The Point was in a dilemma: to stagnate was to die, but to change required funds it didn’t have. Just as senior executives like Levkovsky and Mason were beside themselves with worry, Chen Xuejiao and the Hualong Investnt Company appeared, becoming their saviors.
After a round of discussions, Chen Xuejiao invested $6 million—two million more than Yi Anguo had planned—but in exchange, the stake increased from twenty percent to thirty percent. Yi Anguo had granted Chen Xuejiao considerable authority, so she had the power to increase the investnt for a larger share.
With $6 million in funding, Levkovsky and Mason began developing their group-buying website project, Groupon. The initial model was simple: it launched only one deal a day, offering a coupon from a local rchant, usually for 20-30% of the original price. Once a target number of buyers was reached, the deal beca valid. This model proved highly effective due to its lightweight nature. Unlike e-comrce platforms, it didn’t require handling logistics, building warehouses, or investing excessive capital and personnel. For promotion, they adopted the most cost-effective thods, relying on word-of-mouth and mass emails to attract discount-seeking consurs.
For consurs, amid the subpri mortgage crisis and the consur spending downturn, the ability to buy desired goods at a lower price was both economical and highly attractive. For participating rchants, it was also a boon. Even with lower profit margins, the influx of cash was a welco relief at a ti when bank loans were tightening.
This model, while seemingly unremarkable now, was celebrated by the dia at the ti. Widespread coverage caused Groupon’s popularity to skyrocket, making it much easier to recruit custors and partner with rchants. Tasting success, Levkovsky and Andrew Mason shifted their focus entirely to group buying, eventually shutting down The Point’s operations and beginning to build out their executive team.
At the ti, the United States was deep in the financial crisis triggered by the subpri mortgage ltdown. An economic recession was in full swing. Countless companies lacked the capital to continue developnt, let alone fund technology research. Everyone, from individuals to corporations, was desperate for cash.
In the office of an automobile company called Tesla, Chairman Elon Musk was addressing his employees. "Either everyone invests to save the company, or the company goes bankrupt, and we all go ho jobless," he declared. After speaking, Musk placed a $3 million check on the table—it was the last of his personal assets. He had already sold his properties and was now renting a ho. He had even persuaded his brother, relatives, and friends to invest everything they had into Tesla. Now, he was left to wonder who else he could borrow from while still needing to pay his rent.
The financial crisis of 2008 marked the lowest point of Musk’s life. His rockets had failed to launch three tis, incinerating tens of millions of dollars in fiery explosions. With research and developnt costs soaring, Tesla was also on the brink of bankruptcy. To say Musk was broke was no exaggeration; he had poured every last cent he had into his ventures.
One day, a Chinese woman nad Chen Xuejiao appeared before him.
"Miss Chen! Why is a firm like Hong Kong Hualong Investnt Company so interested in an Arican car company?" Musk asked, curious about the sudden appearance of an investor from the distant East.
"We at Hualong Investnt Company are willing to invest not because we’re interested in Tesla, but because we’re interested in you, Mr. Musk," Chen Xuejiao replied with a smile.
"Oh, is that so? I’m flattered," Musk said directly. "May I ask how much your company plans to invest in Tesla?"
Chen Xuejiao countered, "Mr. Musk, how much do you think Tesla is worth right now? And what percentage of the company are you willing to give up?"
Musk shook his head. "I really can’t give you a good answer. What is Tesla worth? The value is different for everyone; there’s no single, accurate number. It’s pointless for to na a price, as you and your company might not accept it. It’s equally pointless for you to na one, because my company and I might not agree." He then added, "You represent the investors, so why don’t you propose a figure and see if we can accept it?"
"Mr. Musk, no one knows the value of Tesla better than you," Chen Xuejiao stated calmly. "If you are unwilling to na a price, I’ll assu you don’t need our investnt. However, please understand that we have our own evaluation standards. Any valuation you provide will only serve as a reference. The final decision to invest will be based on our own complete assessnt process."
The implication was clear: Musk shouldn’t pull a number out of thin air. This was a one-ti opportunity. If he didn’t take it seriously, they would have to walk away, no matter how promising the investnt seed.
「In China, July 11th.」
The iPhone 3G went on sale at a retail price of 4,399 yuan, sparking a buying frenzy with people lining up in droves. History has changed, Yi Anguo realized. The original launch price was 4,699 yuan. The drop to 4,399 must be due to the influence of HuaXing’s smartphones.
Indeed, despite the strong sales and overwhelming demand for HuaXing smartphones, which had garnered significant support from Chinese consurs, the subsequent launch of the iPhone 4 was also a massive success, attracting legions of followers. Online, nurous discussions sprang up comparing HuaXing smartphones to the iPhone 3G, igniting fierce debates between the two fanbases. Each side held firm to their views. Apple fans insisted the iPhone 3G was superior in every aspect, especially its operating system, which they claid was far better than HuaXing’s self-developed system. In contrast, HuaXing fans took pride in supporting a dostic, national brand. They argued that HuaXing’s system was not significantly inferior, and any small differences were negligible. Furthermore, HuaXing phones had unique advantages that the iPhone lacked, such as a larger, full-screen display with a hidden cara, while the iPhone 3G’s screen was comparatively small. They argued that supporting dostic brands was essential for them to grow and develop. HuaXing fans accused Apple fans of being unpatriotic and mindless, while Apple fans fired back that their counterparts were engaging in moral coercion. Liking Apple products didn’t make them unpatriotic, they retorted, challenging the nation to ban all foreign imports if that was the standard.
I know that while HuaXing might be the best among dostic brands, there’s still a technological gap compared to the iPhone 3G, Yi Anguo thought. A lot of the consur support for HuaXing is driven by patriotism. But isn’t that exactly what dostic tech companies and national brands need? The support of countless citizens is what allows a company to beco profitable. And only with profits can they fund further research and developnt. Conversely, if our own people don’t support our national brands, how can they ever hope to thrive? If their products can’t even sell, where will the money for R&D co from? Even survival would be a struggle.
On July 11, 2008, the sa day the iPhone 3G launched in China, international crude oil futures surged past $147 a barrel, hitting an all-ti high. Yi Anguo decisively liquidated all his long positions and imdiately took a short position of 200,000 lots.
In the fifty-one days from May 21st to July 11th, the international crude oil market had been a whirlwind of volatility, marked by dramatic rises and falls. On May 21st, the price hit $132.70 a barrel, only to fall to $122.10 by June 4th. But by June 7th, it had surged to $137.90, before dropping back to $131.02 on June 10th. Two days later, on June 12th, it shot up again to $136.09. The price continued to fluctuate wildly as bulls and bears clashed in a brutal struggle, with daily swings of more than five dollars a barrel becoming the norm. Trading volu was astronomical, with hundreds of thousands of lots changing hands in minutes. So traders held positions of hundreds of thousands, or even millions, of lots. In this market, so speculators beca millionaires overnight, while others were instantly ruined. Every day, triumphant laughter from new fortunes mixed with the despair of those who went bankrupt, so choosing to end it all by leaping from rooftops. Countless investnt funds, banks, and international hedge funds dove into the fray, turning the crude oil futures market into a veritable battlefield. After completing all his trades in those fifty-one chaotic days, Yi Anguo had secured another $20 billion. In just over half a year, he had amassed a colossal fortune of $50 billion from the international crude oil futures market.
Now, all I have to do is wait quietly for the price to fall from $147 to $46 a barrel, he thought. The hard part is over. From here on, I just need to add to my short position every now and then. Nothing excessive. I’ll add 50,000 short lots for every ten-dollar drop in price and just let it continue its slide.
With his trading in the crude oil futures market largely complete, Yi Anguo began preparing for an investnt scouting trip to Silicon Valley.
Just as everything seed to be going smoothly, Ding Jing’s mother’s health suddenly took a turn for the worse. Although her initial kidney transplant had been successful, everyone knew that such procedures ca with many long-term uncertainties. Theoretically, while 60% of transplant recipients live for more than five years, only 1% make it past ten. Ding Jing’s mother had already passed the five-year mark, so a relapse, while devastating, was not entirely unexpected. Fortunately, money was no longer an issue. Yi Anguo was wealthy, and Ding Jing herself had earned a considerable amount working for him. He was generous with her; she was his woman, and he would never treat her poorly. With their financial resources, a second kidney transplant was now a viable option.
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