This Week in Startups - Jason Nazar, Co-Founder and CEO of Docstoc.com, and guest J. R. Johnson, Founder and CEO of Lunch

TL;DR

Junior Johnson, founder of VirtualTourist, shares his experience transitioning from lawyer to entrepreneur and the challenges he faced along the way.

Transcript

spiked out rocketship remember real cell by my attitude hello and welcome to this week in startups I'm Jason Azhar not Jason Calacanis and guest hosting this week our regular host Jason is at the World Series of Poker he's at the second day we hear that he's a little short stack long a little bit he's teased he was much worse off yesterday than he ... Read More

Key Insights

• 👁️‍🗨️ Timing can play a significant role in the success of a business, as Junior experienced with starting VirtualTourist before the internet bubble burst.
• 👤 Building a strong user base and providing valuable content are essential for attracting and retaining users.
• 🤨 Raising funds from friends and family can be a viable option for early-stage startups, especially when access to sophisticated investors may be limited.

Questions & Answers

Q: How did Junior convince his German partners to join him and move to the United States?

Junior met his partners at a conference in Germany and pitched them on the idea of VirtualTourist. They were excited about the opportunity and agreed to move to the United States.

Q: How did VirtualTourist gain traction and attract users?

VirtualTourist already had an established URL that had been around since 1994, which helped with visibility on search engines. Additionally, their user-generated content model and unique approach to travel reviews attracted users who were looking for authentic and personal recommendations.

Q: Did VirtualTourist raise additional funding after the initial friends and family round?

Due to the burst of the internet bubble in 2000, VirtualTourist was unable to raise additional funding. They had to rely on the initial funds raised and their own revenue generation to sustain the business.

Q: How did VirtualTourist overcome the challenges of the internet bubble burst?

VirtualTourist focused on building a strong user base and providing valuable content, which helped them stand out in the crowded market. They also embraced the user-generated content model, which allowed them to scale without significant financial investment.

Summary & Key Takeaways

• Junior Johnson started VirtualTourist, a travel review site, with two partners from Germany after being inspired by the entrepreneurship program at USC.

• The timing of starting the business in 1999 was challenging due to the burst of the internet bubble in 2000, but the team persevered.

• They were able to build VirtualTourist into a successful user-generated content platform for travel reviews and sold the company to Expedia in 2008.