Building company on Internet time: Lessons from Netscape

The Internet has created new demands on start-up companies: How do you grow an organization faster than ever before? This article draws lessons from N etscape, the fastest growing software company in history. Netscape executiv es did four big things right: they crafted a compelling but pragmatic visio n; they made experience a top priority in hiring staff; they built big-comp any resources while maintaining small-company flexibility; and they success fully leveraged external resources in order to compensate for the company's small size. At the same time, company leaders made mistakes: They overesti mated the pace of technological change, they failed to develop systematic s trategic processes until it was almost too late, and they often sacrificed long-term value in favor of short-term cash. Despite these failings, Netsca pe built a successful organization that ultimately delivered $10 billion in value to their shareholders after only four years.