarded him the Order of the Empire... If you have development plans in the UK, being friends with him will make your direction clearer."

The so-called European and American music scene, in fact, there are only a few big markets, the United States is first, the United Kingdom is second, and whoever else is third. Joshua could see clearly that Han Yi, whose main business was music, would definitely branch out there in the future, regardless of whether he went to London now or not.

"Got it, Josh. I have to say, the depth and breadth of your client list is truly admirable."

Doing asset management means building a network of people. He must be like David Rubinstein, who can enter and leave the White House at will, and can mobilize House committees to do things for him with a single phone call. Only with this level of power can he control a fortune of hundreds of billions of dollars without being counterattacked by it.

At present, it seems that although Joshua Kushner is still far from that level, the system built by the family and himself can be regarded as beginning to see scale.

"The specific details need to be further discussed, but I am very interested in working with you and becoming a member of this client list, Josh... I happen to have a fund arriving in the United States within the next quarter."

"Great, Yi." Joshua stretched out his hand to Han Yi, his calm tone occasionally revealing excitement and enthusiasm that could not be concealed even though he was careful, "Investor Fund No. 6 is also very honored to have an important customer like you. .”

"It's not Investor Fund No. 6." Han Yi shook his head.

"Isn't it?"

"Look, Josh, there are a few things I need to clarify with you before we officially sign the agreement."

"Appreciate further details."

“First, if we want to cooperate, I hope we can jointly establish a new fund series, managed by Xingsheng Capital, and I will provide the main financial support.”

"About..." Joshua hesitated.

"As for the quota, you don't have to worry. At Carlyle Group, my family has more than ten digits of cash deposited. At Xingsheng Capital, the amount I can mobilize is definitely not that much, but it is at least nine digits. …Big nine figures if done right.”

"Understood." Joshua licked his lips. It was not difficult for him to tell from Han Yi's tone that the other party was not making a casual promise, but was really interested in advancing this nine-digit investment project.

This Chinese rich man represents a super big deal that exceeds many times his expectations.

"For this investment fund we jointly established, I hope to have a certain say in the access mechanism for other investors...I am not the kind of person who likes to share goals and visions with others. Of course, my requirements are also It’s not that harsh, the foundations you just mentioned… are just right.”

Hearing this, Joshua gave Han Yi a knowing look.

It’s not the money that’s right, it’s the person who pays.

"Second, as I just mentioned, I have my own goals and visions. In fact, in terms of investments related to the technology industry, I have a very clear goal and vision, or in other words, I have to get a company company of."

"Josh, if you can use your connections in Silicon Valley to help me successfully acquire it..."

"You will find that you will have a great friend in the entertainment industry who is willing to share."

(End of this chapter)