The Truth About Why Guy Kawasaki Passed On Intra OS

Two years before co-founding a company that would go on to a strange but successful exit, I attempted my first business as a solo founder.

Windows 95

Shortly after Microsoft launched Windows 95, Netscape released JavaScript. This made it possible to build desktop-like browser interfaces. As an experiment, I replicated the look of Windows and built a rudimentary spreadsheet and word processor.

Company

Testing the market, I met with several software integrators and an IBM AS400 dealer to show my browser-based office software. Called Intra OS, the vision was not to compete with desktop software but a means to share documents on a private network through a web browser.

Funding

VC funding was a newsworthy event back then. Almost every company raising a round got major press coverage in their local newspapers. One of the most prominent early-stage investors was Guy Kawasaki, who was famous for his work at Apple Computer.

The Pitch

I spent days writing the business plan, detailing my conversations with potential customers, and explaining how a subscription service would work. My dad’s assistant proofed the entire document, and I nervously sent it to Guy with aspirations of massive success.

Waiting

Expecting Guy to call me with a nearly open checkbook, I continued working on the company because of how fantastic the idea was. However, I also needed money, so I contracted with local companies to build their websites. Then, the news came in the form of an email.

Pass

I am trying to remember the exact words the Guy or his assistant wrote. However, it was something like, “I wish you success in your business, but this is not something we are investing in right now.” It was devastating. How could Guy not see what a remarkable company this would be?

Why

Then, I met with a local investor, who explained why my plan was not worth backing:

1. It did not match Guy’s thesis on internet business.

2. I wanted to build the company as a solo founder.

3. The entire company was essentially a means for me to pay myself.

Alternative

Trying to bootstrap the company, I kept building websites for small businesses. Through this, I learned about the problems in the video surveillance industry. That business plan was funded, and I discovered with hours of web development how to stream video before the frameworks and browser technology we have today.