FedEx: The Rise Of The Phoenix From Gambling
1 min read
We would have been fed up for our couriers today, had the founder of FedEx not saved the company from bankruptcy by using gambling to fund investments. Frederick Smith, the founder was so desperate that he relied on gambling in Vegas to fund his company.
Today, it is the world’s first overnight delivery company that delivers more than 1.2 billion packages every year in over 220 countries. In 1971, Smith founded the company with $4 million of inheritance and $80 million in loans and equity investments. FedEx started out with 8 planes, covering 35 cities, and it had plans to add more each month.
However, it didn’t get through its biggest funding round with General Atlantic that made it almost empty with just $5,000. His trip to Las Vegas rewarding enough for him as he fetched $27,000 from $5,000 in just a week’s time. From here, there was no stoppage as very soon Smith received a funding of $11 million. And it turned #profitable for the first time with a profit of $3.6 million in 1976.
A one-line summary of FedEx’ story:
“When the going gets tough, the tough get going”. What lesson did you take away from the story?
