How did Fran Tarkenton use an IBM partnership to grow his technology business?
Short answer: Fran Tarkenton said his software company lacked marketing and access to customers. He asked IBM to review the product, and IBM offered investment and worldwide distribution. He said sales reached $20 million in their second year together and $180 million two years later.
Why he sought a partner
Fran said his company had technology but lacked marketing and a way to reach potential customers. He told his colleague they needed a partnership to make the business work.
How he approached IBM
Fran said he called IBM's chairman and explained what the product did, while being clear that he was still learning about technology. He brought his technology officer to present it to IBM staff.
IBM brought reach and capital
Fran said IBM offered to sell the product through its sales force around the world and invest $10 million. He recalled that IBM took about 20% of the company.
Sales grew after the deal
Fran said the companies made about $20 million in sales, then sales reached $180 million.
"We got to get help. We can't just stand here."
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Frequently asked questions
How did Fran Tarkenton use an IBM partnership to grow his technology business?
Fran Tarkenton said his software company lacked marketing and access to customers. He asked IBM to review the product, and IBM offered investment and worldwide distribution. He said sales reached $20 million in their second year together and $180 million two years later.
What did Fran bring to the IBM meeting?
Fran said he brought footballs to sign for the attendees and a stopwatch because he planned to take only 30 minutes.
How did the IBM staff respond to the presentation?
Fran said the staff asked to hear more after the planned 30 minutes. He recalled that about 20 IBM employees later came to his Atlanta office for a longer discussion.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.