Maria Lourdes C. Capilitan

SysAnal

July 1, 2008

Case Study

Paul Graham

Cofounder, ViaWeb

Paul Graham and Robert Morris started ViaWeb in 1995. it is for building online stores. Their first prototype is software running on the server and let the users control it through browser. They launched their web-based on line at 1996. You should not be worrying on how to get rich but instead worry on your failure. People being rich/ successful because of start up should think of thanking God for not being a failure. For start up founders you should think of something users want, stuff making users happy.

            ViaWeb is the first company who allow business to make online stores. It is also the first most popular e-commerce software. But it was acquired by yahoo in June 1998 and became Yahoo Store. Before ViaWeb they created Artix. It is an online art gallery. From the idea, they created software which is like being a shopping cart. They started it in Robert’s apartment. At first, it was not a web-based. They got funds from Julian. After six weeks they wanted Trevor the smartest graduate student in Com-Sci. they did demo’s to investors and raised $100,00. so they wrote more software. Their first customers were the book stores. They were given free softwares and free building sites. Their competitor is iCat. It was never a threat for Graham because they are not good in writing Software yet they are good in raising money. Shop site is also one of their competitor but also not a threat for ViaWeb.

            There are lot of big companies dealing with them. They talk to company but refuses them. It became the start of the growth of the company, customers started to love them. It was summer time when Robert fly of to California to work at DEC SRC as a part of being graduate student. One of their turning points is when they are looking for CEO to guide them on what strategy they would use. They found Fred Egan, who is willing to be the company’s COO. When Fred’s first day the metals trader (company’s main investor), Graham was confidently enough that Fred could handle the business matter of the company. The rate of Via Web increases, they started to hire people and rented more spaces for them. Robert arrive from California while there is a visit to their company.

            Their investors played with them but they never allow that to happen. After their funding round, the evaluation says $12M. there is a time that Graham wanted to quit , it is when the investors wanted to have a refinance of the company. A few months later they are bought by Yahoo.

            In the category of doing differently, Graham want to open an online store because they are the only one who used software for building own websites. Most of the people having a start-up have difficulties in raising money. Graham advices that do everything cheaply as possible because every dollars of the investors will be taken out of you. It is the reason why investors will be the biggest worry.