Chapter 49. Purple Games (2)

As Charles was about to refuse, the young man added one more thing.

"1 million dollars is the cost for the share acquisition. To ensure smooth development, we will provide an additional 1 million dollars as development funds. If needed, we are also considering further investment."

At this, Charles and Ken's eyes widened.

"Is, is that really true?"

In fact, the lack of manpower had always been a major obstacle. If they had more people, they could develop much faster.

"I think we should expand the development scale. The core of Block Valley is its strong freedom. Perhaps players can use various tools within the game to create their own games and play with friends. This could infinitely expand the game world, couldn't it?"

Charles was taken aback by this.

'Create a game within a game?'

This was something he had never considered before.

Sandbox games allow players to create everything within the game, from terrain to monsters and characters like NPCs.

Therefore, there's no reason why they can't use this to create new games.

'A game within a game...'

In any case, this made it worth giving up more than 50% of the game's shares.

Charles and Ken tried to hide their excitement, but the other party added one more thing.

"There are two conditions for this."

'Of course there are.'

Charles asked him.

"What are they?"

"First, if you sell additional shares in the future, Continuum Capital must be the preferred negotiator."

"And?"

"Second, I want the exclusive publishing rights."

This left the two of them flabbergasted.

Game companies are generally divided into developers and publishers.

Developers create and complete the game, while publishers sell the completed game to consumers.

Large game companies often publish their games themselves, but small-scale game companies usually entrust their games to publishers for sale.

Even if they handle domestic services themselves, they often entrust local publishers with overseas distribution due to issues like translation, localization, regulation, and server management.

Publishers not only handle sales but also operations, translation, promotion, events, and server management, and sometimes provide funding during the development process.

While the development of ESD has opened up the possibility of direct service without a publisher, the role of a publisher is still crucial for greater success.

The revenue can vary greatly depending on which publisher handles the game. Even the best game can fail if it meets the wrong publisher.

Charles asked.

"Does Continuum Capital have a company capable of publishing?"

"Not at the moment."

He was so taken aback that he exclaimed.

"What do you mean? You're asking for the rights when you can't even publish!"

Han Meiru calmly said.

"Calm down. We don't have it now, but we will in the future."

"What do you mean?"

"If we determine that we don't have a global distribution network by the time the game is completed, we can terminate the publishing contract."

"Really?"

"Yes. As an investor of 2 million dollars, I would also suffer if the game doesn't sell well due to poor publishing."

Charles and Ken exchanged glances.

"Can we discuss this among ourselves for a moment?"

"Of course."

The two of them went outside and called Ruphus, who was still in the workshop, to explain the situation. Upon hearing the explanation, Ruphus excitedly said,

[What!? 2 million dollars? What are you doing? Sign the contract right away! Transfer the shares and get the money! Buy some coffee and kebabs on your way back!]

Hearing this, Charles realized he was hungry.

With his colleague's agreement, Charles returned to the room and said,

"Alright. We'll sign the contract."

"You've made a good decision."

David took out the contract he had prepared in advance.

Charles, as the representative, carefully reviewed the contract but found no significant issues. The two of them signed it as co-representatives.

"The investment will be transferred to you today."

"Understood."

Charles suddenly became curious.

They had been developing for three years, but nothing had gone right. Why did this person decide to invest?

"Why did you decide to invest in our game?"

Han Meiru smiled and said,

"Because I think it will be a huge success."

* * *

If startup investments are a lottery, indie game investments are a minefield.

Out of the countless indie games, only one in a hundred, one in a thousand, or even one in ten thousand might succeed.

However, there are occasionally games that pass through the needle's eye and become huge successes. Minecraft, now owned by NS, is a prime example.

While Minecraft is currently known as the epitome of sandbox games, this will change in a few years.

Block Valley.

Charles Griffin, Ken Atley, and Rupert Bailey developed this game, and Wechant invested 2 million dollars to secure 50% of the shares and the publishing rights.

The game, released a year later, sold over 20 million copies in its first year, achieving an unprecedented success for an indie game.

Unlike other games with pre-set stories, Block Valley allows users to create their own games within the game, expanding the world infinitely.

As a result, the number of users grew over time, eventually turning it into a game platform enjoyed by 300 million people.

Later, Purple Games changed its name to Block Games and listed on NASDAQ, recording a market capitalization of over 40 billion dollars on the first day.

It was an incredible achievement for a single game.

Once the game's outline becomes clear next year, many companies will rush to invest.

Having secured 50% of the shares and the publishing rights of a game that will become a key player in the future market, this is a significant achievement.

However, the job is not yet done.

There are plans to acquire additional shares before the IPO, and a publisher needs to be arranged.

What to buy is already decided; it's just a matter of having the money.

"Where is our next destination?"

"Silicon Valley."

* * *

Silicon Valley.

A place everyone knows, but it doesn't actually exist as a specific location in the United States.

It's a term used to describe the cities in the southern part of San Francisco, such as San Jose, Redwood City, and Palo Alto.

The exact boundaries vary depending on who you ask.

In any case, this is the birthplace of America's high-tech industry and home to many of the world's leading IT companies and startups. Korean companies like Yuseong Electronics and LK Nix also have offices here.

As a result, housing prices and rent are skyrocketing, and earning 100,000 dollars a year is considered below average.

Despite this, the well-developed startup support system and the ease of finding necessary talent continue to attract entrepreneurs.

We decided to rent a car instead of flying. The California State Route 1, connecting Los Angeles to San Francisco, is famous for its scenic drive.

I took the wheel, and David sat next to me.

As we drove, the warm sunlight and the clear sea greeted us. The endless ocean by the road was a spectacular sight.

Feeling like we've already succeeded,

While I was enjoying the good vibes, David asked with a worried tone,

"Do you think this investment approach will work?"

"What do you mean by this investment approach?"

"I mean the approach of investing in a burger company because the burger at the pub was delicious, investing in a movie company because you like movies, and investing in a game because it's fun."

"Chairman Aaron Baker said to invest actively in your interests and hobbies. He made a huge success by investing in Coca-Cola because he liked it."

"And he also lost 1.3 billion dollars by investing in a ketchup company he enjoyed."

"..."

Even the best investor can fail sometimes.

In fact, his concern is understandable.

I know the future, but to him, it might seem like I'm investing based on my whims.

"Don't worry too much. That's why this time, I plan to invest in a well-known company."

"Which one?"

"Have you heard of a company called CoolCloud?"

David nodded.

"I know it."

"Of course you do."

"It's one of the most famous companies in Silicon Valley right now."

As the name suggests, it's a cloud company.

While cloud technology is often thought of as just a means of storing data, it has a much broader range of applications.

When we search the internet, shop online, or play online games, we are essentially accessing the cloud.

With the increasing use of computers and smartphones, the cloud market has grown explosively every year. As a result, Silicon Valley is teeming with related companies.

It might be one of the top three industries for startups.

Among the fiercely competitive leading companies in this market, CoolCloud is the one that has grown the fastest recently.

"What do you think the company is worth?"

"About four months ago, Redstone expressed interest in investing. It was reported that they offered 14 billion dollars for a 20% stake."

"So the company's value would be around 70 billion dollars."

"However, the investment fell through during negotiations. It's said that CoolCloud turned it down."

"Why?"

"They thought the offer was too low. The executives reportedly asked for twice as much. Given their current growth, it's possible."

"I see."

That's true.

CoolCloud will go public early next year, and its valuation will soar to 280 billion dollars on the first day. If it were listed on the KOSPI, it would be the second-largest company after Yuseong Electronics.

But even this is an incredibly low price. If I had more money, I would gladly pay twice as much to acquire it.

David asked me,

"Do you plan to invest in CoolCloud?"

"Yes."

I currently have 107 million dollars.

Even if I poured all of it in, I couldn't get 1% of the company. But even that would be a huge success.

He thought for a moment and said,

"It's a good idea, but it will be difficult."

"Why?"

"One of the co-founders is from the prestigious Preston financial dynasty, and the other is a well-known IT tycoon."

"Do they think they have enough capital on their own?"

"Yes. They have rejected investment offers from top investment banks, private equity funds, and IT companies. If they do accept investment, it will likely be after maximizing their valuation."

That's why they also rejected Redstone's offer.

"If there's a line of investors, the chances of a new investment company getting in are even slimmer."

"That's true."

Well, if I think a company is good, others will think the same.

"Whether it works or not, can we at least arrange a meeting?"

Although the company is now defunct, he has the connections and reputation he built while working at Victor Investment.

It shouldn't be too difficult to arrange a meeting.

David nodded.

"Understood."