

WhatsApp and the software that is eating the world - meira
https://medium.com/supbra-founders/3224acf732d4

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cribeiro
There's a very interesting article on Forbes about WhatsApp founder Jan Koum,
which is illuminating. If you didn't read it now go now it at
[http://www.forbes.com/sites/parmyolson/2014/02/19/exclusive-...](http://www.forbes.com/sites/parmyolson/2014/02/19/exclusive-
inside-story-how-jan-koum-built-whatsapp-into-facebooks-new-19-billion-baby/)

What I found more interesting is that WhatsApp was a very down to earth,
conservative company, since the beginning. They have strong views on ads. They
used pricing to manage the growth and avoid growing too fast. They avoided VCs
as much as they could. They avoided marketing and PR, preferring to focus on
the tool as much as possible. They were concerned with being able to make ends
meet from early on, and only took VC to have cash in the bank as an insurance
to guarantee the payroll - cash that they didn't strictly need (they are
already breaking even at the time). Jim Goetz (from Sequoia) said that it was
the first time in its life that he invested in a company that was already
paying corporate taxes. That's not your usual "let's do something and see if
it works" kind of startup.

One more proof of their mindset is that they did in fact "pivot" early on.
WhatsApp was not a messaging tool, just became to be one as they noticed that
people were using status updates that way. Manhy companies with much less
successful pivots talk about it as if they discovered the philosopher's stone;
in the case of WhatsApp, I've never heard about this pivot history before.

This kind of positioning goes strongly against much of today's VC-backed
business mindset. Hope more companies were like them...

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ffreitasalves
Your artcile is interesting, but in my opinion, it is still early to say if
there is a valuation bubble around startups acquisitions. $16B sounds a lot to
me. Also, business that scale without monetize are exceptions. Here in Brazil,
Investors hold them money until you show them some clients. If you raise money
in early stages you have to sell give in a lot of share. But I agree with you
that it can open some minds.

