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We went to some of the larger printing houses in Los Angeles, who laughed at our orders because they were so small They wouldn t do them But in touring the facility, we inevitably met the foreman of the line, who usually had a backyard operation some silk screening units in the backyard That summer we made $25,000 For college students that was huge Also, our days were great: we d get up a little late, do sales calls in the morning and show our portfolio and designs In the afternoon, we d go surfing or some outdoor activity and at night we would get together and do designs It was a blast So I definitely had the bug I also worked for Domino s Pizza in college, at a prepress house all sorts of ways to try to earn some money.

But the stuff I loved was doing something on my own By the time senior year rolled around and my parents were saying that I should get a job, my whole thing was, No, I don t want to get a job I want to figure out how to do something in tech Even though I m not technical I was a political science major your role models at Stanford if you re at all entrepreneurial are tech entrepreneurs You don t have to look very far and you see buildings with names like Hewlett Packard, etc There were even classes on this stuff that I started taking The smartest person I knew, by far, was my friend Graham Spencer, who was my next door neighbor freshman year I thought, If I can convince him to do something, then I bet we can make something interesting happen.

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He was being courted by Apple, Microsoft, and all the big players of the day, and my pitch was Look, those guys are always going to want you and it s rare that you are going to be in the position in life where you have so little responsibility, except to yourself So now s the time to do it Yeah, we don t know anything We re dumb and we re just coming out of college But now s the opportunity Once Graham agreed, we gathered four of our other friends and went to a taqueria down in Redwood City and the dinner was focused around figuring out what this company was going to work on We are a company Now what on earth do we do.

This version is provided for free to any educational institution that wants it to teach the principles of manufacturing systems The carrot here is that those students who learn the subject by using your software will one day graduate and get a job where they might want your product It s a kind of long-range advertising program Additionally, professors who do consulting on the side will be familiar with your product and will recommend it to their clients So if your product happens to be in one of those application areas that are taught in colleges and universities, a free or very low-cost educational version can pay big dividends There s one other situation in which you might consider giving away your software.

Livingston: How did you choose to involve your four other friends Because they were friends and you trusted them, or they were technically good Kraus: They were willing, capable, and friends all of those things at once. They were all technical, they were all enthusiastic about starting something like this it sounded like a good idea to them, as opposed to something they were

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