"But about three decades ago, in 1995, getting the first million dollars in seed capital for Amazon was more grueling than any challenge that would follow. One year ago, at New York's Dealbook Summit, Bezos told Andrew Ross Sorkin those early fundraising efforts were an absolute slog, with dozens of meetings with angel investors-the vast majority of which were "hard-earned noes.""
"The structure was straightforward: Bezos said he offered 20% of Amazon for a $5 million valuation. He eventually got around 20 investors to each invest around $50,000. But out of those 60 meetings he took around that time, 40 investors said no-and those 40 noes were particularly soul-crushing because before getting an answer, each back-and-forth required "multiple meetings" and substantial effort."
""I would always tell people I thought there was a 70% chance they would lose their investment," he said. "In retrospect, I think that might have been a little naive. But I think it was true. In fact, if anything, I think I was giving myself better odds than the real odds." Bezos said getting those investors on board in the mid-90s was absolutely critical."
Jeff Bezos raised initial seed capital for Amazon by offering 20% of the company for a $5 million valuation and attracting about 20 investors who each contributed roughly $50,000. He conducted about 60 meetings with potential angel investors, receiving approximately 40 rejections after multiple meetings and substantial effort. Many investors struggled to understand the internet and its commercial potential, making the sales effort especially difficult. Bezos acknowledged telling investors there was a roughly 70% chance they would lose their investment, which may have increased rejections. Securing those early investors in the mid-1990s was critical to Amazon's survival.
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