Draper University

BEFORE IT WAS OBVIOUS: BAIDU
A $9 million deal negotiated in the back of a taxi. A stake that would eventually be worth more than $20 billion.

In 2000, Tim Draper was in Beijing, negotiating with Robin Li, the founder of a young Chinese search engine called Baidu.

Tim had already invested in six search engines. He believed China would need its own search infrastructure as internet adoption grew, and he saw Robin as the right founder to build it.

But there was a problem.

Robin wanted $9 million for 28% of Baidu. Tim thought the valuation was too high for a Chinese search company at the time. Robin wouldn't budge.

The negotiations continued in a taxi on the way to dinner.

Ultimately, Tim decided to make the deal.

He believed in the founder, the opportunity, and the future of China's internet market enough to accept a price he wasn't initially comfortable with.

That 28% stake would eventually be worth more than $20 billion, according to Tim's account.

Tim also worked with Robin on the paid-search business model that would become fundamental to Baidu's success.

The lesson? Sometimes the biggest opportunities aren't the ones that look cheap or obvious. They're the ones where you recognize a founder and a market worth believing in before everyone else does.

And sometimes, the deal that changes everything gets made in the back of a taxi 🚖