Huffpost Small Business

There's A .00006% Chance Of Building A Billion Dollar Company: How This Man Did It

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SHOP RAIN
A woman blocks her door to prevent floodwater from entering the shop in Shanghai after typhoon Fitow brought heavy rain to the area on October 8, 2013. Typhoon Fitow, which barrelled into China's east coast early on October 7 packing winds of more than 200 kilometres (124 miles) an hour, killed at least five people and impacted 4.5 million, state media reported. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images) | Getty
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David Friedberg was driving home from his job at Google, stuck in traffic in the pouring rain. On the side of the road, he noticed a bike rental shop for tourists, shuttered early due to the weather. The next day, he saw the same thing, and the next — for a week. “It got to the point where I’m sure the guy who owned the place wasn’t even showing up — no one wants to ride bikes in the rain. And I thought to myself, that’s a pretty crappy business.”

But then he thought about it more. “It occurred to me that whether or not this guy was making money in a given month was based on how many days it rained. That’s actually a huge problem.” Digging a little deeper, Friedberg discovered that upwards of 70% of businesses are affected by the weather every year — a simple stat that gave birth to an idea: an insurance service for companies that would pay out when bad weather was on the way.

Read the whole story at First Round