GOVWORKS.COM

Govworks.com

GovWorks.com

Introduction

GovWorks.com, the website set up by young aspiring entrepreneurs, facilitates interaction between local institutions, citizens and businesses. The owner of the GovWorks started the business passionately but unfortunately ended, within the two years of their existences. GovWorks was sold to First Data in 2001 due financial collapse faced by owners and dot.com bubble burst during 2000.

History of GovWorks.com

Kaleil Isaza Tuzman and Tom Herman, they wanted to start a web based business together as they were childhood friends. Their dream came in to existences in May 1999 in the form of GovWorks.com. The company was created with target of $600 billion that offer online access to assist people in dealing with the government. Within one year, GovWorks has only one room office with few staffs. This changed into 200 employees working for GovWorks and company valued approximately $500 million worth. During April 2000, EzGov who was competing GovWorks, launched his website with small business plan similar to the GovWorks, com. The dot.com period was following five strategies during that period. These five strategies were the base for success for any dot.com company, which comprises of innocent beginning, boom along with insanity and finally bust and crawl back to sanity and bonus phase.

In 15 years of dot.com era, there was a huge amount of new technologies entering in to this industry. Hence, these companies failed to survive when dot.com suffer a burst. However, many new companies did earn a lot from this dot.com and investors have made them rich by following the dot.com train ride, so GovWorks.com initially benefited from this but faced the terrible downfall as well. Many of them also end up losing business and bankruptcy.

Herman and Tuzman, in order to attract venture capitalist for more funding and suggestion, they structure the office. He advised that the company should refine its business model and by focusing on payment operations. According to Tuzman Govwroks.com would be the leader in the market and will be a multibillion dollar company. They also believed that support from umbrella organization they can represent their company in many metropolises and can quickly carters nationwide, but unfortunately, this did not happen, big contracts did not approach them as founders has projected. In 2001, this company was no longer sustained in the market.

At end 2000 , GovWorks had almost laid off their entire employees. At last, in 2001 January, First Data took over the GvWorks and dot com bubble for GovWorks has burst and came to its end (Kaffer, Nancy, 2010).

Founder of GovWorks.com

GovWorks.com was founded by Kaleil Isaza Tuzaman and tom Herman, both were early days best friends. Kaleil after his graduation from Harvard University, he started his career from Goldman Sach which is a, full-service global investment banking and securities firm for five years before he started GovWork.com. He was company CEO and was able to raise around $60 million through venture capital. GovWorks has a negative impact by the burst of the dot-com bubble. Now he is working for KIT digital as a Chief executive officer ...