svetikya Chapter 455 Investing in Amazon
Chapter 455 Investing in Amazon
Early autumn of 1995, Seattle, USA.
A light drizzle enveloped the rainy city, but it failed to extinguish the heat and unease emanating from an old office building near Park Market.
Jeff Bezos had just finished another exhausting fundraising meeting. He rubbed his temples and looked at the mountain of operating bills on the table and the report showing a steep user growth curve that corresponded to an alarming cash burn rate. A familiar burning sensation, a mixture of excitement and immense pressure, gripped his heart once again.
Cadabra (Amazon's early internal name) needed money, a lot of money, to feed the behemoth called "growth," but traditional venture capitalists either had serious doubts or tried to cram in overly harsh terms.
At that moment, one of his assistants walked in with an undisguised look of surprise: "Jeff, there's a Mr. Alexander Ross outside, representing 'Starlight Federal Bank,' who wants to speak with you. He has no appointment, but he says... you'll definitely be interested in the idea of 'Future Logistics Network and Unlimited Shelves.'"
"Starlight Federal Bank?" Bezos quickly searched his memory.
That private bank with a rather mysterious background, but whose financial strength is said to be unfathomable.
How did they find this place? And how did they come to mention his still-developing fantasies about logistics and product categories?
"Please let him in."
The door was pushed open, and Alexander walked in, completely different from the banker he had imagined.
Standing nearly two meters tall with a well-proportioned and robust physique, his well-tailored dark gray suit exudes a relaxed yet undeniable sense of power.
"Mr. Bezos," Alexander said, extending his hand in a low voice.
"I apologize for the intrusion. I am Alexander Ross, Head of Investment at Starshine Federal. We have great interest in and...belief in your concept of 'The Everything Store,' and its potential to reshape the traditional retail value chain."
The opening remarks went straight to the heart of the matter.
Bezos felt a slight jolt and invited the other person to sit down.
Thus began a peculiar process of mutual probing and value assessment.
Alexander did not bring a thick due diligence report, nor did he have an assistant.
He was alone, yet it seemed as if he carried the entire think tank's information repository.
Bezos outlined Amazon's current situation: rapid growth in online book sales, user stickiness, technological advantages, and the challenges and funding needs it faces in warehousing, logistics, category expansion, and other areas.
He deliberately emphasized the enormous potential for the future and the uniqueness of the current model.
Alexander listened attentively, occasionally asking questions that precisely targeted key areas Bezos had considered: the optimization potential of dynamic pricing algorithms, the security and value extraction of customer data, anticipating a counterattack from traditional retail giants, and...
"Have you ever considered that one day your logistics network could operate independently of the sales platform, becoming its own profit center and data node? Even more, could it integrate payment flows to form a closed loop?"
This question caused Bezos's pupils to contract slightly.
This was one of the more distant images that flashed through his mind during his late-night contemplations, which he never mentioned in detail to outsiders.
"Mr. Alexander, your insights are profound. But this requires an astronomical investment and time."
"The window of opportunity is limited, Mr. Bezos. And Star Federation happens to have the patience and ample capital. We are not concerned with the next quarter's financial report, but with who will define the rules of business ten or twenty years from now."
He then gave an estimated figure:
Based on Amazon's current revenue, growth rate, and market share, but clearly including a very high premium on its future platform potential, data assets, and Bezos's personal execution capabilities.
This figure is about 40% higher than the highest offer Bezos has recently received, but it is not absurd, showing that the other party has done its homework and is willing to pay a considerable premium for the future.
Bezos steadied himself: "A very attractive valuation. So, how many shares does the Starshine Federation hope to acquire? And what conditions are attached?"
Alexander held up two fingers: "First, we hope to hold no less than 25% of Amazon's Class A shares (with super voting rights) and have a seat on the board of directors after this investment."
This seat grants veto power over major strategic decisions (such as mergers and acquisitions exceeding a certain threshold, business spin-offs, and the appointment or removal of core executives). However, regarding daily operations, technology roadmaps, and specific product category expansions, we fully trust your judgment and will not interfere.
With 25% of the super voting shares, plus a board seat with key veto power, Xinghui Federation will become the undisputed largest external shareholder and strategic pillar, capable of influencing the company's fate, yet clearly drawing a red line of not interfering in daily operations.
This is more "relaxed" than some venture capitalists who demand control over operational details, but offers stronger strategic control.
"Secondly, Star Alliance will become Amazon's preferred financial services and resource partner for its international market expansion, especially in specific channels in Asia and Europe. Our banking network and local political and business relationships can help you remove some non-market obstacles."
Meanwhile, some of our affiliated logistics technology companies and data analytics teams can engage in in-depth technical cooperation with Amazon, sharing some non-core patents—specific terms to be discussed separately, of course.
This wasn't just about money; it was about resource empowerment. Bezos was intrigued, especially by the international expansion and logistics technology, which were exactly what he desperately needed.
"In return, we need long-term value growth, and... StarCraft Federation will have priority negotiating when Amazon's future payment system or financial business needs partners. We believe that at the end of transaction data lies finance."
The negotiations lasted for hours and involved specific investment amounts—a huge sum of money that would allow Amazon to expand rapidly for years without any worries, equity dilution clauses, board seat selection, information rights, exit mechanisms, and so on.
Bezos is a skilled negotiator; he argued his case and tried to secure more flexibility and equity protection for the founding team.
Alexander, on the other hand, appeared unusually composed. He was willing to compromise on some minor terms, but he refused to budge an inch on core equity stakes, the scope of board veto power, and priority in future financial cooperation.
The reasoning is clear and firm: "What we are investing is not just money, but also long-term trust and a network of resources. We need to ensure that this investment and our support are not easily diluted or undermined by short-sighted decisions or other future capital. This is to protect the long-term interests of both parties."
As the negotiations drew to a close, Alexander suddenly asked a seemingly unrelated question:
"Mr. Bezos, do you believe in 'momentum'? The inherent, converging tendency of something to develop."
Bezos paused for a moment, then cautiously replied, "I have more faith in logic, data, and execution."
Alexander smiled slightly, a smile that Bezos couldn't fully comprehend:
"A good foundation. But sometimes, feeling the presence of that 'momentum' and going with it can make you go further and more steadily."
As he spoke, his fingertips seemed to unconsciously glide across the smooth tabletop, a Nascent Soul cultivator's perception of the flow of "luck" or "karma".
In his intuition, the founder before him, who appeared slightly tired but had a burning gaze, and this simple office, were enveloped by a nascent yet surging "business aura," which, although entangled with enormous risks and future karmic vortexes, was already established and unstoppable.
Young Master's judgment was indeed extremely accurate.
By the time both parties finally signed the draft memorandum of core terms, the city lights were already on outside the window.
Final conditions summary:
1. Investment Amount and Valuation: Star World Bank invested a huge sum of money in Amazon—$3 million—at a valuation significantly higher than the market level at the time.
2. Equity and Control: Following the investment, Xinghui Federal will hold 25% of Amazon's Class A shares with super voting rights, becoming the largest external shareholder. It will also gain a board seat with veto power over major strategic decisions, but will explicitly not interfere in day-to-day operations.
3. Resource Empowerment: Star Union has become a preferred financial and resource partner for Amazon's international expansion and has opened up channels for in-depth technical cooperation in logistics technology and data analysis.
4. Future Rights: Starshine Federation obtains the right to negotiate cooperation if Amazon ventures into the payment or financial services field in the future.
5. Founder protection: Bezos and his core team's controlling stake and operational autonomy are fully respected and protected, and the investment agreement includes clauses to prevent malicious dilution.
Alexander stood up and shook hands with Bezos again: "Mr. Bezos, congratulations."
What you are building is not just a company, but the infrastructure of a new era.
The Starshine Federation is honored to participate and provide support.
The funds will be available within 48 hours. Our board representative will contact you shortly; he may offer some unexpected… forward-looking insights into global supply chain optimization and data processing.
Bezos felt the unwavering strength emanating from the other's hand, and the calm, ocean-like confidence.
He was unaware of the extraordinary truth behind the "Starshine Federation," but he knew that he had just found a strategic pillar for the company that was extremely powerful, had a long-term vision, and seemed to "understand" his crazy vision.
"It's a pleasure doing business with you, Mr. Ross."
Alexander left the old office building and stepped into the Seattle night rain, his figure quickly disappearing.
He reported to Lin Yan concisely through his divine sense:
"Young Master, the Amazon's strategy has been finalized. The conditions are as expected."
Inside the courtyard, Lin Yan received a message and a slight smile appeared on his lips.