The Outsider 90
Internet service provider had their own office. To get a
fast Internet connection to Zip2’s office, they drilled a
hole through the floor and connected the cables. For this
connection, they needed to pay $100 per month, and it was
a large improvement for the company. They had previously
used Elon’s own computer and a dial-up modem to run
their website. “I’d program it in the night and turn the
server on during the day,” Elon said.^71
All these smaller savings meant the company had low
expenses, and they had some revenues. It didn’t take long
before Zip2 had a positive cash flow – a fact they could brag
about when they searched for outside investors. But the
life of a Zip2 employee was still far from luxurious. They
had so little money that Elon and Kimbal’s mother Maye
had to pay for colored copies of their business presentation
they needed when they presented their company in front
of outside investors.^417
In 1996, the fish took the bait when the venture capi-
talist firm, Mohr Davidow Ventures, invested $3.5 million
for less than 50 percent of the company. Elon thought
they were crazy who had given him all this money. “Do
they have any idea what they’re doing giving me all this
money?” he asked. “I was terrified of blowing that money.”
In total, Zip2 would get $38 million more in funding.71,265
Zip2 had earlier asked other venture capitalists if they
wanted to invest in the company, but they declined because
most of them had never heard of this Internet. “Back in 95,
there weren’t many people on the Internet and nobody was
making any money at all. Most people thought the Internet