What started as an idea to link contacts with status updates became a messaging phenom that netted its founders $19 billion from the world’s largest social media site. The brain-child of Jan Koum, a Russian immigrant and college dropout, WhatsApp is an inexpensive messaging service that allows users to send and receive images and texts.
The app was founded at a time when most US carriers were charging minimal amounts for SMS but overseas, the fees could reach as high as 65 cents per a message. The mobile app was first produced for the AppStore and quickly gained traction in other platforms.
Koum’s approach was methodical and minimalist. He incorporated the company much earlier than most, even before the app was written, and then hired offshore coders to complete the build. After partnering with long-time friend and former co-worker, Brian Acton, the two had little difficulty raising capital.
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From the beginning the two were clearly aligned on what was most important: to develop a simple solution without getting bogged down in industry norms. The team refused to add advertisers to the app and found that users were willing to pay for a product that worked well without being slowed by annoying popup ads.
While Koum and Acton are both clearly talented individuals, the distinguishing characteristic of their business is a lack of pomp and circumstance. The app is simple and effective, their original offices were small and non-descript and their full time staff was less than 50 people.
Even after their Facebook deal, the company will still be comprised of less than 100 people and will continue their model of streamlined efficiency; a highly talented on-site staff augmented by equally-talented offshore resources as needed to support project demands.
This no-frills approach to both the business and to product development supports Koum’s objective: “I want to do one thing and do it well.”
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