Basecamp: Building Calm in a World of Chaos

The Thread Begins: A Frustrated Duo in 1999

It started not as a dream to disrupt, but as a necessity.

In 1999, Jason Fried, a designer, was running a small web design consultancy called 37signals. Alongside him were two remote developers, David Heinemeier Hansson (DHH) and Ernest Kim. As the team juggled multiple client projects, they found themselves overwhelmed not by work, but by the tools meant to manage it.

Emails were fragmented. Deadlines were scattered. Documents lived in silos. They needed a better way to stay on track.

So, like many great companies, they scratched their own itch. In 2003, Basecamp was born.

The Pivot to Products

Basecamp wasn’t supposed to be the business. It was built to manage the real business: client work.

But when 37signals started using it internally, something shifted. Clients liked it. They asked to use it. And when the team quietly launched Basecamp to the public in February 2004, it took off faster than expected.

Within a year, Basecamp was generating more revenue than their consulting work.

So in 2005, Jason and DHH made the leap: 37signals would stop consulting and go all-in on product. They pivoted from services to software, long before it was trendy.

A Bootstrapper’s Dream

Unlike the unicorns of Silicon Valley, 37signals didn’t raise VC funding. In fact, they wore it like a badge of honor.

They were profitable, calm, and intentional. In 2006, Jeff Bezos bought a small stake in the company. Not for control. Just as a passive investor. That was the only outside money they ever took.

Instead of chasing growth at all costs, Basecamp focused on staying small, efficient, and sustainable. No ping-pong tables. No 100-hour weeks. Just deep work.

By 2014, Basecamp had become the flagship product, and 37signals rebranded itself to Basecamp. A company named after its product. Simple.

The Philosophy: Calm Companies

Jason and DHH weren’t just building software. They were building a new way to work.

They championed ideas like:

• 40-hour workweeks

• No growth targets

• Remote-first work

• Saying no more than yes

Their books, "Rework," "Remote," and "It Doesn’t Have to Be Crazy at Work," spread this gospel of calm. In a world obsessed with hustle, Basecamp became the poster child for sustainable success.

Challenging the Status Quo

Over the years, Basecamp stayed opinionated. They resisted feature bloat. They refused to mimic competitors. And they were vocal critics of the venture capital model.

But this clarity came at a cost.

In 2021, Basecamp made headlines when internal tensions over politics and workplace discussions led to a controversial policy banning political talk at work. Around a third of employees left.

Jason and DHH stood firm. They wanted to build a company focused on work, not activism. Critics called it tone-deaf. Supporters called it principled.

Either way, it reinforced what Basecamp always stood for: independence.

Still Standing

Today, Basecamp is not the biggest tool. It doesn’t have the flashiest features. But it has loyal users, strong cash flow, and a clear identity.

In 2021, they launched HEY, a privacy-focused email service. It was a shot across the bow of Big Tech. And it showed that Basecamp was still willing to bet on bold ideas.

As of 2025, Basecamp remains bootstrapped, profitable, and proudly different.

It’s not just a product. It’s a philosophy.

In an industry obsessed with unicorns, Basecamp is a reminder that you can build a meaningful company by staying small, principled, and calm.