Imagine pitching an idea so new and futuristic that most people didn't even understand it. That's exactly what Jeff Bezos faced in 1994 when he set out to raise $1 million to launch Amazon AMZN, a little online bookstore that would eventually become the "everything store." But in its early days, the biggest hurdle was convincing investors who didn't even know what the internet was.
A Tough Sell in the Early Days
Back in 1994, the internet was far from mainstream and the idea of shopping online was alien to most people. When Bezos started meeting potential investors, their first question was often, "What's the internet?" Many of them flatly rejected his pitch. Even people familiar with the book industry turned him down.
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But Bezos pressed on, believing in his idea’s power and the internet’s rapid growth. "Web usage was growing at 2,300% a year and that’s what led to the forming of amazon.com," he once explained. "Things just don't grow that fast. It's highly unusual."
To raise the $1 million he needed, Bezos held 60 meetings, tirelessly explaining his vision. Despite his efforts, “only” 22 people decided to take a chance on him. Among them were his parents, Mike and Jackie Bezos, who invested $245,573 – a huge chunk of their life savings. Bezos warned them there was a 70% chance they'd lose it all.
The 22 investors contributed around $50,000 each in exchange for 20% of Amazon. Looking back, it was the deal of a lifetime. A $50,000 investment in 1994 would be worth around $23.5 billion today based on Amazon's current market value of $2.35 trillion.
Launching Amazon wasn't easy. Bezos and his small team worked out of a tiny office and a low-ceilinged basement warehouse. They packed books by hand on the floor until someone suggested getting packing tables – a moment Bezos jokingly described as revolutionary.
The business took off quickly, with orders pouring in from all 50 states and 45 countries in the first month. Despite the early success, Bezos knew luck played a huge role. "Starting a company like this requires not just hard work and planning but also a little planetary alignment," he later reflected.
Bezos's ability to see the potential of the internet at a time when most people didn't even know what it was proved to be a game-changer. By focusing on customer service and building a culture of innovation, he turned Amazon into one of the most valuable companies in the world.
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