4 of the Most Inspiring Startup Success Stories
The startup industry was built on rags-to-riches stories, inspiring entrepreneurs around the world to this day. Read on for four of the most inspiring startup success stories.
1. Fred Smith — FedEx
Originally known as Federal Express, FedEx was founded by Fred Smith in 1971. Today the organisation is one of the biggest names in parcel delivery, competing with industry giants like global market leader UPS.
Nicole Junkermann stated “Since FedEx’s creation some 50 years ago, the international package delivery market has grown and changed exponentially. Today, the organisation comprises the largest freight airline in the world by freight tonnage, and the fourth-largest air fleet in terms of fleet size.”
Fred Smith developed the concept for his highly successful international logistics company through his studies at Yale University. He submitted a paper, establishing the concept of a single carrier company maintaining sole responsibility for an item of cargo throughout its journey, from pickup to delivery, by operating its own posting stations, aircraft, depots, and delivery vans.
Upon graduation, Smith used a $4 million (£3.1 million) inheritance from his father’s estate, plus $91 million (£71 million) in venture capital, to start Federal Express from Arkansas’ Little Rock National Airport.
Today FedEx employs nearly 300,000 workers and has a sales revenue of more than $40 billion.
2. Chaleo Yoovidhya and Dietrich Mateschitz — Red Bull
Chaleo Yoovidhya was born to a disadvantaged family from China’s Hainan province. Yoodvidhya emigrated to Bangkok, Thailand, in the 1950s, where he commenced his career as a pharmaceutical salesman.
In 1956 Chaleo Yoovidhya founded T.C. Pharmaceutical Industries, a manufacturing operation. He gained inspiration for the energy drink we recognize as Red Bull today from Lipovitan D, a Japanese beverage that was quite popular in Thailand.
Yoodvidhya developed a sweeter version of the energy drink. He also designed the iconic twin bulls logo. The drink gradually gained popularity with tuk-tuk, taxi, bus, and truck drivers across Thailand, as well as construction workers.
In 1984 Yoovidhya joined forces with Dietrich Mateschitz, adapting the drink to suit the Western palate and rebranding the drink as Red Bull. Three years later they launched the energy drink at Austrian ski resorts, before gradually expanding operations across Europe by the end of the 20th century.
Thirty-two years after its launch, Red Bull has gained notoriety as one of the world’s most valuable brands. At the time of his death in 2012, Chaleo Yoovidhya had a net worth of approximately $5 billion (£3.9 billion), making him Thailand’s third-richest citizen. Today, co-founder Mateschitz has a net worth of around $18 billion (£14 billion), making him one of the richest people in the world.
3. Sophia Amoruso — Nasty Gal
Sophia Amoruso became an entrepreneur quite by accident. She started her own business from her bedroom at the age of 22, when she created the Nasty Gal brand.
While working as a receptionist at a San Francisco art school in 2006, Amoruso sold old clothes she picked up from estate sales and thrift stores through her “Nasty Gal Vintage” eBay store. Amoruso started the business simply to make extra money to keep on top of her bills, but her little eBay store quickly became a huge success.
Amoruso closed her eBay store before very long, setting up her own website and establishing the Nasty Gal brand. Forbes featured her on its cover in 2012, calling her “fashion’s new phenomenon.”
At its peak, the brand had 200 employees and attracted a revenue of more than $100 million (£78 million) in annual sales. Amoruso eventually sold the brand to British online retailer Boohoo and turned her attentions to writing. Her New York Times-bestselling autobiography, #Girlboss, was published in 2014 and serialised on Netflix in 2017.
4. Jack Ma — Alibaba
With a net worth estimated at around $25 billion (£19.4 billion) today, Jack Ma is the richest person in China.
Jack Ma’s creation of Alibaba is a true rags-to-riches story. He was raised in a poor family in communist China. He failed his college entrance examinations twice, and he struggled to secure employment. He applied for dozens of jobs but was rejected from them all, including one at KFC.
After President Richard Nixon visited Hangzhou, Ma’s hometown, in 1972, the city rapidly became popular with tourists. Ma began offering city tours in exchange for English lessons. He eventually gained a place at Hangzhou Teacher’s Institute, graduating in 1988. He was later hired as an English teacher, though he made just $12 (£9.26) a month teaching at a local university.
During a trip to the United States in 1995, Ma became enthralled with the Internet, despite the fact that he had no experience with computers. Having recently established a translation business, he struck on the idea of founding a Chinese Internet company. After failing with his first two business ventures, he convinced 17 of his friends to invest in Alibaba, an online marketplace.
By October 1999, Alibaba had raised $5 million (£3.9 million) in investment from Goldman Sachs and $20 million (£15.6 million) in funding from SoftBank. In 2005 the company attracted a further $1 billion (£778 million) in investment from Yahoo.
By the time Jack Ma stepped down as Alibaba CEO in 2013, the company had an IPO of $150 billion (£117 billion) and Ma was the richest man in China, with a net worth of $25 billion (£19.4 billion).
