This startup story features Jeffrey P. Bezos, the innovative founder of Amazon. The company, which now generates over $61 Billion in Revenue and holds the title as the world’s largest online retailer, was started out of Bezos’s garage at 30 years old.
1994: Jeff Bezos quits his job and launches Amazon out of his garage.Within 30 Days, it is doing $20,000 per week in sales.
1995: Bezos raises an $8 Million round of funding from Kleiner Perkins.
1997: Amazon goes public at $18 per share.
1999: Bezos is named Time Magazine’s “Person of the Year” for popularizing online shopping.
2009: Bezos acquires Tony Tsieh’s Zappos through a stock swap.
2013: Bezos acquires the Washington Post.
The year was 1994 and Bezos was working diligently on Wall Street. At 30 years old, he began to see the internet revolution take place, and made the decision to quit his job and start an internet company.
After making a list of the ‘top 20′ products that he could potentially sell on the internet, he decided on books because of their low cost and universal demand. It turns out, it was just the beginning.
As a child, he spent summers at his grandfather’s ranch in southern Texas, “laying pipe, vaccinating cattle and fixing windmills”. The 18-year-old Bezos “said he wanted to build space hotels, amusement parks and colonies for 2 million or 3 million people who would be in orbit. ‘The whole idea is to preserve the earth’.
The initial startup capital came from his parent’s personal savings.The first initial start-up capital for Amazon.com came primarily from his parents, and they invested a large fraction of their life savings in what became Amazon.com. And you know, that was a very bold and trusting thing for them to do because they didn’t know. His dad’s first question was, “What’s the Internet?” Okay. So he wasn’t making a bet on this company or this concept. He was making a bet on his son. So, he told them that there is a 70 percent chance that they would lose their whole investment, which was a few hundred thousand dollars, and they did it anyway.
Amazon raised a series A of $8M from Kleiner Perkins Caufield & Byers in 1995. In 1997, Amazon went public to raise additional capital. By 1999, the value of the Kleiner Perkins Caufield & Byers investment in Amazon created returns of over 55,000%.
Within two months, Amazon’s sales were up to $20,000/week. However, the company has continued to plow their revenue back into growth. The chart below depicts Amazon’s continued focus on long-term growth, with profit remaining near $0 or below, and revenue rising like endlessly.
CEO of Amazon, Jeff Bezos has now become the second richest person in the world. Bezos has beaten Amancio Ortega and Warren Buffett to the second position following CEO of Microsoft, Bill Gates who holds the number one position.
Amazon has made over 44 notable company acquisitions over the years. It’s first Acquisition was in 1998.
Amazon has become the topmost and biggest company in the world.