How Much Money Did Bezos Start Amazon With

Introduction

This startup story features Jeffrey P. Bezos, the innovative founder of Amazon. The company, which at present generates over $61 Billion in Revenue and holds the championship as the earth'south largest online retailer, was started out of Bezos'south garage at 30 years old.

Amazon Stats:

Industry: Online Retailing
Annual Revenue: $61.09 Billion
# of Employees: 97,000
Famous For: Beingness the world'due south largest online retailer

How Amazon Got Started

The yr was 94′ and Bezos was working diligently on Wall Street. At 30 years old, he began to see the net revolution have place, and made the conclusion to quit his job and start an net company.

"The wake upwardly call was finding this startling statistic that web usage in the spring of 1994 was growing at 2,300 percent a year. Yous know, things only don't abound that fast. It's highly unusual, and that started me about thinking, "What kind of business plan might make sense in the context of that growth?"

Later making a list of the 'elevation 20' products that he could potentially sell on the net, he decided on books because of their low toll and universal demand. It turns out, it was just the beginning…..

The Founder'south Kickoff

Equally a kid, he spent summers at his grandpa's ranch in southern Texas, "laying pipe, vaccinating cattle and fixing windmills". The 18-year-erstwhile Bezos "said he wanted to build space hotels, amusement parks and colonies for two million or iii million people who would be in orbit. 'The whole idea is to preserve the earth' he told the newspaper …. The goal was to be able to evacuate humans. The planet would become a park".

Amazon'south Funding

The initial startup capital letter came from his parent's personal savings.

From an interview with Jeff Bezos, for the Academy of Achievement:

"The get-go initial start-up capital for Amazon.com came primarily from my 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 affair for them to do because they didn't know. My dad'due south first question was, "What's the Internet?" Okay. Then he wasn't making a bet on this visitor or this concept. He was making a bet on his son, as was my mother. So, I told them that I thought at that place was a 70 percentage risk that they would lose their whole investment, which was a few hundred m dollars, and they did it anyhow."

Follow on Funding

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%.

Years to profitability

Inside two months, Amazon's sales were up to $xx,000/week. Withal, 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.

Amazon Profitability

Important Amazon Milestones:

1994: Jeff Bezos quits his task and launches Amazon out of his garage.
Within 30 Days, it is doing $twenty,000 per week in sales.

1995: Bezos raises an $viii Million round of funding from Kleiner Perkins.

1997: Amazon goes public at $18 per share.

1999: Bezos is named Time Magazine'due south "Person of the Year" for popularizing online shopping.

2009: Bezos acquires Tony Tsieh's Zappos through a stock swap.

2013: Bezos acquires the Washington Postal service.

Companies Amazon Has Acquired:

Amazon has made over 44 notable company acquisitions over the years. It's first Acquisition was in 1998.

1998: PlanetAll, Junglee, Bookpages.co.united kingdom (later became Amazon UK).
1999: Internet Movie Database (IMDb), Alexa, Accept.com, and Exchange.com
2003: CDNow (Defunct)
2004: Joyo.com, an e-commerce site in Prc.
2005: BookSurge, Mobipocket.com, and CreateSpace.com.
2006: Shopbop, a women'due south luxury retailer.
2007: DPReview.com and Luminescence Audio.
2008: Audible.com, Fabric.com, Box Office Mojo, AbeBooks, Shelfari, and Reflexive Amusement.
2009: Zappos, Lexcycle, SnapTell, Stanza (Kindle Rival).
2010: Touchco., Woot, Quidsi, BuyVIP, and Amie Street.
2010: Toby Press
2011: LoveFilm, The Book Depository, Pushbutton, and Yap
2012: Kiva Systems, Teachstreet, and Evi
2013: IVONA Software, GoodReads, and Liquavista

Jeff Bezos Startup Advice

"We are stubborn on vision. We are flexible on details…. We don't give upwards on things easily. Our third-party seller concern is an case of that. It took us three tries to get the 3rd-political party seller business to work. We didn't give up."

"If yous're not stubborn, y'all'll give up on experiments too before long. And if yous're not flexible, you'll pound your head against the wall and y'all won't meet a different solution to a problem you're trying to solve."

Source: https://www.fundable.com/learn/startup-stories/amazon

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