US Couple Lost Rs 21 Lakh After Their Startup Crashed. They Sold It For Rs 209 Crore After 6 Years

Mike and Kass Lazerow, a New York couple, sold their startup Golf.com to Chipshot in 2000 for $500,000. However, their financial situation took a drastic turn when Chipshot went bankrupt after a funding round fell through, and the couple lost their $25,000 (Rs 21 lakh) life savings. However, they managed to buy their startup back and later sold it in 2006 for a substantial profit of $24 million (Rs 209 crore), after the website gained traction following Tiger Woods' success. 

According to CNBC Make It, Mike and Kass Lazerow launched Golf.com in 1999, a platform catered to recreational golfers. Within a year, they sold it to e-commerce company Chipshot in a cash-and-stock deal. However, when Chipshot couldn't secure further funding, it went bankrupt, taking Golf.com with it. The couple lost around $25,000 of their savings, as well as money invested by family and friends. They found the emotional strain of breaking the news to loved ones even tougher than the financial hit.

"I was angry. What really sucked was having to tell people their money was gone," Kass Lazerow said. 

However, the Lazerows refused to let their idea die. Mike says they quickly decided to try and buy their startup back. Within just three months, they assembled a new investment group and managed to reacquire the company for a significantly lower price - $500,000.

"I'm a super competitive person, and I just could not take this loss. I knew immediately I wanted to try to redo it and start over," Ms Lazerow said.

For two years, the company hung on the edge, shrinking to only four employees. However, everything changed with Tiger Woods' consecutive Masters wins in 2001 and 2002. Advertisers flocked to the golf market, and Golf.com's popularity soared.

In 2006, Time Inc., the publisher of Golf Magazine, acquired Golf.com for a whopping $24 million. The three co-founders, including Mike and Kass Lazerow, each pocketed $1.8 million from the sale.

Reflecting on their journey, Kass credited their success to their ability to endure hardship and refusal to settle for ordinary 9-to-5 jobs. The couple went on to achieve even greater success with their next venture, Buddy Media, selling it for $745 million in 2012.

"To be successful, founders need a tolerance for suffering that's certainly higher than most people today coming into the market," Kass said.