Kapor was unemployed when he bought his first personal computer—an Apple II. He sold his stereo to raise cash and drove to New Hampshire to avoid the sales tax.
"The day after I purchased it," Kapor tells me, "I was hanging out in a computer store and I saw another guy, a man in his forties, well-dressed guy, and eavesdropped on his conversation with the salesman. He didn't know anything about computers. I'd had a year programming. And I could program in BASIC. I'd taught myself. So I went up to him, and I actually sold myself to him as a consultant." He pauses. "I don't know where I got the nerve to do this. It was uncharacteristic. I just said, 'I think I can help you, I've been listening, this is what you need to do and I think I can do it for you.' And he took me on! He was my first client! I became a computer consultant the first day after I bought the Apple II."
Kapor had found his true vocation. He attracted more clients for his consultant service, and started an Apple users' group.
A friend of Kapor's, Eric Rosenfeld, a graduate student at MIT, had a problem. He was doing a thesis on an arcane form of financial statistics, but could not wedge himself into the crowded queue for time on MIT's mainframes. (One might note at this point that if Mr. Rosenfeld had dishonestly broken into the MIT mainframes, Kapor himself might have never invented Lotus 1-2-3 and the PC business might have been set back for years!) Eric Rosenfeld did have an Apple II, however, and he thought it might be possible to scale the problem down. Kapor, as favor, wrote a program for him in BASIC that did the job.
It then occurred to the two of them, out of the blue, that it might be possible to SELL this program. They marketed it themselves, in plastic baggies, for about a hundred bucks a pop, mail order. "This was a total cottage industry by a marginal consultant," Kapor says proudly. "That's how I got started, honest to God."
Rosenfeld, who later became a very prominent figure on Wall Street, urged Kapor to go to MIT's business school for an MBA. Kapor did seven months there, but never got his MBA. He picked up some useful tools—mainly a firm grasp of the principles of accounting—and, in his own words, "learned to talk MBA." Then he dropped out and went to Silicon Valley.
The inventors of VisiCalc, the Apple computer's premier business program, had shown an interest in Mitch Kapor. Kapor worked diligently for them for six months, got tired of California, and went back to Boston where they had better bookstores. The VisiCalc group had made the critical error of bringing in "professional management." "That drove them into the ground," Kapor says.
"Yeah, you don't hear a lot about VisiCalc these days," I muse.
Kapor looks surprised. "Well, Lotus ... we BOUGHT it."
"Oh. You BOUGHT it?"