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Silicon Valley

Season 2, Episode 1 — Sand Hill Shuffle

TMDB episode metadata
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Ooh, fuck. Yeah, it doesn't matter.
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Whoa. You okay there, Richard?
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Uh... Yeah, I'm fine.
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Sorry, I can't really throw it any slower.
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Give it another cut, Richard.
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No, I'm fine. I don't want to.
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Maybe someone else wants to. Who's next?
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If someone has to go, I'll go, but it seems very frightening.
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You sure? You got us for the whole hour.
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- Anyone? - Would it hurt your feelings if no one went?
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Ladies and gentlemen,
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welcome to the annual Stern Taylor Fall Classic.
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I'd like to start by making a toast to our very special guest tonight,
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Richard Hendricks.
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Richard, after your perfect game at TechCrunch Disrupt a few weeks ago,
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we fell in love with you and your tech.
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Look, we know everyone in the Valley is after you,
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and we know that you're probably going to go with Peter Gregory,
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but we'd love to have you come play on our team.
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Let Stern Taylor Capital Fund in
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on your Series A financing, because together, Richard,
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we'd be
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a home run!
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{APPLAUSE
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- Oh, fight. - What do you say, Richard?
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I'll do what I can.
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All right. Have fun, everybody.
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I don't know, man.
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It's starting to feel weird letting all these firms suck up to us,
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even though we're not gonna take their money.
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Richard, Peter Gregory hasn't officially given us the term sheet yet.
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Yes, but he will tomorrow when he gets back.
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If you can't enjoy this many people kissing our ass at this level,
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then I feel sorry for you.
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Would you just relax and take it in for a second?
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I mean, we are getting our dicks sucked at the AT&T Park.
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We're standing on the field of the World Series champions.
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It's totally lost on me.
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Yeah, I don't give a shit, either.
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Hey! I'm Nicole Stein.
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I lead the Growth Team at Stern Taylor.
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- Oh. I'm Dinesh. - I'm Gilfoyle.
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I love it. So what do you two do at Pied Piper?
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I'm the CTO.
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Ah, he's joking. I'm the CTO.
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Fuck you, I'm joking.
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Okay, how could you be the Chief Technology Officer?
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I get it. You hear the word "chief," and you think "Indian Chief."
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But you're the other kind of Indian.
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Okay. One, fuck you. I'm Pakistani.
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And two, how could you be CTO of anything?
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You have to be able to organize,
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you have to be able to delegate, you have to be...
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I delegate you to go get me a fucking beer
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while I talk to Nicole.
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George Silver, operating partner at Stern Taylor.
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So, what do you do at Pied Piper?
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He's the CTO.
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That's Drew Houston.
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We've been circling each other for the last 20 minutes.
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Ooh!
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The Winklevoss twins.
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Look at them. They're like two genetically enhanced Ken dolls.
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Do you know how much Bitcoin they're worth?
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Oh, shit, they're splitting up.
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Cameron's the left dominant one, right?
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- I can't tell them apart. - I'm gonna come at him from the right side,
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try and herd them back together without spooking them.
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Watch this.
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Cameron! Cameron!
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- Okay. - Well, well, well,
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look who's the big swinging dick.
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Hey, Javeed, everything okay at Goolybib?
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You gotta ask them. They canned me.
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- What? - Yeah.
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Our investors got spooked by a possible down round,
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so they shoved an acquisition down my throat.
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Yeah, an acquisition of $200 million, right?
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Yeah, they all made out. I had a reverse vest with no triggers,
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then I lost all my shares when they fired me.
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I blew my whole signing bonus renting that house.
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I'm looking into suing 'em.
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Jeez.
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Look, all I can say is,
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don't get fucked, all right?
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You take money from the wrong dudes, and you'll get smoked as bad as I did.
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Just be careful.
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Everyone is watching you now.
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Yeah. Totally. I know. Thanks, Javeed.
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No. I mean, they're watching you right now.
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Yeah.
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Damn it. Where is that camera?
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I can't believe how many gifts we're getting.
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Gifts I'm getting. That Oculus rig is addressed to the CTO.
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No, I'm the CTO.
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As your superior, I order you to give me that Oculus.
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You can't make me do stuff. You're not the boss of me.
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- Actually, I am the boss of you. - Okay.
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Richard, tell him I'm CTO.
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No, you already told that fat guy that I'm the CTO.
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Stop, stop, stop. Please stop.
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I have a ton of work to do. You have work to do.
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Maybe let's do the work instead of that.
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Jared, we were supposed to get a term sheet today.
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Have we heard from Peter Gregory?
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Peter Gregory is dead.
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What?
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Holy shit.
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He was the smartest,
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shrewdest,
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strangest man I've ever known.
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I can't believe that he's gone.
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Can I ask what happened?
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Yeah. Um...
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He was in the Serengeti on safari...
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- Ah. - ...and he had just gone into his tent
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when a hippo wandered into the camp.
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Oh, wow.
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He was attacked by a hippo?
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No. No.
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I guess the hippo started to charge
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when the guide grabbed his rifle and shot at it,
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but his aim was off, and...
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And he shot Peter Gregory by accident?
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- Yeah. - No, he missed...
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But I guess the sound of the gun startled Peter,
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who ran out of his tent and...
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Ran right into the hippo?
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No, the hippo was also startled by the noise
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and had run off prior to Peter exiting his tent.
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So, what happened to Peter?
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He hadn't run in a long time,
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maybe ever, and you know, he just...
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That was it.
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- Uh. - Uh.
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That is so very strange.
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- Very sad and tragic. Wow. - Very sad and strange.
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See you.
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Man, that is so weird.
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I mean, one minute Peter Gregory is here, the next, he's just gone.
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Jared, it's Erlich.
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I need you to set up all the other VC meetings, ASAP.
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Line 'em up nuts to butts.
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Erlich, what are you doing? Monica just said they're still gonna fund us.
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We should just sit tight.
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Look, I loved Peter Gregory maybe even more than he loved me,
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but there's something you need to know here,
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something that Monica isn't exactly volunteering up,
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and that's that all of these one-man firms have a key-man clause.
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- Do you know what that means? - No.
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It means that now that Peter Gregory is gone,
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all the Raviga investors
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have the contractual right to cash out and walk away,
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which means that by the end of the day, there may not be a Raviga.
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- Seriously? - Yes, so we have to prepare for that.
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Now, I know that it makes me sound like a terrible person,
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but we have a company to run.
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And do you know who the first person to agree with me would be?
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Peter Gregory.
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And that is the very first spot in our new campaign
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heralding the upcoming release of Nucleus
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this January at CES.
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- Any questions? - I have a question.
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That was horrible.
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I just got humiliated by a fucking teenager at TechCrunch Disrupt,
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and you give me this tampon ad?
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A girl with diabetes on a swing?
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- I think she has cancer. - Yeah.
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At least that's how I read it.
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I don't care what kind of disease she had!
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All I care about is that Nucleus is better than Pied Piper.
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Hendricks just left us all in the dust.
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If we get this wrong,
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we could blow the business opportunity of a lifetime!
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Data creation is exploding.
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With all the selfies and useless files people refuse to delete on the cloud,
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92% of the world's data was created in the last two years alone.
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At the current rate,
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the world's data storage capacity will be overtaken by next spring.
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It will be nothing short of a catastrophe.
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Data shortages, data rationing, data black markets.
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Someone's compression will save the world from data-geddon,
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and it sure as hell better be Nucleus and not goddamn Pied Piper!
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I don't know about you people,
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but I don't wanna live in a world
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where someone else makes the world a better place better than we do.
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"Data-geddon." Is he married to that, or...
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There's just been a lot of "geddons" lately.
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That's true. "Snow-mageddon," "car-mageddon."
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There's that movie Armageddon.
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Laurie, you wanted to see me?
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Monica, come in, come in. I'm sure you've heard by now
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that I've been named our new managing partner.
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Yes. Congratulations.
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Did the limited partners tell you how they made their decision?
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Oh. They looked at the portfolio performances
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of each of the senior partners over the last several funds,
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and my numbers were, objectively, the most favorable.
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Therefore, I was selected.
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Yeah, it's just managing partner is all about meeting with people
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and interacting with people.
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You can sit down if you want to. Do you want to?
7aa13b74-52e6-4a36-980d-208d73228936.gif
- Oh... - Or should we stand?
eb0ac5e4-1a02-4f46-a161-0f4177977d4f.gif
Uh... I... Whatever...
3b927700-9449-4456-b481-9a172282bcd2.gif
- I'm standing... - Okay.
4eaaf62c-fe56-4c80-9ed8-05e1ab65cf48.gif
But you don't have to.
41b4c081-f5fd-4a84-8b16-58e93a9cf424.gif
- Okay. - Would it make you feel awkward to sit?
31e6bad4-666f-470d-ba09-337531a6eee2.gif
I'm okay to stand.
6bac5bc7-4955-4606-b076-f036746ccac9.gif
- Monica... - Of course.
13d88a96-691e-4e93-9ba1-fdd357a9f723.gif
Peter Gregory is dead.
397e45bb-c66a-4e97-9a66-0bde4d9a902b.gif
Yes, I know.
746220cd-c747-4b6b-b4f8-6439426de37f.gif
On a personal note, his death is very sad.
53ec1ecd-2aea-461f-8fe7-3e5c954577c9.gif
But on a professional level, it's untenable.
eabd77ea-335e-4b91-834b-90471c69f983.gif
I've been reviewing his files.
db1a945b-ac11-49ab-a73f-38377e3b9891.gif
He was pursuing a number of extremely dubious positions.
03033937-123f-470f-894f-1672a28c3978.gif
Are you aware that we own a $30 million ostrich farm in Morocco,
bc497269-58ab-4b45-9fe7-eae8930bd2a2.gif
or that we are the majority stakeholders
6cb6c003-94d4-42dd-994c-800e6746b201.gif
in three companies that specialize in invisibility?
7a40b86a-ae03-4e82-8747-2083dc465d33.gif
This box is filled with napkins covered with notes detailing Peter's conviction
e3c6c03e-53d0-47a6-9df9-3f6d7af67f4f.gif
that genetically-modified cranberry fungus would become the next cotton.
95d97e1e-39dc-4333-824e-dec8c28b799b.gif
- That... That one I remember. - Yes.
821d4830-5279-440d-bcdc-0b658ac23c3f.gif
- Monica. - Mmm-hmm.
10214562-2ba5-4bdb-b065-3604a681d0b5.gif
Peter Gregory is dead.
b3d472e7-5c7d-4c09-ab63-d352f260b490.gif
- Yes. - We need to seem competitive,
1bd84c80-8c95-4251-8279-a88d40f51063.gif
now more than ever,
a6af6527-6e5e-4a62-a692-0d4b71101230.gif
to our investors as well as to the industry at large.
aa16bbe1-7f3e-40f4-a333-7fb5def8b0da.gif
Well, I mean,
eaf388d9-b059-4347-b7d2-f3aa95335b65.gif
Pied Piper is probably the hottest early investment in town right now,
2695133d-21b8-485c-a10e-985d547251bc.gif
and we have them.
21bddb31-7a7f-459e-9059-d4d2e9477e46.gif
Do we?
c855c157-d62f-4075-ab3f-ea5baf7f3a24.gif
But why then are they speaking to other firms about investing in their Series A?
3c7bf4b7-15e6-4307-a663-f108bb0212d7.gif
No, no. I just told them to sit tight for a day or two
36b3a614-261d-4a43-b61e-d89e3c8502f4.gif
until we sorted things out.
6114e575-8057-45ae-af25-5a6271669a08.gif
It seems that that advanced a sense of uncertainty,
64e3ca03-0846-4d16-91ef-0654e0508cd6.gif
and now we're at risk of losing their round.
6e932e34-2c0d-419c-830c-428997dd0127.gif
This could jeopardize the firm
b19299a0-7460-46eb-9bb3-bdec38da9968.gif
and, by extension, your career here, Monica,
567f219c-c55d-486a-a47b-813b6be0a095.gif
as an associate partner.
23b0898d-b212-450b-8185-ad813a156be8.gif
Well, I guess I was just kind of in shock.
664a7023-b187-4fca-aa11-210b68afcc6c.gif
Monica...
77b42d68-a115-407f-b77d-893d6d4cfad6.gif
Peter Gregory is dead.
bc7cee34-cb9b-4cca-8838-48b9422be94c.gif
Yes. I know.
cb2e1143-644c-41e9-a423-748a3df92513.gif
This is great.
79922748-c747-4c3a-9925-548b91bdc800.gif
I mean, do you know how many times I've gone into these rooms
746a1e4c-ebab-46e4-96e6-bd51c2d7c8cb.gif
with nothing but a half of an ass in my hand?
8dfa60d1-fb1e-4923-968f-2837b4516997.gif
We're walking in there with 3-foot cocks covered in Elvis dust.
0fd1215c-bb68-46d0-9610-727050129329.gif
- Really? - Richard Hendricks? They're ready for you.
f28cecaa-3eab-4668-a12e-1deeb18107c0.gif
- This is a fucking layup, guys. - Okay, let's do this.
3766e8c5-624f-4d98-8144-0abbfce96b7f.gif
Not you, Jared.
e7b96fe9-a3ca-4962-87de-d07cd3b06b21.gif
Now, with proper funding,
4a4b0e54-5249-4894-bb37-9d42276530e4.gif
we should be able to put together a functioning beta in time for CES
0dfef80e-b17f-4f59-b624-e922582c4cab.gif
and compress Nucleus out of the marketplace.
885d7628-cb14-45e6-bf96-5a4bb302411e.gif
Yeah.
396efde7-40de-4ff6-91d2-a0e40bbdb1a8.gif
I don't know.
d87d0a3b-193e-4427-b4e7-7d60aed52c29.gif
You don't... What?
c3b883a5-efa6-42e5-b77b-47559afa8440.gif
It just doesn't seem worked out to me.
dab8adb5-062a-4f4b-934c-f6d9fdeaa37b.gif
Well, I mean, it was worked out enough to win TechCrunch Disrupt.
539651cf-717a-4c6f-9369-ce3fa2066bec.gif
Yes, and congratulations, you won 50 grand,
b2e54331-7e93-41db-85e1-58685218ce14.gif
but you're asking us for 200 times that.
30981908-d48a-4096-9df6-24119077d81a.gif
Richard, look, we all know about your amazing compression rate,
91340d06-8989-4f46-9043-d5b3dbcacb48.gif
but let's not be naive here.
0817191b-0c29-477f-9d30-3cad69716d9d.gif
You can't expect to just throw money at an algorithm
fd3980b3-c17d-4101-aaee-45ca114cdeed.gif
and beat one of the largest tech companies in the world.
c3af54ec-71ec-4e6a-887d-b057c038c35c.gif
So why don't you rework this a little
b42af418-c155-43dc-89f1-0aedca879e5d.gif
and come back in with a little more?
21fbc381-398d-4bf4-985a-720390d9e478.gif
Maybe next week?
87cd8156-e048-4e01-8981-6ed2088439db.gif
And?
d898e04d-930a-4306-a6b7-6224948925eb.gif
That was really weird.
c78a2e59-36b5-41bf-bdbd-824d349f4836.gif
I guess we don't have as much Elvis dust on us as I thought.
58dab5e0-1fcd-4331-8d27-9c059dacaa72.gif
You see? This is why I wanted to go with Peter Gregory.
dbca9ef4-35ea-4d4a-86e8-9f591204c1ad.gif
This is bullshit.
3b10b1c4-e631-4724-bd73-96e92d63a190.gif
I mean, that guy throws this huge party for us and then acts like he doesn't even want us?
173ea542-3490-4275-a3db-b10464ee07af.gif
I mean, I fucking hate parties.
c7dc4846-1264-44e2-b511-bcfe2fa94bbd.gif
And then he says, "Come back next week when you have more."
7fa0b420-f179-4de8-b9f5-ef6480928ca7.gif
More? More than 5.2 on Weissman?
1104cf00-95ac-467e-9d55-c61da9316579.gif
No. No.
ad39625d-c1cc-4eed-8d16-ad477cbdc900.gif
Fuck that guy. Fuck this place. Fuck this whole place.
79300483-fb81-4287-8196-ad191142cf6a.gif
- Watch me fuck this place. - No, wait! Wait, wait!
efa4d7b8-9e72-4d36-836b-f13163648b8b.gif
Hey. You remember when you told me to come back when I had more?
9baa4b81-9e43-4ad7-a4b6-8883b1691aa9.gif
And then I said I would?
02c9e34a-9f7c-4ad2-b74c-7f6b5f168336.gif
Well, I'm not going to. Ever. This doesn't count. Okay.
cd5ab40f-a3b8-4647-a285-f14da5e6a871.gif
I'm covered in dust. I'm a 3-foot dick,
11544c92-8e6a-4916-9dae-cd5823a44d4c.gif
and I've got half an ass to go to some other company
c5f704cf-452d-4ce3-bf2a-98a8c2c4954b.gif
who's never gonna put me on a Jumbotron or throw balls at me.
9584cdad-26cd-4806-8b36-413c3f7fffb9.gif
Bye.
e858bf06-cbc9-44a2-9934-cf1b05d0829b.gif
Are you feeling unwell? Do you need protein?
fe91fd56-cfa5-4d02-9b41-bfc0954cfb64.gif
I don't know what happened.
8648000a-02b7-45cc-a85d-cac9398ab4b6.gif
Between Peter dying and Raviga maybe being gone, I just...
7b1497cb-7c2e-4d97-af3b-d52a19ea118a.gif
I just wanna get funded and build Pied Piper.
118ba494-3a89-43c4-844d-dfd80276baae.gif
I hate this part.
4353ea4c-dbf7-40e6-afdc-12828dd406c0.gif
Well, if one thing is for sure...
fc2c23d4-5cbe-4b4f-b46b-7302a759b0cd.gif
...if we're gonna get any traction, I need to step up my game.
998b5855-f877-4dc1-a264-5a2cfec41171.gif
It's an email from Ron LaFlamme.
afa899d5-7c13-4a8d-9cb7-a64062583f81.gif
"Just got a term sheet from Stern Taylor.
9101a908-316a-4a56-8713-c470308cb269.gif
"They offered $5 million at $25 million post-money valuation.
0d1f8a7c-cec5-4e7b-8a1f-002cab32a1c3.gif
"More than I thought."
8c16b53c-64d9-4512-9fea-31adb3b30075.gif
Shit. They were negging us.
9d435483-9731-4dae-afc6-ebc72d4bafa0.gif
- Negging? - Negging is going negative.
f74f913e-0ced-4b23-a906-68ffd8b6d35a.gif
It's a manipulative sex strategy used by lonely chauvinists.
c8bb34be-d2c3-4b70-bc1a-c186b8c37842.gif
See, everybody wants us.
afad8d1b-a0a8-41a6-b477-a9a49d4fd334.gif
But, by shitting all over us, they try and bring our price down.
49e5dce7-6efb-415d-9aa7-ceaf62a494ff.gif
But you shitting all over them counteracted their shitting all over us.
164c5887-8dd0-4eb1-95c8-6dbfd6910f83.gif
You negged a neg. Richard, this could be good.
8933a17e-3665-4b21-a899-9c6c01441b72.gif
- Where do we have next? - Ross Loma Capital.
415e6a26-845b-44d6-b826-0054aa031b47.gif
Should I keep doing it? Should I keep negging?
b716c032-9626-450b-9bd4-1def39718bc1.gif
No, no, I'll handle this.
5f16ff29-6b09-4e14-9dc6-43e94839bedc.gif
If they want to negotiate using hostility and rudeness,
789cc74f-e591-4965-a60a-7fad5ef74c14.gif
well, they picked the wrong guy.
80069429-03db-4685-b777-c0e6f05e5025.gif
Well, you see, our main concern
c11f4b6b-edbf-4daf-b869-436e85405920.gif
is how you're going to achieve escape velocity on your growth rate.
2d790fc7-6214-4f34-a3df-9611cdc1f699.gif
If critical mass...
19835ab6-7d6f-4995-9f2c-6176c828bec9.gif
I'm sorry. What's funny?
21da2ea5-f212-47db-86bb-0feadd11615d.gif
It's just that painting behind you.
3c2c67e1-dfe2-4cda-bc5d-d03291befdc4.gif
It's awful.
42a006a6-2ddd-43b3-aad2-9e82543ade80.gif
It looks like harlequin Kama-sutra done poorly.
f475631d-1d51-4aae-aab5-0ea20342780d.gif
So, I agree,
76b39d49-104a-4ec9-a1c6-b5776588c929.gif
bad culture fit.
3688cfe2-3a8d-4970-b75d-c2dbd952f0e0.gif
I think we all just move on.
192f6015-cf6e-49a2-a0f4-1b6d6c7314f3.gif
Look, I didn't say anything about a culture fit.
5c2004cf-2e78-4309-85f4-c351df99ec2f.gif
No, I did.
0c56a815-1c12-4bc3-aff9-7cb7e93af133.gif
Okay. Well,
1da64c42-637a-4448-a09c-67a64400dd7e.gif
thank you for meeting with us.
5cef1ed1-ec97-4ba5-a2a9-dbf729563a93.gif
We have a bunch of these things to go to,
cbc0459d-d993-4dc0-b686-4000ab644130.gif
hopefully with more tasteful artwork.
a4818c92-2123-472b-b731-2d0621500c76.gif
And your logo looks like a sideways vagina.
7a6d5055-8ade-440b-9bf0-f65a5759c6ce.gif
I find that to be racist, don't you?
a9b088b7-6c8e-41a9-b795-710f6e3a61a5.gif
Okay, here's my concern...
eff2f7c6-b568-4e0d-97d8-28753a0cfefd.gif
Here's my concern. Who the hell picked out that shirt for you?
b09fe9b9-d508-4e2e-bf33-55212271f452.gif
What?
f483913a-4a78-4069-a029-fd74bf25d6cc.gif
Oh, I see. With the pants.
058c5ac6-149b-4af3-9826-5cec8fc4d023.gif
So I guess it's a whole thing.
cea3255d-d9c9-40df-a5f1-31add0705909.gif
My wife picked these out.
efd5e081-0de5-4082-99ae-d796c36b12cc.gif
Then you married poorly.
0b3f652f-ed47-41e7-b42a-52b1514f008d.gif
Do you care about Pied Piper?
9c729986-b437-4cc6-8f5b-1a2a28c22815.gif
Do I care about Pied Piper? Well, of course.
8a33ecc6-603e-4cc9-9c2e-2ad0f3fddedb.gif
Cause if you do, I'm not seeing it.
3d6a7748-b797-4121-bf69-95f15d19c675.gif
In fact, what I think I'm seeing is the human equivalent of a flaccid penis.
61e5f7e1-35fb-40cb-bf36-462c769e1752.gif
"Flak-Sid." It's actually pronounced "flak-Sid."
765f1ddb-0eb5-43e0-9bd0-c6b4a080011b.gif
Not a lot of people know that.
a0755907-f940-4ced-9766-8b75595520aa.gif
Well, we are definitely interested,
37082533-c686-491a-a5f4-c1d82f5c22e6.gif
but I think we need to...
82163a23-7c31-4266-9856-b68a8bef45c4.gif
I'm sorry. ls something wrong?
2c708b4f-3641-4415-8a22-b22a2d765d02.gif
No, this is all wrong.
44b03d0e-755a-4418-bce9-8bba0db2f1fd.gif
I am sensing a general lack of vision.
ff2b49c1-744c-4a89-9438-91d734e427c1.gif
Your muffins smell like shit.
fad6bf27-fcff-43e3-9a4f-9fff7094907c.gif
So do your ideas.
fc927644-2f47-4d18-8695-df7853dff5e8.gif
One of you is the least attractive person I've ever seen,
e4c33a6b-5391-4fd1-b861-704c447c5661.gif
and I'm not gonna say who.
be27604d-df6f-4bf8-bd70-801e5509722f.gif
Should we leave or should you?
90eb844e-92b6-45e5-a88b-2e59ba2dad23.gif
We just got offered eight at 40.
0d6513a8-ea7c-47af-aa30-a67485949179.gif
We're five for five, gentlemen.
c47d7b56-b9d3-4da7-9b59-cc1eea469a83.gif
And Galveston Capital Fund and Yountville Ventures called.
fa82d721-40d8-480c-a97f-d9eb54335008.gif
They want to move their meetings up before everyone else.
c5c289f6-f1a2-4edc-8f10-fe7698683234.gif
Hey, let me try. I want to be rude at this next one.
8ff4f937-659e-4831-b4cc-2ed5edcffcd7.gif
Go for it.
6cb20b36-b28b-48d6-baa8-7def647c9fb0.gif
So, with some proper funding,
2b570ce6-1a22-4ea9-9db1-086053f72a58.gif
we should be able to get a functioning beta in time for CES.
6e7409a0-f462-42fd-8fba-9c41449e999e.gif
And if you don't fund us,
bb08e91a-433f-44cd-b032-d5bef0446f67.gif
you're a fucking slut.
fe6a41ba-5bbb-4ee4-9e9b-57e5f1c4d229.gif
Oh...
6a75b38c-2a6b-4758-92ff-4ad297e59fc8.gif
What's that smell? Is that a fart?
03dd55c2-4c1c-4e15-b515-0117d7c98941.gif
Are you a farter?
dc5c26c9-f84b-4be6-af9f-6fda3265291e.gif
Now, can I have a pastry? Or are you guys gonna eat 'em all?
46227ea9-32e7-4da7-8671-af65656b41f1.gif
'Cause you're gonna get fat.
0a8ec805-e608-4933-b582-faf81430e4ac.gif
It's not your fault, Richard. This is just something that can't be taught,
e79301d9-0695-44d6-bd3b-dad2becaaab8.gif
so leave the next one to me. I can feel a big one coming on.
86e17136-358b-44b1-a977-508a2dad694f.gif
What are you gonna do?
85e68c2a-fe41-47f8-8004-e0112175851f.gif
I'm not sure yet, but give me room.
b46e84d8-751a-4f67-9110-1f2cd76f42cb.gif
There's something inside of me that has to come out,
b8db47c3-c3ed-4b80-86de-379b2bafb293.gif
and who am I to stop it?
9f6773d4-738e-4a78-aee5-d327ccb323ed.gif
His balls?
323460ea-327a-4225-81fb-1f33b158da07.gif
He put his balls on the table?
cd7825b5-b21c-4aca-8f6e-554433dd33cb.gif
- Right on the table. - On purpose?
c9c99f40-191b-4b68-8bd1-fdb463f4a7f3.gif
I don't see how it could be by accident.
1107de45-ef3a-41a9-a2c3-89255e2f918e.gif
Richard, I just got an email from the guys at Midland-Oak.
e9d4d9b8-1e9f-4321-b3ad-744f4c260a30.gif
Apparently, there is a line, and I crossed it...
58650b5b-0ea8-4992-9273-343ec4371365.gif
The line between $12 and $15 million!
9ca19c71-5cd5-4bc8-a2ab-a4f073d7a86b.gif
Ba-bam!
dc12997b-61a7-418d-8e46-ed1b1b5683ea.gif
Midland-Oak's offer just came in.
aeb4511a-6ada-42d2-be27-d32757fb8904.gif
Gentlemen, we are valued at 75 million, fully diluted.
dc4490e0-263c-47b3-8921-30951df1af0f.gif
Are you shitting me?
e22d1688-d94a-4720-bf88-e65e0181e95b.gif
Take a look at these term sheets.
2c2f66cd-baeb-4b54-9efe-d32a2c27f6c6.gif
There is a linear correlation
f1c93988-f135-4236-a854-7d702fa3511a.gif
between how intolerable I was...
5f31ab2f-d232-4b39-9b44-0daed1a33e4f.gif
...and the height of valuation.
b005b6d8-1b7f-472e-b35b-d58edcfdce5a.gif
Hey, YOU guys. Um...
8d694928-3409-47ba-8d91-c04839ec7de1.gif
This is Laurie Bream, the new managing partner at Raviga.
bd43d072-8c5d-4d1f-9349-3282bef2ece9.gif
Oh, uh... Hi. I'm Richard Hendricks.
448bd95e-4661-43e8-9736-a42aa6053136.gif
Yes. I recognize you from your photograph.
962986f0-a691-4a88-b326-a7baa7329c02.gif
- It's very nice to meet you in person. - Yeah.
e0356dcf-f6a0-44fb-968e-ec9a2d04b067.gif
Okay, so we did that.
cf939965-09cf-493a-92ac-9a6fd9568c36.gif
Gentlemen, I am aware of the degree of interest
c29831f6-9e60-4e72-afc3-87805e23ad73.gif
you are receiving from other firms.
130a5ed1-4936-441f-be22-45a382d82bc2.gif
I am aware that participation in your Series A will require a very competitive offer,
f57a7da3-5a1d-493c-ae51-20b8c616b9b0.gif
but for numerous reasons, I believe it to be the prudent decision.
defc0988-1cb3-4741-858d-e7b74fb5e6c0.gif
Now I am presenting you with this.
9ec81e9d-0a78-4a76-9c8c-31547fdfe583.gif
$20 million at $100 million valuation?
e37598f3-e529-4bdf-9a47-ef5c88c94eb2.gif
I don't... Uh...
1b5a2c9f-8785-4457-94ff-176eb97ce717.gif
This is way more than any other offer.
120c8092-3a8b-41a5-8a23-be6d598ddfd1.gif
Correct.
837e5e36-0c5e-4939-87f6-e567c6129789.gif
That is very much intentional.
5836e9e2-6723-477c-b359-e3247ec947bd.gif
So, I believe that satisfies your requirements?
4f5d7985-b25b-4abf-90f5-755e35f5175a.gif
Monica will arrange a time to formalize the details.
b6f8ff2f-52c5-49cd-8a8a-fcbf086c9d78.gif
Thank you. Have a good day.
d551e876-bf22-488a-8130-ee00a55e2f56.gif
Uh, thank you.
0d5ca4f7-48ff-45b0-9f30-20e7a7f711f5.gif
Yes.
4487e98b-83e8-4b30-a98b-31a5ebda92fb.gif
Congratulations, guys. I am so glad...
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Oh, shit! She's my ride home. I'll call you, Richard.
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Uh, yeah, okay.
8352c55f-fe12-42a4-ac70-66a782cc0114.gif
- Thanks for stopping... - Wait! Laurie, hold on!
888af29c-d76b-4e88-8763-7de568ca732d.gif
Guys, I think we're funded.
d39908cf-9f6a-4e69-9b5d-b17ff2cd1333.gif
- Yes! Richie! - Yeah!
e48eeddb-44bc-49fd-ac7a-e93bf46d9715.gif
So, I push my dick to the side, unbutton the bottom two buttons and...
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Barn!
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Ah!
fb060ca9-5d1e-4edc-8e8e-2bc8d5ec60f2.gif
- What are you doing? - Shit. Sorry, sorry. Sorry.
c2e7eb81-7f2d-4ba3-9d1c-63082a1b91cf.gif
Meet me on the side of the house.
afac66b6-543b-4314-8c32-d681b5d9b7c1.gif
- I... Okay. - Okay. Okay. Go.
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- Hey. - Hey, what's up?
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If anyone finds out that I came back here, I will get fired, okay?
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Okay.
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- Don't take this deal. - What?
b681ed13-bf21-470f-b948-d823e8a3f135.gif
You are worth half that at best.
d25cd4fd-e159-4a38-a34e-d4dc393a35fe.gif
Oh, wow. Thanks for the compliment.
873000d2-8f52-445c-9bb6-542a92af3848.gif
No. The credit to you guys. You negotiated your asses off,
fb459450-7337-4ea1-857e-6aed89342cef.gif
but this is a classic runaway valuation.
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What's wrong with that?
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Pied Piper will be tied to this crazy valuation that you will never be able to live up to.
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If you don't keep increasing in value in the next round,
b69da697-dd28-4725-b0cd-f8d1ea73e998.gif
if you have a down round, you are fucked.
dc756793-a2d8-4781-86e0-59f7e0018164.gif
It is the kiss of death for a young CEO.
b13589f0-7e1e-4aac-8171-145981f53f7b.gif
You want to start with a realistic valuation and grow at a reasonable pace.
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Okay, well, if it's such a shitty deal, then why did your boss offer it to us?
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Because she's competitive as hell.
becd6236-80b9-44d8-821b-bb00bc491985.gif
She needs Pied Piper to keep Raviga afloat, Richard.
eb3401fd-8ac9-4640-ba2b-1e7f2fd04a56.gif
- Okay. - Look, I respect Laurie,
d549d567-37ee-4f50-948c-25b36c147bcb.gif
but this is the exact type of thing Peter never did.
63e15d48-175c-434b-8e04-86a47af78df0.gif
Richard, come on. I own shares in Pied Piper.
f036a38a-154e-4f99-a27d-515a282510e9.gif
If this high evaluation was good in the long-term,
63879293-3fd0-4a7d-9149-c255d70b5444.gif
would I be standing here, risking my job?
1523d6f7-8594-4f46-8e3f-77fb485c59fb.gif
Don't take our offer.
cae39b0c-64a5-4b22-872f-4a1def7f85ee.gif
Maybe go with the lowest offer you got.
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Even that might be too high.
3bc14664-8d1d-4967-b2bd-360c0f8ce876.gif
Again, thank you for the compliment.
766c21ea-e615-4f33-8b8b-9ffe9a85d41e.gif
Also, I didn't see anything in there.
15e57362-1807-478e-961a-e2e827024e9d.gif
No. Yeah, thank you.
f052308b-7e1b-4915-a0cd-4620b259066e.gif
I was gonna say if you had, you'd have to show me yours, too.
f7c7b9b8-3c42-4ba1-99c2-044cad7185ad.gif
Um...
5cc806e5-7b5a-4e3f-bf4c-4102520ccc34.gif
- Okay. - Okay. Thanks for the...
d8764885-0fc3-468b-b8e7-6b6f071767bd.gif
Okay.
cedf6967-fc42-45bd-a73c-60c291d3c277.gif
Yeah, sorry about that party.
1725dc62-9714-4d16-a497-546b2296973a.gif
I was in kind of a bad way that night.
3fc4775f-c4c5-4859-956b-5c641abecbe9.gif
And truth is, I'm actually doing okay.
9441a4c8-4f84-48f8-9f6a-f59bcb583661.gif
- Good. That's great. - Yeah.
9be056bc-dd55-42c1-968b-48c126cab190.gif
I mean, I could run the scenarios about what happened all I want,
d790c8e1-0568-4738-8de9-89defa9d42e9.gif
but I finally just realized there's just nothing I can do, you know?
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Yeah.
3d7091de-5e11-4c3c-8a45-75459aac26bc.gif
So, I'm at peace with it all.
fa0ce25b-2eb1-46f0-b7f3-621555f98fe5.gif
I was thinking, actually, um,
6b49b655-b445-472d-9a01-49ae548f2c09.gif
what if you had asked for less?
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What?
d4c19c07-5ada-4672-b4d9-74d02a2058e0.gif
Well, what if you could've gone to someone
f93608b8-2046-418e-b72f-bb94f38035aa.gif
and asked for less than what they offered that first round?
aa8c88a6-a18a-49a2-833f-ce06ae62d50d.gif
Like, you mean, negotiating them down?
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- Yeah. - Can you even do that?
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- Well, yeah. I mean, why not? - Yeah, but...
080a6bd2-74c0-4307-a651-6b4b0b3ef8c1.gif
I mean, I guess, technically, I could have.
0af24e1e-bc54-40ad-8465-bb2486f75f74.gif
Mmm...
caf3b829-c139-4ac3-9fd8-53cfdb56d17c.gif
Huh.
cff7440c-a82d-49af-aa6b-19ff6c74a8dd.gif
Yeah, I suppose you could argue that it might've been easier
dbac22b5-2b4d-409d-ad73-acc71005c533.gif
to hit more realistic benchmarks
407595f3-e67b-4741-b9c4-b16689c2ea15.gif
and reach cash flow break-even.
0a859b3e-d40f-497e-9949-59dc5e61e154.gif
Yeah, that's what I'm saying.
48f73271-f4f5-47ca-bc64-da63b5cc9d19.gif
And then, we wouldn't have faced that down round.
0105b637-ecca-4656-9db7-806b935010a6.gif
And...
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We wouldn't have had to settle for acquisition.
31970c12-1a0d-4040-a48e-e154ad06956c.gif
All that money
c04f982f-bfb0-4a8a-a670-ad23af8c91e3.gif
fucked me.
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Wow. I mean, I don't know about...
8056dc01-03ce-4ca3-b929-98be84bd7a23.gif
- Shit! - Maybe.
6e5ad963-4d53-4261-ab88-31296c6bbaaa.gif
- Look... Hey... - No, no, no. We could've done a legit Series B.
bd79c2e6-9af1-4c62-8bae-e837dab18647.gif
Right? I'd still be CEO.
670e4ca3-fcc4-41c2-95ba-1aebd7f95379.gif
I'd have my job,
25245a7c-e2a3-4348-a2f2-758a8b8efa01.gif
my kick-ass house.
76533da2-8d4d-4ea2-873f-2b9a22b9cb26.gif
I'd probably still have my girlfriend...
4a83c152-7af3-406d-b83d-93203c191229.gif
- Fuck! - Okay.
fe957009-3eec-40de-82e2-018b1da2a999.gif
Why the fuck didn't anyone tell me I could take less?
05480bed-2fb5-4965-92d3-f0be63b08d34.gif
I don't know. I don't know.
b721d132-4676-4c8c-ac65-a8ba66ca6575.gif
Ideas come up and then...
a2a7b19a-0620-49df-87b2-d1ce534d13b9.gif
Fuck!
084fbc65-0868-4b64-90ac-b3ebfb82fc3f.gif
I'll take a cab, so I'll leave you to it.
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Thanks for meeting me here.
a71de84d-c494-4df4-8e26-e9ef64e7fbe5.gif
Fuck!
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Richard.
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Richard, I'm Laurie Bream. I was inside your home yesterday.
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Have you made a decision regarding our proposal?
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Yeah, yeah, we'll go with you guys, but we need to renegotiate the terms.
deed54d5-9dcd-4b24-a86d-8aa544242ea0.gif
I'm afraid that's untenable. We're offering as much money as we can.
865a6fc5-6d4e-45d9-bdb7-dd983642e6b5.gif
Uh, no, no, we wanna go lower. We want less... A lot less, actually.
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We'll go with Raviga
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if you guys do $10 million at a $50 million valuation,
5a3644f2-190f-4051-ab2d-bb974eb44558.gif
not 20 at 100.
b944557e-fa3f-4f80-997e-db69fde2d89c.gif
I think this is more reasonable,
d042622a-e1e3-4714-beb2-3cee7e731250.gif
and it's my final offer. Take it or leave it.
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I was not anticipating this,
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but I think it will be workable from our end.
f4cb3860-e2c7-4159-a8e4-36d7c7df1494.gif
And one more thing, Monica votes for Raviga's board seat.
ad864fba-ed3d-4659-b601-bd2591a36079.gif
Certainly that seems unimportant.
a5795fab-1ae1-49db-aa17-9d3d725074e4.gif
I will telephone your lawyer tomorrow, and we can speak about the relevant details.
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Good.
609c4de5-a5bb-410d-93e3-e2f361ea69f9.gif
Peter was one of the few who genuinely took action
0c83141d-4550-4c28-9e43-15d2c2bcbd45.gif
to use technology to help humanity thrive.
fb7283f1-011a-4e3e-abd3-87df83a23edd.gif
But how exactly can we quantify
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another human's contributions to mankind?
8b6ff18b-f3ea-4785-9abe-26fc84c3b371.gif
Let's break it down into its three component elements.
8a28e81a-fa70-4aea-99b2-04c0645ec661.gif
I met Peter when he was thinking about investing in my company, Zettasphere,
9d520fb0-7372-4355-9f12-28fbd728a3d9.gif
although I think he was hesitant
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after his disappointing initial return from Snapchat.
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He came on board, anyway, and every month we would meet.
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Peter was always an honest man,
386c4814-25d9-4aee-a1d5-13af2c1e8444.gif
and I know that if Peter were here with us today,
63215760-de95-4d30-9036-76a9519edbbd.gif
he would say that he was not disappointed in Snapchat.
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And he would forgive you, Lev, for your misunderstanding.
93b8873f-d6be-4e60-8e0d-d8bac508bb84.gif
That's just the kind of guy that Peter was,
5ac40596-13df-4bca-b669-b5179046e161.gif
warm, generous,
5776638a-1cb4-4bd8-b578-a100b0ce473a.gif
and not disappointed in Snapchat.
455539ad-1f46-4f5a-ad69-fdddd57df66f.gif
I'll never forget the first time I met Peter.
205a81c1-8729-47a8-9877-8ab4f867cfcb.gif
It was in his mom's garage, where we started our first business together
43cfbb48-c56c-462e-930f-7e3afb4fa26f.gif
manufacturing VGA graphics cards for IBM clones.
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We never looked back.
3569236f-2b15-4916-b5f1-f33fcadfc127.gif
And you know, the last time I saw him,
81bfe834-fee1-44a7-be74-70d36d7fba89.gif
it was at a restaurant, not a half-mile away from that same garage.
681da6f9-e2b1-4047-a1a0-fa19a8cc5626.gif
We talked, as old friends do,
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he asked me about Jackson Hole,
63f95e27-d8f4-4dd9-9767-e7a3a0afc668.gif
I asked him about Pilates.
09fdcca1-4d6f-41a0-a31f-6e4eaab152d7.gif
And yet, something was wrong.
3523883d-34f2-46be-b73d-2770043920e0.gif
Underneath it all, there was an unmistakable tension.
8ed43f40-ac3a-4b89-81ac-07e123a1b546.gif
A tension I will forever regret.
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It's no secret Peter and I had our differences.
d0e28f56-7acb-442c-bfda-e95765bcbe32.gif
We let business get between us.
289ff294-0c2e-4b48-89d1-b1d0dc2ee610.gif
NOW?
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Now I wish I could say I'm sorry for that.
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Now it's too late. He's gone.
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And it makes me realize the importance of forgiveness,
fe664d87-bea3-4c7d-ad95-577ebf9e65b5.gif
of doing things with love and compassion in your heart,
46cb9516-0729-4158-b6cd-c897d7d603ed.gif
and not vengeance and competition.
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I mean, we owe that to each other, don't we?
d408a7b3-6a9d-4da2-a9e3-e7f38e03c6c8.gif
And to him?
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After all, this valley is the place Peter himself helped build.
2661208a-9dda-4c53-9ffb-4ba3a62810ec.gif
Where we come together as dreamers,
11118637-82cc-4b12-9fe6-b1c74ef1e85b.gif
all of us,
d5f3ac37-4483-45e6-b15f-05a07b4f3ac0.gif
to truly make the world a better place.
e6126007-dd08-4c19-8df4-3d2b7eaee722.gif
This is Florence during the Renaissance.
ce4d6231-ba4b-49c0-a987-fe5d1b2ff916.gif
This is Camelot.
002f1865-d92b-4c72-9031-5fe5c088791f.gif
This is the place Peter himself called "the cradle of innovation."
120a3f6c-682d-4364-b0a0-d3ff988d4dc1.gif
I will miss my friend.
9c1986c1-bb9c-4535-93b6-156c04922d95.gif
Bye, Pete.
e1e1253b-c196-4129-88c5-ded155dfc586.gif
Maybe he is a human, after all.
c3c996af-8f95-4ff1-8458-e33f456e1020.gif
I'm sorry.
9b0569c3-a1ff-4113-9e6e-06e61818e93f.gif
It's from Ron LaFlamme.
de685c12-564a-46ca-9af9-4fe008a2b43f.gif
"Gavin Belson is suing you.
bcaa59c7-a30b-482f-9403-307c285643d5.gif
"Filed claims today that you stole Pied Piper from Hooli."
ac5eab2f-e18a-41d9-bd74-d1a4f27c8e15.gif
Shit.
5bd2d027-d41c-486f-8947-c15a9df0ed0d.gif
Gavin Belson is suing us.