Jobs and Markkula negotiating the investment deal – Jobs (2013)

Summary

In this engaging script, Mike Markkula visits Apple Computer, intrigued by the potential he sees in Steve Jobs and Steve Wozniak's startup. After a humorous exchange and a tour of their modest operation, Markkula offers a $90,000 investment at a $300,000 valuation, with an additional $250,000 credit line at 10% interest. His conditions include incorporation to protect the founders' interests, marking a pivotal moment in Apple's early financial journey.

Takeaways

• 🤝 The script involves a meeting between Mike Markkula, Steve Jobs, and Steve Wozniak, discussing the early stages of Apple Computer.
• 🏢 Mike Markkula is introduced as a potential investor and former colleague of Don Valentine, who was contacted by Steve Jobs multiple times.
• 🍎 The Apple Computer company is described as being in its infancy, operating out of a garage and planning to launch the Apple II computer.
• 💡 Mike Markkula sees potential in Steve Jobs and the Apple Computer venture, recognizing a similar drive that he has experienced.
• 💰 The initial investment offer from Mike Markkula is $90,000, which Steve Jobs initially accepts but later suggests is insufficient.
• 📈 Mike Markkula proposes a more substantial investment package including $90,000 in cash and a $250,000 credit line with a 10% interest rate.
• 📋 The credit line is to be paid back once the company reaches a net revenue positive status.
• 🏷️ Incorporation of the company is suggested by Mike Markkula to protect the interests of the owners, Steve Jobs and Steve Wozniak.
• 🔑 Mike Markkula is invited to join the board of the company, indicating his significant role in the future of Apple Computer.
• 🍏 The script humorously notes Steve Jobs' fruitarian diet, adding a personal touch to the business discussion.
• 🎶 Background music is used throughout the script to set the tone of the conversation and highlight key moments.

Q & A

What is the context of the conversation in the script?

The conversation is about a potential investment in a startup company, presumably Apple Computer, by Mike Markkula. The discussion involves the company's current state, future plans, and the terms of the investment.

Who are the main characters in the script?

The main characters are Mike Markkula, Steve Jobs, and Steve Wozniak, who are discussing the investment in their startup.

What is the product that the company is planning to launch?

The company is planning to launch the Apple II computer.

What is the significance of the 'Manson family startup' reference?

The 'Manson family startup' is a humorous or sarcastic way to describe the chaotic or unconventional nature of the startup, possibly referring to its garage origins or the intense dedication of its founders.

What is Mike Markkula's initial investment proposal?

Mike Markkula initially proposes an investment of $90,000.

What is the valuation Mike Markkula is considering for the company?

Mike Markkula is considering a valuation of $300,000 for the company.

What additional financial terms does Mike Markkula propose?

In addition to the $90,000 investment, Mike Markkula proposes a $250,000 credit line with a 10% interest rate, to be paid back once the company reaches net revenue positive.

What is the reaction of Steve Jobs to Mike Markkula's initial investment proposal?

Steve Jobs indicates that $90,000 is not enough to meet their needs, suggesting that they require a larger investment.

What is the importance of incorporating the company as per Mike Markkula's suggestion?

Incorporating the company helps protect the interests of the owners and provides a formal legal structure for the business.

What is the role of Mike Markkula in the company after the investment?

Mike Markkula is expected to join the board of the company, indicating a more hands-on role in the company's management and strategic decisions.

What is the significance of the 'net revenue positive' mentioned in the script?

Net revenue positive refers to the point at which the company's revenue exceeds its expenses, indicating financial stability and profitability, which is a condition for repaying the credit line.