Michael Ridpath - Final Venture

'Thank you,' said Diane. 'Simon and I have done a lot of work on this deal, and I think it is a truly great opportunity that any other firm would be quick to snap up if they had the chance. You've seen the management, you've seen Simon's Investment Memorandum, I'd like to get your approval.'

'You're not getting mine,' said Art. 'They're liars and scumbags, and I've never seen such an amateurish piece of work in my career.' He contemptuously flicked my memo with his fingers.

'That's enough, Art,' Gil snapped. 'OK, let's take a vote. Diane, I take it you're still in favour.'

Diane nodded.

'Ravi?'

Ravi had been listening to everything attentively. He did his best to avoid political posturing, but he wasn't afraid of making a difficult investment decision. And at a time like this, an unbiased investment decision was just what was needed. He took off his glasses, and began to polish them. 'I'd like to be absolutely sure that Hecht isn't hiding anything else,' he said. And I'd like to see the notes on the calls you make to the venture capitalists they spoke to last year. But provided those are OK, I think we should go ahead.'

Art?' Gil turned to him warily.

'No fucking way.' Art stared at his Managing Partner belligerently.

That was probably his mistake. Gil was in a nervous frame of mind, and if Art had subtly played on that he might have succeeded in killing Diane's deal. Frank would have known how to do it. But Gil would not tolerate open war amongst his people. 'We do the deal.'

I followed Diane to the conference room where the Tetracom people were waiting. Diane gave them the good news, and then gave Hecht a firm but polite roasting. She was trying to assert her authority at as early a stage as possible. Hecht seemed confident that Gil and Diane's checks wouldn't bring up any nasty surprises, and on that basis we started work on the term sheet.

We broke at nine for dinner. We went to Sonsie's, a chic restaurant on Newbury Street. Diane was charming. Although Hecht and his boys were pros, I could see Diane's technique working. She used a mixture of charm and firmness to get what she wanted. Rather like a good teacher in a difficult school, she managed to inculcate a desire to please her in the people she dealt with. She had Tetracom eating out of her hand.

We left at eleven with promises to meet up again at eight the next morning. I was walking into the street to hail a cab when Diane caught me.

'Simon, I know it's late, but I'd like to go through those financial covenants again – see whether we can live with management's figures. Could you spare a half-hour to go over the numbers now? I'm sure it'll help us tomorrow'

She was right. It would. I was tired and I wanted to go to bed, but Diane was the boss, this was a deal, and venture capitalists didn't go to bed early if there was work to be done on a live deal. I wondered why not sometimes, but that was the convention.

'OK,' I nodded, 'I'll get a cab.'

'No need to go all the way to the office,' said Diane. 'My apartment is just around the corner.'

I gave her a sideways glance, which she ignored. I was too tired to argue anyway. 'All right,' I said. 'Lead the way'

It was, literally, just around the corner. The electrician's daughter from New Jersey had done well. The furniture was either expensive and comfortable or expensive, antique and European. The art was expensive, modern and American or oriental. The whole thing was all very tastefully done, and very relaxing.

'Coffee?' she asked.

'Sure.'

She dumped her copy of the base case forecast on the mahogany dining table, and fiddled about in the kitchen area. I pulled out my laptop and crunched some numbers. She kicked off her shoes and sat down next to me. The legal documentation contained a set of financial minimum ratios. If Tetracom's management broke them, they would be forced to hand over most of the company to us. These ratios needed to be set at a level that was loose enough to be fair, but tight enough to ensure that we could step in before the whole company went bust. That was what we were in the middle of negotiating, and that was what Diane and I had to sort out before the next morning.

I knew Frank would never have bothered with financial covenants for such an early-stage company. His view would have been that the numbers were all fiction anyway. But Diane did things differently, and since it was Diane's deal, we had to do it Diane's way.

In less than half an hour we'd cracked it. I leaned back on the antique dining chair, and rubbed my eyes. 'I'm knackered,' I sighed.

'Such a quaint expression,' said Diane with a smile.

'OK, I'm shagged out then. Don't you ever get tired?' She looked as cool as she had during the disastrous Tetracom presentation several hours before.

'Sometimes. But the excitement of the deal keeps me going. Don't you find that?'

'I try. But no. Late-night deals send me to sleep. I think the Commonwealth of Massachusetts should pass a law that agreements negotiated after eight o'clock at night are invalid. It would save the economy millions on lawyers' fees.'

She smiled, and sipped her coffee. She suddenly seemed to be sitting uncomfortably close to me. Or too comfortably close.

'Simon?'

'Yes.'

'Remember in Cincinnati when we talked about the firm?'

'Yes.'

'Well, things are developing. And I think you should know how. Let's sit down. Can I get you a drink?'

'OK.' I was curious to hear what she had to say. 'Have you got a Scotch?'

'I'm sure I can find one.'

We moved through to the sitting area, and Diane produced a glass of Scotch stuffed with ice for me, and a similar glass of what was probably bourbon for her.

We sat opposite each other. Safe. She tucked her long legs discreetly under the armchair and leaned back, watching me over the rim of her drink.

'Art was blasted today,' she said.

'I noticed.'

'And it wasn't the first time. The guy has suddenly dredged up a drink problem from somewhere. He's sliding downhill fast.'

'Gil must have noticed.'

'He has. And he's worried.'

'Is he still planning to retire?'

'He'd like to. He's considering sending Art to a clinic, or perhaps postponing fund-raising for a year.'

'But that won't solve anything,' I said. 'Art would be a disastrous Managing Partner of Revere. He was pretty awful before this. But with an alcohol problem? Gil might as well shut down Revere now.'

Diane gave a small smile. 'That's an interesting point of view.'

'Oh come off it, Diane, it's obvious. You think that. I'll bet our investors think that.'

As a matter of fact, they do,' she said, the smile still playing on her lips.

I remembered Diane's breakfast at the Meridien. 'I get it. You've spoken to Gil and Lynette Mauer about this haven't you? And other investors too, I'll bet?'

Diane didn't respond.

'Get rid of Art, and make you Managing Partner?'

Still no response.

'Do you think it will work?'

Diane allowed herself a grin. 'Yes, I think it will,' she said. 'Lynette is on board. Gil is wavering, but I'm working on him. But I'll need to build a team.'

'Yes, I see.'

'I'll need to recruit an experienced venture capitalist at partner level. And then there's Ravi, and you.'

'Me?'

'Yes. I need your help.'

'As a partner?'

'Yes. I'm sure you can handle it. I like the way you work. PC Homelease was a great deal. I think you'll succeed with Net Cop when the rest of us were going to write it off. I believe you'll be very good at this game.'

I sipped the Scotch, my mind racing. I badly wanted to be a partner of Revere. There was no point in going into venture capital unless you became partner. That was where the serious money was made, and where the serious decisions were taken. It was what I had wanted since I had joined the firm.