Steve Case: When we started AOL in 1985, our focus was on building a new medium that would transform people’s lives. We weren’t thinking about a quick exit. Rather, we were passionate about the potential of the Internet to connect people and democratize access to information

June 26, 2013, 3:32 PM

Steve Case: Take the Long View

GUEST MENTOR Steve Case, chairman and CEO of Revolution and former CEO of AOL: When we started AOL in 1985, our focus was on building a new medium that would transform people’s lives. We weren’t thinking about a quick exit. Rather, we were passionate about the potential of the Internet to connect people and democratize access to information. We knew it wouldn’t happen overnight, and we knew it wouldn’t be easy. Indeed, when we started, only 3% of people were online, and they were only online on average an hour a week – so we knew it would be a long slog to get America online.Even so, we underestimated how long it would take. When we went public (AOL was the first Internet IPO, in 1992), we had been at it for seven years but had less than 200,000 subscribers. We had lots of ups and downs – and a few near-death experiences – in those early years. But we stuck with it. Our various strategic initiatives (getting modems built into PCs, lowering network costs, improving ease of use, creating compelling communications tools like instant messaging, etc.) finally started to pay off, and AOL’s growth skyrocketed. We went from 200,000 subscribers to more than 20 million; from less than 200 employees to more than 10,000, and from a market value of $70 million in 1992 to $150 billion by 2000 (when we engineered the merger with Time Warner, and I stepped aside as CEO). Suddenly, the Internet was all the rage and AOL was the leading Internet company. Most thought we were an overnight success. In fact, that success was a decade in the making.

The key lesson I learned from this journey: You need perseverance to change the world. Sure, it is easier to start companies now, and yes, they can scale much faster. Still, many of our nation’s most transformative companies are being built because entrepreneurs adopt a built-to-last perspective. They stick with it – and stay true to their vision – despite encountering a range of setbacks.

To be clear, there is nothing wrong with creating “built to flip” product companies – say, building and launching an app, getting traction and then selling it. These ventures serve an important function in the startup ecosystem: They allow bigger corporations to outsource innovation, something more challenging as a company scales. And they create wealth for shareholders, entrepreneur and employees, which in turn leads to the creation of new ventures.

But my personal passion is in working with entrepreneurs and companies that adopt a built-to-last approach. They’re in it to win it. They seek to build iconic platform companies. They assemble the right people, instill the right passion and persevere.

I’ll champion any and every entrepreneur. We are a startup nation. America was just an idea 250 years ago, and now it’s the leader of the free world. Why? In part because we have a stable democracy, but also because we have the world’s largest and most innovative economy. We need to celebrate everybody who is willing to be fearless and start a company. But the entrepreneurs I most respect — and want to invest in and mentor –- are the ones that take the long view. I’ll always root especially passionately for those rare 10-year in the making overnight success stories.