If you're just tuning in, I'm making this post a continuation story of the prior few posts. I'm talking about how Jangl (then dubbed Buzzage) began it's fund raising process and ultimately got its start.
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When we sat down with TK in March and April of 2005 (that's Tim Koogle if you're just tuning in), our idea would revolve around 877-BUZZAGE. Users would get extensions off of that number to interact with. Those extensions, i.e. 12344 or coolguy, would link callers to one of the 15+ services. After getting his head around our idea, TK asked "How does this scale and how quickly can you get to market?" (He learned during the Friendster experience that this was a critical ingredient to anything that takes hold).
We could scale because we weren't using real phone numbers, we were using extensions and addresses which would invoke these services. And unlike just a few years prior, we could rent our VoIP infrastructure from someone like Level 3 or Global Crossing. This would give us a real-time ability to scale. Had we attempted this just a few years earlier, we would have had to build out the VoIP network ourselves, which would have required us to raise huge money. Here, we were just looking for $5 million, enough to get our service to market and start building the business.
After several weeks of meetings and phone calls, TK ultimately decided he didn't have the cycles to get involved in another tech project. Ben and I wouldn't be the next David and Jerry. I really enjoyed meeting TK. He is a great guy. I make a pilgrimage to the Puerto Vallarta area each year so my son Evan can sell jewelry on the beach with his vendor buddies. When I go, I wonder if I'm going to run into TK surfing the swells in Sayulita. Maybe one of these days.
Oh well, for every closed door another opens. (And closes, and opens and closes).
Randy Haykin, the VC that introduced us to TK, proceeded to introduce us to Bessemer, Benchmark, USVP, Venrock and Canaan Partners.
Let the games begin. To be continued next post.
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