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.benahorowitz.eth on how a game studio turned it's last $6 million into Slack: "Stewart calls me. He says, 'Ben, I've got $6 million left. I have no way to raise money because I've made really no progress. So I've got three choices. I can pray for rain and try...

749,318 views • 1 month ago •via X (Twitter)

35 Comments

Ron Stauffer's profile picture
Ron Stauffer1 month ago

@bhorowitz My new life goal is to reach the point where I can say: “$6 million is not gonna make any difference in my life.”

Enormous James's profile picture
Enormous James1 month ago

@JoshBobrowsky @bhorowitz The VC flex of 6mm being petty cash is unparalleled

Patrick Helmig's profile picture
Patrick Helmig1 month ago

@bhorowitz Relevant detail: Stewart came to found @Flickr with a similar story before ;)

Ehsan Azish's profile picture
Ehsan Azish1 month ago

@bhorowitz the tiny water bottle behind him has seen this story told a hundred times

Pat Metzdorf @ FounderWorld.io's profile picture
Pat Metzdorf @ FounderWorld.io1 month ago

@bhorowitz "$6 million is not gonna make any difference in my life. If you really think it's a good idea, go ahead." yea, I say that practically daily.

andres's profile picture
andres1 month ago

@bhorowitz hahaha love this. i bet it must be a great feeling hearing this from your investor not caring about the $: if you think it's a good idea, go ahead.

Thomas Schranz 🍄's profile picture
Thomas Schranz 🍄1 month ago

@bhorowitz I'd love to see @stewart go at a new game again! worst case something cool comes out like w/ flickr and slack

ramsy's profile picture
ramsy1 month ago

@bhorowitz What a story !! $6M not gonna make any difference in my life :) that flex!

meatproxy@astrea's profile picture
meatproxy@astrea1 month ago

@bhorowitz cafe code is the slack of today iykyk

Wombat's profile picture
Wombat1 month ago

@bhorowitz Fantastic story

Deva's profile picture
Deva1 month ago

@bhorowitz Discord turned a $100M gamble into a $15B productivity platform, pivot works.

Mohammed's profile picture
Mohammed1 month ago

@bhorowitz Many VCs could learn a thing or two from this…

engineeredX's profile picture
engineeredX1 month ago

@bhorowitz Must be nice I’ve had a shotgun put to my head over 150k

Wayne Morris's profile picture
Wayne Morris1 month ago

I had a VC reverse engineer this on me once. “Look, you’ve got $10m in the bank, this company is clearly struggling, so you decide. What would you with that $10m? It can be related to what’s been built or unrelated” within 12 months we went from having made a max $400k the previous 4 years, and a heavy burn, to $2m ARR and profitable. A couple of years later that ARR had 10x’d.

CircleOfSicko's profile picture
CircleOfSicko1 month ago

@bhorowitz Discord has a similar origin story from video game roots

Afan's profile picture
Afan1 month ago

@bhorowitz Everybody chases that magical idea to change their life. But most solutions hide in plain sight, and only experimentation gets you there. Props to @stewart for grabbing the opportunity when things were tough. The breakthrough isn't something new. It's acting on what's here.

AscendCapital's profile picture
AscendCapital1 month ago

@bhorowitz But the real lesson here is investor trust giving a high-conviction founder the runway to pivot when the original idea dies is where iconic returns come from.

CDU's profile picture
CDU1 month ago

@bhorowitz 6 mil’s not gonna effect me sure let’s give a try👏🏻

Simon's profile picture
Simon1 month ago

@bhorowitz It was $6m back then. Cant imagine what its now

Harry Chen's profile picture
Harry Chen1 month ago

@bhorowitz @stewart should be glad that feishu/lark is from @BytedanceTalk, otherwise @SlackHQ has no competitiveness at all. like how uber losed in china

Amir's profile picture
Amir1 month ago

@bhorowitz $6m is not what? dude stop flexing lol

britton is afk's profile picture
britton is afk1 month ago

@bhorowitz Hell yeah, dude. ben is such a gangster. @bhorowitz is one of the GOATs

Joobman's profile picture
Joobman1 month ago

@bhorowitz To be honest I always wondered how a tool like slack could get that much wind. Now I don't.

AI Mastery Guide's profile picture
AI Mastery Guide1 month ago

@bhorowitz Turning a failing game studio's last $6 million into Slack is wild.

Rick A.F.'s profile picture
Rick A.F.1 month ago

@bhorowitz Everyone once wanted to found a games studio, it always turns into a SaaS app?

Blake.ETH's profile picture
Blake.ETH1 month ago

@bhorowitz betting the house on a pivot is the only way to play sometimes

TECA's profile picture
TECA1 month ago

@bhorowitz From desperate pivot to enterprise standard, best $6M ever spent.

eswarpr's profile picture
eswarpr1 month ago

@bhorowitz I similarly turned a food app into a customer service chatbot company in 2016 Pretty sure the chatbot platform is still active around the world

Fabian K's profile picture
Fabian K1 month ago

@bhorowitz Die besten Ideen entstehen manchmal aus dem größten Druck. Stewart hatte keine Wahl und genau das hat ihn kreativ gemacht. Flexibilität ist alles im Startup-Bereich.

Zimri Rosas's profile picture
Zimri Rosas1 month ago

@bhorowitz I have been thinking about arrange a corporation to buy SIDOR controlling stake

UriShimron's profile picture
UriShimron1 month ago

@bhorowitz it's -> its

Daniel Evans's profile picture
Daniel Evans1 month ago

@bhorowitz One of the things I've always admired about Ben. Perspective.

Anthony Tamer's profile picture
Anthony Tamer1 month ago

@bhorowitz Unmatched VC mindset

MoM's profile picture
MoM1 month ago

@bhorowitz

Hana Kim's profile picture
Hana Kim1 month ago

@bhorowitz For every Slack pivot there are a thousand internal tools that stayed internal tools. The skill was noticing, not the idea itself.

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Ben Horowitz tells the story of Slack’s pivot from a failed gaming app into a $28 billion company Ben recalls investing in Stewart Butterfield’s new company Tiny Speck. In 2001, Stewart began building an online game, pivoted into Flickr, and the company was acquired by Yahoo in 2005 for $25 million. In early 2009, Stewart decided he wanted to try building the online game again. This time, it would be called Glitch. Ben tells the story: “And so he builds Glitch. I love Glitch - it was a marvelous game. But it had two major problems. One, he started it in 2006 and built on Flash before Steve Jobs declared war on Flash. So it wasn’t going to work on the iPhone. And then the other problem was people would finish the game in two days, and so that’s not very good for retention.” After raising more than $15 million to build Glitch, Stewart called Ben to tell his investor that they only had $6 million left: “Ben, I’ve got $6 million left. I have no way to raise money because I’ve made really no progress because of these issues. It’s going to cost me more than $6 million to finish the game. So I’ve got three choices. I can pray for rain and try and finish it. I can shut down the company and give you your $6 million back. Or we build this tool that we use in our engineering team to communicate with each other and make engineering work a little better, and I could just put that out as a product.” Ben replies: “What? You just like built some tool to talk to each other and you want to put that out as a product? And you’re a consumer guy and you want to become an enterprise software guy?” Stewart says, “Yeah, I think it’d be a pretty good idea.” And so Ben said, “$6 million isn’t going to make a big difference in my life. If you really think it’s a good idea and you want to do that, go ahead.” Stewart decided to call the new product Slack, and it soon became the fastest growing enterprise software company of all time before SalesForce acquired it for $27.7 billion in July 2021. Ben points out an important lesson here: “A lot of the process is do you have a secret? Do you know something that nobody else knows? And because [Stewart] was pulling his hair out, literally smoking 8 packs of cigarettes a day, trying to get Glitch out the door, he was doing everything to optimize that development, and so he learned where software development was suboptimal… And that’s a really big key. You have to do something really hard if you want to learn something about the world that nobody else knows or is acting on. That’s when you have a breakthrough. But it starts with hard work.” Video source: UC Berkeley SCET (2020)

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