Jeff Bezos says he gave early Amazon investors a 70% chance of losing their money

Jeff Bezos

Long before Amazon became a $2 trillion giant, its survival depended on a handful of believers willing to back an unproven idea. Jeff Bezos recently revisited those early days, offering a candid account of just how uncertain the company’s future looked when it was still a fledgling online bookstore.

Speaking at the DealBook Summit in conversation with Andrew Ross Sorkin, Bezos described the gruelling process of raising Amazon’s first round of funding in 1995. At the time, the internet itself was barely understood, let alone trusted as a platform for commerce. According to Bezos, he held roughly 60 meetings with potential angel investors, many of which involved multiple rounds of discussion. Out of those conversations, about 40 ended in rejection.

Bezos called the experience the hardest thing he had ever done. His pitch was simple and direct. He offered 20% of the company at a $5 million valuation, with the aim of raising around $1 million. Eventually, about 20 investors came on board, each contributing roughly $50,000. Getting to that point, however, was far from straightforward.

One of the biggest hurdles was explaining the internet itself. Bezos recalled that many meetings began with a basic question about what the World Wide Web actually was. The commercial potential of online retail was not obvious in the mid-1990s, and convincing people to back a digital bookstore required both imagination and faith.

What stands out most in Bezos’ reflection is his approach to risk disclosure. He admitted that he told potential investors there was a 70% chance they would lose their money. Looking back, he described that level of candour as naïve, but insisted it was also accurate. In fact, he suggested he may have been generous in assigning those odds, implying the true risk was even higher.

That honesty likely scared some investors away, but Bezos believes it was the right thing to do. He emphasised that early commitments were crucial and that the entire venture could easily have collapsed at that stage. Without those first believers, Amazon may never have made it past its infancy.

Today, Amazon stands as one of the most valuable companies in the world, with a market capitalisation of around $2.38 trillion. Bezos himself is worth more than $230 billion. The contrast between that reality and the uncertainty of 1995 underscores how fragile even the most successful companies can be in their earliest moments.

The reflections also offer insight into Bezos’ mindset as a founder. Rather than overselling certainty, he leaned into transparency, even when it worked against him. That willingness to acknowledge risk, paired with long-term conviction in the internet’s potential, shaped Amazon’s early culture.

In a lighter moment, Bezos has previously spoken about a very different dream job. In a past conversation with his brother Mark, he admitted that if money were no object, he would like to be a bartender crafting high-end cocktails. While far removed from cloud computing and global logistics, the comment reflects the same appreciation for craft and detail that has defined his approach to building Amazon.