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Livingston: Thinking back on the early days of TiVo, what surprised you the
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Ramsay: Probably the thing we just talked about. The fact that these media
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companies got involved and embraced it and invested in it and are involved in it today. I would not have anticipated them doing that. Given their earlier reaction, I would have thought it would be impossible, but it happened. So TiVo s now a media company. It sort of transformed the company into a media company. I think we have an appreciation for what media companies are going through; that helped us develop in a way that didn t cross the line. And I think the media companies have an appreciation for what a young, scrappy, highly competitive technology company in Silicon Valley is trying to do. They know that is a dynamic that is driven by the human spirit; that they ought to embrace it rather than fight it. All the resources they have in the world, all the billions of dollars, can t stop people being creative. There are a lot of companies who, in one way or another, have changed the rules of the game for the better. It s just going to happen. I think we helped a very conservative industry get their minds around that.
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Paul Graham
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Cofounder,Viaweb
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Paul Graham and his friend Robert Morris started Viaweb in 1995 to make software for building online stores. A few days into writing the first prototype, they had a crazy idea: why not have the software run on the server and let the user control it through their browser Within weeks, they had a web-based online store builder they could demo to investors. They launched at the beginning of 1996. Viaweb was one of the first companies to deliver on the Web s promise of creating a level playing field. Using Viaweb s software, small businesses could make online stores as good as those built by big catalog companies. And many did: by 1998, Viaweb Store was the most popular e-commerce software. Viaweb was acquired by Yahoo in June 1998 and renamed Yahoo Store. In 2005, Graham cofounded Y Combinator, a seed-stage investment firm.
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Livingston: You had a different startup before Viaweb, didn t you Can you tell
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me a little about that
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Graham: Before Viaweb we had a startup called Artix. We were going to put art
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galleries online. The problem was, art galleries didn t want to be online. They still don t want to be online. We spent a long time trying to convince these people to use something they didn t want before we had the idea that maybe we should make something people actually did want.
Livingston: You scrapped Artix and switched to making software for websites
for online stores
Graham: Yeah. Actually, it s pretty similar software. We realized that if we could write software that could generate sites for galleries, we were only a shopping cart away from generating online stores. Everyone seemed to want online stores, so why not just do that instead
Founders at Work
At least, we thought everyone wanted online stores. There was a lot of talk in the press about e-commerce then, because Netscape was doing a big PR campaign for their IPO. They had to convince everyone that the Internet would be economically important, and they picked the most literal example they could think of. Actually most merchants didn t want to sell online, not yet. But when they started to want to, we were there.
Livingston: Take me back to when you were first working on Viaweb. What
were some of the first things you did Did you have any funding
Graham: In the very, very beginning, no, we didn t have any funding. It was
just me and Rtm [Robert Morris] in his apartment. It was in the middle of summer. Rtm was in grad school, but because it was the summer he had some free time. We just said, OK, we ll try and write a prototype. We wrote the first version in a couple days. One of the unusual things about Viaweb was that it worked over the Web. That s where the name came from. It was a web-based application as far as I know, the first one. But in the very beginning, it wasn t web-based. At first it was going to be software that you would use on your desktop computer to build a website that you would then upload to a server. Then in the first couple days of working on it, we had this idea, Hey, maybe we could make this run on the server and have the user control it by clicking on links on a web page. So we sat down and tried to write it and, sure enough, you could write a program that worked this way.
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