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It was a long and winding road to the founding of America Online. In the mid-80s, Kleiner Perkins had invested in Imagic, a video game business primed to go...

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It was a long and winding road to the founding of America Online. In the mid-80s, Kleiner Perkins had invested in Imagic, a video game business primed to go public until the market collapsed and the company failed. Some of Imagic’s investors, including Kleiner Perkins, went on to invest in Control Video Corp. That company also failed (a reminder that 70% of all startups don’t make it), but out of the wreckage of CVC emerged Quantum Computer Services, a company that eventually rebranded as America Online and later AOL. CVC’s only product was an online service to play games, which were downloaded by phone via a modem that subscribers bought from the company. It was around that modem and Quantum’s dedicated online service that America Online would be formed several years later.

In 1987, Tim Berners-Lee had just completed work on the World Wide Web, linking hypertext documents into an information system. But the internet was still in the very early stages of its meteoric growth. The ability to connect and communicate was limited largely to those in computer science labs. To expand use to the masses would require development of a way for PCs to communicate with one another. AOL did just that creating a way for people to connect via the internet. We saw the potential to create a mass-market service and invested in AOL in September 1987.

AOL’s success was driven by a strong founding team. Frank Caufield, the partner at Kleiner Perkins who led the investment in CVC and later in AOL, was tasked with finding a CEO for the company. Jim Kimsey, a classmate of Frank’s at West Point, joined CVC in 1983. In 1985, the company was renamed Quantum, and Jim changed focus to build an online service that became the foundation for AOL. The company was successful under Jim’s leadership and went public in 1992.

Financial History

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Leadership Team

Key people at AOL.

Frequently Asked Questions

Who founded AOL?

AOL was founded in 1985 by Steve Case (Founder).