The Term Sheet: A Startup Thriller Novel (17 page)

“
D
avid
!” He heard pounding at the front door. “David!”

It was light outside. He had driven home from Seattle the night before and didn’t get in until four a.m. It was a rough night and when he got home he had collapsed on the couch. His body was contorted and stiff, and when he tried to get off the couch, his legs collapsed under the weight of his body. Pain streaked up and down his right leg in shooting blasts. He realized he must have been sleeping on it funny.

“David! Are you dead in there? I think I heard something. Should I call an ambulance? The police?”

David shouted back, “I’m here. I’m here. Hold on, Jesus Christ, I am here. Just stop yelling.”

When David finally reached the door, he unbolted it and Andrew nearly fell into the apartment.

“Thank God, I thought something happened to you.”

Andrew turned on the lights as he came in and stared at David’s face.

“What the fuck happened to you?” said Andrew. “You look horrible! You’re as white as a ghost.”

“I’m just tired. I drove to Seattle and back last night.”

“Don’t tell me you did something stupid like sign our company away. Does System own us now? Do I need to start looking for a new job?”

David limped to the coffeemaker and started pouring water.

“Worse,” said David quietly.

“What could be worse than that?”

“Doug is making a hostile takeover. He set us up like pawns and is now tearing us down. This whole thing has been a big charade. He knows we’re completely out of money and is threatening to sue if we don’t accept his acquisition offer.”

“Sue over what? He can’t win a lawsuit. We haven’t done anything wrong.”

“Sure, but that doesn’t matter. We can’t afford a lawsuit. We don’t have the money to pay lawyers. But even more important…we don’t have any time left. Rocketship Ventures will back out of their offer the second they hear about this. It’s over. I tried to puzzle out a solution last night while driving back, but there is none. Doug obviously understands business a hundred times better than I do.”

“Fuck Doug. If Frank Atari has been around the block, he already knows these kinds of tricks and won’t care.”

“That’s what I thought too, so I set my alarm early and called Frank an hour ago. He said he totally understands the situation and feels terrible for us, but that his limited partners, the people who fund Rocketship Ventures, would sue him if he took on any potential liability.”

“Fuck,” said Andrew. “So he’s out?”

“Yes, he’s too spooked now. I probably shouldn’t have called until my head cleared a bit more.”

Andrew and David sat silently for a few minutes.

Finally Andrew broke the silence. “So, what’s the acquisition offer?”

“Two hundred and fifty thousand dollars.”

Again, silence.

“I guess that’s a lot more money than we have now, right?”

“Take out half for taxes, then divide it between the two of us and spread it out over four years. It works out to about fifteen thousand dollars a year.”

“We won’t get rich off of it, but that’s a new car, right?”

“I can’t work for Doug after what he’s done. There isn’t enough money in the world he could pay me to work for him. We’re in a pickle, but it doesn’t mean we have to forfeit.”

“Am I missing something?” asked Andrew. “It sounds like giving up is exactly what this means. It’s starting to sound a lot like a checkmate to me.”

“We have one move left. There might be a way out of this. It’s a long shot and morally questionable and I don’t know if we can pull it off, but I’ve been saving it for a rainy day.”

Andrew looked out the window and chuckled as rain poured down the window. David pulled out a crinkled business card from his left jean pocket.

“I never thought I would need to do this.”

He threw the balled-up card to Andrew, who began to unravel it.

“What is this?”

“Just shut up and hand me my phone, it’s on the desk.”

Andrew tossed the phone to David, who started typing in the number from the card. The phone rang five times before anyone picked up.

“Hello,” said David cautiously. Then a pause. “It’s David. David Alexan—”

David listened intently for a minute without saying a word. He then put down the phone and stared blankly out the window.

“What happened?” asked Andrew. “Who were you calling?”

“The Secret Service.”

“Are you crazy? But you didn’t say anything. What happened?”

“They just landed in Portland. He told me to stay put and they would be here in thirty. Hand me my computer and get me the biggest coffee you can find. I need to do something before they get here.”

D
avid and Andrew
stared out the window at the pouring rain. It had already been two hours since the phone call. They sat silently. A black Lincoln Town Car finally pulled up.

“It’s them.”

The back doors swung open. The old man with piercing eyes stepped out.

“That’s Shawn,” said David. “And the geek is Brandon.”

Brandon tried to cover himself from the rain with his tweed blazer, but Shawn walked as if he didn’t even notice the deluge. By the time they reached the front steps, David had swung open the door and the two men strode in. Shawn stared at David up and down. Then looked around the apartment slowly, taking everything in. Finally he spoke.

“Why did you call me this morning?” asked Shawn.

“I have a bit of a situation here and I think you might be the only person who can help me. Without your help, I’ll be forced to shut down Cryptobit.”

“Shut it down?”

“Yeah. Our business partner screwed us over.”

“What do you mean?”

“He’s blackmailing us. He wants us to accept an acquisition and become the flagship product for his new product release and is threatening a lawsuit that will scare off the other investors who are about to write us a big check. The lawsuit would never hold up in court, but it doesn’t need to.”

“So you called me?”

“We’re out of money and time. It’s the only card I had left to play.”

Shawn looked at David with what seemed like pride and after a moment, asked: “Is Doug Kensington the one blackmailing you?”

“Yes. How’d you know that?” Shawn smiled but didn’t answer. “If we don’t change his mind, your chances of tapping messages disappear. Up in smoke, just like our company. So in a way, he is blackmailing you too. That is, unless you help get us the money.”

Brandon laughed and said: “You think the Secret Service is going to give you money?”

“If you want to be able to listen in to your bad guy, you will.”

“Last time you swore your system was impossible to tap into, even for you.”

“Maybe I was wrong.”

“What’s your deadline?”

“Tomorrow night.”

“The Secret Service doesn’t deal with blackmailers,” said Brandon. “We can’t get involved unless he directly threatens the president or his family.”

“You wouldn’t be here if there wasn’t already a threat against the president. Look, I know it’s a long shot, but it’s the only plan I have left. Why did you come here, anyhow? Unless I’m mistaken, the president’s nowhere near Oregon right now.”

“That’s none of your business,” barked Brandon.

“You come to my house with no notice, I think it’s my business now.”

“If I recall, you invited us here.”

“Yeah, this time, but…”

“It’s a matter of national security and you don’t have clearance,” said Brandon. “Look, we don’t have time for this. I couldn’t care less about your little startup. It should be illegal as far as I am concerned, but right now I have a job to do. How do you crack your system?”

“First, wire the money.”

Brandon stood up to walk out, but Shawn put his arm on Brandon’s shoulder and pulled him down again.

“How much do you need?” asked Shawn.

“A million dollars by tomorrow afternoon.”

“Assuming we can get that kind of money, which we can’t, explain your plan,” said Shawn.

“First I need to know whose account it is you want to tap.”

“That’s also a matter of national security,” repeated Brandon.

“Doug Kensington,” said Shawn.

Brandon blushed. David went pale.

“What?”

“Your business partner. We need to tap his account.”

“What does Doug Kensington have to do with national security?”

“The deal is we loan you a million dollars and you tap into his account. No questions.”

“Loan? I think you mean invest, don’t you?” said Andrew.

“No. I said loan. There is no way the Secret Service hands out a million dollars. But I might be able to get the money temporarily for whatever plan you have if we can get it all back.”

“But what happens to Cryptobit after that?” asked Andrew.

“That’s not my problem,” said Shawn. “Now tell me the rest of your plan.”

They sat at the table as David laid out a tiny USB drive, a blank piece of paper and a pencil and began explaining everything.

“
T
hat’s
the worst plan I’ve ever heard, Shawn,” said Richard Curtis over the speakerphone in the back of the black Town Car as they drove toward the small Portland Secret Service satellite office. Shawn stared out the window with a stern frown and Brandon looked at his boss with a sad puppy dog expression on his face. “Not only will I not approve the loan, but I want you to come back to DC immediately. You are not a field agent. Hell, you’re too old for this. When’s the last time you even shot your gun?”

Shawn had been at the shooting range with his Sig Sauer just yesterday, but didn’t say so.

Richard continued: “Look, Shawn, I know you’re friends with the president and that you predicted the attack and all, but you have no evidence. You are working off less than a hunch, and you are way out of your role. You should be sitting at your desk in DC managing people. I have teams of active field agents ready to roll if you had a shred of evidence.”

Shawn’s expression remained unchanged. As they crossed the Burnside bridge, he just kept quiet.

“I appreciate your gumption. I really do. But there is nothing to work with here. And there are bigger things going on right now that need our full attention. I need you back in the office by morning or I’ll be looking for a new Senior Director of Transportation. Do you understand me?”

“Yes, sir,” mumbled Shawn.

“What was that?”

“Yes. Sir.”

“Good.”

Shawn hung up.

“So what are we going to do?” asked Brandon.

Shawn didn’t say a word, but started dialing numbers into the car’s satellite phone.

“Hello, this is the desk of Richard Curtis, how can I help you?”

“Debbie?” said Shawn, cracking a hint of a smile.

“Shawn Douglas? Is that you?”

“In the flesh. How are you? It has been too long. How are Jonathan and the kids?”

“They’re great. Alex just finished his doctorate and Amy just had her second kid. You are sweet for asking. How can I help you today?”

“I need to call in the favor.”

There was a pause. The timbre of Debbie’s voice fell to a low rattle.

“This is it? And then we’re even?”

“Yes.”

“Okay.”

“In a few minutes you will get a fax from me for Richard to authorize. I need you to fake his signature for me.”

Another pause. This one lasted for at least thirty seconds.

“I don’t know.”

“Debbie, I need you to do this.”

“You know what you’re asking me to do, right? I know I owe you, but I’m still paying Alex’s undergraduate tuition. I can’t afford to lose this job.”

“Debbie, if I am right about this, we’ll all look like heroes. But I need it authorized immediately or my whole plan falls apart.”

This time there was no pause.

“Ah shit, Shawn, you should have told me it was for one of your hunches. In the thirty years I’ve known you, I have never seen one of your hunches turn out wrong. If that’s all I need to do to clear things up, consider it done.”

“You’re the best. You’ll see the form in a minute.”

“Hey, Shawn. I’m sorry about Norah. They don’t make them like her anymore. If you’re ever in my part of town, come over for coffee and we can chew the fat.”

“You got it, dear.”

Shawn hung up and smiled while gazing out the window.

“Who was that?” asked Brandon sheepishly.

“Richard’s secretary.”

“No, I mean what’s the backstory? How do you know her? What do you have on her?”

“She was originally my secretary. When you work with someone long enough, you don’t need to have anything on them.”

Brandon smiled and let it go.

A
s David
and Andrew walked toward the building, the rain continued to pour. Seattle’s hilly streets had turned into rivers and the night’s sharp wind made for a bitter cold. If this didn’t work, David didn’t know what he would do. There were so many pieces of his plan that could go wrong. He had put his fate in a man who had nearly kidnapped him and a guy who had already abandoned him once. They rushed under the overhang to the dry concrete. The doors were locked, but this time David didn’t even try to get the guard’s attention. Instead he reached for his phone in his soggy jeans and sent a quick text.

“David Alexander to see Doug Kensington”

A few moments later, he received a reply.

“I’ll be down in a moment.”

The wind and rain picked up and a flash of lightning briefly lit up the streets. Ten minutes later, Khelli appeared and opened the large glass door. She was wearing a bright purple dress that hugged her body and accentuated her dark skin, but her face was not in a flirty mood.

“You’re late,” she said as David and Andrew walked in.

“But I’m here, right?”

She silently escorted them to the elevator. Khelli studied Andrew, looking up and down at his loose-fitting suit. When they arrived at Doug’s office, the door was open.

“He’s expecting you,” said Khelli. She sat down at her desk, crossed her legs and began to type.

David leaned toward Andrew and whispered in his ear. “Remember, you’re supposed to be a self-assured savvy investor type. Look like you belong.”

As David entered the room, Doug stood up. One eyebrow lifted as he saw Andrew following behind him.

“Good to see you, David. But who is this?”

“Hi,” said Andrew in a voice deeper and lower than they had practiced. “I’m Anthony Patrick from Rocketship Ventures, Frank Atari’s associate. Nice to meet you.”

“Doug Kensington.” His handshake was firm, but his eyes were confused.

“Yes, of course. It’s my pleasure to meet you,” said Andrew. “I’ve been meaning to reach out and say hi since I’m based in the Seattle office.”

“Yes,” said Doug. “Haven’t we met before?”

Andrew paused for an awkward beat. David blushed slightly.
This was it,
he thought.
It’s all over.

“You know it’s so hard to put faces to names unless you have an occasion like this where we can really get to know each other.”

Doug took a long look up and down Andrew’s body.

“David, why did you bring Anthony? Our business tonight is strictly between you and me.”

“I figured if you were going to send Rocketship Ventures an email, it might save some confusion if I just let you tell them directly what you have to say.”

Doug stood silently—like he was trying to remember something. Then his eyes became thin slivers.

“Satya Nadella’s celebration ceremony!”

“What?” said Andrew.

“That’s where we met. I was trying to remember where we would have been at the same place together. The gathering after Satya was named CEO of Microsoft.”

“Oh. Yes. Right,” muttered Andrew.

“Do you remember the thunderstorm that night?”

“Yeah, that was one for the record books,” said Andrew. “I hear tonight’s is supposed to be worse. Look, Mr. Kensington. David explained everything to me. He told me how you offered to buy his company and then rescinded the offer. Then he told me you blackmailed him into selling you his company with the threat of sending me some kind of faked documents.”

“I think there has been a big misunderstanding here. Will you please have a seat? Would you like some coffee? Khelli,” shouted Doug. “Coffee for my guests.”

The three men sat down in the dimly lit room around a clear glass coffee table. David saw Khelli from the corner of his eye walking out of the office.

“I am sorry if you interpreted my actions as blackmail, David. That’s certainly not what was meant by it. I simply thought that in the spirit of full disclosure, it was in Rocketship’s best interest to be aware of our full history together.”

“We have no history,” said David. “You jerked me around and tried to take advantage of me. Your software doesn’t work and now you need mine to launch your new flagship suite of software. You’re probably planning to go IPO after this product launch, so you’re desperate. You need good press.”

Doug ignored David’s comments and addressed only Andrew.

“Isn’t it amazing how self-important startup founders think they are these days? See Anthony, David and I aren’t that far apart in age, but I have dedicated my life to the study of entrepreneurs. These days, startup founders are ego obsessed and love to bask in the spotlight. What happened to the days when business fundamentals mattered and it wasn’t so ‘cool’ to be an entrepreneur? I’ve modeled myself after founders of generations past who didn’t have incubators and accelerators to hold their hands and make them feel good while they sat there jerking themselves off. There were no kumbaya startup camps. Kids these days think they can flip their company for ten million dollars just because they were on TV. It’s no longer fifteen minutes of fame, it’s more like thirty seconds. The attention span has shortened to the point that nobody is in it for the long term anymore. Nobody’s looking at the bigger picture.”

“I couldn’t agree with you more,” said Andrew. “In fact, David invited me here tonight because he thought he could have his cake and eat it too, that somehow you could be browbeaten into submission if I were to tell you I didn’t care about his legal problems. But the truth is I do care about his legal problems. I care about them a lot. I have no interest in getting into bed with a company that’s about to be crushed like an ant.”

“Hey, this isn’t what we discussed,” said David as he edged towards Doug’s computer. David pulled the USB drive out of his back pocket.

“David, sit down,” barked Doug. Andrew waved at David with a condescending motion. David sat down. “So why did you come here tonight, Anthony?”

“I came because I saw an opportunity. My investments aren’t investments in companies. They’re investments in people. You, Doug, are one of the people I have been looking to build a relationship with for some time now. I don’t want to invest in a company that’s going under and I certainly don’t want to invest in David. But it appears as if we have something in common. We both know that David has accidentally built something quite valuable. To a certain kind of person, Cryptobit can be a very powerful asset.”

David stood up again and protested. “You seem to have forgotten that I’m still in the room and that this is still my company. I can walk out of here right now and get any investor I want.”

“No, you can’t, David. You’re out of options and we all know it,” said Andrew. “Stop pretending. The only two people who can do anything for you right now are in this room. So sit the fuck down.”

David sat again, a few inches closer to Doug’s computer.

“So what do you propose?”

“A simple collaboration. As of this afternoon, I have invested a million dollars in Cryptobit to become a forty percent shareholder and the chairman of the board. If you come in with another million dollars and join the board, together we’ll have shareholder control
and
board control, and then we can kick David out of the company and replace him with people from System.”

“Bullshit.”

Andrew paused. “What’s bullshit? I can show you the account balance showing the money transfer if you like.” Andrew stood up and started walking toward Doug’s computer.

“Bullshit. Sit down right now. There was no storm that night at Satya’s party. I finally remember why you look so familiar. You’re Andrew Smith. You’re David’s cofounder. I remember you from TV. Look, David, I told you no games. Time’s up, and it looks like we’re going to have to do things the hard way. Khelli,” yelled Doug. “Send in Gabriel.”