Spencer Rascoff

the beginnings of a company, I asked TPG if I could leave and help run it. And so I left with my co-founder, a guy named Carl Peterson. We both left TPG together to start Hotwire as sort of a spinoff of TPG, the private equity firm that we were both working at. That was in 1999. Things were going very well for the first two years. We raised $75 million from TPG and from the airlines.

the beginnings of a company, I asked TPG if I could leave and help run it. And so I left with my co-founder, a guy named Carl Peterson. We both left TPG together to start Hotwire as sort of a spinoff of TPG, the private equity firm that we were both working at. That was in 1999. Things were going very well for the first two years. We raised $75 million from TPG and from the airlines.

We became one of the top online travel sites. We built a well-known brand that even to this day, 20-something years later, people still talk about and recall. And then September 11th happened in 2001. And September 11th was a huge disaster for the company and for the country and the world. But for the company in particular, it was a near-death experience. I mean, we had to do layoffs.

We became one of the top online travel sites. We built a well-known brand that even to this day, 20-something years later, people still talk about and recall. And then September 11th happened in 2001. And September 11th was a huge disaster for the company and for the country and the world. But for the company in particular, it was a near-death experience. I mean, we had to do layoffs.

We did a down round. We had customers that were stranded all across the world that couldn't travel. After 9-11, we had customers that were scared. We had airline partners that were going out of business. It was a grim time in 2001 to be running an online travel startup after 9-11 when people did not want to travel.

We did a down round. We had customers that were stranded all across the world that couldn't travel. After 9-11, we had customers that were scared. We had airline partners that were going out of business. It was a grim time in 2001 to be running an online travel startup after 9-11 when people did not want to travel.

We were able to turn the company around about two years later, 2003, we were on a path to go public and we ultimately sold to Expedia for about 700 million. So it was a very successful turnaround, but it was a roller coaster and every startup is.

We were able to turn the company around about two years later, 2003, we were on a path to go public and we ultimately sold to Expedia for about 700 million. So it was a very successful turnaround, but it was a roller coaster and every startup is.

I don't think I took care of myself at the time. That was not, there was a long list of priorities and it started with our customers and then our employees and then our investors and then our prospective customers. And at the very bottom of the list is founder health. And that is very hard, very, very hard on founders who are managing their companies during crisis. and also on their families.

I don't think I took care of myself at the time. That was not, there was a long list of priorities and it started with our customers and then our employees and then our investors and then our prospective customers. And at the very bottom of the list is founder health. And that is very hard, very, very hard on founders who are managing their companies during crisis. and also on their families.

And unfortunately, that's startup life. When things are going okay, or when they're going well, I think there is enough time to prioritize those types of things. But in a crisis, there's just not. And as I said, every startup is a roller coaster. Even people would look maybe at Zillow and say, oh, it's wildly successful. And sure it is, but there were huge ups and downs along the way.

And unfortunately, that's startup life. When things are going okay, or when they're going well, I think there is enough time to prioritize those types of things. But in a crisis, there's just not. And as I said, every startup is a roller coaster. Even people would look maybe at Zillow and say, oh, it's wildly successful. And sure it is, but there were huge ups and downs along the way.

And the downs get ignored when people think about the history of these companies. Founders of startups who are listening to this, if you want a simple, safe, stable job, you go do something else. That is not what startups, especially tech startups, but really any startups are.

And the downs get ignored when people think about the history of these companies. Founders of startups who are listening to this, if you want a simple, safe, stable job, you go do something else. That is not what startups, especially tech startups, but really any startups are.

Startups are hard and they will require that you deprioritize yourself and your family, unfortunately, for periods of time. It doesn't have to be all the time. It's not sustainable for it to be all the time, but for periods of time during the evolution of your company.

Startups are hard and they will require that you deprioritize yourself and your family, unfortunately, for periods of time. It doesn't have to be all the time. It's not sustainable for it to be all the time, but for periods of time during the evolution of your company.

I think there's some founders who think of their company as an extension of themselves, and so failure is not really an option. Some companies in that category still fail nonetheless. And then there are other founders that view every startup that they do as a learning experience. By the way, it's quite clear in pitches which category founders fall into.

I think there's some founders who think of their company as an extension of themselves, and so failure is not really an option. Some companies in that category still fail nonetheless. And then there are other founders that view every startup that they do as a learning experience. By the way, it's quite clear in pitches which category founders fall into.

I've been pitched founders of a second or third startup, for example, and I'll say, well, tell me what happened to your first startup? And they'll say, oh, well, it failed because of X, Y, Z. And I'll ask a couple of probing questions. And in their description, they're clearly too blase about their prior company's failure.

I've been pitched founders of a second or third startup, for example, and I'll say, well, tell me what happened to your first startup? And they'll say, oh, well, it failed because of X, Y, Z. And I'll ask a couple of probing questions. And in their description, they're clearly too blase about their prior company's failure.