Perpetual founder Paul English shares his journey of starting 8 companies, including KAYAK. He discusses challenges with naming the website, building successful business models, and his ventures post-KAYAK. English reflects on personal struggles, lessons learned, and the importance of collaboration in his entrepreneurial endeavors.
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Quick takeaways
Successful partnerships can be formed unexpectedly, leading to groundbreaking ventures.
Innovative business models can disrupt industries and drive rapid growth and profitability.
Focus on user experience and simplicity can set a company apart from competitors and attract users.
Deep dives
Meeting Paul English on a Chance Encounter
In a chance meeting at a restaurant, Paul English met Steve Hafner, one of the co-founders of Orbitz, who was looking to start a new travel company. Steve proposed the idea of creating a search engine for travel that aggregated information from various travel websites. Despite having no prior experience in the travel industry, Paul was intrigued by the concept and quickly formed a partnership with Steve, transitioning from an initial CTO recruitment pitch to becoming 50-50 co-founders, with both committing financially to the venture.
Building the Team and Securing Funding
After forming their partnership, Paul and Steve wasted no time in assembling their team, reaching out to familiar colleagues like Bill O'Donnell, Paul Schwank, Jeff Rago, and Jim Giza to join their new venture, all of whom agreed to come on board. With funding from General Catalyst, Paul and Steve commenced their journey to establish the company, with a unique approach of not allowing users to book travel directly but focusing solely on providing a comprehensive search engine for all travel-related information.
Navigating Challenges and Crafting a Successful Business Model
Despite venturing into unfamiliar territory, Paul and Steve's bold decision to create a travel search engine paid off as they secured initial funding, formed a strong team, and set the course for their business. By introducing a novel approach of comprehensive search without actual booking capabilities, they aimed to revolutionize online travel experiences. With a resilient entrepreneurial spirit and a keen eye for talent, they embarked on a journey that would establish Kayak as a prominent player in the evolving landscape of online travel services.
Founding Kayak and Branding Strategy
The podcast discusses the inception of Kayak, a travel website, founded by Steve and Paul in 2004. The decision to split the tech and commercial teams between Connecticut and Massachusetts was due to geographical constraints in communicating, leading to the success of the remote setup. Paul's emphasis on a superior user experience and simplicity drove the unique design approach, contrasting with competitors like Expedia.
Business Strategy and Growth
The episode delves into Kayak's strategic approach to revenue generation through referral commissions from airlines and hotels. Initially scraping data without permissions, partnerships were eventually formed, enhancing the platform. The business model relied on word-of-mouth marketing and self-directed traffic, leading to economic viability. Kayak's lean team and focus on user interface innovation contributed to rapid growth and profitability amid competition with giants like Expedia.
Paul English is a perpetual founder. Since high school, he's started 3 philanthropies and 8 companies—ranging from e-commerce, to gaming, to GetHuman, a site that helps users access human customer support. His best-known venture is probably KAYAK, a travel website launched in 2004 over two gin-and-tonics with co-founder Steve Hafner. Using a simple interface, KAYAK specialized in search; and it made partners out of potential rivals like Orbitz and Expedia by charging them a fee to send users to their sites. Eventually KAYAK became one of the most-searched "K" words on Google, and in 2012, it sold to Priceline for $1.8 billion. A few years later, Paul started yet another company, Lola.com—and says he plans to launch many more.