Presented by, Rinali Daftary (107)

Amey Dalvi (109) Mihir Desai (112)

Sneha Mehta (130) Jigar satra (138) Ami Thakkar (151)

The Short Story

A History of Growth

YEAR 1998 1999 2000 2001 2002 2003 2004 2005

Documents & 24M 1.3B 3B 4B 6B 8B settings

Employees 8 39 284 682 1628 3021 5680

Revenue($M) 0.2 19.1 86.4 439 1465 3189 6139

Income($M) -6.7 -14.7 7 99 105 399 1465

How Did It Begin ?

“In the spring of 1995, and first met at a social outing in San Francisco designed to welcome new applicants to Stanford

DespiteDoctoral their Program.” differences and not initially working together, they became friends and were quickly known as “LarryandSergey”.”.“LarryandSergey

How Did It Begin ?

Garcia-Molina, Brin‟s adviseradviser,, recalls how it all started. Page came into his office one day in 1995 to show him a neat trick he had discovered. The AltaVista search engine could show what other sites linked to them but did not exploit this link information; Page suggested it would be a good way to rank sites.

The PageRank system, invented by Larry

importancePage (and named by analyzing after him) outside judges links a site‟sto it.

How Did It Begin ?

MeanwhilMeanwhilee Brin worked on a research project within the database group in associative data mining. Brin worked on ways to find specific word combinations that often occurred together on the Internet. Later, Page combined his method of analyzing “back” links pointing to a given website with Brin‟s web crawler, and their combined research moved Under the Digital Library umbrella.

Google.Stanford.edu

Google soon overgrew the bounds of their lab… in 1996, Brin and Page disclosed the technology to Stanford OTL which contacted several internet

companycompanies…and bid a significant companies amount were ofinterested…even money, but none one of the offers equaled Google‟Google‟ss potential… For tthehe next two years, while continually completing an increasing number of searches, the technology incubated in the OTL portfolio of technologies.

The Pagerank Patent

Interestingly enough, Derwent gives -- 3 patent filings with Page‟s name (2 from Stanford and 1 Google) -- -- 6Page‟s patent key filings patents with asBrin‟s US nameonly (all Google)

A Very Long Incubation

In 1997, Google has become the De Facto search engine for the Stanford community. Page’Page’ss advisor funds $10k for new computers but Google quickly reach limits in resources. In March 98, Page and Brin try to sell the engine to Alta Vista for $1M but DEC (Altavista’(Altavista’ss mother company) was notnot “very open to outside technology” LaterLater,, with the help of Stanford professorprofessorss and OTL, they contact Excite and other search engines without success.

Page’s advisor, Terry Winograd, contacts VCs but they are not interested by search engines anymore. Brin and Page, “who havehave a skeptical view of authority” are frustrated but more determined.

Yahoo’s founder, D. Filo then advised them to take a leave of absence from their PhD and to start their own

business

OTL’s Valorization Effort

"Larry and I mapped out a strategy to talk to existing search-engine companies to see if there was any interest in licensing this," said Luis Mejia , an OTL senior licensing officerofficer.. Steve Kirsch, CEO of search engine Infoseek, met with them a couple of times and made a verbal offer. Mejia declined to name the amount, but said: "It wasn't sufficient for us to feel he was really committed to it." (Kirsch told the Wall Street Journal that he had offered $250,000.)

YYahooahoo declined to meet, Mejia recalled. He contactcontacteded venture capitalist Vinod Khosla, who set up a meeting at his firm, Kleiner Perkins, with Excite, one of its portfolio companies. "There was a lot of disbelief in what the capabilities of the page-rank search algorithm were," Mejia said. "They weren't convinced it was worth much. They decided they weren't interested in licensing it.'' Mejia doesn't recall being particularly thrilled about Google's prospects.

A Very Long Incubation

Tip 1: it is very important to find great people you are compatible with.

Tip 2: There is a benefit from being real experts. Experience pays off.

Tip 3: Have a healthy disregard for the impossible. Stretch your goals.

Tip 4: It is OK to solve a hard LARRY PAGE – – MAY 2002 problem. Solving hard problems is where you will get the big leverage

From a Garage

“We had to buy a Terabyte (which costs about $15,000) … and put it on our credit cards…” In August 1998, thanks to David Cheriton, a StanfordStanford professor,professor, Page and Brin meet , founder of and working at Cisco. After an hourhour,, he makes a $100,000 check to “Googl“Googlee Inc.” withouwitho tut knowing the company does not exist yet. In October 1998, Page and Brin convinced a ffriendriend toto rent a Garage and spare room for $1700/month. They quickly added 8 phone lines, a cable modem and a DSL line. After two months, thetheyy were 8 people and they moved again in February 1999.

Bechtolsheim, Cheriton, Jeff Bezos (Amazon‟s founder)founder) and a few other angels invested a ttotalotal of $1M in the A round in 1998

From a Garage

I am sure Google‟s first office will soon become a llegendegend as it was a Garage. I could not find any picture …

… however they …then in moved to 165 Mountain University Ave. in View… Palo Alto after 5 months. This is the home of many other startups including Logitech and Paypal… … and finally to the in 2003

About Brian Lent

In 1994, a PhD student in the database group; asked if he would join Yahoo! as employee No. 1, he laughed: “You couldn‟t pay me enough money to work for a company called YYahoo!”ahoo!”

In 1995, worked with Brin on the process of finding pieces of

program.information Lent that did commonly not stick occuraround, together. a decision Brin he wrot confessese his “crawler” he regrets. But in early 1996, Lent explains, “We all said, „There will never be another Yahoo!‟Yahoo!‟ Their research seemed purely an academic exercise.”

He got a call from Microsoft in 2003, telling him the company wanted “to kill Google,” he recalls. He declined.

In 2004, he has not given up: he has an algorithm he calls “Dynamic

andPageRank,” Yahoo!, andbe warned.” he is CEO Did of anyone Medio. say,“I need “There to give will itprobably a try.try. Google never be another Google?” gg

The License

The Google Fund Raising

After raising $1M with angel investors, Google nearly wenwentt out of money quicklyquickly.. The founders also wanted to keep control of their companycompany,, so they built the strategy to attract the best 2 VCs soso that one would neutralize the other one. Thanks to their angels, it worked!!! This “divide and conquer” strategy enabled Google to raise $25M in May 1999 with

- of Kleiner Perkins (Amazon, AOL, Compaq, Genentech, Sun, … - Mike Moritz of Sequoia (Apple, Cisco, Oracle,

Another $15MYahoo,… of round C with YYahoo,ahoo, and many others (Arnold Schwarzenegger, Tiger Woods, …). Schmidt, their new CEO, joined in 2001 before the company went public in 2004 (raising $1.6B)

Googleware

•Googleware is the nickname given to Google‟s very powerful combination of Hardware and Software.

•Founders are known to be extremely smart … and pragmatic. •Today, Googleware means tens of 1000‟s of simple PCs.

The Best Search Engine

A technology first ….

… With a Buisness Model

A technology first …. a business model second

… With a Buisness Model

A Feel For Buisness

Larry Page certainly has a business-oriented mind, Larry may have been helped by his old brother, Carl, who founded eGroups and sold it to Yahoo.

Sergey has qualities in cost cutting and it is known Google is not wasting money. They made cheap computers; they did not spend a lot on marketing.

Omid Kordestani, their first VP Sales was previously VP Sales at Netscape and was instrumental in designing the business model.

110%0% InspirationInspiration …

work,I was recentlyeven at Google.reminded that nothing comes without hard At Google, there is free food; oonene of the early hhiresires was a cook. Working environment is nice…

… but this gives more pressure to spend long hours at work. “It was common to work 6 days a week”. You‟dYou‟d better have the energy and not too much family or private commitments. And be young?

About InnovInnovationation

It is well known that it is extremely difficult to keep on being innovative. Google has taken creative approaches: employees work in small teams (3 ideally) and are free to use 20% of their working time on their personal projects that may become future Google products. , Froogle, have roots in this 20% time as well as And they do nonott seem to lolosese their humor…

What’s In a Name

the “Google” name comes from …

The Google‟s people seem to love numbers: at IPO, they planned to raise $2‟718‟281‟828 e=2.718281828

at IP0, 14‟142‟135 shares were finally newly created √2= 1.4142135

at their secondary, they sold 14‟159‟265 shares… ∏=3.14159265

Google’s Cap. TableTable

GoogleGoogle’s’s Cap. TableTable

What’s Next ••Obviously the company is very ambitious and many new things will come.

•One surprising element is the founder‟s interest in clean energies.

•Another surprising element is the founder‟s interest in genetics. It seems they may use Google‟s computing power to develop molecular biology platforms.

•“Google is teaming up with Craig VVenterenter (of human genome mapping fame) to use Google‟s vast computing power to help unlock biology‟s mysteries, and maybe one day to help you search through your genes.”

So Anything WWrongrong ?

The Google‟s motto: “Don‟t Be Evil”

“They shut down Stanford network once” “They could have begun earlier”

and yes…it is becoming a business, a unique one but it will have to face the constraints of commercial businesses

Develop Early Stage

The story gives hints:

Yes, focus on great technologies, but more importantly focus on great people who

- are ambitious

- keep on innovating - with patience and determination

- believe in their ideas