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1/8 Thread: The ServiceNow Story
Fred Luddy, founder of $NOW, has an interesting backstory.
Luddy was CTO at Peregrine Systems. After working there for 13 years, he had $35 mn stake at the company.
It was worth zero when Peregrine filed for bankruptcy due to massive fraud.
Fred Luddy, founder of $NOW, has an interesting backstory.
Luddy was CTO at Peregrine Systems. After working there for 13 years, he had $35 mn stake at the company.
It was worth zero when Peregrine filed for bankruptcy due to massive fraud.
2/8 Following the scandal in 2003, Peregrine's CEO, CFO, and Head of Sales went to prison.
Luddy was unscathed, but financially he wasn't at the best of his footing.
He wanted to start a company, but was mindful of his age.
Luddy was unscathed, but financially he wasn't at the best of his footing.
He wanted to start a company, but was mindful of his age.
3/8 At 49 years and 346 days, he founded Glidesoft which later renamed to be ServiceNow.
"I couldn't wait because there was something psychologically that said I couldn't start a company at 50"
"I couldn't wait because there was something psychologically that said I couldn't start a company at 50"
4/8 In 2005, Luddy raised $2.5 mn from for Series A round. But it wasn't smooth sailing.
Things started moving along really well after @sequoia's Series D in 2009.
In 2011, Luddy relinquished CEO role and hired Frank Slootman to focus on growth.
Luddy focused on product.
Things started moving along really well after @sequoia's Series D in 2009.
In 2011, Luddy relinquished CEO role and hired Frank Slootman to focus on growth.
Luddy focused on product.
5/8 Around the same time, $VMW offered to acquire $NOW for $2.5B.
Luddy and some others wanted to sell.
Sequoia disagreed. They thought $NOW is in a winner-take-all market, and can be much bigger.
In fact, Sequoia offered to buy anyone out who wanted to sell at $VMW offer.
Luddy and some others wanted to sell.
Sequoia disagreed. They thought $NOW is in a winner-take-all market, and can be much bigger.
In fact, Sequoia offered to buy anyone out who wanted to sell at $VMW offer.
6/8 Ultimately, nobody did. Today, $NOW is ~$75B company.
Slootman turbocharged TAM penetration in his six years at the helm.
In 2016, Luddy left his product role, and just remained as Chairman of the board.
Slootman turbocharged TAM penetration in his six years at the helm.
In 2016, Luddy left his product role, and just remained as Chairman of the board.
7/8 As $NOW was looking for TAM expansion, they hired John Donahoe in 2017 who was CEO of $EBAY at that time.
Last year, Donahoe left to take the CEO role of $NKE.
Bill McDermott, who was CEO of $SAP which is ~2x $NOW in terms of mcap, became the new CEO.
Last year, Donahoe left to take the CEO role of $NKE.
Bill McDermott, who was CEO of $SAP which is ~2x $NOW in terms of mcap, became the new CEO.
8/8 I find it pretty impressive that $NOW has always been able to attract such top management talent despite being relatively smaller in size.
Here are some other "late bloomers" such as Fred Luddy.
Full disclosure: No position on $NOW
Here are some other "late bloomers" such as Fred Luddy.
Full disclosure: No position on $NOW
Forbes piece on Fred Luddy: https://www.forbes.com/feature/innovative-companies-service-now/#304e92cec603
