In 1995, Elon Musk and his brother Kimbal founded Zip2, bringing business directories and maps online. Once the product was operational, investors came knocking, and the brothers shared a single computer: a server by day, coding by night.

They bought a huge rack to hide the small computer inside, naming it the "machine that goes ping," inspired by a scene from a Monty Python sketch where the most expensive equipment is wheeled out to impress, primarily making a "Ping" sound. Kimbal later said that every time investors visited, they showcased this tower, and once the visitors left, the brothers would secretly laugh, as the investors believed they were dealing with hardcore equipment.

Their mother, Maye, flew in from Toronto to help prepare the pitch materials. At that time, color printing cost about $1 per page, which they couldn't afford. After receiving their first investment proposal, they celebrated at a restaurant, where Maye said it would be the last time she used her credit card. Subsequently, Mohr Davidow Ventures invested about $3 million.

Elon recalled that their early startup funds were about $2,000 from himself, around $5,000 from his brother, and about $8,000 from Greg Kouri, plus later angel rounds that reduced risk. The two slept in the office, with the internet cable drilled up from the service provider downstairs. In 1999, Compaq acquired Zip2 for about $307 million, with Elon holding about 7% of the shares, cashing out around $22 million.

The buyer wanted to see a "data center-like" risk capital, while the seller had only a single machine directory website. Funds shifted from printing costs and credit cards to a $3 million account. The founders benefited from turning the scene into an asset; the pressure was on due diligence based on rack size to assess technology. This is a recounting of the founders' early fundraising tactics, not a new company announcement.

Source: Public Information