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recognized it as well. So they got a lot of calls the LA Times, AOL, Microsoft wanting them to join their companies. Those conversations were, Why don t you come and bring your project. We ll host it and you can blow it out. It started getting them to think about their project as a business, not just a hobby. Then an article in Newsweek happened I think it was November of 94 or something like that. Those 3 to 4 months were the critical period from going hobby to full-fledged business. They were entertaining taking money and had decided, We don t want to sell ourselves. Let s go for it, why not Even though people were more than happy to give them money, they thought, We need a business plan to take around on our VC visits. Even though we can talk to them about it and they would probably give us money without it, it would be better if we had a business plan. I said, Well that s good, because I m taking a couple classes where I need to produce a business plan. Why don t you send me your thoughts, and I ll put something together. They sent me their stuff, I wrote a business plan, they took it around to a couple VCs, and I ended up turning it in for final grades for a couple classes. This was fortunate because, as it turns out, by February of 95, they were saying, We need you now; we don t need you in June when you graduate. My reply was, I m in school, and my dad paid for it. Are you suggesting I tell my dad that I m not going to come away with a degree And Jerry was like, I m not telling you to do anything. You don t have to do anything, but we need you now. So I talked to some of my professors, and you can fail a certain number of classes at HBS throughout your tenure it s a pass/fail grading system. I hadn t failed any yet, so I could fail three classes and technically graduate. I was taking five classes, so I turned in my business plan as a final paper for two out of five, and passed with those. That was at the end of March 95, and there were four of us: Jerry; Dave; Dave s friend, Donald Lobo; and me. There was a whole lot of enthusiasm, but not a whole lot of knowledge about what to go do.
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Livingston: When you wrote the business plan, the Internet was so new. Do
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you remember what your strategy was when you wrote it
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Brady: No one had any idea how big the Internet was, but the model was adver-
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tising. Advertising was well known, so it wasn t like we were making up advertising. HotWired, which was the online version of Wired magazine, was online by that time, and they were selling advertising. So there was a model out there, but certainly there were no search engines or directories selling advertising. I just used your basic business plan format, incorporated Jerry s and Dave s ideas, and added a few of my own.
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Livingston: So you leave business school early and move out to California. Did
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you have an office What did you first start doing
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Brady: There was a consumer electronics show down in San Jose in March 95,
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so Yahoo s coming-out party was a booth at this show. The show was mostly hardware and software companies. There were no other Internet companies
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Founders at Work
there; it was just us. That was kind of everyone s first day of work. We were still doing it mostly out of Jerry and Dave s trailer their graduate desks were in this temporary trailer at Stanford. And some out of Jerry s apartment. A couple weeks after the show, we found space in Mountain View and moved in. We got funding and that allowed us to go find office space.
Livingston: Sequoia was your VC Brady: Yes. Livingston: How much money did you get Brady: $1 million. Livingston: That was a lot of money back then, especially for a company doing
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