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The typical startup fever fantasy is as follows: you come up with a revolutionary concept for a startup in your dorm room. You drop out of school and take your idea to Sand Hill Road, where venture capitalists lavish you with cash. Your company is rapidly expanding. You finally reach a valuation of more than $1 billion and go public to tremendous acclaim.

That is, after all, the mythology, but what if there was another way? What if you could grow a $1 billion firm without relying on outside funding, outrageous sales and marketing expenditures, or the drive to expand even faster?

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Zoho, a provider of front- and back-end business software, has successfully resisted the growth and investment cliché. Zoho estimates that revenue exceeded $1 billion last year, however being a private company, it did not provide an exact figure. Nonetheless, no external investment has been required.

Zoho has been able to construct a strong internal culture immersed in R&D and product development by building the firm on its own terms, growing slowly but consistently without any investor involvement.

Zoho’s product portfolio, which includes more than 50 applications, ranges from a standard office suite to business intelligence, finance, sales and marketing, customer care, and far too many additional software areas to name here. It competes with giants like Salesforce, Google, Microsoft, and Oracle, using a freemium model to boost usage, and has found a way to prosper despite such a difficult competitive field.

I chatted with Zoho founder and CEO Sridhar Vembu, as well as some industry experts, to learn more about how the company has evolved on its own terms, and how this “little engine that might” keeps running.

Source: https://techcrunch.com/2022/09/10/how-zoho-became-1b-company-without-a-dime-of-external-investment/

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