Tuesday, March 6, 2012
Thursday, February 2, 2012
Source of Inspiration...
Pierre Omidyar
Founder and Chairman,
eBay Inc
“I started eBay as an experiment, as a side hobby basically, while I had my day job”
Unbelievable fact: “The first item ever auctioned on eBay was a broken laser pointer; Omidyar had bought for $30. Within two weeks, he was amazed to find someone who was willing to pay $14 for it”.
Pierre Omidyar is an all time innovative young iconic entrepreneur of the current decade, seamless technologist, philanthropist, a real definer of the e-commerce, with a hobby of experimenting new ideas, the man behind eBay, took up the reigns of eBay in 1996, as Founder, Chairman, and CEO. Later by 1998, he relinquished all his positions one by one, with Margaret Whitman as his successor CEO; she in turn was replaced by John Donahoe 10 years later, in 2008. Omidyar remains Chairman of eBay. He successfully executed his great ideas, driven by determination and an obsession, to solve the problems of mankind and give them equal opportunity without any differentiation and discrimination, for business transactions of buying and selling on one platform i.e. internet. He is the creator of internet market place for the people around the world. It just resembled the old “Barter System” of exchanging goods for money, the only difference being the media.
| A decade down the line after going public, eBay quickly spread around the world like an epidemic, setting its operations in nearly 30 countries, majoring its presence in China and India. Today the company hires more than 15,000 persons to provide full –fledged integration and services to astonishingly resonating broad user base, approximately 90 million active users. eBay.com users worldwide trade $1,877 worth of goods on the site every second. Today eBay enjoys a market capitalization of approximately $40 billion. The stock price of eBay has been consistently growing at the rate of 10% a year, every year. In 2010, eBay's marketplace trading volume amounted to nearly $62 billion in transactions and its payments processing volume amounted to some $92 billion in payments. According to SEC filings, eBay's revenue in 2010 amounted to some $9 billion with approximately $2 billion of operating income. As of September 2011, Forbes states the net worth of Omidyar to be nearly 6.2 billion. This was all possible by the empowering leadership of Omidyar and his human collaboration initiative with e-commerce, which made him a role model for the young strategists and entrepreneurs. Omidyar stood beside Bill Gates and Warren Buffet, pledging to giveaway not all but 1% of his income for next twenty years. He and his wife Pam have contributed more than $1 billion to programs spanning a range of causes, from poverty alleviation to human rights to disaster relief. Omidyar Network, the philanthropic investment firm he founded with his wife in 2004, is involved in efficient and effective philanthropic practices until date. The Omidyar Network has committed more than $270 million to for-profit and nonprofit organizations that foster economic advancement and encourage individual participation. His unique strategy on philanthropy has earned him a reputation as "The Radical Philanthropist”. The Highest eBay sale price yet
Education and Career Outlook Equipped with his computer’s degree, he began his first job at Claris, a computer subsidiary of Apple Computers Inc, where he developed software called MacDraw, for the Macintosh. Later in 1991 Omidyar, along with three of his friends, co-founded Ink Development Corp, a pen-based computing startup and worked there until 1994 as a software engineer. The company worked on an Internet shopping segment and was renamed eShop later and in 1996, the company was sold to Microsoft. After eShop, However, Omidyar remained puzzled and fascinated by the challenges faced by the e-commerce at that time. The creation of his auction site was quite incidental, it started as a help to his wife Pam, to trade and collect Pez candy dispensers. Omidyar encountered many technical problems to establish an online venue for auction of collectible items, person- to- person. Therefore, he created a simple prototype on his personal web page, and launched an online service called Auction Web back in 1995, on Labor Day weekend, for which he acted as a sole proprietor.
The pace, at which the revenues showered the following four months, soon surpassed his salary at General Magic. Omidyar decided to leave General Magic for good and pay full time attention to the new enterprise. At the beginning, the business expanded through word of mouth. The Auction site quickly expanded by and large from collectibles into a vast range of saleable items, including furniture, electronics, home appliances, cars, and other vehicles, and Omidyar stuck a licensing deal to offer airline tickets online. The same year eBay recruited its first employee, Chris Agarpao and first company president, Jeff Skoll, and the company boasted to have 41,000 registered users and a total merchandise sale of $7.2 mn. In 1997, Omidyar began to advertise the service aggressively, and the company managed to secure $5mn from venture capitalists and the employee head count grew to 41. The registered users grew from 41,000 to 341,000 and the company carried out 200,000 auctions per year. The gross sales per annum exceeded $95mn. A feedback form was added to the Auction Web, through which buyers and sellers mutually interacted directly with each other and rated themselves, for honesty and reliability. The name Auction Web was replaced by its domain name eBay. In 1998 Omidyar relinquished all the positions he served (CEO, President, Chairman of Board since incorporation) one by one, Margaret Whitman was hired as the new CEO, who launched “My eBay” that allowed both the buyer and seller manage their own accounts. In the same year, the company went public; the share price tripled the very first day, turning Omidyar and Skoll into billionaires. The count of registered users grew to 2.1mn. In 1999, the company went International; eBay was first launched in The company had a consistent growth and prosperity, in spite of the dot com bust in 2000 and became no one e-commerce site. In the years 2000-2001, numerous eBay sites were launched in various countries like The company diversified its services in many ways to add value to both the buyers and sellers to avail the benefits of fixed-price and "best offer" sales, and conventional auctions. In 2004, eBay unveiled a technology development centre in
Awards and Honors This born ideologist with a passion to solve problems of other people, deserve many honors and awards. Here are a few mentioned below:
Lessons from Pierre Omidyar of eBay After a decade of innovation, Omidyar provides some valuable inputs for the upcoming entrepreneurs. Psych Yourself Up Not Out “I was raised with the notion that you can do pretty much anything you want,” says Omidyar. “I always kind of just went ahead and tried things.” On that fateful Labor Day in 1995, when eBay was launched, Omidyar was doing exactly that – trying something new. eBay was nothing more than an experiment and a side hobby for the budding software engineer. “What would happen within a marketplace if everyone had equal access to information and tools?” Omidyar wondered. “Would a level playing field enable individuals to compete alongside big businesses? What if members managed their own transactions and accountability?” He didn’t know the answers to these questions, but he wanted to find out. Omidyar wanted to help people to do business directly with one another over the Internet, but there were few who believed his vision would ever work. How people could trust each other enough to do business, wondered his critics. How could they develop relationships with each other when they were relatively autonomous? “I thought that was silly,” recalls Omidyar. “It was a silly concern because people are basically good and honest. Therefore, that was very motivating”. It wasn’t until Omidyar began earning more from this ‘experiment’ than his day job that he realized his trial had paid off, precisely this trial and error process that Omidyar seeks out. The Path to Success is to Pursue Your Passion “I was just pursuing what I enjoyed doing. I mean, I was pursuing my passion,” says Omidyar. “It is not really work if you are having fun ...that was the case with me.” “Like most software people, it is very much passion more than anything else,” says Omidyar. “The ability to create software that could have a benefit or an impact on people that used it was what was driving me.” Once he made the switch to computer science, he began to refine his focus, teaching himself C, and from there, how to program a Macintosh. “I was just very excited about learning everything I could about it,” he says. Omidyar says don’t. “You should pursue your passion,” he urges. “If you’re passionate about something and you work hard, then I think you will be successful.” On the other hand, Omidyar suggests that if you start a business motivated by money, success will be hard to attain. “You have to really believe in what you’re doing, be passionate enough about it so that you will put in the hours and hard work that it takes to actually succeed there, and then you’ll be successful,” he says. Nice Guys Can Finish First In creating eBay, Omidyar began with five basic values: “We believe people are basically good; we believe everyone has something to contribute; we believe that an honest, open environment can bring out the best in people; we recognize and respect everyone as a unique individual; we encourage you to treat others the way you want to be treated.” Omidyar’s astounding success with eBay is evidence of the fact that nice guys can finish first in the often-cutthroat business world, where they are normally presumed to be eaten alive. How often does one find a billionaire entrepreneur who, when asked how he achieved his success, recites advice his mother gave him about the necessity of treating people how he would want to be treated in a crowded world. It was that attitude that formed the underlying premise of eBay. “I founded the company on the notion that people were basically good,” says Omidyar, “and that if you give them the benefit of the doubt you’re rarely disappointed.” Learn to Expect the Unexpected “Whatever future you’re building, don’t try to program everything,” says Omidyar. “Five Year Plans never worked for the When Omidyar first launched eBay, he needed to find a way to make it a self-sustaining system. It was after all just a side hobby, and most of his time had to be dedicated towards his actual paying job. Today, eBay is able to adapt to its user needs with relatively little intervention from the company itself. It was thus almost accidental that eBay was readily suited for rapid growth, but in preparing for the unexpected, Omidyar could come to expect success. “By building a simple system, with just a few guiding principles, eBay was open to organic growth – it could achieve a certain degree of self-organization,” says Omidyar. “Build a platform – prepare for the unexpected. you’ll know you’re successful when the platform you’ve built serves you in unexpected ways.” Today, Omidyar believes that the Internet is making it even more necessary for entrepreneurs to be flexible. “The Internet is changing everything, and has changed the world in such a short period of time, and will continue to change things in very positive ways that we have yet to anticipate,” he says. “I’m very excited by the prospect of what we haven’t seen yet.” Every Business Needs its Cheering Bull “You'll fail at some things – that’s a learning experience that you need so that you can take that on to the next experience,” says Omidyar. “What you learn from those challenges and those failures are what will get you past the next ones. I was the pretty consistent bull and the cheerleader on eBay actually.” In mid-1999, it suffered a number of significant public failures. In one instance, the company’s system was down for 22 hours, followed soon after by another eight hours. Both service interruptions were actually caused by the very rapid growth of the company. By that point, eBay had become a relatively large community – so large in fact that CNN satellite trucks positioned themselves in the company’s parking lot to cover the breaking national news. The world was watching and most commentators believed the crisis marked the end for the young company. Customers were upset; many of them had become dependent on the income generated by their sales on eBay. However, Omidyar refused to give up and he acted quickly to regain his customer’s confidence. The company immediately made 10,000 phone calls to eBay’s top users, apologizing to them for the disruption and assuring them that the site would be up and running again as soon as possible. “I think failure of that magnitude, or a challenge of that magnitude, is really important and I’m glad that we faced it so early in our evolution,” he says, after which time the company “really woke up to the fact that infrastructure and technology was critical and just really built that organization out.” It took as many as six to nine months, but Omidyar had seen the potential that lay behind eBay and throughout all the challenges, maintained his unwavering faith in the company. He fought for his vision and rallied his troops around it. “I just knew that there’s just nothing that can happen that can make it go away.” Inspiring quotes by Pierre Omidyar of eBay
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Wednesday, February 1, 2012
What a Facebook IPO means for Silicon Valley...
Get ready for a blockbuster — and almost nuts — technology 2012. Why? Because Facebook is doing the mother of all initial public offerings.
And much like Netscape and Google before it, the $5 billion offering is being viewed as the much-awaited catalyst for the technology industry and is expected to set off a flurry of activity. I have been here long enough to cover the IPOs of both Netscape and Google, and on both occasions, the tailgate effect was enough to pull even the clunkers (read: marginal startups) to the proverbial finish line.
We are already seeing four recently public companies — Pandora, LinkedIn, Zynga and Groupon — ramping up their efforts to buy little startups. Google is competing for talent and so are other Internet giants. And now Facebook!
I have been wondering whether we would see a slow exodus of Facebook employees, which in turn would force the social networking giant to go out and start acq-hiring people by buying a lot of tiny startups. And if more of these little companies get acquired, the more dollars would rush into the startups and thus creating a fly-wheel effect. The presence of Facebook millionaires is only going to accelerate angel investment activity.
Nevertheless, I wanted to see how some of the top venture capital investors (whom I deeply respect for their clear and concise views of the industry) were thinking about the landscape.
Fred Wilson, general partner of New York-based Union Square Ventures and an investor in red-hot companies like Zynga, Etsy, Twitter, Foursquare, Tumblr and Kickstarter emailed me back with this answer:
Yes, I said exactly that on Friday evening at a talk I gave at social media weekend at
What this means is that super angels/hacker universities like Dave McClure, YCombinator and TechStars are going to see a lot more of their companies get acquired. Jeff Clavier, founder partner of SoftTech VC, an early-stage investment firm based in
Because of the ginormous valuation, it is clear that the number of Facebook employees reaching tens of millions of dollars in (paper) net worth is unusual. Candidly a number of early Facebookers have already taken off and “retired” at the age of 30/35. One of the questions moving forward is how much of a carrot can Facebook give new employees with such a high base valuation.
Remember that Facebook has a very high bar to talent acquisitions, and should not compromise on that. Once Facebook has a public currency, it will make it easier for them to make larger paper acquisitions. Until recently they were not doing that to avoid issues with the 500 shareholder rule (Ed Baker’s Friendly was a rare, recent deal where equity was used).
Brad Silverberg, a veteran of Microsoft and other tech companies and general partner at Ignition Partners, a Seattle-based venture fund, thinks that the IPO could have a corroding influence on the company culture.
One of the biggest challenges Facebook will face is the gulf between the have’s and have-not’s within Facebook. It can create tremendous internal stress and can result in people leaving to follow their own entrepreneurial dreams. This can be both for early people who made it and love the thrill of the startup, and for later people who are contributing, gain confidence, and now want to go off and make their own fortunes.
I think Brad’s point is pretty spot-on. I have seen this haves-versus-havenots dynamic create havoc at many companies before. I have spoken to multiple people and there is a general sense in the Valley that there is a large contingent of Facebook-ers who are ready to bolt. Google in comparison didn’t see an exodus of employees till recently, mostly because of its deep engineering-centric culture. Google, before it was grafted with the Microsoft genes, was a company where the smartest people went to be with the smartest people. It wasn’t till 2007 that the company started to lose its top-rated talent.
Facebook — Mark Zuckerberg’s Hacker Way missive not withstanding — is a lot more mercenary and materialistic. And part of that means employees are likely to cash their chips and run, only to place them on some new startups. And whichever way you look at it, I am pretty sure 2012 is going to be one heck of a ride. Buckle up!
Tuesday, January 24, 2012
Friday, January 13, 2012
Tuesday, January 3, 2012
Green Thought....
In one day a human being breathes oxygen equivalent to three cylinders. Each oxygen cylinder on an average costs Rs 700, so in a day one uses Oxygen worth Rs 2100 and for a full year it is Rs 7,66,500. If we consider an average life span of 65 years; the costs of oxygen we use become a staggering sum of Rs 500,00,000. All this oxygen is derived free of cost from the surrounding trees. Very few people look at trees as a resource and there is rampart tree cutting going on everywhere which should stop.
Think about it and save Trees…
Saturday, December 31, 2011
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