How Google Tackled Downfall

how Google Tackled Downfall
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Written by BusinessAlligators Support

Support Staff at BusinessAlligators is a team of business experts led by Shilpi Singh Trusted by over 100K readers worldwide.

February 28, 2016

After the first downfall, Google was on the ground. But founders of Google Larry Page and Sergey Brin never gave up. They strived hard to tackle against Google First Downfall. And everyone knows every downfall needs proper guidance and perseverance to accumulate all your knowledge and enthusiasm, of which the Google duo (Larry Page and Sergey Brin) were made up of. In spite of all the financial hurdles, they were moving ahead and finally Google Tackled Downfall actually First and Last Downfall of Google.

Here is the Story how exactly Google Tackled First Downfall:

1. The Secret Sauce

They were working day and night on their new way to search the internet, but despite being economical and saving money where ever possible, they had run out of cash. Likewise every famous recipe, Google also had their secret sauce and he was about to enter their lives, his name was Andy Bechtolsheim, a computer whiz and legendary investor. The idea of Google was so convincing that there was no negotiation, any stock or evaluation discussion, they landed with a check made out to “Google Inc” for $100,000. Interestingly they didn’t have any account of their newly created company where they can deposit the check. In two weeks Google was incorporated and an account was opened on its name Google Inc. So they started giving seminars to Stanford students and gather the audience for their website. Larry Page explained PageRank(now not in use), “one way to think of Page Rank is, it’s a usage model. You have a random surfer. It’s a kind of like a monkey, just somebody who sits around and clicks links all day and doesn’t have any intelligence”. After all seminars and discussions, they were just two PhD students who had one foot in academics and other on verge of opening a company. But the secret sauce worked and finally, Google emerged as a company.

Related- 5 Most Famous Google Mergers and Acquisitions

2. Moore’s Law

After getting a check, the duo had decided to leave their PhD midway and pursue their idea of commercialising Google as Google.com. In 1960, a very critical and innovative law was suggested by Gordon Moore called Moore’s Law. It states that there would be a doubling in computing power every few years. Larry and Brin understood that they needed strong computers and a lot of computing power to support the search result what they wanted to show the users. They didn’t want to throw away a lot of information. They already understood that hardware and software both are intertwined and optimising them was essential. They bought parts and built their own system that could handle the tasks. The strong foundation of Google.com was laid and the duo started working on it.

Related- How Google Started?

3. Go for Quality

They never like some of the things that happen in corporate America and have not a caution in the world about stating that. Google was outgrowing the garages and rooms from where it was earlier operated which means now they need an office. Hence they shifted to University Avenue in downtown Palo Alto. Page said once, “We started this website because we were very unhappy with the current available options and I think this will be a great side effect”. Now they were handling 100,000 searches per day. They were growing and they never used a single dime for advertisement, it’s the quality of searches which was speaking and no doubt it was pretty loud. Although Google was still in Beta or test version, it was included in PC Magazine’s list of Top 100 Web Sites and Search Engines for 1998. Now as the year about to end they increased from 100,000 searches per day to 500,000 searches. They need more money to establish Google as a Company.

4. The Google Doddle

All we know the Google Doodle, but very few knew how it found its place on Google Homepage. It started with a festival called ‘Burning Man’. It is celebrated in Nevada’s the Black Rock Desert, all Google employees including Larry and Brin set to go there. Unforgiving weather, there stood the 40 feet tall wooden figure known as “The Man”. This whole made it a social gathering and highly personal sojourn. Before leaving for the festival, they created a little art on their home page, they indulged the burning man into the word Google, which was a hidden signal to all their users that were they are going. Heading out for the festival had unknowingly given birth to Google Doodle. The Burning Man Festival, in words of Larry, was a way to be different from the world. The week was over and the team had returned from the festival just to know that their doodle had clicked, attracted millions of users and scored No. 1 must-read techie website.

5. Angel Investors

1999 wore on and they started needing some potential investments apart from the $100,000 check. So one of their angel investor Ron Conway contacted Moritz, successful venture capitalists who agreed for a meeting with the Google duos. Moritz evaluated the beta version of Google. And now they had Yahoo also lined up to help them since Yahoo name was involved Sequoia was also inclined to this offer. While Moritz focused on Brin, Page and their search engine, they got John Doerr of Kleiner Perkins who liked their idea of evolution which Google was representing. At end of the deal, Google had two Angel Investors John Doerr and Ram Shriram from Sequoia Capitals both investing $12.5 million each accumulated as $25million. On June 1999, less a year after they took leave from Stanford, Brin and Page issued a press release announcing that Kleiner Perkins and Sequoia Capitals had agreed to invest $25million in Google Inc.

Google now was an incorporated company with employees and office in Silicon Valley. Their Google Doodle was a hit and their searches per day were increasing exponentially. It was a heady moment for Google and all its founders. Still, all the press release and news coverage of their deals, replete with accolades about the search engine and bold statement about the future, failed to answer the central question. The mystery remained: How did Google manage to make money?

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