‘Look, you’re dead right,’ Guy went on. ‘For this to work, someone is going to have to persuade a lot of talented people to take big risks for no guaranteed return. And I’m not just talking about employees. We’ll need all kinds of partners: technology, marketing, content, merchandising, financial. That’s where I come in. I can persuade people to do things they don’t really want to do.’
‘Can you?’ I asked.
‘Can’t I?’
I drained my pint. I could feel myself getting sucked in, and I wanted to escape before it was too late. ‘I’ve got to go.’
‘Look at it this way, if it works, we’ll make millions. If it fails, we’ll have a lot of fun.’
‘Goodbye, Guy.’
He pulled a brown A4 envelope out of a shoulder bag and thrust it into my hands. ‘I’ll call you tomorrow.’
I left him at the table and fought my way through the crowd of drinkers towards Tower Hill station. I looked for a litter-bin to toss the envelope into, but there weren’t any around, so I stuffed it into my briefcase.
Me work for Guy? No chance.
6
I flopped into the only empty seat in the carriage. A miracle. Normally I didn’t mind standing, but that morning I felt as if the world owed me a little something. Not much. Perhaps one journey a month sitting down for the price of my tube card. Travelling to work was always a nightmare. Travelling back wasn’t so bad: I didn’t usually leave the office until well after the crush had thinned.
I opened my briefcase to take out the Financial Times and saw the brown envelope Guy had stuffed into my hands the night before. I hesitated. I had planned to throw it away, but I was curious. Curious to see what had Guy so worked up, and curious to see what he was planning to do about it. Guy was certainly no businessman, so I wasn’t expecting much. I pulled out the envelope and opened it. Inside was a neatly bound business plan of about twenty pages or so. I started to read.
It began with the two-page Executive Summary, which was much the same as Guy had described in his ‘elevator pitch’. Then there were discussions of the potential market, revenue-generating models, competition, technology, implementation, and some very sketchy sections on management and financial analysis. With the exception of the last two sections, it was good. Very good. Every time a question popped into my mind, the answer appeared on the next page. Like a good novel, it drew me in. It was carefully researched and, apart from a couple of grandiose claims on the first page, it was understated, which made it more powerful. I was surprised by the quality of the work and a little ashamed at my earlier underestimation of its author.
I was three-quarters of the way through when my train pulled into Bank. I fought my way through London’s most labyrinthine underground station to the surface and headed for my usual coffee shop. Rather than taking the cappuccino away, I decided to drink it at a stool by the window and finish the report.
Most start-ups failed. I knew that. The Internet was all hype, I knew that too. I was a banker, good at my job, known for my high standards of work. I could enumerate the risks, spot the downside. This wasn’t the kind of business that a bank like Gurney Kroheim, sorry, Leipziger Gurney Kroheim, should get involved in. My considered opinion should be to politely turn the proposal down.
I put the report to one side and sipped my coffee, watching thickening crowds rushing along the pavements outside. The trouble was, at that moment, I didn’t want to be a banker. Guy was talking about a dream. About a spark of an idea that could become a vision, then a small group of dedicated people, then a real company, and then... who knew?
There was definitely a market opportunity. During the 1990s English football had transformed itself into a money-spinning machine with the conversion of the First Division into the Premier League, the flotation of a number of clubs on the stock market and above all the heavy investment in TV rights by satellite companies. Everyone knew the Internet was going to change everything, even if they didn’t know exactly how. Guy’s plan to capitalize on this opportunity made a lot of sense. Would I, as a diligent Gurney Kroheim banker, have backed Bill Gates? Or Richard Branson? Or any of the billionaires that were springing up all over Silicon Valley? No. Because David Lane, Vice-President, Project Finance, didn’t have that kind of vision or imagination.
At Broadhill I had caught a glimpse of a wide variety of exciting lives. The children of actors, sports stars, millionaire entrepreneurs all suggested that there was much more to be done in life than get a job, a wife and a mortgage. Then at university the world had narrowed. I graduated during a recession, when the best and the brightest competed hard to become chartered accountants. I had competed too, succeeded, qualified as a Fellow of the Institute of Chartered Accountants, and then joined a merchant bank. The City had its glamour, I knew, but it was not to be found in the Project Finance Department of Gurney Kroheim. Sure there was travel, and that was interesting, and I found much of the work intellectually challenging, but where was it leading? To a wife, as yet unidentified, and mortgage in Wandsworth? Was that so bad? Isn’t that what I had worked for since leaving school?
Guy was right, it would be fun to work with him. I had admired him at school. We had had difficult times together in France, and then again in London when he was a struggling actor and I a soon-to-be-qualified accountant. More than difficult. But despite these the idea of spending the next few years with him tempted me. Of course he had let me down in the past. And he came from a world totally different from mine. But that was the point. I could give him the stability he needed and he could give me, well, excitement. Although in theory my career was steadily moving upwards, it didn’t feel like that. It felt like it was going nowhere. With Guy, something would happen. Something that would shake up my life. Whether it would be good, or bad, or both, I did not know. But I wanted to find out.
There is a premise that underlies almost all financial theory and it is this: a rational investor will avoid uncertainty. At that moment, I didn’t feel like a rational investor.
I finished my coffee and sauntered towards the office, brushed on either side by workers more eager than me to reach their desks.
When it had built its Gracechurch Street offices in the 1960s, Gurney Kroheim had been a major power in the City. Since then it had become a minnow. As I walked through the lobby, I instinctively searched out Frank, the commissionaire who had guarded this entrance since my first day in the bank and for a few decades before then. His memory for names and faces was legendary and outdid any database in Human Resources or Marketing. But he had been pensioned off the week before to be replaced by a tattooed operative with an earring from an outside security firm who looked as if his previous assignment had been in Wormwood Scrubs rather than Threadneedle Street.
The third floor, my floor, had also changed in the last year. The Project Finance Department was now four desks tacked on to the end of a larger entity known as Specialized Finance. Teams of specialists in the funding of ships, aircraft, films, local government, and oil and gas were grouped together in an uneasy alliance. There had been a time when Gurney Kroheim had excelled in all these fields. But since the merger most of the best people had left to be replaced not by Germans, but by either outside hires or people from the second-tier US investment bank that Leipziger had swallowed a few months after Gurney Kroheim. My own group, Project Finance, had consisted of ten people. The best six had gone, leaving my nice but ineffective boss, Giles, in charge of a rump of three of us. We hadn’t closed a deal in six months.