Previous Lecture Complete and continue  

  1.14. Charles Huang of RedOctane on the Money Trap (5 min.)

Charles Huang was the co-founding Chief Operating Officer (COO) of RedOctane, an American electronic entertainment company perhaps best known for producing the Guitar Hero series, which generated over $1 billion in sales in 26 months from its first release.

In this video, Huang explains how RedOctane didn't take any money from investors early in the company's history. By "bootstrapping" the business (i.e., funding growth in the business through sales instead of investment money), Huang and RedOctane were forced to focus intently on the needs of customers in order to generate more revenue.