The Genesis and Initial Validation of Viendo

Key Insight

The genesis of Viendo was spurred by a looming 2005 federal mandate, originating from a 1999 law, requiring all cell phones to transmit location data for 911 rescue efforts. While some carriers initially relied on less precise signal triangulation (within 500 feet), others like Sprint and Nextel adopted more costly but accurate GPS chips (within 50 feet). This regulatory push, coupled with carriers' efforts to monetize 'location-based services' despite privacy concerns from groups like the Electronic Frontier Foundation, signaled a market opening. Sam Altman seized this, dramatically showcasing his flip phone at a campus event to announce the impending 'location-enabled' future and solicit collaborators.

Altman swiftly assembled Viendo's co-founding team, including himself, Alok Deshpande (computer science), Peter Deming (a business senior with prior startup and fundraising experience), and later, Nick Sivo. During a brainstorming dinner, they consciously moved past replicating a Google Maps-like application, which had recently launched. Instead, they crystallized Altman's vision for a social network facilitating friend-finding based on live location data. The product was named Viendo, Spanish for 'seeing', encapsulating the idea of locating friends. This entrepreneurial pursuit occurred as Silicon Valley gradually recovered from the dot-com bust, with startup ventures still viewed with some skepticism.

Seeking validation, the Viendo team entered the Stanford BASES undergraduate business plan competition, which offered a $2000 top prize. Deming spearheaded market research and refining the pitch deck. Altman, recognized for his 'preternatural confidence' and 'reality distortion field', distilled their message into a singular, compelling question: Viendo would answer the most common cell phone query, 'Where are you?'. They won the competition, securing both the prize and, more importantly, the attention of Patrick Chung, an associate at New Enterprise Associates (NEA), a prominent venture capital firm. Chung offered to facilitate a meeting with Sprint's CTO, but stipulated that NEA's investment was contingent on the founders dropping out of school.