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Compaq was a pioneering computer hardware manufacturer based in Houston, Texas, that developed and sold IBM-compatible personal computers. The company experienced rapid early growth, selling 53,000 units to generate $111 million in revenue during its first year while expanding its workforce to 600 employees. By 1987, the manufacturer surpassed $1 billion in annual revenue by distributing its desktop and portable systems through an extensive network of retail dealers. The enterprise received early backing from prominent investors like Ben Rosen and Tom Perkins, and was later guided by executives such as Eckhard Pfeiffer and Michael Capellas. The business ultimately merged with industry rival Hewlett-Packard in 2002, a major corporate consolidation that resulted in over 16,000 layoffs before the brand ceased independent operations entirely. Compaq was founded in 1982 by Rod Canion, Jim Harris, and Bill Murto.
Compaq has raised $40.0M across 1 funding round.
Key people at Compaq.
Compaq was founded in 1982 by Rod Canion (Founder) and Jim Harris (Founder) and Bill Murto (Founder).
Compaq has raised $40.0M in total across 1 funding round.
Compaq was founded in 1982 by Rod Canion (Founder) and Jim Harris (Founder) and Bill Murto (Founder).
Compaq has raised $40.0M in total across 1 funding round.
Compaq's investors include Silver Lake Waterman, Andreessen Horowitz, Highland Capital Partners, Ignition Partners, Intel Capital, Lightspeed Venture Partners, Meritech Capital Partners.
Key people at Compaq.
Compaq has raised $40.0M across 1 funding round. Most recently, it raised $40.0M Bromium - Other Equity in March 2016.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Mar 25, 2016 | $40M Venture Round | Silver Lake Waterman | Andreessen Horowitz, Highland Capital Partners, Ignition Partners, Intel Capital, Lightspeed Venture Partners, Meritech Capital Partners | Announced |
Compaq Computer Corporation was a pioneering American computer company founded in 1982 that specialized in producing IBM PC-compatible personal computers, with a strong focus on portability and performance. Its flagship product, the Compaq Portable, was the first IBM-compatible portable computer, enabling users to run the same software as IBM PCs but with enhanced mobility. Compaq served both individual consumers and enterprise customers, eventually becoming the largest supplier of personal computers worldwide during the 1990s. The company was known for innovation, quality, and competitive pricing, which helped it challenge industry giants like IBM. Compaq’s growth momentum was rapid, achieving record sales and becoming the youngest company to reach $1 billion in annual revenue by 1987[1][2][3][4].
Compaq was founded in February 1982 by three former Texas Instruments senior managers—Rod Canion, Jim Harris, and Bill Murto—who initially considered other ventures such as a Mexican restaurant before deciding to build portable IBM-compatible computers. Their vision was to create a portable PC that could run all IBM software and peripherals, which was a significant technical challenge at the time. They reverse-engineered IBM’s BIOS legally to ensure compatibility without copyright infringement. Early venture capital funding came from Ben Rosen and Sevin Rosen Funds, which provided crucial financial backing and stability. The company’s first product, the Compaq Portable, launched in 1983 and was an immediate success, selling 53,000 units and generating $111 million in revenue in its first year—an unprecedented achievement for a startup[1][2][3][4][7].
Compaq rode the wave of the personal computing revolution by addressing a critical market need: portable, IBM-compatible PCs that could run existing software and peripherals. The timing was crucial as businesses and consumers increasingly demanded mobility and compatibility. Compaq’s success helped democratize computing by making portable PCs accessible and affordable, influencing the broader ecosystem by pushing competitors to innovate and lower prices. The company’s aggressive growth and acquisition strategies reflected the consolidation trends in the tech industry during the 1990s. Compaq’s eventual merger with Hewlett-Packard in 2002 marked a significant shift in the PC market landscape, symbolizing the end of an era for independent PC pioneers[1][2][3][6].
Though Compaq as an independent company ceased to exist after its 2002 merger with Hewlett-Packard, its legacy endures in the PC industry’s standards for compatibility, portability, and competitive pricing. The brand continued under HP until 2013, influencing product lines and market strategies. Looking forward, the trends Compaq helped pioneer—such as portable computing and open compatibility—remain foundational in today’s tech landscape, now evolving into mobile computing, cloud integration, and device interoperability. The story of Compaq serves as a case study in rapid innovation, market disruption, and the challenges of sustaining leadership amid industry consolidation. Its founders’ vision and early execution continue to inspire technology entrepreneurship and competitive strategy in the hardware sector[1][2][3][6].
