Finance to DoubleClick: Lessons on Internet Growth and Speed

The speaker recounts their career trajectory, highlighting key experiences that shaped their understanding of business and ultimately led them to the internet industry.

Early Career and Financial Acumen

The speaker's early career involved a strong financial orientation, starting with Yale Economics and Credential Investment Corp, followed by investment banking. This foundation provided comfort with numbers and an understanding of fundamental business trends. A significant operational role came with Euro Disney, where they managed hotels and oversaw the launch of a massive project involving 15,000 hotel rooms and 50,000 daily visitors. This experience taught them a great deal about large-scale operations.

Transition to United Media and the Internet's Dawn

Despite the valuable experience, the speaker decided against working for large corporations. They moved to New York to become the CFO of a 180-person division of United Media, a role that quickly expanded to include COO responsibilities, managing 50 people and overseeing all operations and finance during a turnaround period.

It was during this time, around 1995, that the speaker encountered an article in Business Week about "the internet." Intrigued by the concept of global connectivity, messaging, and online commerce, they recognized its immense potential, even before the widespread availability of web browsers.

Launching the Dilbert Website and Early Internet Success

Leveraging United Media's intellectual property, the speaker launched the Dilbert website. This venture proved highly successful due to a significant user base of tech-savvy individuals who could navigate the internet without a browser. The site generated substantial traffic, leading to the sale of advertising (with IBM as the first client, for which the speaker improvised a price) and merchandising, including T-shirts and ties. Within a year, the Dilbert website was a very profitable business.

Recognizing the Internet's Future and Corporate Resistance

Convinced of the internet's future, the speaker proposed to the parent company that they invest a few million dollars to build an internet division, leveraging their head start. However, the proposal was rejected by a traditional media executive who stated they would "wait for the next internet." This response, which the speaker found perplexing and indicative of a lack of understanding of the unfolding technological shift, solidified their decision to pursue opportunities outside the traditional corporate structure. The speaker noted the irony that the executive was the same age they are now, highlighting how quickly industries can change and leave even successful individuals behind.

The "No-Brainer" Decision to Start an Internet Company

The speaker's conviction about the internet's potential was not just a gut feeling but based on observable trends in 1996. More and more people were coming online, engaging in activities like buying goods and using maps – functionalities that were revolutionary at the time. This widespread adoption and the inherent advantages of online commerce made it a "no-brainer" for the speaker.

Joining DoubleClick and Rapid Ascent to CEO

With a year of internet experience, which made them highly sought after in the nascent industry, the speaker considered joining existing Silicon Valley companies like Excite. However, they ultimately connected with the founders of DoubleClick, a company started six months prior. Drawn by the intelligence of the founders and the desire to remain in New York, the speaker joined DoubleClick as the 10th or 12th employee.

Starting as CFO for a couple of months, they quickly became president and then CEO. This rapid ascension was attributed to a "founder's mentality," a strong team-player attitude, and the ability to make extremely fast decisions.

Key to DoubleClick's Success: Speed and Risk-Taking

The speaker highlights several factors that contributed to DoubleClick's success:

• Fast Decision-Making: The company made decisions much faster than competitors. For example, they opened offices in 25 countries within the first three years, while competitors were only in six. This global presence attracted major clients like Microsoft and Procter & Gamble, which in turn drew in smaller players.
• Understanding the Numbers: A strong grasp of financial data informed strategic choices.
• Willingness to Take Risks: The speaker admits to taking significant risks, such as expanding into 20 countries before the first one became profitable. While acknowledging mistakes along the way, this aggressive strategy ultimately led to DoubleClick becoming a world leader, which the speaker estimates would be worth $100 billion as an independent company today.