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Interestingly, the kernel of IBM (Bundy Manufacturing) started in 1889 with $150K. https://history-computer.com/People/BundyBio.html https://history-computer.co

Interestingly, the kernel of IBM (Bundy Manufacturing) started in 1889 with $150K. https://history-computer.com/People/BundyBio.html https://history-computer.com/People/BundyBio.html I wonder how common that funding level was in the late 19th Century.

eicnix 8y ago
To put things into perspective $150k 1889 would now be worth about $4.1mil [0] [0] http://www.in2013dollars.com/1889-dollars-in-2018?amount=150000 http://www.in2013dollars.com/1889-dollars-in-2018?amount=150...
adventured 8y ago
Most of the major success stories you're familiar with from that era, involved entrepreneurs that had rolling levels of success. They built up reputations first, which enabled them to raise large amounts of capital as needed to fund ever larger ventures. Elon Musk's latest successes are of that mold (which makes sense, when you consider that his latest businesses share more in common with old industrial ventures than dotcoms; Zip2 and PayPal gave venture capitalists and other partners the confidence to back him on Tesla and SpaceX). Rockefeller did that for example before creating Standard Oil. He built up a sterling reputation first working as a bookkeeper, then as a partner at a trading firm. He got to know the owners of capital in doing so. At times during the early years he required extraordinary sums of capital, his reputation enabled him to raise it in an evening by riding around town and meeting personally with bankers. He did that once to buy out a large shareholder who had become conflictory; and other times to acquire businesses quickly. Henry Ford went through multiple iterations of messing around with commercializing his creations (including the Henry Ford Company), before finally founding The Ford Motor Company. After his very early experiments with vehicles, his later efforts all required the support of financiers and lots of capital. Over time he had demonstrated a knack for pulling complex engineering efforts together and attracting talented people. Edison always had capital backers for each of his major commercialization efforts. He operated his own lab (at times funded by outside capital) and then typically made arrangements for each set of inventions with financiers to take them from prototype to commercialization and distribution. Nikola Tesla had some similar backing arrangements at times, although his history in business was even more haphazard. Before George Westinghouse founded Westinghouse Electric (which is what made him particularly famous in the era), he started with The Westinghouse Air Brake Company, which he founded at 23 years old. And even before that, he started by creating useful industrial inventions, receiving the first patent for a rotary steam engine at 19 and a bunch of smaller railroad-related inventions, before striking commercial gold with the air brake.
- hindsightbias 8y ago
  Interesting. Has anyone ever written a book about founders across the ages? I remember that the US was always a bit Patent crazy and wonder how that translated into getting capital. Bundy invented the time clock but seems to have been a successful marketeer for his earlier clocks. The Wright Brothers blew a lot of energy defending their patents and not competing in the market. The balance between hard skills, showmanship and ruthlessness would be an interesting study.

eicnix 8y ago

To put things into perspective $150k 1889 would now be worth about $4.1mil [0] [0] http://www.in2013dollars.com/1889-dollars-in-2018?amount=150000 http://www.in2013dollars.com/1889-dollars-in-2018?amount=150...

adventured 8y ago

Most of the major success stories you're familiar with from that era, involved entrepreneurs that had rolling levels of success. They built up reputations first, which enabled them to raise large amounts of capital as needed to fund ever larger ventures. Elon Musk's latest successes are of that mold (which makes sense, when you consider that his latest businesses share more in common with old industrial ventures than dotcoms; Zip2 and PayPal gave venture capitalists and other partners the confidence to back him on Tesla and SpaceX). Rockefeller did that for example before creating Standard Oil. He built up a sterling reputation first working as a bookkeeper, then as a partner at a trading firm. He got to know the owners of capital in doing so. At times during the early years he required extraordinary sums of capital, his reputation enabled him to raise it in an evening by riding around town and meeting personally with bankers. He did that once to buy out a large shareholder who had become conflictory; and other times to acquire businesses quickly. Henry Ford went through multiple iterations of messing around with commercializing his creations (including the Henry Ford Company), before finally founding The Ford Motor Company. After his very early experiments with vehicles, his later efforts all required the support of financiers and lots of capital. Over time he had demonstrated a knack for pulling complex engineering efforts together and attracting talented people. Edison always had capital backers for each of his major commercialization efforts. He operated his own lab (at times funded by outside capital) and then typically made arrangements for each set of inventions with financiers to take them from prototype to commercialization and distribution. Nikola Tesla had some similar backing arrangements at times, although his history in business was even more haphazard. Before George Westinghouse founded Westinghouse Electric (which is what made him particularly famous in the era), he started with The Westinghouse Air Brake Company, which he founded at 23 years old. And even before that, he started by creating useful industrial inventions, receiving the first patent for a rotary steam engine at 19 and a bunch of smaller railroad-related inventions, before striking commercial gold with the air brake.

hindsightbias 8y ago
Interesting. Has anyone ever written a book about founders across the ages? I remember that the US was always a bit Patent crazy and wonder how that translated into getting capital. Bundy invented the time clock but seems to have been a successful marketeer for his earlier clocks. The Wright Brothers blew a lot of energy defending their patents and not competing in the market. The balance between hard skills, showmanship and ruthlessness would be an interesting study.