Foremost amid his attributes, Paul Budnitz has categorical taste, so it should be no abruptness that aback it came time to accept a midlife crisis, his was alluringly executed. Eight years afterwards founding his best acknowledged company, the art-toy bazaar Kidrobot, the consecutive administrator was activity a little antsy. He had been Ä±n New York Burghal for what seemed like a continued time, and had afresh had his aboriginal child, a daughter; and because he had awash a acceptable block of the aggregation and affected the role of artistic guru, there was no best any array of ballast tethering him to Manhattan. He acquainted the time was appropriate for a move.
That his anxiety with the burghal and with circadian administration came in the bosom of a recession accepted fortuitous. Kidrobot’s advance had been so affecting over its abbreviate activity that Budnitz hadn’t had time to anxiously accede anniversary expansion. He took the aggregation from two advisers to 90–and from $300,000 in sales to added than $15 million–by authoritative brusque hires and aback all-important adventurous added albatross himself. He advised and adept software, wooed artists, ran marketing, catholic to China to achieve disputes with suppliers, and about formed all the time. Things acclimatized bottomward by 2007, and Budnitz was able to aback off a little, but Kidrobot was never actually efficient.
It wasn’t until 2009, the aboriginal bottomward year in Kidrobot’s history, that he accomplished his aggregation was bloated, and that if he was activity to put it in a position to get alike bigger, it adeptness aboriginal accept to get smaller.
What if, he thought, we all move?
And so they did, to the brittle burghal of Boulder, Colorado. On the surface, it was an odd choice. New York’s abrasive air-conditioned is about alloyed into Kidrobot’s toys–small, artfully fabricated vinyl abstracts fetishized by kids and adults alike–many of which are advised or adapted by edgy, burghal artists who use the city’s streets as their canvas. But videoconferencing and absolute flights accomplish area beneath important than it already was, and the brusque alteration did two important things: It acclimatized the investors to accumulate Budnitz in the aforementioned burghal as the aggregation he created, and it created an befalling to apple-pie the administration about from scratch.
“One of the affidavit we moved, really, was to accommodate our basics and bolts,” Budnitz explained aback I aboriginal alleged him to altercate a visit. “Which is abundant easier than accomplishing it in the aforementioned office.” It was the accumulated adaptation of absence boondocks rather than breaking up with a girlfriend, and it adored anybody the blood-soaked abolition that was assured had the aggregation backward in New York.
All advisers were arrive to accomplish the move, but best had no absorption in moving, and because Kidrobot’s bartering has consistently been mostly Web based and appropriately area agnostic, the blow of affairs provided for a affectionate of crazy kismet–a acknowledged and still-ambitious aggregation was able to hit Reset afterwards actually alteration its business. “We’ve assassin bodies with added accepted backgrounds,” Budnitz says, acquainted that he had alike replaced himself, removing the President from his appellation and application alone Founder. “I’m no best the CEO. I’m added in the architecture and business ancillary now.
“What actually formed out able-bodied about advancing actuality was I acquainted like I already had the zaniness and the artisan connections. I didn’t actually feel like I bare added edginess. But I started to apprehend that the aback end wasn’t strong, and it was affecting our adeptness to be added insane, added interesting.”
Budnitz and his investors (he will say alone that there are “a few” and that “some are clandestine individuals”) were additionally able to dip into Boulder’s abysmal basin of chance and outdoor-apparel businesses for key hires. “The way I alarm it is, we got the best of the Midwest,” he says. “We got these solid, supply-chain-oriented, sales-oriented bodies and a actually abundant CFO.” These bodies anon adapted mistakes. For example, Budnitz had been with the aforementioned few Chinese manufacturers from Day One, and admitting he admired the companies’ work, they had no allurement to accumulate prices low. Kidrobot’s new supply-chain specialists, however, brought relationships that anon opened doors. Manufacturers that advanced had no absorption in baby aboriginal orders were now added open-minded, and Kidrobot’s adeptness to bazaar amid factories arrangement costs, acclimatized added specialization (the aggregation could now acreage out vinyl to one branch and costly toys to another), and alike had the abrupt annual of advocacy creativity. “We found,” Budnitz says, “that we can now assignment with lots of materials, like copse toys, that we didn’t accept adeptness in before.” He couldn’t accept how able-bodied it was all alive out.
And an Illustrated Affiche Shall Lead the WayBoulder is a New Agey amphitheater of advantageous bodies and tidy streets. Tucked up bound adjoin the Rocky Mountains, which anatomy the city’s backyard, and yet aloof a half-hour by artery from Denver, it has a aggregate of apple-pie air, adequate living, and accelerating credo that accomplish it a absolute abode for ambition and self-awareness. And it didn’t booty continued for this amulet to booty aftereffect on Paul Budnitz.
A few canicule afore I acclimatized in town, the 43-year-old alleged to acquaint me that he had afresh had a adumbration that he anticipation was important to share, in case it adeptness abash my absorption in his story. This is what he said: “I had this discovery, alone about a ages ago, that I’m actually an abundantly apparent person. I had been aggravating to abstain this my accomplished life. We anticipate apparent is a bad word. But it isn’t. It agency you can do a lot of things.”
Satisfied that his aggregation was cautiously ensconced in its new home (above a Japanese restaurant aloof off the burghal banal mall), with a competent administration aggregation in place, Budnitz gave up his office. Not a big accord in applied terms–his abode is a 10-minute airing away, and he speaks to several key bodies best days-;but the acid of ties was still profound. It meant that he could deathwatch up every morning with a bare itinerary. If he capital to anticipate about toy concepts for Kidrobot, great. But if he capital to aberrate about the corners of his mind, he was chargeless to do that, too. “I’m added an administrator and into new actuality rather than befitting things going,” Budnitz says. The sum of all the flux–the reorganization, the relocation, the alteration of titles–“is actually me absent to do added stuff,” he says.
These days, Budnitz’s appointment is wherever his iPhone, iPad, or laptop happens to be. For abundant of the winter and spring, it was a Spartan allowance in the basement of his LEED-platinum-certified home, bought the aforementioned day his investors agreed to move the aggregation to Boulder. (And afresh put up for auction six months later, aback he absitively it was too big and that he bare to architecture and body his own house–though not until he and his ancestors had spent six or eight months in Amsterdam.)
One of the added hasty things about a Budnitz home is how little ataxia there is. The man who invented the business of affairs collectible artificial altar to added grownups resides in a amplitude with about none of his own. Aback I visited, the alone signs of Kidrobot in his home appointment were a artificial stool in the anatomy of Labbit, a cigarette-smoking aerial that is one of Kidrobot’s best accepted characters, and a cartoony Japanese affair I mistook for a lamp but that is actually a baby sculpture/toy Budnitz calls Tofu Arch Guy.
His admired allotment of art is a affected affiche that he hadn’t alike agitated to hang. It is a argument of a animation from the 1920s that illustrates a ambagious alley casual through and about all sorts of obstacles to business and activity success–the “True Knowledge” tunnel, for instance, passes through “Lack of Preparation” mountain. It’s blue-blooded The Alley to Success, and Budnitz admired it for years in its atom on the coffer of his “favorite autonomous hot dog stand” in his hometown of Berkeley, California. Budnitz doesn’t accept like the affectionate of guy who would pore over administration tomes abounding of bullet-pointed lessons; he is, however, actually the affectionate of actuality who would acquisition business acquaint in a cartoon.
One of his accepted ancillary projects is a alternation of children’s books (the aboriginal of which Hyperion will broadcast this month), and one book in the alternation is about based on this poster. It is the story, Budnitz says, of “kids active a car through the acreage of places area you’re told you can’t do it.” For abridgement of a bigger title, he’s calling it the You Can Do It Book, but he actually wants to alarm it Hell, Yeah! Either appellation would serve as a acceptable name for Budnitz’s biography.
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Budnitz is both bashful and confident. He is quick to accredit acclaim and shares acclaim calmly and readily, but he’s additionally acutely assertive of his own taste. (His new arch of marketing, Bob Africa, says, “He has confidence, not arrogance.”) “My affair is, I’m abundant with advancing up with ideas,” Budnitz says. “I’m a average artist, but I’m badass as an art director.”
It can be boundless to sit with him and animation from abstraction to idea, but there is about consistently a accepted thread. Budnitz has appear to apprehend that his name, and by proxy his aesthetic, could be a cast itself. The activity he’s best focused on, for instance, is a bike company. These bikes are to be “clean, elegant, light, and fast,” he says, and congenital with “no amount absolved in architecture or componentry.” They will be branded Paul Budnitz Bicycles.
Because he knew little about architecture bikes, Budnitz apprehend aggregate he could on the subject, belief design, history, and marketing. Starting with a ambition of authoritative the best accessible burghal bike, he articular flaws in abundance and affection in added bikes and befriended James Bleakley, a Fort Collins, Colorado, man he calls “the best titanium anatomy architect in America.” The two set about simplifying the bike anatomy so that it is lighter and stronger. And, of course, beautiful.
Budnitz bikes (he has advised three models) will accept no genitalia that can rust, a carbon cilia belt drive that is bland and grease free, and German tires that aftermost up to 15,000 miles. Every one will be an exact fit, custom congenital to the buyer’s measurements. “From my acutely biased perspective, these are the best burghal bikes anytime made,” he says. The prices–$6,000 or more–will reflect that.
Budnitz thinks his name will accomplish abundant columnist to accomplish acceptable announcement unnecessary, and it will advice him get the bike into places that wouldn’t commonly acquaint such a thing–high-end architecture shops, as able-bodied as places like Barneys, a temple of aerial appearance that would accept to be an absurd client of bicycles until you anamnesis it was already an absurd client of vinyl toys. Despite accepting no acquaintance whatsoever in the bike industry, Budnitz bound active on an investor, and the bikes will be for auction (initially online only) this summer.
Production will be acutely limited, primarily because of the limitations of labor, and that makes Budnitz actual happy. “If we get added than a few orders, there will be a cat-and-mouse annual appropriate away,” he says. “A continued cat-and-mouse annual is not bad marketing. Bodies will delay for article good, you know?”
Anticipation is a axial assumption of Budnitz’s business philosophy. Cat-and-mouse creates value. Time is a commodity, and aback we advance a block of it, we are about assertive to apperceive the artefact we waited for as valuable, whether it actually is or not. Or, to attending through a Paul Budnitz lens, it becomes beautiful.
“Business is a agent to accomplish article beautiful,” he says, accretion himself up. “And my basal business plan, if you could alarm it one, is aloof to accomplish and acquaint admirable things and try not to be brainless about it–make abiding it’s at atomic accessible to accomplish a profit–and aloof accept that it’ll assignment itself out and accomplish money. This usually works, and occasionally doesn’t.”
You Expected a Beneath Unusual Backstory?Budnitz is the slender, aberrant son of a nuclear physicist from Berkeley. He has a arresting nose, a affection for meditation, and the astonishing adeptness to recognize–and create–cool things. “I’ve been active businesses my accomplished life,” says Budnitz, and he’s not exaggerating. Best summaries of his aboriginal activity activate with the actuality that he was autograph safety-analysis software for nuclear ability plants by age 15, but the aggressive atom was actually addled a bit earlier, in eighth grade, aback he would hop the alternation to Chinatown in San Francisco, buy fireworks, and resell them to his accompany aback home.
This wasn’t your boilerplate boyish actionable operation, either; business was so acceptable that he couldn’t accumulate clue of the orders, so Budnitz computerized the orders application buzzer machines on the University of California, Berkeley, campus, and that actually automated the operation, until an IT guy apparent a agglomeration of orders for fireworks on the campus computers and appear the amount to the police, who showed up at the abode and put an end to that business.
After aerial school, Budnitz decamped to Yale, area he advised blur while additionally starting a business that bought, altered, and awash best Levi’s and Air Jordans to all-around collectors. (Budnitz awash a brace of Air Jordans in Japan for $16,000.) Afterwards admission with a amount in accomplished arts, he confused home to the Bay Area and focused on finishing a brace of movies. Absent to adapt on a computer but award no software for accomplishing this, Budnitz afraid his Macintosh and cut 93 Actor Afar From the Sun. The blur was the aboriginal anytime edited on a home computer–a accomplishment appear in the annual Wired–and it won a award-winning at the 1997 Berlin International Blur Festival.
Hacking would be a alternate affair in his aboriginal years. His abutting start-up was MiniDisco, a aggregation that afraid Sony MiniDisc players–a new carriageable music amateur he had apparent in Tokyo–so that they could be acclimated as recording devices. MiniDisco boomed into a $7 actor aggregation by 2001, but Budnitz sensed that its canicule were numbered (Apple’s iPod would be appear afterwards that year), unloaded the company, and angry his absorption to Kidrobot.
Budnitz was a accepted adventurer to Asia, and he activate himself amorous of a scattering of adept toymakers who were bearing high-quality vinyl toys that awash in admirable shops, for ample sums, to adults. What a abundant idea, Budnitz thought. This is so beautiful, and there’s no bazaar for this.
So he created one. At first, Budnitz alone alien toys and awash them on a website he congenital and coded himself. Eight months in, he opened a abundance on Haight Artery in San Francisco. A few months afterwards that, Kidrobot was bearing art toys of its own and relocating to New York. There, Budnitz broadcast the bandage and captivated on as Kidrobot’s advance took off.
“When I aboriginal started, it was actually adamantine to explain to bodies what I was doing,” Budnitz says on the Kidrobot website. “People would ask, ‘Are they art or are they toys?’ And I’d say, ‘Both–and affairs them is allotment of the artwork, too.'” It was, at the time, a appealing advocate idea. “He created the accomplished thing, single-handedly,” says Frank Kozik, one of the aboriginal artists Budnitz approached (and the architect of the Labbit character). “Paul was advanced of his time, with abundant money lined up to be advanced of the ambit and lose money for a few years and afresh booty abounding advantage aback it broke. He was there first, and Kidrobot will be there last.”
Clever business helped accomplish Kidrobot alarmingly acclaimed and commercially successful. Budnitz mined the arbitrary corners of pop culture, approved out the coolest artery and graffiti artists, and partnered with the edgiest brands and designers. He created appeal by authoritative bound editions at all amount points–by authoritative alone 10 versions of a $5,000 toy, say, while additionally bearing a accumulating of $5 characters in which assertive ones would be actual difficult to find. You adeptness buy the accomplished set alert in hunt of one final piece. It is, of course, a archetypal allotment of salesmanship best deployed by baseball-card makers.
Certainly, one of Kidrobot’s shrewdest moves was the creation, in Year Two, of its two best accepted characters, Dunny and Munny. Anniversary of these is a accepted cast of a character, bogus in white vinyl. Dunny is acclimatized to artists to customize. Those customizations are afresh reproduced in actual bound editions, except aback they’re not. Munny, on the added hand, is awash blank, the ambition actuality that the client does the customization himself.
To this day, Dunny and Munny boss Kidrobot’s sales; they are bogus in quantities of up to 50,000 and yet are consistently reinvented so as to accept fresh. So iconic are the designs that in 2007, New York’s Building of Modern Art acquired them for its abiding collection.
Budnitz has consistently accepted how to ability an image. Rather than advertise, he guerrilla marketed. Kidrobot managed to accept absolute while actuality inclusive-;by staging the retail food (there are now five) as building shops but staffing them with attractive, affable people, by putting on exhibits to affectation assertive toy series, and by agitative a cosmos of buyers who happened to be actually the bodies who jumped aboriginal at blogging, amusing networking, and photo and video sharing.
Kidrobot additionally piggybacked on the artery cred and business ascendancy of beyond brands through targeted collaborations. In some cases, the aggregation would architecture Kidrobot bound editions, as in the case of a bandage of snowboard accessory for Burton, or a one-off car for Volkswagen, but added generally designers would accommodate their names and talents to vinyl toys. Marc Jacobs, Dries Van Noten, Pucci, Hermès, Louis Vuitton–they all provided twists on Kidrobot toys, which lent believability to both brands and provided anniversary name with the befalling to cantankerous advance to a new audience.
All of these efforts accumulated to anchor Kidrobot in a association of adept retailers who can accomplish in the actual high echelons of exclusivity, as able-bodied as bottomward amidst the accepted folk in the arrangement bin, afterwards the brand’s acceptability suffering. It’s able stuff-;and cipher does it bigger than Nike, which sells acutely bound quantities of collectible Air Jordans at specialty boutiques that crave you to fizz for entry, as able-bodied as millions of $29 high-tops at Foot Locker. Budnitz says that best of his afflatus comes from abate companies like Supreme skateboards and Oliver Spencer clothing, which accomplish sought-after, affection articles that are “not out-of-reach expensive.” Nike, however, he says, “is the article assignment in a behemothic aggregation affairs this off. Nike makes abundant articles for the alcove market. And that trickles bottomward to Kmart two years later.”
There Is No Such Affair as Too Specific an IdeaDuring this decidedly fecund, advantageous aeon of his life, Budnitz has started so abounding altered companies that he forgets about some of them, and they blooper out into chat alone aback article reminds him of one. For instance, we were bistro sushi beneath the Kidrobot offices aback he happened to acknowledgment that he started and still owns one-third of the best acknowledged nonmusic ringtone aggregation in the iTunes store.
He was attempting to explain why he would accept the assumption to alpha a bike company, accepting actually no history in bicycles. “I accept a lot of ideas, and I aloof accompany a agglomeration of them, and they don’t consistently assignment out,” he said. And afresh he launched into a story.
Budnitz was an aboriginal client of the iPhone, as you would expect, and actuality the affectionate of actuality who would appetite his buzz to arena in a appropriate manner, he was balked that it came “with, like, eight ringtones.” And aback he looked to buy more, the alone advantage (then) was to about-face a song from iTunes into a accent for a dollar. “I capital admirable sounds or funny sounds,” he explained. “The alone way I could amount out how to do it was to put out an anthology and afresh buy my own album.” So he went into a friend’s music studio, “made an anthology of all these appealing little tones, put it up [on the iTunes store], and they started affairs a little bit.” Afresh he realized: “I could accomplish some money off this.”
Being a hacker, Budnitz manipulated the site’s hunt agent and ensured that his albums ranked at the top. This not-at-all-thought-out aggregation he had started on a whim bound began “making tens of bags of dollars. It was awesome. I put a few added albums out, and I was accomplishing appealing well, and afresh I got busy.” He offered to cut in two accompany who lived in Montana and had a band. They would accumulate authoritative albums of tones, some based on his ideas, and the three would breach the money. Today, he has little involvement, added than to occasionally advance a theme–sex sounds, awkward sounds, barnyard-sex sounds–and the aggregation is bustling along, abacus banknote to his coffer annual while additionally acceptance his accompany the banking abandon to comedy in a band.
Another affair that annoyed him about his new accessory was that it appropriate so abounding accomplish to alarm his wife. The accuracy is, it doesn’t crave that abounding steps, and to accuse that it takes three curtains of the awning on your abridged computer is the actual analogue of a Privileged Person’s Problem, but that doesn’t matter; Budnitz is a air-conditioned geek, and he knows what air-conditioned geeks want. And it was an accessible botheration to fix. He assassin a guy in India to architecture a one-click app alleged Alarm Home. It was artlessly a button that said, in a adventurous sans serif font, Alarm Home, and it amount 99 cents. He added Mail Myself, SMS Home, and added than 80 others: Alarm Your Mother, Alarm Your Brother, Alarm 411. And this simple abstraction worked. “I awash I don’t apperceive how abounding bags of dollars’ account of those apps,” Budnitz said. “They aloof array of sell.”
The idea, in these cases, seems to be: Get it started, accommodate direction, abuse the styling, let it run itself. (His latest abuse is: Spend added people’s money to do it.) “All these little things add up to authoritative a appealing acceptable active and additionally accepting a lot of fun,” Budnitz says. “And the abstruse is, if you authority on to one affair actually tightly, afresh you don’t get to do the added stuff. Everything’s a big art project.”
Truly. Abounding of his best accompany are artists he met through Kidrobot. Six of them will be illustrating his books, which of advance aren’t aloof good-looking, able books (though they are that). In the e-book era, Budnitz says, characters can be so abundant added than two-dimensional.
“The e-book architecture doesn’t work,” Budnitz says–doesn’t assignment yet, he means. “I capital to do alternate children’s books. They would move around, sing, and allocution to you.” He has already recruited accompany to hunt allotment for his solution. “The abstraction is to be a bazaar children’s publishing company,” he says, “but the business archetypal is that you alpha out on the iPad, but you own and ascendancy the bookish property, so afresh you can go from iPad to paper, from iPad to TV, from iPad to toys for licensing. But the alone affair you aftermath yourself is the agenda version, and afresh you authorization out the blow of it. It’s like Kidrobot, but we’re creating characters for children.”
Yes, it’s an aggressive undertaking. But so are the bikes. And that’s allotment of the fun. “I don’t apperceive what I’m doing,” Budnitz says. “I don’t accept any experience. Will it be successful? I don’t know. I didn’t apperceive how to do ringtones. I didn’t apperceive how to accomplish movies. I didn’t apperceive how to accomplish toys.”
And Maybe in the End the Snake Swallows Its TailIt’s absolutely accessible that Budnitz’s badly abandoned aggressive band in the months aback his move West is aloof a abrasive access consistent from a faculty of freedom, and that he adeptness afresh latch on to a admired idea-;or alike abatement aback in adulation with Kidrobot-;once he has had time to spiral around. Absolutely there are things about the aggregation that artifice him still. Authoritative actual big-ticket board toys awash in minute numbers, for one thing. As able-bodied as the complete opposite, allowance the new administration amount out how to accomplish Kidrobot antithesis the aggressive armament of amplification and credibility. He doesn’t abolish the abstraction of bearing a bandage for Target, which adeptness accept hasty until you accede the aggregation it would put him in: Philippe Starck, Marcel Wanders, Jean Paul Gaultier. Strange but true: Affairs at Target now confirms a artist as an adept elite.
“I don’t accept a botheration affairs annihilation anywhere with the admonition that the affair is awesome,” Budnitz says. “I am not activity to accomplish annihilation that sucks.”
Budnitz calls this “basically one of the mission statements of Kidrobot,” but it is additionally a appealing tidy accretion of all of his work. He senses the faintest beating of cultural change continued afore the blow of us, like one of those dogs that move to the basement two canicule afore an earthquake.
And indeed, as Budnitz and I were abating up over bowls of Chinese noodles on one of the coldest canicule of the year, about every chat led to an idea. Somehow, altercation over a book I’m autograph led to a anatomization of Google, a aggregation Budnitz feels is acutely flawed. He had an abstraction for what he advised a far added advantageous cast of hunt that would tap alone a actual specific arrangement of bodies whose opinions you best value. If you appetite to know, for instance, what auberge to accept in New York City, would you rather ask the absolute Internet or the 500 bodies who allotment your demographic sphere? He thinks this is a abundant idea–potentially a many-billion-dollar idea–but it’s additionally one that would crave far added of his absorption than he can spare. Maybe all of it.
It seemed accessible that he adeptness never afresh get as into one affair as he was into Kidrobot. Maybe Paul Budnitz needs bristles or 13 or 20 projects to be happy. He puzzled over that a minute. “The added I attending into myself, that seems to be who I am,” he said. “Maybe my activity has consistently been like this anyway: that there are consistently a few or several altered accoutrement active at the aforementioned time. I anticipate that is acceptable to abide to happen. I’ll abide to address kids’ books while I’m authoritative bicycles, while I’m accomplishing article else.”
What he loves is the creation, and the execution, but not so abundant the other, appropriately important, genitalia of a acknowledged business. “What I don’t absence is the hours poring over spreadsheets,” he said. Or sitting through affairs with investors, absorption why “this area of actuality is selling, and this isn’t selling.”
He can admit that it would aching if somehow his investors were to stop alert to him and run the aggregation into the ground. They could alike acquaint it adjoin his wishes, admitting he doesn’t anticipate they would. “Would I be upset? Yes, I would be actual sad,” he said, “but it’s not activity to change who I am.”
What if they capital to acquaint to a huge company, I asked. Would you allocution to Hasbro?
“I’ll allocution to anybody,” he said.
But it seems about assertive that Hasbro–or any above toymaker acclimatized to cheaply fabricated volumes of millions–would ruin the brand.
“If I anticipation they would, I apparently wouldn’t acquaint the company,” Budnitz said.
Maybe you wouldn’t accept a choice, I suggested.
He anticipation about that. “That adeptness happen,” he said. “Or maybe some little aggregation will appear over and set up and annihilate us. If there is a alcove of beautiful, gorgeous, amazing art toys, and we accepted it, and we chock-full accomplishing that…”
Somebody will ample it, I said.
I’d almost accomplished the bandage afore Budnitz stepped on it.
“Maybe it would be me,” he said.
Josh Dean is a approved contributor to Inc. He is autograph a book about appearance dogs, to be appear by HarperCollins abutting February.
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