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US Couple’s Journey From Startup Collapse To Rs 209 Crore Profit
From Bankruptcy To Millions: US Couple’s Journey From Startup Collapse To Rs 209 Crore Profit
A US couple from New York had lost their life savings when their startup collapsed but they rebuilt the company and eventually sold it for a large profit of $24 million (Rs 209 crore).
Mike and Kass Lazerow, a couple from New York had lost their life savings when their startup collapsed. What began as a financial setback later turned into a significant business recovery and financial win as they rebuilt the company and eventually sold it for a large profit of $24 million (Rs 209 crore).
In 1999, the couple had launched Golf.com, a website aimed at recreational golfers. Within just one year they managed to sell the startup to an e-commerce company called Chipshot in a cash-and-stock deal worth $500,000. At that time, they were happy about the deal.
But, their joy was short-lived. Chipshot failed to raise new funding and soon went bankrupt, dragging Golf.com down with it.
The couple lost their $25,000 life savings (around Rs 21 lakh) along with money that had been invested by their friends and family.
(Also Read: Why Ultra-Rich Businessmen Are Leaving Britain: The UK Exodus Explained)
According to CNBC Make it, Kass later admitted that the financial loss was painful and sharing the news to loved ones was even harder. “What really hurt was having to tell people their money was gone,” she said.
Despite this setback, the couple refused to quit. Within just three months, they gathered a new group of investors and managed to buy back Golf.com for $500,000, which was a much lower valuation.
“I'm a super competitive person, and I just could not take this loss,”. “I knew immediately I wanted to try to redo it and start over”, Kass said, as quoted by CNBC Make it.
The next two years were extremely challenging. The company shrank to just four employees and struggled to stay alive. But in 2001 and 2002, Tiger Woods' back-to-back Masters victories sparked a boom in the US. Advertisers. It made them invest a hefty amount in the sport, resulting in rapid growth of Golf.com.
By 2006, the website had become a leading platform for golf enthusiasts. That year, Time Inc., publisher of Golf Magazine, acquired Golf.com for $24 million. Each of the three co-founders, including Mike and Kass, walked away with $1.8 million.
The couple didn't stop there. Their next company, Buddy Media, became an even bigger success and was sold in 2012 to Salesforce for $745 million.
Sharing about their journey, Kass said that endurance and the ability to suffer through tough times were crucial.
(Also Read: Universal Business School Launches Pioneering Sustainability Leadership Program to Cultivate Responsible Business Leaders)
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