The $400 million ride with Bill Gates

It's not often you hear of a person who negotiates a $400 million deal all on his own. Apart from having a couple of lawyers with him, Hotmail founder Sabeer Bhatia did exactly that. What's more intriguing is that when Bhatia sold his company to Microsoft in 1997 and met with Chairman Bill Gates for the first time, about a dozen Microsoft lawyers and business development execs were breathing down his neck.

"Here I am sitting across from Gates, and I am explaining why Hotmail is hot," Bhatia says. "It looked like he (Gates) was not even paying any attention to me as he kept looking into the ceiling, at the window and all around the room. Clearly, he heard every word I said because it was evident by his questions that followed my presentation."

Bhatia, who lives in San Francisco nowadays, is involved in yet another startup, Telechoice, a company based in India with operations in the U.S. The venture follows a couple of endeavors that failed - a factor that Bhatia chalks up to inexperience and reading the market wrong. He also is involved in California-based Cradle Systems.

The quiet 34-year old carries a cynical confidence that makes everyone listen. While speaking March 26 to a group of Indian executives, local venture capitalists and entrepreneurs, lawyers and some business school students, Bhatia chronicled his amazing journey to fortune and business fame.

He recalled the sleepless nights when he declined a $250 million offer from Microsoft, thinking he could get $500 million. By ultimately nailing $400 million, he came close.

From the expressions on the faces of audience members such as Pinpoint Networks' Jud Bowman and Art.com's Joshua Chodniewicz, one could tell that Bhatia's speech was connecting.

But it's on the golf course that one gets more personal insight into a young man who became rich overnight and, more importantly, at the right time.

The payday for Hotmail was a stellar exit for all concerned. Draper Fisher Jurvetson, which had invested $300,000 in venture cash, was a big winner. When Hotmail was sold, Bhatia gave Draper $100 million for its investment. What's not to like about that?

Bhatia likes to drive fast cars - his current choice is a Ferrari Spider - but he is deliberate with every word that comes out of his mouth. And he has not stopped dreaming.

His vision for India involves providing voice mail to the potential 100 million cell phone subscribers in the next five years. To pull it off, he knows things will be different this time around.

"Gone are the days when people would start companies on concept," he says. "They created a product before they brought it to market."

He adds, "Now the only way one can be successful is to listen to the market and provide (customers) with the product they are willing to pay for. Just look at Napster. But I think this (filtration process) will help entrepreneurism in the future."

We hope so.