Chapter 17: Please Become the Queen

Angel Investor.

They are called this because they appear almost like angels.

It refers to an individual or group that helps early-stage Startups which have technical ability but attract no interest.

Usually, individuals invest on their own or organize into clubs to invest.

In a broader sense, it refers to anyone who suddenly appears with an angelic heart to invest in the early stages, but in Korea, it can be limited to Qualified Angel Investors recognized by the Korea Angel Investment Association.

A Qualified Angel Investor can obtain qualification by investing over a certain amount or by completing education.

In Korea, there are about 30,000 individual Angels and about 260 Angel Clubs active.

For a Startup that knows nothing and just started a business, Angel Investors are usually the first investors they encounter.

When I was Yoon Igon in Korea, I was both a Startup entrepreneur and an Angel Investor at the same time.

‘Even if I was just a small-scale investor…’

What must be remembered is that Angel Investors are not actual angels.

Angel Investors, though different only in the scale of their funds, are also people who invest for the sole purpose of making profit, and, in fact, in that they invest a small amount early on to aim for larger gains, there is a side of them that is even more greedy than others.

Among the 30,000 Angel Investors, there are also vicious brokers called Black Angels, so people must always be careful.

‘What was the method for receiving investment from an Angel Investor again…’

Thinking about it, what appeals to Angel Investors or even Venture Investors who invest tens of times more, is the same.

It’s about giving confidence in how many times the profit can be returned after how long a period.

Operating a Startup costs money.

Currently, I have nothing in my pocket, so I intend to invite Miss Frana Bella to be my first Angel Investor.

***

“Is the first request to simply listen to my story?”

“Yes. Just listen, that’s all I ask.”

“I see… If it’s just listening to a story, that’s not such a difficult request.”

She seemed a little warm and took out a fan, holding it in her hand.

Though she seemed a little uncomfortable at the mention of three requests, she gestured that she would listen to my story. Even that alone was half a success.

“Long ago, in a certain Kingdom, there was a man named Rem Bus. This man was a mapmaker by trade. One day, he happened to come into possession of a map— a treasure map that pointed the way to the land of gold, El Dorado, said to lie at the far western edge of the sea. Because he had worked for so long as a mapmaker, the man was sure that this map was genuine.”

“Rem Bus believed that if he reached El Dorado, he would obtain great gold and was full of expectation at the thought of becoming rich. He immediately started recruiting people who would join his cause. To go there, he needed a ship, sailors, and a great deal of provisions. However, the far western sea’s cliff was too distant, and the idea that there was a land of gold seemed like nonsense to others.”

“Though Rem Bus was convinced the map was genuine, he continued searching for someone to sponsor him. Yet contrary to his hopes, for seven years, he sought out and tried to persuade many people, but everyone mocked him as a man with a foolish dream. At some point, he came to be known as ‘Fool Rem Bus.’ But he did not give up, and eventually, he even gained the chance to present his story before the Queen.”

“He made the same request to the Queen: to support him with a ship, sailors, and provisions. The Queen began to question him, and Rem Bus answered her sincerely. However, the Queen did not sponsor Rem Bus. A year later, he was called again, and though the Queen asked similar questions, again she did not sponsor him. In this way, she called him over three years, but only ever to ask questions.”

“Rem Bus had every reason to be angry, but he patiently endured. The reason the Queen had not supported him was simple— the Queen was always in a state of economic shortage. To support him would require a sponsorship so great as to be a heavy blow. However, after three years, the Queen, after much deliberation, finally decided to trust Rem Bus.”

“Despite all opposition, she went so far as to sell all her own assets to support him. For the Queen, this was a venture— literally, an adventure. There were three reasons the Queen supported him. First, for over ten years, he had traveled about persuading people. He was called Fool Rem Bus, but he was not discouraged and never gave up his beliefs, even over such a long time.”

“The Queen judged that if a story had been so thoroughly contemplated for ten years, it was close to the truth. Second was his plan. Over the ten years, as he went about speaking of his dream, the story grew more substantial and detailed. As time passed, everything became more concrete: the number of sailors, the size of the ship, the amount of provisions— all the preparations.”

“In a way, that long period spent persuading people became a process for him to make his preparations rock solid. That tenacity over ten years eventually moved even the heart of the Queen. And finally, the reward.”

“He promised in writing that, should the expedition fail, he would compensate for all losses. Moreover, as compensation for the sponsorship, he agreed to give the Queen not 9… but 30% of everything he acquired.”

This is a retelling, in my own way, of the story of the first venture investment— Columbus and Queen Isabel.

In the original story, Columbus asks Queen Isabel to grant him 10% of the profits and the position of Governor if the expedition succeeds.

It’s a story often cited as the spirit of Venture.

Columbus sought to pioneer the Atlantic Route through his exploration of the New Continent.

Seven years after first proposing to Queen Isabel, he finally concluded a contract with her.

There is much controversy about Columbus’s character and stories, but the process of persuading Queen Isabel is cited as one of the best examples when discussing entrepreneurial spirit.

Columbus’s contract requested 10% of the spoils and the post of Governor.

Of course, even 10% was enormous, as the amount sponsored was large, but in the end, he would have to give up 90% of the harvest to another.

For an early-stage Angel Investment, those are harsh terms.

If you promise 90% of the reward from the start, no matter how successful you become, the Startup cannot grow.

Equity is the best tool a Startup has for attracting funds and must be used sparingly and wisely.

‘Even 30% is enormous.’

When a Startup establishes itself as a Corporation, equity comes into being.

Equity is a form of company ownership, and most Startups are established as stock corporations.

At this point, according to the amount you invest, you receive shares and judge how much of the company you own by the percentage.

Typically, there’s a capital, and the price per share often starts at 5,000 or 10,000 won.

Simply put, if you create stock worth 100 million won, and each share is worth 1 million won, there will be 100 shares.

At first, the Startup founder holds most of the shares.

But as the Startup needs funds to operate, through many rounds of fundraising, the number and proportion of their shares steadily decreases.

Instead, the company’s value— that is, the total worth of the business— grows, so if you sold one share at 1 million won before, over time you can sell it for 10 million, even 100 million won or more.

Assuming the company grows, you can sell shares at a much higher value later, so you must be careful about equity percentage at the time of founding or first investment.

For an initial Angel Investment, if the amount is not large, I think around 10% equity is appropriate.

But since this is another world, just offering 10% will not do.

It would be good to ask for around 30%…

After drinking a sip of water, I continued speaking.

She listened to me, fiddling with her fan made of woven reeds.

“The Queen’s consent was hope for Rem Bus. With the funds the Queen raised by selling all her assets, he bought a ship, supplies, and recruited sailors. With full confidence, he set out on an adventure to the land of gold, El Dorado. But when he set sail, no one knew how Rem Bus’s expedition would end.”

“Whether this adventure would bring great profit or only loss. His voyage faced many obstacles. There were encounters with the sea monster Kraken, temptations from the Sirens, and many crises, but he overcame them with strong bonds with his crew.”

“In the end, Rem Bus truly arrived at the land of gold, El Dorado. Rem Bus and all the sailors were elated, dreaming of becoming rich. They had discovered a New Continent that no one in the world had found before. Rem Bus and the sailors landed to search for gold— but then, they realized something was wrong.”

“They searched the New Continent far and wide, but they could not find gold. Before the despairing Rem Bus, there stretched only endless jungle. It was a place thick with vines growing in slender stems, like rattan. And the true nature of those plants was Pepper.”

“Pepper is a precious spice even in our Kingdom now, but in ancient times it was unspeakably expensive. Even today, Pepper grows only in small amounts in cool-climate continents and is valued as highly as gold. This Pepper was abundant in the jungles of the New Continent.”

“Rem Bus returned, his ship laden not with gold but with Pepper. And he gained wealth as great as gold. Thirty percent of that wealth was given to the Queen who had believed in and sponsored him. And the Queen was able to create the richest Kingdom on the ancient continent.”

“Moreover, the New Continent discovered by Rem Bus became the Queen’s territory. Rem Bus became Governor, managing El Dorado, and after many years, he finally discovered even a Golden Temple deep within a Dungeon in that land. The Queen’s decision made her the wealthiest of all. If she had not decided, that land might still be sleeping, undiscovered. Thank you for listening.”

She was silent for a moment, touching her fan, and then opened her mouth.

“Yes, it’s an interesting story. But why did you tell me such a story?”

I immediately addressed the Queen— no, the young lady.

“My second request to you is to sponsor me now, as the Queen supported Rem Bus. At that time, there was no concept of investment, but after Rem Bus, people began to sponsor not as patrons, but as investors. And those people could accumulate great wealth without running the businesses themselves.”

“Go on.”

“Young lady, I have lived my whole life in the Communal Living Area, always dreaming of venturing out into the world. You told me to create a Sangdan, didn’t you? I was so surprised. Because I was already planning to go to the capital city to create a Sangdan.”

“My dream is to build a great Sangdan. I don’t want a fake Sangdan just for artifact delivery— I want to create a real Sangdan of my own.”

“Oh? You were already planning to create a Sangdan? And what do you want to do by making one?”

“Though I may have looked like I was just chatting every day in the Communal Living Area, in truth I have imagined countless business items. I pride myself on having more business ideas than anyone on the Yuras Continent.”

‘It’s true. After all, I know the Business Models of countless companies on Earth…’

“So you want me to invest in you like that Queen did? You claim you’ll bring me gold?”

“Yes, young lady. Please become my Queen.”

It sounded a little odd when I said it, but as long as the meaning was clear, that was enough.