Ray Anderson | Executive Chair | Bango
Ray Anderson had a childhood unlike most, filled with constant movement and change. He lived in a dozen different schools across the globe as his father was a pilot in the Royal Air Force. This exposure to various cultures and ways of life helped shape Ray’s broad worldview. Despite the transience of his early years, he found a constant passion in science, particularly in the mysteries of the universe. His fascination with science eventually led him to a scholarship at Gonville and Caius College at Cambridge University. There, his interest in physics grew, influenced heavily by the legendary Stephen Hawking, his professor. Hawking’s groundbreaking theories about quantum gravity left a lasting impact on Ray, but it wasn’t the only scientific pursuit that captured his imagination. As he delved deeper into research, especially on the behavior of black holes and the concept of information loss, Ray found himself increasingly drawn to the world of computing. At the time, computer science was often seen as a subject for those who couldn’t quite cut it in pure mathematics. Nonetheless, Ray was determined and switched his focus to this new and rapidly evolving field, setting the stage for a career that would leave a lasting impact on the tech world. At EliteX, we are proud to feature Ray Anderson as the cover story of this edition: Prominent Tech Leaders in the UK, 2024.
During his studies, Ray didn’t just learn; he got his hands dirty with real-world experimentation. He started importing dynamic RAM memory chips from Japan and the United States, supplying students with components for building early personal computers. Working with a friend, Ray found a way to circumvent the UK’s strict import controls, which were in place to protect the domestic chip industry but were stifling the development of computer technology in the country. This entrepreneurial spirit marked a shift in Ray’s career, from purely technical endeavors to a more business-oriented mindset. He was becoming increasingly interested in the marketing side of technology, a field he would later excel in.
“We are now in a golden age for new business and innovation.”
After graduating, Ray spent a year working for General Electric, where he was tasked with writing a compiler for their new computer. But Cambridge continued to call him back, and it wasn’t long before Ray returned to co-found a start-up called Torch Computers. The company would go on to make waves by developing the world’s first personal computer with an integrated modem, a significant leap forward in the evolution of personal computing. Although Torch’s hardware business was ultimately sold to an Australian conglomerate, Ray’s experience with the company proved invaluable. His sale of the Torch OpenTop graphical user interface software to Steve Jobs marked a pivotal moment in his career. At the time, Jobs had just been ousted from Apple and was in the process of starting NeXT. He urgently needed a mouse-based user interface for his new computer, and Ray was the person who could provide it. The deal was sealed in Palo Alto, and Ray went on to have a series of fascinating and intense interactions with Jobs, especially during the final stages of the negotiations in Cambridge. However, Ray remains tight-lipped about the details, choosing not to publicly discuss the more personal aspects of his dealings with the Apple co-founder.
After leaving Torch, Ray was determined to find a way to make powerful computing more accessible to a broader audience. This drive led him to found IXI, a company that aimed to bring the cutting-edge concepts behind Torch’s software to more widely used Unix systems such as those made by Sun, Apollo, and IBM. The path wasn’t easy, but Ray’s determination paid off. IXI’s software eventually became the industry standard, and the company merged with one of its customers in California before going public on NASDAQ. At its peak, the business had a market capitalization close to $2 billion. During this time, Ray’s company made another key move by licensing the Mosaic web browser from Marc Andreessen, just before he founded Netscape. IXI became the first company to ship a commercial web browser and even sponsored the first-ever World Wide Web conference in Geneva, alongside Wired magazine.
It was around this time that Ray came to an important realization: the most significant technological industry standards often originate from small companies, not large ones. Big companies, he noted, always have big competitors that they can’t allow to benefit from their ideas. Smaller companies, on the other hand, are free to disrupt the market with new ideas and technologies, and to license their innovations without restrictions. He looked around at the world-changing technologies of the day—ARM, MS-DOS, Ethernet, PDF, MP3, SSL, and even Bitcoin—and realized that they all came from small startups. Armed with this insight, and while he mulled over what might be possible, Ray turned his attention to a new challenge, one that was close to his heart: humanitarian work. He bought a plane and began flying missions to sub-saharan Africa, hoping to make a difference in people’s lives by delivering much needed pharmaceuticals and modern wireless communication technology.
In 1999, Ray co-founded Bango with Anil Malhotra, a fellow veteran of IXI. Their ambition was much larger this time: they wanted to create a platform that would allow people to access the services they wanted over the web from their mobile phones. At the time, the telecom industry, along with phone manufacturers, was resisting the idea of mobile phones accessing the open web. These companies wanted to keep users within walled gardens, controlled ecosystems that they could monetize. But Ray and Anil saw the future differently. They knew that the internet would eventually become the primary platform for mobile communication, and they were determined to be at the forefront of that transformation. The breakthrough came in 2004 when major telecom companies like Vodafone, Telefonica, and AT&T made a shift towards the open internet, abandoning their walled gardens and choosing Bango as their partner.
“The barriers to entrepreneurship have never been lower… what once required huge investment can now be done with a smartphone and cheap cloud services.”
The real game-changer came in 2007, when the iPhone was released, followed by Android in 2008. These smartphones offered users unprecedented access to the internet and enabled a new era of mobile browsing at an affordable cost. While Bango had initially made money from clients like Blackberry and Nokia, Ray could see the writing on the wall. These companies, despite their initial success, were in denial about the market’s direction. Ray and Anil made a bold decision to pivot Bango’s strategy, focusing on the future of Android and streaming services like Amazon’s Prime Video. They kept their Blackberry and Nokia business going, but their real focus was on what would come next. The collapse of these once-dominant companies was faster than expected, but their strategy proved prescient. As Android phones took over the market and streaming services gained popularity, Bango’s fortunes soared. The company’s share price jumped from 48p to 290p in just 15 months, validating Ray’s vision.
Bango’s success continued as it delivered for major players in the tech and entertainment industries, including Google, Microsoft, and Amazon. Most subscription based businesses then learned that bundling alongside other services was a way to accelerate growth, and so they adopted Bango’s Digital Vending Machine (DVM) technology which had established itself as the standard for subscription bundling world-wide. Ray again found himself at the center of a thriving ecosystem driven by innovation and choice. The DVM’s ability to provide insights from vast amounts of data made it an invaluable tool for companies like Disney, Netflix, Spotify, and Paramount, as well as smaller niche services like Duolingo and Calm. By leveraging AI, Bango’s technology could suggest new services to consumers, helping both users and service providers grow faster and more efficiently. Ray feels fortunate to be based in Cambridge, England, a city known for its thriving hub of innovation. Cambridge has become a major center for breakthroughs in fields like tech, AI, and biotech. Despite its growing importance on the global stage, the city has managed to retain its close-knit community of innovators, entrepreneurs, and financial experts. For Ray, Cambridge represents the perfect environment to foster new ideas and make a positive impact on the world.
As Ray looks to the future, and as an Angel Investor, he is especially excited by the entrepreneurial drive he sees in young people today. While mainstream media often focuses on negativity, Ray is inspired by the many young individuals who see a bright future ahead and are willing to work hard to achieve their goals. The barriers to entrepreneurship, he believes, have never been lower. What once required significant investment in equipment and infrastructure can now be done with a smartphone and access to affordable cloud services. Platforms like YouTube offer a wealth of knowledge, and there are more ways than ever for entrepreneurs to seek advice and funding. Ray also notes that factors like race, gender, and geography no longer present significant barriers to success, although he acknowledges that more work is needed in certain parts of the world.
“Tech industry standards often come from small companies, not large ones.”
At Bango, Ray and his team are excited by the benefits their technology brings to millions of users. By bundling subscription services, Bango helps consumers save money, enjoy more content, and experience less hassle. The team is thrilled by the possibility of expanding these benefits to billions of people around the world. With the power of the Bango Digital Vending Machine, new services that were once not viable can now thrive in a world of endless choice and availability.
Looking ahead, Ray envisions a future where consumers can escape from the restrictions of walled gardens and freely choose the services they want. With Bango’s Digital Vending Machine, creators can engage directly with their audiences, and consumers can access the best possible services in a safe, trusted environment. This open platform, supported by Bango’s global ecosystem, represents the future of digital commerce, one where innovation and choice empower users across the globe.
