Product Code Database
Victor Tsao (born 1951), or Ts'ao Ying-wei (p=Cáo Yīngwěi), is a Taiwanese-American entrepreneur born in Taiwan and hardware engineer. Tsao and his wife Janie Tsao co-founded Linksys, a consumer home networking pioneer, and sold the company to Cisco Systems for $500 million in 2003.
Janie Tsao moved to the United States in 1975, and a year later, Victor went to Chicago to attend graduate school at Illinois Institute of Technology, where he obtained his master's degree in computer science in 1980. The couple married and moved to California after graduate school. He worked in various computer-related jobs at Montgomery Ward, Kraft Foods, TRW and Taco Bell, and earned a Master of Business Administration (M.B.A.) from Pepperdine University.
During the company's early days, Tsao often worked 100 hours a week, involving himself with all aspects of the business. His wife took charge of sales, and was responsible for persuading the major retailers Fry's Electronics and Best Buy to sell Linksys products in 1995 and 1996, respectively. These were crucial breaks for Linksys, quadrupling its revenue to $21.5 million in 1996, and tripling it again to $65.6 million two years later.
In 1999, Tsao developed a $199 broadband router designed for home and small office networks, the first consumer router that cost less than $300. It proved to be Linksys' turning point. Sales increased to $206.5 million in 2000, and tech analyst Steve Baker called Linksys the inventor of consumer home networking. By 2004 the company owned 49% of the networking market, with sales estimated at $538 million.
The success of Linksys attracted the attention of the networking giant Cisco Systems, which contacted the Tsaos in 2002. In March 2003, Victor and Janie Tsao agreed to sell the company to Cisco in a deal valued at $500 million. The following year, the couple was jointly named Entrepreneur of the Year by Inc. Magazine. They continued to work for Cisco as senior vice presidents until 2007, when they retired from corporate life and shifted their focus to Miven Venture Partners, an investment firm they had founded in 2005.
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