Last Updated on September 16, 2024 by Vlad
Mike Cannon-Brookes, co-founder of Atlassian, is one of Australia’s wealthiest individuals, credited with revolutionising software development and business collaboration. Many people wonder how did Mike Cannon-Brookes get rich, and the answer lies in his innovative approach to business and technology.. His journey to immense wealth began straight out of university when he and Scott Farquhar launched Atlassian, funding it with their credit cards. Cannon-Brookes built his fortune by developing software that transformed how teams work together.
Atlassian’s success, driven by tools like Jira and Confluence, grew from their focus on user-friendly software and word-of-mouth marketing. This unconventional approach led to explosive growth, with the company gaining a devoted global user base. Cannon-Brookes’ wealth surged after Atlassian went public in 2015. He has since diversified his investments into renewable energy projects and tech ventures, using his fortune to advocate for a greener future. His bold attempt to purchase Australia’s largest energy provider is just one example of his commitment to clean energy.
Key Takeaways
- Co-founded Atlassian, developing revolutionary collaboration software.
- Atlassian’s unique business model and IPO dramatically increased his wealth.
- He invests in technology and renewable energy to create a lasting impact.
Early Life and Education
Family Background
Mike Cannon-Brookes was born on 17 November 1979 in Connecticut, USA, before moving to Australia at a young age. His father, Michael Cannon-Brookes Sr., held executive positions in banking, notably at Citibank and Deutsche Bank. This global upbringing exposed him to different cultures and may have shaped his broad vision for the future.
Education
Mike attended Sydney’s prestigious Cranbrook School before enrolling at the University of New South Wales (UNSW) to study information systems. It was here that he met his future business partner, Scott Farquhar. United by their shared passion for technology, they left university early to start their own venture.
Early Interest in Technology
Mike’s fascination with computers began at an early age. His passion for coding and software development deepened while studying at UNSW. He took various IT jobs to gain hands-on experience and fine-tune his skills, which would later prove invaluable in launching Atlassian.
Co-Founding Atlassian
Meeting Scott Farquhar
At UNSW, Cannon-Brookes met Scott Farquhar, and they quickly bonded over their mutual interest in technology and entrepreneurship. Their partnership began with university projects and would soon evolve into something much bigger.
Starting Atlassian
In 2002, the two founded Atlassian, using credit cards to fund their startup. Their goal was modest—earning the equivalent of a graduate salary of $48,000 each. They initially operated out of Cannon-Brookes’ shared house in Sydney, juggling coding with customer support and administration.
Vision for Atlassian
The duo aimed to create software tools to help teams collaborate more efficiently, starting with Jira, a project management tool that quickly gained traction. They deliberately avoided traditional sales tactics, relying on the product’s quality to speak for itself—a strategy that proved remarkably effective.
Business Growth and Strategies
Early Struggles and Breakthroughs
In Atlassian’s early days, Mike and Scott faced challenges, relying on credit cards to keep the company afloat. Their breakthrough came with Jira, which became a popular tool among developers. This success set the stage for Atlassian’s expansion, including the launch of Confluence, a team collaboration platform.
Revenue Models and Expansion
Atlassian’s innovative freemium model allowed users to access basic versions of their products for free, which helped them grow their customer base rapidly. When people ask how did Mike Cannon-Brookes make his money, much of the answer comes from Atlassian’s strategic focus on user-centric, scalable solutions. They also adopted a subscription-based revenue model, providing steady income. Strategic acquisitions, like Trello in 2017, further expanded their product lineup.
Global Expansion and Local Impact
Atlassian, while headquartered in Sydney, quickly expanded globally, opening offices in tech hubs like San Francisco and London. Despite this global reach, the company remained committed to Australia, investing in local education and the startup ecosystem. Cannon-Brookes also used his success to advocate for clean energy in Australia, even attempting to purchase AGL Energy to push for a transition away from coal.
Atlassian’s Public Offering
Initial Public Offering (IPO)
Atlassian went public in December 2015, listing on the NASDAQ. The IPO raised approximately $462 million, with shares initially priced at $21. What made Atlassian’s IPO unique was its profitability—unlike many tech startups that rely heavily on venture capital, Atlassian had been profitable for years.
Market Performance
Atlassian’s stock soared by 32% on its first day of trading, closing at $27.78. Investors were drawn to the company’s strong fundamentals, particularly its recurring subscription-based revenue model. As the stock price continued to climb, so did Cannon-Brookes’ wealth.
Impact of COVID-19 on Atlassian
The COVID-19 pandemic transformed how companies around the world operated, with remote work becoming the norm. For Atlassian, this shift led to an increased demand for its collaboration tools, like Jira, Confluence, and Trello. These platforms were perfectly suited for remote teams looking to stay organised and connected. The company experienced accelerated growth during the pandemic, with many businesses realising the importance of strong digital collaboration solutions.
Cannon-Brookes navigated this unprecedented situation by doubling down on Atlassian’s commitment to remote work. While many companies struggled to adapt to the new normal, Atlassian had already embraced flexible work environments, allowing the company to capitalise on the surge in demand. The pandemic highlighted the essential nature of Atlassian’s software and further solidified the company’s place as a leader in the tech world. As remote and hybrid work models continue to be popular, Atlassian is poised to remain a key player in this space.
Leadership Style and Philosophy
Mike Cannon-Brookes is known for his unique and down-to-earth leadership style. He fosters a work culture that emphasises creativity, autonomy, and collaboration—core values reflected in Atlassian’s products. Cannon-Brookes believes in empowering employees to take ownership of their work, rather than relying on top-down management. This has allowed Atlassian to attract some of the best talent in the tech industry, while also creating a loyal and motivated workforce.
Transparency is another key aspect of his leadership. Atlassian is known for its open company culture, where feedback flows freely and employees are encouraged to share ideas. Cannon-Brookes also promotes work-life balance and flexibility, famously instituting a “work from anywhere” policy well before the COVID-19 pandemic made remote work mainstream. His leadership approach has helped Atlassian scale globally while maintaining an innovative and people-centric work environment.
Challenges and Failures
Like most entrepreneurs, Mike Cannon-Brookes faced his share of challenges along the path to success. Atlassian’s early days were marked by financial uncertainty. Cannon-Brookes and Scott Farquhar relied on personal credit cards to fund their startup, a risky move that could have ended in bankruptcy if their product hadn’t gained traction. In addition, Atlassian entered a highly competitive software market with many established players. Convincing customers to adopt a new tool like Jira required a strong belief in their product and perseverance in the face of skepticism.
One of the biggest challenges came when Atlassian scaled its business without a traditional sales force. This unconventional approach worked, but there were growing pains, including the pressure to maintain high product quality while rapidly expanding. They also faced difficulties acquiring early users since there wasn’t a dedicated team for promotion. Overcoming these hurdles showed Cannon-Brookes’ resilience and determination to innovate, even when the odds were stacked against him.
Personal Investments and Ventures
Green Technology Initiatives
Cannon-Brookes is deeply committed to combating climate change. His investment in the Australia-Asia Power Link aims to supply solar power from Australia to Singapore. His firm, Grok Ventures, has stakes in numerous green tech startups, including electric vehicle charging networks and energy-efficient building solutions.
Real Estate Ventures
Cannon-Brookes owns several properties in Australia, including the historic Fairwater estate in Sydney, which he purchased for nearly $100 million. His real estate investments also extend to sustainable farming, where he experiments with renewable energy solutions on his farm in New South Wales.
Net Worth
Mike’s net worth as of mid-September 2024 is estimated at $11.1 billion by Forbes, while Bloomberg estimates his wealth at $10.6 billion.
The Australian Financial Review estimates Mike and his wife’s wealth at $24.38 billion Australian dollars – which at current exchange rates is approximately $16.4 billion US dollars. Making the couple Australia’s third wealthiest, behind the likes of Gina Rinehart and Harry Triguboff.
Much of his wealth is tied to the performance of Attlasian Corporation (NASDAQ: TEAM), with Cannon-Brookes net wealth peaking towards the end of 2021 at the hight of covid boom.
Future Vision and Goals
Looking ahead, Mike Cannon-Brookes is focused on making a lasting impact beyond Atlassian. His long-term vision revolves around tackling climate change and transitioning the world to renewable energy. His attempts to buy AGL Energy, Australia’s largest energy provider, highlight his ambitions to accelerate the shift away from fossil fuels. Cannon-Brookes has also pledged substantial investments in green technologies and plans to continue using his wealth and influence to drive sustainable innovation.
In the tech space, Cannon-Brookes remains committed to expanding Atlassian’s product offerings and maintaining the company’s leadership in the software industry. His future goals likely include fostering a new generation of tech entrepreneurs, particularly in Australia, where he continues to invest in education and local startups. Whether through his philanthropic efforts or business ventures, Cannon-Brookes is determined to leave a lasting legacy as both a successful entrepreneur and a champion for environmental sustainability.
Philanthropy and Impact Investing
Focus on Renewable Energy
Cannon-Brookes has donated substantial sums towards climate action. He and his wife Annie pledged $1.5 billion by 2030 to support climate solutions. They have also contributed $350 million to various climate-related causes. Through his charity, Boundless Earth, Cannon-Brookes continues to drive Australia’s transition to renewable energy.
Public Recognition and Awards
Cannon-Brookes’ contributions to business and environmental activism have earned him widespread recognition. In 2006, he and Farquhar were named Ernst & Young’s Entrepreneurs of the Year in Australia. His work in advancing renewable energy has also made him a respected figure in the sustainability community. Today, Cannon-Brookes’ net worth stands at A$24 billion, cementing his status as one of Australia’s wealthiest and most influential people.
Lessons from Mike Cannon-Brookes
Start Small, Think Big
Cannon-Brookes and his co-founder Scott Farquhar started Atlassian with nothing but credit cards and a goal to earn the equivalent of a graduate salary. Their modest beginnings didn’t limit their ambition. This teaches us that even small beginnings can lead to great success if we are persistent and think on a larger scale.
Innovate and Challenge Norms
Atlassian didn’t follow the traditional sales model, relying instead on product quality and word-of-mouth marketing. Cannon-Brookes’ innovative approach to business, from avoiding traditional sales teams to offering freemium models, shows that thinking outside the box can set you apart from competitors.
Embrace Challenges and Failure
Cannon-Brookes faced financial uncertainty and stiff competition in Atlassian’s early days, yet he persisted. Learning to overcome obstacles, whether financial struggles or market pressures, is essential to long-term success. Failures or challenges don’t define you, but your ability to adapt and keep going does.
Invest in the Future
Cannon-Brookes is deeply involved in renewable energy projects, showing his commitment to a sustainable future. Investing in industries that can have long-term positive impacts on the world not only helps society but can also be a smart business move. This highlights the importance of forward-thinking investments.
Lead with Transparency and Empowerment
Cannon-Brookes’ leadership style focuses on empowering his employees and promoting transparency within the company. By fostering a positive, open work environment, he has been able to attract top talent and maintain Atlassian’s innovative edge. The lesson here is that good leadership is about trust, empowerment, and fostering a healthy work culture.
Adapt to Changing Times
Cannon-Brookes embraced remote work long before it became mainstream due to the COVID-19 pandemic. His adaptability to changing work environments gave Atlassian an advantage when remote work became a necessity. This shows the importance of being flexible and prepared for unexpected shifts in business landscapes.
Use Success to Make a Difference
Cannon-Brookes uses his wealth and influence to combat climate change and invest in green technologies. He shows that success is not just about personal wealth but also about giving back and making a positive impact on the world. Philanthropy and responsible investing can be powerful ways to leave a lasting legacy.
Collaboration is Key
Atlassian’s software products focus on collaboration and teamwork, reflecting Cannon-Brookes’ belief in the power of working together. Whether in business or personal endeavors, this teaches us that collaboration and teamwork often lead to better outcomes than working alone.