Tom Alberg explains why he took a chance on Jeff Bezos and Amazon - Business Insider

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Here's why early investor Tom Alberg took a chance on Amazon even though Jeff Bezos wasn't 'the smartest guy I'd ever met' and everybody thought it'd be 'murdered' by Barnes & Noble

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Bezos wasn't "the smartest guy" he'd every met, nor was it a sure thing Amazon would be "wildly successful."Click here to read more stories on BI Prime Alberg – now a managing director of Madrona Venture Group, the Seattle-based venture firm he founded around that time – took a chance on Bezos anyway.

Bezos had invested some of his own money and money from his parents into the startup and had trouble convincing investors to join in. It took Bezos from January to December 1995 to raise $1 million, Alberg said. At the time, the internet was still a largely unproven market, even in the immediate aftermath of the IPO of early web-browsing pioneer Netscape.

Alberg said he was a big believer in the internet, but that it still took him three or four months before deciding to invest – and he did so only when Bezos said he was close to raising the full round.Bezos launched Amazon's website and immediately started selling books all over the country

 

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