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We didn t call them this at the time, but they were angel investors Together they put in a couple of hundred thousand to help us get launched and spend 6 months writing a business plan on how to commercialize parallel processing technology We then contacted Kleiner Perkins, who even then were viewed as one of the premier venture capital firms We told them that we thought we had a really interesting idea We weren t prepared to talk about it, but we would talk about it in about 6 months We thought, having been at Data General and knowing the computer business very well, it could be something even approaching a revolutionary idea One of the big wins Kleiner Perkins had in the 70s was Tandem Computer Tandem s gone now, but it was a big hit in the 70s and early 80s.

They rethought computer architecture to build what they called Non-Stop Computing They used redundant computers, so if one computer failed, the system kept running For transaction processing, it was very reliable It was really elegant, sexy technology We thought that we were doing the same thing on the performance side through parallel processing We didn t want to talk about it until we felt we had it really fleshed out well So we let Kleiner Perkins know that we weren t ready to talk, but we d contact them when we were..

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half of the time seems to be developing the database part and getting that all running, and then the other half seems to be doing everything else you need to do to make it into a product you know, the extra code to add menus and all kinds of things that, you know, when you install something it has to go and put fonts in, and do all of that I actually calculated about how long that took us, because it was a tough project We figured it was D Murphy: Two or three person-months J Murphy: We figured it was like 240 hours Smolin: OK D Murphy: That s really hard to do more than estimate Because we didn t actually record our time, I mean, you know how it goes Smolin: If you were doing it full time, it would have taken you a couple of months J.

If you moved the midpoint into this direction, you would get a nice curve if the starting and ending points are close to each other But if the distance between them is large, your curve would be very flat You can solve this by multiplying this amount of shifting by the distance between the starting and ending positions This distance is found by taking the length of the vector between the ending and starting points Finally, you set the bezTime variable to 0, indicating the fly-by has started Once your fly-by has been initialized, you should update it every frame by calling the UpdateBezier method:.

Gruner: They said Fine What they thought, I don t know But we did go back to them about 4 months later, when we had a first draft of the business plan done We worked very hard on that plan and then went out to San Francisco and pitched the idea to them This was John Doerr He had been there a few years at the time, but he was just really getting started in his career Frank Caufield, Brook Byers, and Tom Perkins that whole crew They liked the idea because they could draw analogies with Tandem Computer They looked at our backgrounds, having been in the business, etc So we were able to raise money from Kleiner Perkins The first round, as I recall, was about $47 million, and back in those days, that was a lot of money for a first round of financing.

They then introduced us to Hambrecht & Quist Bill Hambrecht and Venrock, which was the venture management arm of the Rockefeller family Peter Crisp in New York City We were able to put together that consortium of three VCs in about 3 months We closed in early October of 1982 and set up the board Tom Perkins came on the board Bill Hambrecht did not, but he liked to be able to observe It all worked pretty well We raised three additional rounds with those investors for a total of about $30 million We kept it to those three investors, or some subset of those As the game moved on, Hambrecht & Quist, being an investment banking house and, frankly, hoping to take us public someday, stepped up and took a larger share than Kleiner Perkins did, but they were all substantial investors.

We announced the initial product in the summer of 1985 Livingston: Three years later Gruner: Yes It took 3 years We got financing in the fall of 82 It took 2 1/2 years.

to hire a development staff, design the computer, develop the software, and announce it. We shipped initial systems, which were not beta systems but were really production systems, in September of 85. So it was approaching 3 years. It was a complex task. And that consumed the better part of $30 million. The first year we did approaching $5 million dollars in revenue. Then the next year, in 86, we did about $30 million in revenue.

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