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If you re going to do this thing, you have to be ready for some tough days. But nothing worthwhile ever comes easy. Sometimes what it really takes is stupid, blind obstinacy the drive to keep going, stubbornly solving one problem at a time until you get the brass ring. Once I had a partner who had one of those ghastly motivational posters hung in our office. You know, the kind that promotes leadership and teamwork and quality through the use of tired old clich s and kitschy art. This one was no exception. And yet its corny McCuen-esque message stuck in my mind and has provided a handy boost to me many times over the years. It was a picture of a three-masted sailing ship threading its way between rocky outcropping and small islands. And the message: Obstacles are what you see when you take your eye off the goal.

telling us they were going to refinance the company. I had an appointment with a lawyer to figure out how to quit without getting sued. I was on my way out the front door when Fred Egan grabbed me and said, Wait, let s see if we can fix this. It was pouring with rain and I was not too psyched about having to go find a cab in that, so I went back to work while he made some phone calls. I don t know what he said, but I guess he convinced the investors I wasn t bluffing. I wasn t, either. We had some leverage, because the investors already had over a million dollars in the company. I don t know if they realized how hard it would have been to just hire a bunch of programmers and throw them in there and have them figure out the code, but it would have been really hard.

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Graham: We especially wanted to get bought by Yahoo. If you had asked us, Who do you want to get bought by we would have said, Yahoo. In fact, we did say that; we kind of spread the word that we saw Yahoo as the ideal acquirer. We d tried to do an online demo for Yahoo about 6 months before. We could do demos by phone where we d talk people through editing a site and we could see from the log files where they were clicking. I tried to do a phone demo for Tim Koogle in the fall of 97, but he couldn t even get to our server. It turned out some router was hosed halfway between us and them. The way we really got onto their radar screen was through Ali Partovi. He d had Robert and Trevor as teaching assistants in CS classes at Harvard a few years before. He had a startup called LinkExchange that was talking to Yahoo at the time, and their VC was Mike Moritz, who was also Yahoo s VC. In the end they got bought by Microsoft instead, but not before they d told Yahoo about us. Livingston: How did it go with Yahoo Graham: We liked them. They were like us. They had hacker values, basically.

They were from graduate programs in computer science too. They were our tribe of people, not these weird business people we kept having to deal with. Plus they weren t jerks about the acquisition. So many companies play hardball in acquisitions. It s so stupid. Don t they realize that the people they re trying to squeeze are going to have to work for them afterward Yahoo was very upstanding about the deal. They didn t require any vesting, for example. We could have quit the day after the deal closed. But because they d been good guys, we worked hard to make the acquisition work out well for them. It did, too. Yahoo made a lot of money from this software. When you tell people you sold a startup to Yahoo in 1998, they get this knowing look, like you sold someone a bag full of air for a hundred million dollars, but Viaweb was a real money-making acquisition for them.

If you re a lone ranger, this will mollify the anal, obsessive side of you and will alleviate the anxiety of the business side of you. If you re working with partners, you know that people often get their egos caught up in their proposals. I have found the Version Two List gives folks a face-saving way to a compromise. Those in favor get their idea recognized, valued, and listed for future inclusion as time and resources allow. Those opposed will be satisfied with having the motion tabled for the moment. However you resolve the problems, be ready to draw a final boundary around Version One of your product, including the features and functions that are essential and deferring to Version Two of your software a whole host of desirable additions. You WILL have to make compromises on your ideal system. You will NOT be releasing the product you ultimately want. You WILL have a Version Two. But keep your eye on the goal which is, first and foremost, to pay the rent. You can t play if you can t pay.

Livingston: What was the most surprising thing about being acquired Graham: For me the most surprising thing was the day the deal was going to be

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