Startup.com-Blog #6

 

Over the weekend, I watched Startup.com, a 2001 documentary that tells the story of the rise and fall of GovWorks.com. It begins with a college graduation scene before diving into the background of the co-founders, Tom Herman and Kaleil Isaza Tuzman, who met in high school. The film follows Kaleil as he takes the bold step of leaving his job at Goldman Sachs to start the company with Tom. By May 1999, they had built a team of just eight employees, setting the stage setting the stage for their ambitious venture, which aimed to enable citizens to pay traffic tickets, parking fines, and other municipal fees online.

We see the co-founders pitching their idea to executives in Silicon Valley and San Francisco, showcasing their determination to secure a major contract. They even hire legal counsel to help protect their idea, which is a smart move in such a competitive space. They score a $10 million deal in Boston, and the company grows to 233 employees by May 2000.

Before landing an $18.5 million contract with New York City, GovWorks had already reached a significant milestone by raising $60 million in funding. This showed how much confidence investors had in their vision and fueled their rapid growth. With that backing, they quickly expanded and secured deals with 45 cities, including some international partners.

However, despite these successes, the company’s run was short-lived, lasting only from May 1999 to December 2000. The documentary highlights the internal struggles that came with their achievements, from conflicts between partners to the strain that money put on their friendship.

One particularly dramatic moment occurs when their office is broken into, leading to the theft of Kaleil’s computer and crucial legal documents—raising suspicions of corporate espionage. On top of that, they face tough competition from companies like EZGov, which has more advanced technology. As financial pressures escalate, Kaleil is forced to make the difficult decision to fire Tom, which marks a breaking point for GovWorks. However, this setback leads them to launch a new startup aimed at helping struggling dot-coms. Overall, the film offers a gripping look at the highs and lows of startup life, showcasing how ambition, competition, and friendship can collide under intense pressure.