Feidin and Seliphaz exchanged knowing gazes with each other, having just discussed his secretiveness about his personal life.
"I just came to check up on the business and let you know about my plans from this point forth," Cæ remarked as he walked up to Feidin's computer, studying the data with a studious expression. "I also wanted to assure you that I kept my word and handled the problem as promised. The legal battle is gone, and Trinity Housings is no longer exposed to any liabilities anymore."
Feidin smiled appreciatively. "To be honest, I never expected that you would be able to handle it so quickly. That was truly remarkable. I don't think I've ever seen any civil litigation end so quickly."
Cæ nodded. "Regardless, it's in the past. The political conflict isn't over, but it is certainly no longer relevant. Additionally, I have put some distance between myself and the Headmistress. No more deals. No more partnerships or anything of the sort."
Feidin and Seliphaz heaved a soft sigh.
That was a relief for both of them to hear.
Despite Cæ's assurances that he wasn't brainwashed by the Headmistress, it wasn't easy for them to entirely believe all parts of that. After all, she was a master mage; she certainly would not do something in such a sloppy way that the target himself would be cognizant of any mental influence.
Still, perhaps the only thing that had convinced them of the validity of his denial was the explanations that explained the allegations even better. Regardless, it was still good to know that he didn't have any further engagement with the Headmistress.
"Sales are great," Cæ nodded with a satisfied expression. "This is good. Looks like we have achieved everything that we sought to achieve, give or take. The slums housing market in Colohen City will be completely ours to monopolize by next year."
They had completely dominated about half of all districts in the slums in the span of just two months, which was a truly shocking rate of expansion when one considered how dangerous slums were.
However, thanks to the protection from the Elendir Institute of Magic, they could operate in the slums with impunity this time around for a limited time.
"Next year, we will have to operate with our own security measures and tactics, one way or another," Cæ remarked as his eyes lit up with intrigue. "I think the most effective way to do this is to no longer go deeper into the slums. I think from this point forward, we will have had enough presence in the slums that we can have people travel to the districts to reach us. After all, by the time the next monsoon comes, they will have gotten too accustomed to the housing units by then."
The haven unit, despite its small size, was objectively a more desirable form of shelter than what they had prior, and there was no way that people would be willing to live another monsoon without them. Cæ didn't feel the need to go through with more advertising campaigns because it was very likely that the news of the haven units would have spread throughout the entirety of the slums rather thoroughly in the slums in the span of one year.
He turned to Seliphaz with a knowing expression.
"Will the next iteration of the haven unit take the same time as it did the first time?"
The Haven unit took about a whole year to be designed from scratch by Seliphaz, who worked with a proper team and had access to the Elendir Institute of Magic's labs.
"Ordinarily, no," she replied as her gaze returned to the design program lit up in front of her screen. "Since I can build upon the previous iteration rather than starting from scratch. However, because I don't have the labs of the Institute, there will be some delay. So…"
She shrugged lightly. "It would probably take another year from this point at this rate."
Cæ nodded with an understanding expression. "That's fair enough. Then, I think we should reserve expansion to other cities and their slums after the second and improved iteration is complete. It will increase the probability of our success in those cities as well next year. I think from this point in Trinity Housings as a commercial strategy, we should enter the market shortly before the monsoons so that we can have a powerful first impression upon the locals when the product is introduced to them."
First impressions mattered, of course.
And the strongest impressions were made in the season when the product was most needed and made the largest impact.
Feidin nodded. "That's a good idea. However, starting up operations in another city is going to be extremely taxing and magicapita-intensive."
He directed a troubling glance at Cæ. "I honestly don't think we will be able to get the magicapita we need to expand to a new base. Need I remind you that the only reason that we were able to get our operations in Colohen this quickly was because of the extremely generous sponsorship from the Elendir Institute of Magic."
Cæ winced at those words.
It was indeed true that that deal was the only reason that they were able to get their operations entirely up and running in one year. The funds that he got from the Elendir Institute of Magic were a lifesaver, and if not for those, it was doubtful whether they would have actually succeeded in selling even a single unit at this point in time.
"We probably can't get loans that will fund the entirety of setting up a new base and system of operations in another city," Cæ heaved a sigh. "Not only will we face the same skepticism we did the first time we applied for a loan program, but our expenses are too great."
They would need to buy a factory base, hire new employees, and establish a new administration entirely. They would also need to establish new partnerships with distribution services and contract manufacturers.
All of these were expenses that were far too large to be paid off with loans alone.
That left only a few other options.
"Private equity or…" Cæ remarked with a knowing expression. "Sell bonds. Or we go public."
The air grew heavy at his words.
One was extremely difficult, one was extremely risky, and the other was a fundamental shift that they weren't sure that they wanted to take.
Private equity referred to equity that is not traded in the stock market and is instead exchanged between investors in a private agreement. One of the reasons that there were some big companies that were able to operate flush with funds was because they had bigshots who were willing to invest in their business with anticipated returns.
The tough part about this was that it was, of course, very difficult to gain a powerful patron who truly believed in one's vision. There were many entrepreneurs across the entire country who were also eying these rich investors.
It meant that they had intense competition.
With company bonds, this was a way of essentially taking more loans, but not from the bank, but from the bond market. These tended to be riskier due to the fact that the interest rates tended to be higher. The reason for this was that banks could hedge against risk with collateral, while the bond market had no safety nets.
Thus, if they chose to sell company bonds, they would have hefty interest payments each month.
It reduced the profit margin that they operated with, and reduced the leeway that they operated with. Any failure to pay interest would force them to declare bankruptcy and cause their entire company to dissolve, destroying all their hard work.
The stock market was less risky and vastly easier than the other two options, but the biggest issue was the fact that, despite that, it reduced their agency. They would be subject to the will of their shareholders, who demanded as much of a return on investment as possible.
And they were obligated to ensure that they gave their shareholders as much of a return as possible. That meant cutting costs as much as possible and increasing revenues as much as possible, without necessarily increasing their revenues through innovation and creative destruction.
Seliphaz was, in particular, most opposed to this.
She didn't want to see the prices of the Haven units go up and put as much pressure on the people of the slums as they could get away with. She was largely in it out of empathy and compassion for the disenfranchised people of the slums, and one of the conditions with which she had joined the company was that they would never grow exploitative of the people of the slums.
To an extent, this was also the case with private equity. But it was easier to negotiate with a person than to haggle with a disembodied collection of nameless faceless shareholders.
There was also a Supreme Court ruling that prevented shareholders from being disenfranchised with lower returns. There was no such protection for private investors, and thus, it was possible to come to an agreement or even not maximize their shareholder value.
Cæ and Feidin were less opposed to going public, of course.
"We can't sell our principles." She folded her arms with a stern expression.
Cæ heaved a sigh. "All three options of raising capital are challenging in their own ways. However, I think the best way to mitigate the negative parts of each of the three is to…"
His eyes sharpened. "…do all three to limited extents."
He glanced at the numbers on the screen. "We can afford to sell some bonds without too much of a problem. Simultaneously, it will be easier to find a lesser investor or a rich one who is only willing to invest a limited amount. Simultaneously, selling limited shares in the stock market will ensure that we don't have as large a shareholder responsibility. Of course…"
He shrugged lightly. "We will have to deal with all the disadvantages this way, even if limited, and that will be more of a headache, but if we are willing to put in the work, then it will ultimately produce a better outcome. Though we should discuss with Meriam when she comes in later on."
Feidin nodded. "Well, we don't have to decide right away. We have a year until the next monsoon season, which is plenty enough time to figure out how to raise the needed magicapita."
"Good," Cæ remarked, gazing at his watch. "Well, I am running a little bit late with some other places I also need, which brings me to the second topic that I'm here to discuss."
He directed a serious gaze at the two of them.
"My future participation in Trinity Housings."
The two of his partners grew serious at those words.
The air grew heavy.
"Trinity Housings will always be extremely important to me as my first company," Cæ remarked. "However, as the two of you have long known, it will not be the only company. I intend to pursue many commercial ventures. That being said…"
His eyes sharpened.
"I do not ever intend to disenfranchise this company. I might not be able to come in every day, but I will keep up with everything and ensure that my responsibilities, which are commercial strategy, will always be as strong as it is now. I have proven that I am able to do a great job even if I am heavily consumed with other tasks, like I did when leading this company and the slum talent acquisition programs," Cæ reminded them. "And so, I will never forsake this enterprise, and I want you to know that."
His tone was clear and sincere.
"I will never, ever abandon the two of you. I swear that on Lilia."
They didn't even know who that was.
And yet, the sheer gravity in his voice.
In his body language.
His eyes.
It conveyed just how heavy an oath that was.
He meant it from his soul.