Marc Andreessen, the co-founder of Netscape Communications, is starting over. He’s young, rich, single, and restless to help Internet’s entrepreneurial up-start companies.
At a time in life when most men are establishing themselves in a corporate office cubical, Andreessen had successfully created something real and improved the Internet experience for millions of people worldwide.
“One of the advantages of moving quickly is if you do something wrong you can change it,” Andreessen told reporters. Keeping sight on business objectives while processing the daily details left little time. “If I want to get work done, that’s usually about three in the morning,” he moaned.
The phenomenally popular Netscape Communications began in 1994. Successful executive Jim Clark, founder of Silicon Graphics, approached the then 22-year old student programmer about forming a new commercial venture. With Clark’s $4M and Andreessen’s visionary concepts, they produced graphical point-n-click hyperlinked software, facilitating text and pictures over the Internet.
It started way back in 1992. Marc convinced Eric Bina, employee at the University of Illinois, “Wouldn’t it be great if…” they wrote code for a new Internet program. Marc was a part-time computer programmer at the National Center for Supercomputing Applications (NCSA). Their team’s prototype was called NCSA Mosaic. The University of Illinois provided Mosaic to the Internet for free; as a direct result, the number of Internet users tripled to 20 million within 18 months.
Following that, Marc’s first real job was as a programmer designing security software for the Internet (1993) when he was called by James Clark.
Andreessen was the role-model darling of Internet entrepreneurs. He guided the new Netscape company to a spectacular initial public offering in 1995. His uncommon openness was a source of insider information that the public devoured and praised. Andreessen thought of himself as a company executive bringing the power of Internet communications to an ever-widening audience.
Netscape’s dominance in its field was nearly crushed by Microsoft’s promotional methods of their Internet Explorer software. In a stock deal valued at $4,200M, America Online (AOL) acquired Netscape in November, 1998.
Andreessen was asked to remain with AOL as their technology chief. The position was later revealed to be a matter of convenience for AOL’s public image and internal morale.
An AOL spokeswoman clarified that Andreessen was not to oversee any AOL technical operations or manage Netscape software efforts, as he had been accustomed. “He will be charged with reaching out to the wider technology community,” they said.
Andreessen, following his obligations, purchased a home near the Dulles, Virginia headquarters offices of AOL, and frequently traveled there from Mountain View, California.
In early September, AOL unceremoniously announced that Marc Andreessen, chief technology officer, had been replaced by William Raduchel, the chief strategy officer from Sun Microsystems. His brief engagement raised eyebrows but did not ruffled the investment community’s concerns. Andreessen (28) would be a part-time strategic advisor to the business he helped manifest.
Andreessen said he wanted, as emissary, to help merge the leading-edge software development atmosphere of Netscape with AOLs marketing-driven culture. The two businesses are worlds apart.
“AOL’s core forte is not understanding where technology is going so much as understanding where people are going,” said analyst at William Blair & Co.
AOL’s CEO Steve Case regarded the replacement of Andreessen as necessary. “Marc wanted to spend more time working with startups,” Case said, “nurturing the rapidly growing number of new companies.”
The AOL posturing in this situation was seen as uncomplimentary manipulation, and newsmen asked Marc Andreessen for his comments:
“If you can’t make money with 8 million customers, how many customers do you need? The point,” he said, “is that the future is the Web, not commercial services, such as AOL, that use proprietary technology.”
In 1996 Andreessen was asked what might he be doing at age 40, fifteen years hence. He paused, “Hard to say; in the technology industry, that’s clearly over the hill.
Only six weeks after being unemployed, Marc Andreessen is preparing to launch his second Internet start-up, VCellar. Many of his best veteran technical talent from the former Netscape have eagerly signed on.
The legendary Netscape chief executive Jim Barksdale has committed his venture capitol group. Long-time Netscape colleague Ben Horowitz will serve as CEO, and Marc as chairman.
Former Netscape executive Timothy Howes, a gifted software developer; 23-year old Internet phenomenon Jonathan Heiliger; and Silk Rhee, seasoned veteran, are onboard too. These people were responsible for many new adaptations including the Web-hosting architecture used by clients like Yahoo.
The next Andreessen and Company venture will build a complete back-end structure for commercial Web site hosting. They will be targeting Internet data-center providers, and looking for acquisitions. Their competition is numerous, including big names like Oracle, IBM, and USWeb.
Silicon Valley’s business deal-makers will be watching Andreessen closely. “What Marc does next will prove to people he wasn’t a one-shot wonder,” said Paul Saffo, director of the Institute for the Future.
Anticipation is high for Marc Andreessen’s next project. Corporate
culture differences are now behind him.