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19 Year Old Creates Online Business, Generating Millions in Revenue

Discussion in 'BlackHat Lounge' started by Jakerxxx, Jul 25, 2011.

  1. Jakerxxx

    Jakerxxx Junior Member

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    A 19 year from Boston started an online fundraising site in January, 2011. His father, loaned him $250,000 for start-up (Must Be Nice!). The company has already earned ~$1.2 million, and expects to be well over $2million in revenue by the end of 2011.

    Nate Drouin (the 19 year old), purchased the fundraise.com domain for $40,000 from somebody who already owned the domain name. Nate says the site serves has a place where anyone can start their own charity or fundraiser, and anyone can donate. The company takes 7.5% of all donations (where revenue comes from).

    According to the article I read, the donation market is ~$25billion.

    The article is here: http://boston.cbslocal.com/2011/07/21/19-year-old-ceo-raises-1-2-million-for-boston-startup/

    The site: http://www.fundraise.com

    Now the comments under the article are hating on this kid big-time because he got help from Daddy and his friends. But, what I'm interested in is waiting for this company to issue stocks so I can invest some mula.

    What do you think? Does this story anger you because of the help this kid received? Or does it motivate you to do something better?
     
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  2. Fireboltgirl

    Fireboltgirl Regular Member

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    Awesome. I hope I can give my kids that kind of help (they'll have to convince me first!) one day.
     
  3. vini

    vini Power Member

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    the 19 year old himself has no props, not from me. His already rich, and honestly, I don't need success stories from rich people...
     
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  4. the_demon

    the_demon Jr. Executive VIP

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    The rich get richer for a reason...

    Parents who charge their kids rent for example are more likely to have their children fail in life because, they drain the capital the child had to work with... instead of utilizing the capital to get money making ideas going, etc... The parent who allows their children to be worry free and pursue dreams will watch their child prosper. imo

    This parent chose to help vs. hinder and therefore it's no surprise the child did well.
     
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    Last edited: Jul 25, 2011
  5. abecobacoba

    abecobacoba Junior Member

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    no bank will give usd 250k loan for 19 yo kid.
    even for my age.... lol.

    i bet his dad will not sue him if he failed to pay back the loan.
    may be will give him another loan :)
     
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  6. SahL

    SahL Elite Member

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    He started the company in January with $250,000 from his father.


    Success story eh ??

    Or a Good Business Investment.
     
  7. jl8105

    jl8105 Junior Member

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    i dont see how you can go wrong in any business with a 250k advance to start unless ur stupid.
     
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  8. SahL

    SahL Elite Member

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    No one gets into cry mode. We know what we can do with 250k and succcess with it is NO BIG DEAL.

    I second that!
     
  9. adbot

    adbot Power Member

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    This is not much of a success story. Sounds and looks to me like daddy is pimpin his son out to get some press for this. Think about it, how does this sound..."52 year old millionaire buys a domain name called fundraise.com and puts a website up". Not too exciting. Make it seem like its a 19 year old kid and people get excited. Im not impressed. The site looks like crap and is very anti-intuitive. Needs a lot of work. The idea in general is a good one, I'm just not impressed by story.
     
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  10. no4h~

    no4h~ Regular Member

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    I second this.

    Just like somebody said above, he was born into riches, and then given a good amount of money at a very young age, and it's VERY doubtful his parents made him pay any form of rent or anything. He was destined to do well. Sorry, but the kid probably hasn't had to work a day in his entire life, and probably won't ever now either. Not saying that I don't envy it, but I've actually made my money by earning it.

    He was handed this, he didn't earn a thing.


    We're not in cry mode, nor are we saying we're not envious of the money this kid has at his age, but... to make a comment like this, you've got some nerve. Not all of us have the luxury of handing our children $250,000 to go invest into a business. Get your head out of your ass, honestly. Why are you so up in arms for this kid? Were you one of those kids that was handed everything in life, like this 19 year old?
     
    Last edited: Jul 25, 2011
  11. Narrator

    Narrator Power Member

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    His dad gave him a loan with minimum risk. And the idea isn't unique, there's been a site doing this for years. I cant remember the name though.

    So, he took another website's idea and got a better domain. Sorry, I'm not impressed.

    Cheers!
     
  12. MrE

    MrE Executive VIP Jr. VIP Premium Member

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    A ton of haters here... just because he got a jumpstart with the 250k doesn't guarantee success.

    He came up with a brilliant idea, secured a premium domain name, and executed on his vision.

    The "what would you invest in" threads on here are a joke, many of you would squander that 250k or buy things for yourself instead of investing (or you could put a logo on a racecar).

    Good for him, this could easily be a $50M/year business.
     
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  13. Randy569

    Randy569 Junior Member

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    Hell, give me $250k to start a business, and I'll HIRE the experts to make it a successful business.

    How can you go wrong with $250k grant (which I'm sure that is what this is, because I'm reasonably sure daddy isn't going to make him pay it back), unless you go absolutely spend-crazy on stupid stuff?

    In my opinion, the kid really didn't have to work too hard to make it work.
     
  14. no4h~

    no4h~ Regular Member

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    He didn't come up with a brilliant idea at all! This idea has been around on many websites already, some of which were already well established. He just was inspired by one and remade it under a VERY attractive domain. What he did wasn't at all innovative, he was handed everything he has right now, and if he didn't have his father hand him the money, HE WOULD NOT HAVE BEEN ABLE TO DO IT.

    $250,000 isn't a lot of money?

    Are you kidding?

    How many 19 year old's do you know of that have $250,000 just sitting on them?! How many of them actually earned a cent of it? rofl?
     
  15. tacopalypse

    tacopalypse Executive VIP Jr. VIP Premium Member

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    anyone that thinks it's "easy" to turn over a 400% roi on $250k within 1 year should then also think it's "easy" to turn $400 into $1.2 million within 5 years, as all you'd need to do is turn over 400% roi each year.

    if you can't do that, then stop hatin' on the kid. ;)
     
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  16. Jakerxxx

    Jakerxxx Junior Member

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    Here's my 2 cents because I'm sensing a bit of ignorance by a lot of members commenting. The site is a little over 5 months old, so let's not go there. Anyone remember what YouTube looked like when it was 5 months old? Not pretty. The amazing part of this story, is the site is a little over 5 months old, and it is generating millions of dollars. It already has over 600 fundraisers/charities that have been created on the site...so people are going to the website and obviously interested.

    And for those saying that anyone can generate millions in revenue if they were given $250,000 for start-up...stop talking please. Statistically speaking, over 60% of all new businesses fail. There are businesses that have started with much, much more capital..and have failed. It's happens every day...

    The fact of the matter is that this 19 year old kid saw a large market that had no clear cash-cow. It's a growing industry, with no (one) company owning most of the market share.

    This kid saw an opportunity, and with the financial help from his father...made this happen. His father did not make this happen. His father did not create the business plan. His father did not track down the domain name holder and offer him a deal. His father did not create the site. His father simply invested in his business idea.

    So at the end of the day, you can be unimpressed, you can call the kid names or whatever, but the site is 5 months old...and has $1.2 million in capital, and will most likely exceed that quickly, as more investors grab hold of this business plan and want in.

    This site will soon have most of the market share in a growing industry=Cash Cow=$$$$.
     
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  17. no4h~

    no4h~ Regular Member

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    Nobody said it was easy, but it sure as hell is easier to get somewhere with something, then it is to get anywhere with nothing. Had he not been handed that large grant by his fucking father, he would NOT have a website generating a 400% roi.

    I'm sorry, but that's extremely naive of you to think that what he did wasn't an easy task.


    His father did not make this happen? LOL. Without his father, this kid would not have the money to have invested on even the domain, let alone the coder that put together his website, the coder that put together his Apple Store application. Saying that his father did not do this for him is like saying Milk does not come from cows. He was HANDED money from his father, don't pretty that up by saying it was financial help from his father. This kid probably has not worked a single day in his entire life, likely would not have had to either, but now for sure will never have to... ONLY because his father handed him that money. If his father did NOT hand him that money, he would not have the 400%+ ROI on this website, because this website would not exist.


    It's unimpressive. He ONLY succeeded at his age because he was handed a check by Daddy. He would NOT have gotten anywhere at his age without it. Naive of YOU to think that he could have.
     
    Last edited: Jul 25, 2011
  18. abecobacoba

    abecobacoba Junior Member

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    no bank will give usd 250k loan for 19 yo kid.
    even for my age.... lol.

    i bet his dad will not sue him if he failed to pay back the loan.
    may be will give him another loan :)

    but still something to learn. some percentage from donation??
     
  19. adbot

    adbot Power Member

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    Its not generating millions of dollars in revenue. The 1.2 million is from investors. Further this is not an impressive success story. Not because I am a hater. I'm Not. Shit like this happens every day. People with money invest it. Nothing magical about that. $250k Is not a ton of money. You would be surprised at how fast it can be pissed away.
     
  20. drogon

    drogon Elite Member Premium Member

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    That site doesn't look to busy according to the Alexa stats. Might just be a bullshit story to get publicity!

    Some time we need to remember that we are blackhatters and should not believe a story just because it was written!!