Tim O'Reilly

I came out of college and I basically did this work on George Simon's notebooks. And then I got this Frank Herbert book to write. And then because I have this connection with this friend who got asked to write a manual, I just said, I'll help you out.

I came out of college and I basically did this work on George Simon's notebooks. And then I got this Frank Herbert book to write. And then because I have this connection with this friend who got asked to write a manual, I just said, I'll help you out.

I've never had a job. And of course, the original business became a consulting business. So work was very precarious anyway. The book business, as we know today, actually started in 1985. When there was a big downturn in our consulting business, and I had maybe 12 employees at that point, but we were all contractors. I was the only employee.

I've never had a job. And of course, the original business became a consulting business. So work was very precarious anyway. The book business, as we know today, actually started in 1985. When there was a big downturn in our consulting business, and I had maybe 12 employees at that point, but we were all contractors. I was the only employee.

I just basically had work for people when I had work for them. But because I didn't want to just turn them out on the street, I said, well, while between jobs, let's write some manuals of our own. So we started looking around and we go, oh, there's no manual for this. There's no manual for that. People will buy it.

I just basically had work for people when I had work for them. But because I didn't want to just turn them out on the street, I said, well, while between jobs, let's write some manuals of our own. So we started looking around and we go, oh, there's no manual for this. There's no manual for that. People will buy it.

So we produced a few of these things and they caught on and the rest is history, as they say.

So we produced a few of these things and they caught on and the rest is history, as they say.

I think that's super interesting. And it really eventually shaped what my partner, Bryce Roberts, did at Alpha Tech Ventures with Indie VC, was to look for businesses where the funding comes from customers. We got our funding from customers. That's what I'm asking.

I think that's super interesting. And it really eventually shaped what my partner, Bryce Roberts, did at Alpha Tech Ventures with Indie VC, was to look for businesses where the funding comes from customers. We got our funding from customers. That's what I'm asking.

Bryce told a fabulous story about the founders of RX Bars, those fitness bars. And it was two friends and both of their parents were immigrants in the restaurant business. And they came home one day with their business plan. They were going to grab venture capital for this fitness bar.

Bryce told a fabulous story about the founders of RX Bars, those fitness bars. And it was two friends and both of their parents were immigrants in the restaurant business. And they came home one day with their business plan. They were going to grab venture capital for this fitness bar.

And the father, who was this very different generation of entrepreneur, starting a restaurant or whatever, he says, forget about that. Go out and sell some bars. Yeah. And they did. And they formulated themselves. They lucked into this. They figured out they could piggyback on CrossFit. And they ended up building a business which they sold for $800 million with no VC.

And the father, who was this very different generation of entrepreneur, starting a restaurant or whatever, he says, forget about that. Go out and sell some bars. Yeah. And they did. And they formulated themselves. They lucked into this. They figured out they could piggyback on CrossFit. And they ended up building a business which they sold for $800 million with no VC.

I started my company with $500. And everything else came from customers. There was one exception, which is in that period when we nearly went out of business. My mother gave me a $10,000 loan. And then a few years later, she said, hey, do you still need that money? I'd like to give it to your brother so he can buy a house. It was an interest-free loan.

I started my company with $500. And everything else came from customers. There was one exception, which is in that period when we nearly went out of business. My mother gave me a $10,000 loan. And then a few years later, she said, hey, do you still need that money? I'd like to give it to your brother so he can buy a house. It was an interest-free loan.

Yeah, dot-com bust. I lost a lot of my hair then.

Yeah, dot-com bust. I lost a lot of my hair then.

The toughest time for us was with the dot-com bust. We had just moved into a new building, new complex of buildings. We had tried to leave space for growth, so it was too big for us already. We tried to move in about two-thirds full, and suddenly our revenues dropped, I think, in one year from $70 million to $50 million. It was pretty brutal, and we had to do layoffs.

The toughest time for us was with the dot-com bust. We had just moved into a new building, new complex of buildings. We had tried to leave space for growth, so it was too big for us already. We tried to move in about two-thirds full, and suddenly our revenues dropped, I think, in one year from $70 million to $50 million. It was pretty brutal, and we had to do layoffs.