The amazing story of Jan Koum and WhatsApp 🙂
February 2014. Three individuals gathered outside a white building near the railroad tracks in Mountain View, California. Decades earlier, this building had housed a social services office where a young boy from Ukraine, one of the three, once stood in line to collect food. That young boy, now a 38-year-old man, was Jan Koum. A few moments later, representatives from the world’s largest social media platform, Facebook, arrived. They handed over a contract for Koum to sign. Glancing around, he approached a door, placed the paper on it, and signed his name, sealing the $19.6 billion deal for Facebook to acquire his company, WhatsApp.
To put the amount in perspective, $19.6 billion was equivalent to 1.66 trillion Bangladeshi Taka at the time—almost a third of Bangladesh’s national budget for 2020. That day, the Bangladesh Bank’s foreign reserves were slightly over $20 billion.
With the signing of the contract, Jan Koum entered the ranks of billionaires, listed by Forbes with a net worth of $7.5 billion. By August 2020, his wealth had grown to $10 billion.
How Did a Ukrainian Build the Most Expensive App of Its Time?
Jan Koum was born in a village near Kyiv, Ukraine, into a Jewish family. His father worked as a construction laborer, and his mother was a homemaker. They lived modestly in a house without hot water and rarely used the phone due to fears of government surveillance. Despite these challenges, Koum remembers that life as peaceful.
Sweeping Floors to Survive
At the age of 16, Koum immigrated to Mountain View, California, with his mother and grandmother. A social service agency provided them with a two-bedroom apartment. The plan was for his father to join them, but he never made it to America. Koum’s mother packed 20 Soviet notebooks in their suitcase to save money on school supplies. In Mountain View, she worked as a babysitter while Koum took a job as a grocery store sweeper, cleaning floors to make ends meet.
Though Koum struggled in school, he had a knack for English and a deep curiosity for learning. By 18, he had taught himself computer networking by reading used books he bought and resold. Koum enrolled at San Jose State University and began working as a security tester for Ernst & Young. This role led him to a job at Yahoo, where he managed ad systems alongside co-worker Brian Acton. Over time, the two formed a strong bond, spending their free time playing frisbee together.
Nine Years at Yahoo: Is like a Prison
Koum spent nine years at Yahoo but found little joy in the job. He would often joke, “I did nine years in Yahoo,” equating it to a prison sentence. By 2007, both Koum and Acton had left Yahoo, disillusioned with their roles. Koum had saved about $400,000 during this period. They used this money to backpack across Latin America, where Koum experienced firsthand the frustrations of international communication.
Inspiration for WhatsApp
During his travels, Koum struggled with the high cost of international calls and the complicated process of making them. Back in Silicon Valley, he bought an iPhone in January 2009 and immediately recognized the potential of Apple’s App Store. Inspired, Koum envisioned an app that could show user statuses like “busy” or “in a meeting.” With encouragement from a friend, Koum registered the company WhatsApp Inc. on February 24, 2009—his birthday.
Initially, WhatsApp was designed as a status-sharing app, but users began using it to send messages. When Apple introduced push notifications in June 2009, Koum adapted WhatsApp to alert users whenever a status was updated. This feature transformed the app into an instant messaging platform, allowing users to send real-time messages globally.
Building a Global Messaging Giant
By late 2009, WhatsApp’s user base had grown to 250,000, prompting Koum to seek funding. Acton persuaded five former Yahoo colleagues to invest $250,000 in the startup. WhatsApp’s messaging feature, with its iconic “double-check” read receipts, became a game-changer. Users loved the ability to send messages internationally without the high costs associated with SMS or calling.
Koum quickly realized that WhatsApp had greater appeal outside the U.S., especially in Europe and Asia, where international communication was more common. He optimized the app for popular non-iPhone devices like Nokia and Samsung, significantly expanding its reach.
The $19 Billion Acquisition
By 2014, WhatsApp had over 400 million active users and was adding 1 million new users daily. Its simplicity, reliability, and ad-free model caught Facebook’s attention. Mark Zuckerberg saw WhatsApp as a strategic asset to expand Facebook’s global footprint. The acquisition deal, finalized in February 2014, remains one of the largest in tech history.
Today, WhatsApp is used by billions worldwide, revolutionizing the way people communicate. From sweeping floors to signing a $19 billion deal, Jan Koum’s journey is a testament to resilience, innovation, and the power of staying connected.
In the end, I just want to say one thing: a company that enabled a boy to message someone outside his country helped him grow into a man. With only 55 employees, this company made headlines that broke the internet by selling their incredible app, WhatsApp, to Facebook. Start with simple ideas, and watch them flourish.