Jeff Bezos

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Jeff BezosImage taken from Wikipedia.

Jeff Bezos earned his first million primarily through the success of Amazon, which he founded in 1994. Here’s a detailed look at how he achieved this milestone:

Early Career and Founding of Amazon

  • Background: Before starting Amazon, Bezos graduated from Princeton University and worked on Wall Street in various roles, including at D.E. Shaw, where he recognized the potential of the internet, which was growing rapidly at over 2,300% annually in the early 1990s.
  • Starting Amazon: In 1994, Bezos left his job to pursue his vision of an online bookstore. He wrote the business plan during a cross-country drive from New York to Seattle and launched Amazon.com in July 1995 from a garage in Bellevue, Washington.

Path to His First Million

  • Initial Growth: In its early days, Amazon operated without significant advertising, relying instead on word-of-mouth. The company quickly gained traction, selling books across the U.S. and internationally.

  • Funding and Investments: To support Amazon's growth, Bezos raised capital from various investors. Notably, he secured approximately $1 million from angel investors after initially investing $10,000 of his own money. His father also contributed $100,000 to keep the company afloat during its early stages.

  • Going Public: Bezos's first million came after Amazon went public in May 1997. The initial public offering (IPO) raised $54 million and valued the company at approximately $429 million despite it not yet being profitable. At this point, Bezos owned a significant stake in the company, which rapidly increased in value.

  • Achieving Millionaire Status: By 1997, at age 33, Bezos had officially become a millionaire due to the rise in Amazon's stock price following its IPO. This marked a significant turning point in his career as he transitioned from being an entrepreneur to a self-made millionaire.

Conclusion

In summary, Jeff Bezos earned his first million through strategic investments and the rapid growth of Amazon after its IPO in 1997. His ability to identify market opportunities and secure funding were crucial factors in this achievement.