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The No-Money Startup Miracle

Mike McDerment was still hanging out in his parents’ basement at the age of 30. But he was no slacker reluctant to leave the family nest.

Instead, McDerment was a CEO leading a seven-person team in building a web-based invoicing service called FreshBooks. And his team was operating from the basement as part of a plan to keep costs rock-bottom. McDerment’s ultra-frugal approach protected FreshBooks from running out of cash even as it scaled up dramatically. Five years later, the firm has 93 employees and more than 1.6 million users worldwide.

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