How did Mint.com go from launch to a $170 million acquisition in 24 months? The answer isn’t as spectacular as you might think. Using a football metaphor, Mint.com did it more through blocking and tackling than through big plays. Mint.com’s story is one of how a start-up that solves a real problem, and executes very well, can overcome obstacles and win the support of others. It’s also a story of how a small company can take on a big rival, and by positioning itself for the future rather than the past, can motivate the rival to acquire it rather than trying to put it out of business through aggressive competition. Let’s see how all of this took place.

Aaron Patzer
Aaron Patzer started Mint.com when he was just 25.
After earning degrees from Duke and Princeton, he took a job with Nascentric, a Silicon Valley start-up.
During this time, he was managing his personal finances with Quicken and Microsoft Money, and became increasingly frustrated with his experiences.
He asked around and found others who were aggravated with these products and personal finance in general. He started thinking about how to build a product that would not only be an improvement to Quicken and Microsoft Money, but would make the entire process of managing money more efficient and potentially rewarding.
Patzer struggled with whether to act on his instincts and eventually decided to move forward. His thought process during this period is best illustrated through his own words. In an interview with Carson McComas, the creator of WorkHappy.net, a popular blog, Patzer reflected on how he made the decision to quit his job and focus on Mint.com full-time:

I began to think about the business nights and weekends. But it’s hard to find time when you’ve got a full time (and very demanding job). One day I said to myself, “If you give it 100% and fail, I can live with that. But I can’t live with going half-way, part-time.” So on March 1, [2006], I quit my job and began working on Mint. The first few months were tough, and I basically oscillated day to day between thinking “This is the greatest idea ever”
and “This will never work.” Who am I to take on Intuit (the maker of Quicken) and Microsoft?
If this was a good idea, someone would have done it before.
Patzer went on to say that the thing that gave him the most inner confidence was that he knew he was exceptionally good at one thing: algorithms—the key to computer programming. He also knew he was persistent and extremely passionate about his idea.

Discussion Questions
1. If you had been a venture capitalist at the time Patzer was originally pitching Mint.com, would you have had the same concerns as the venture capitalists at that time did? Why do you think the venture capitalists weren’t more forward thinking? Why do you think Patzer didn’t see the initial reaction to Mint.com as reason to either give up or to significantly modify his service?
2. Evaluate how effectively Mint.com prepared for its launch and early growth. What specific steps did the company take to prepare for and stimulate its early growth?
3. Do you think Intuit’s acquisition of Mint.com was a win for both Intuit and Mint.com? In what ways does an acquisition by a large firm potentially accelerate the growth of a small firm, beyond what the small firm could have accomplished on its own?
4. Why do you think Intuit didn’t create an online site similar to Mint.com, rather than spending $170 million to acquire Mint.com?
Application Questions
1. What are the inherent challenges involved when a large firm acquires a small firm, particularly if the core management team from the small firm joins the large firm? Which of these challenges do you think will be particularly difficult for Patzer and his team?
2. Do some research on Intuit’s acquisition of Mint.com, and report on the current status of the acquisition, in terms of successes and disappointments. In your opinion, has the acquisition been a good thing for Mint.com and its users? Explain your answer.