WhoBuilt

Jim Goetz and Jan Koum at Startup School SV 2014

Oct 14, 2014· 29 min· 38K views·Watch on YouTube

Speakers

WhatsApp co-founder Jan Koum and Sequoia Capital partner Jim Goetz discuss WhatsApp’s origins, product choices, growth, and Facebook acquisition at Y Combinator’s Startup School SV 2014.

From Ukraine to Yahoo

Koum says moving from Ukraine to the United States at 16 made it hard to stay in touch with family and friends before internet messaging. At Yahoo, where he worked for nine years, he learned how to scale servers and recruited experienced engineers who later helped WhatsApp support a large user base with a small team.

Building a product, not a company

Koum says he set out to build a product rather than plan to start a company. After buying an iPhone in 2009, he and Brian Acton first made a status indicator, then pivoted to messaging using contact and server code they had already built. Early revenue from the paid iPhone app helped them cover costs and choose investors carefully.

Focus, charging, and simple design

Koum says WhatsApp charged for its iOS app partly to slow growth while the team improved reliability, servers, and customer support. He describes avoiding press and meetings to protect time for product work. The team used phone numbers and address books instead of usernames, and supported platforms such as BlackBerry and Nokia early on.

Scaling the service and choosing Erlang

Koum says a small server team, around seven or eight people, supported WhatsApp’s backend. He chose Erlang after failing to find a suitable open-source XMPP server, and says its message passing and clustering suited their needs. Goetz also recalls that at acquisition WhatsApp had about 20 to 25 engineers supporting roughly 400 million active users.

Why WhatsApp joined Facebook

Koum says shared goals around connecting people and Facebook’s global outlook made the partnership a good fit. He says the discussions focused on continuing WhatsApp’s growth and mission, with him and Acton staying to lead the product. After the acquisition, the team remained focused on reliability, speed, backups, and phone or SIM changes.

Takeaways

  • Build infrastructure and support capacity at a pace that protects the experience for current users.
  • Use existing user behavior, such as phone contacts, to reduce friction in product design.
  • Early revenue can give a startup more time to choose investors and partners carefully.
  • A small team can scale when it applies prior operational experience and chooses suitable technology.
  • When considering an acquisition, assess whether the partner supports the product’s mission and continued leadership.

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What was claimed 11

  • founded
    “My co-founder was actually one of the people who interviewed me.”
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    Unverified1 source· Talk
  • role at
    David Filo is co-founder at Yahoo
    “I was recruited at Yahoo by one of the co-founders, David Filo.”
    YouTube
    Unverified1 source· Talk
  • previously at
    Jan Koum previously at Yahoo
    “I was recruited at Yahoo by one of the co-founders, David Filo.”
    YouTube
    Unverified1 source· Talk
  • metric
    WhatsApp: 20 or 25 engineers supporting about 400 million active users at acquisition
    “Probably 20 or 25, supporting about 400 million active users.”
    YouTube
    Unverified1 source· Talk
  • founded
    “We started out just trying to build a messaging app.”
    YouTube
    Unverified1 source· Talk
  • invested in
    Sequoia invested in WhatsApp
    “We should just do it and go for it.”
    YouTube
    Unverified1 source· Talk
  • metric
    WhatsApp: Sequoia’s app-store tracking found WhatsApp ranked number one or two in about 35 of 60 monitored countries
    “In maybe 35 of the 60 countries we were monitoring at the time, it was number one or two.”
    YouTube
    Unverified1 source· Talk
  • feature
    WhatsApp: Charged for its iOS app in part to moderate growth and support existing users.
    “We used charging as a lever to slow our growth.”
    YouTube
    Unverified1 source· Talk
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