Entrepreneurship is hard.
But I could never do anything else.
I remember the exact moment when this was clear to me.
Here is the story๐๐ฝ๐๐ฝ๐๐ฝ
But I could never do anything else.
I remember the exact moment when this was clear to me.
Here is the story๐๐ฝ๐๐ฝ๐๐ฝ
1/ In the early days of Ampush (2012), we looked for high quality website traffic to get interested students into online colleges.
This led us to eventually crack the code on Facebook.
But before that, we found AcademicEarth .org...
This led us to eventually crack the code on Facebook.
But before that, we found AcademicEarth .org...
2/ We were 5 people total. We couldnโt get paid search to convert profitably, and we were squatting in an office.
We were pretty lost.
One of our first employees, BK joined from Microsoft on a 4 week contract...
We were pretty lost.
One of our first employees, BK joined from Microsoft on a 4 week contract...
3/ We asked BK, a trained SEM, to cold call publishers instead.
He is the nicest guy around and has an amazing attitude, so he did it.
After 50 or so calls, he discovered @RichardLudlowโs awesome website: AcademicEarth .org
He is the nicest guy around and has an amazing attitude, so he did it.
After 50 or so calls, he discovered @RichardLudlowโs awesome website: AcademicEarth .org
4/ We convinced Richard to let us monetize his site by sending students who were interested in online college to our websites.
He agreed as long as the schools we sent them to were non profits.
It quickly turned into a 6 figure partnership!
He agreed as long as the schools we sent them to were non profits.
It quickly turned into a 6 figure partnership!
5/ After a few years Richard got into HBS and no longer wanted to focus on AcademicEarth.
We were his main source of revenue so he called us and asked "Will you buy me?"
We had no $.
I said: "If you can sell it for anything, sell to someone else, if not call us back!"
We were his main source of revenue so he called us and asked "Will you buy me?"
We had no $.
I said: "If you can sell it for anything, sell to someone else, if not call us back!"
6/ It was our luck that there were no cash buyers.
So Richard called us back: Let's do a deal!
We got excited.
This would be Easy, right?
WRONG.
So Richard called us back: Let's do a deal!
We got excited.
This would be Easy, right?
WRONG.
7/ Richardโs main angel investor was
the founder of Honest Tea and A YALE NEGOTIATIONS PROFESSOR!
So a couple of 28 year old bootstrappers had to had to work out our first acquisition EVER with one of the world's foremost experts in negotiation...
the founder of Honest Tea and A YALE NEGOTIATIONS PROFESSOR!
So a couple of 28 year old bootstrappers had to had to work out our first acquisition EVER with one of the world's foremost experts in negotiation...
8/ We went back and forth...
Is it an earn out over time?
Letโs have call AND put rights on either side.
What happens if we take it over and get sued?
What was fair? How could everyone win?
Is it an earn out over time?
Letโs have call AND put rights on either side.
What happens if we take it over and get sued?
What was fair? How could everyone win?
9/ We ultimately agreed and created a JV:
@ampush got 70% for staffing/investing in the website.
Richard and his investors retained 30%.
We could buy their shares at a premium and they could sell them at a discount.
Within months, the deal closed
Total cost: $10k for legal
@ampush got 70% for staffing/investing in the website.
Richard and his investors retained 30%.
We could buy their shares at a premium and they could sell them at a discount.
Within months, the deal closed
Total cost: $10k for legal
10/ We had bought our first company!
For nothing!!
It was an SEO gem!
My cofounders and I looked at each other and knew we were โentrepreneurs for life!โ
For nothing!!
It was an SEO gem!
My cofounders and I looked at each other and knew we were โentrepreneurs for life!โ
11/ Within a year, we had doubled the revenue and the site was exploding.
We learned it was hard to really scale and invest in content to build a business like this.
We improved it, but were still developing leaders and had quickly spread ourselves thin.
We learned it was hard to really scale and invest in content to build a business like this.
We improved it, but were still developing leaders and had quickly spread ourselves thin.
12/ Meanwhile our social business was on a tear, outpacing everything else as FB exploded.
Within a year or so of buying it, we decided to sell all our education related businesses.
We went out looking for buyers...
Within a year or so of buying it, we decided to sell all our education related businesses.
We went out looking for buyers...
13/ Our deal almost died a couple times
but ultimately we closed a multi million dollar sale.
We called Richard and told him we had a fat check in exchange for the website he gave us.
but ultimately we closed a multi million dollar sale.
We called Richard and told him we had a fat check in exchange for the website he gave us.
14/ We had bought and sold our first company before age 30. And made millions in the process.
It was a crazy situation where everyone came out winners.
So what did I learn from my first acquisition and exit?
It was a crazy situation where everyone came out winners.
So what did I learn from my first acquisition and exit?
15/ Be opportunistically disciplined like IAC and Barry Diller.
Be open to opportunities, keep a high bar and be realistic with what you can/cannot do.
Be open to opportunities, keep a high bar and be realistic with what you can/cannot do.
16/ People are the heart of everything.
Build genuine relationships, negotiation is about finding wins for all: not zero sum.
No one does anything alone. No one.
Build genuine relationships, negotiation is about finding wins for all: not zero sum.
No one does anything alone. No one.
17/ Have fun!
This was insane at the time and is still crazy looking back.
We laughed, smiled, cheered, cried...
It was a blast!
This was insane at the time and is still crazy looking back.
We laughed, smiled, cheered, cried...
It was a blast!
18/ Learn and Grow
We had no clue what we were doing but we were willing to ask, look silly, make mistakes, push back, challenge, learn, and work hard.
It led us to a crazy outcome along our journey that was personally game changing and fueled our bootstrapped growth.
We had no clue what we were doing but we were willing to ask, look silly, make mistakes, push back, challenge, learn, and work hard.
It led us to a crazy outcome along our journey that was personally game changing and fueled our bootstrapped growth.
19/ BTW, Tech Crunch wrote about it back in the day with the coolest headline ever: techcrunch.com/2012/01/10/ampโฆ
20/ In Summary:
1. I flipped a website for millions with no $ down
2. Opportunities come when you least expect them
3. Be ready to move when they appear
4. Look for a win-win in negotiations
5. JVs are great ways to buy without $
6. People are the heart of everything
7. Have fun!
1. I flipped a website for millions with no $ down
2. Opportunities come when you least expect them
3. Be ready to move when they appear
4. Look for a win-win in negotiations
5. JVs are great ways to buy without $
6. People are the heart of everything
7. Have fun!
21/ If you enjoyed this thread, follow me!
@jspujji
I've bootstrapped multiple 8 figure businesses, grew Ampush to $400,000,000+ in FB spend, and now run a venture studio launching a profitable company every quarter.
I'm posting one thread like this every day until Jan 1st...
@jspujji
I've bootstrapped multiple 8 figure businesses, grew Ampush to $400,000,000+ in FB spend, and now run a venture studio launching a profitable company every quarter.
I'm posting one thread like this every day until Jan 1st...
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