Telegram Founders' Journey - The Fight for Privacy and Freedom of Speech

Welcome to our "Founders' Journey" series by CoffeeSpace, where we explore the remarkable stories and cofounder journeys behind the world’s most successful startups.

In this edition, we explore the journey of Pavel (@durov) and Nikolai Durov (@Kolja_Durov), the brothers who founded Telegram—one of the most secure messaging platforms in the world. As we walk through the key milestones of their venture, we’ll examine the challenges they faced, the lessons learned, and the evolution of Telegram into a global leader in messaging and online privacy.

Telegram Founders' Journey: A Battle for Cybersecurity and Encrypted Communication

Telegram, the cloud-based instant messaging and VoIP (Voice over Internet Protocol) service, was launched by the Durov brothers in 2013. It wasn’t their first venture into the tech world, but it soon became their most influential. Previously, the Durovs were the creators of Russia’s largest social network, VKontakte (VK), and their experience in building a tech platform laid the groundwork for what would later become Telegram.

Pavel, often referred to as "Russia's Mark Zuckerberg," was the ideological architect behind both VK and Telegram, while Nikolai, a mathematician and programmer, provided the technical foundation. Their synergy allowed them to create platforms that not only attracted millions of users but also placed privacy and security at the forefront of their products.

VKontakte (VK): The Precursor to Telegram

VK, launched in 2006, was a social network that grew to dominate the Russian-speaking internet. Pavel founded the platform alongside his classmate Vyacheslav Mirilashvili, with Lev Leviev joining later to manage operations. Nikolai, although not one of VK's original founders, played a pivotal role in the platform's technical development.

VK's rapid success, however, attracted the attention of the Russian government. In 2011, authorities requested that VK censor content related to political protests and turn over user information. Pavel’s refusal to comply marked the beginning of his public stance as a defender of free speech and online privacy. These events were not just turning points in the history of VK but laid the foundation for the values that would later define Telegram.

The Birth of Telegram: A Response to Conflict

By 2013, the Durov brothers had left VK amid growing pressure from the Russian government. As state-owned entities gradually took control of VK, Pavel and Nikolai shifted their focus to Telegram. The app was launched in August 2013, with headquarters established in Dubai to distance themselves from government interference.

The brothers envisioned Telegram as a platform that prioritized user privacy above all else. Features like end-to-end encryption and self-destructing messages were embedded into the app, making it an attractive alternative to other messaging services like WhatsApp. Telegram grew quickly, reaching 100,000 users within just two months of its launch.

The Meteoric Rise: Telegram Surpasses 100 Million Monthly Users

According to the announcement from Telegram’s blog, the app surpassed 100 million monthly active users in February 2016, hitting a big milestone shortly two years after it started its operations, with 350,000 new users signing up and 15 billion messages sent daily. 

In comparison to its competitor which was established in 2009, Whatsapp took over three times its time to reach the same milestone in February 2016, showing the impressive spike in growth for Telegram users in such a short period of time upon launching.

Expansion Plans and Setbacks: The Story of TON and Gram

In 2018, the Durov brothers announced plans to take Telegram beyond messaging by introducing the Telegram Open Network (TON) and its own cryptocurrency, Gram. This project aimed to create a decentralized blockchain network that would offer secure, fast payments and a range of applications beyond just communication.

The initial coin offering (ICO) for Gram was a massive success, raising over $1.7 billion. However, Telegram's ambitious expansion was cut short when the U.S. Securities and Exchange Commission (SEC) intervened, alleging that Gram tokens were unregistered securities. After a lengthy legal battle, the project was forced to halt in 2020, and Telegram agreed to return the ICO funds and pay an $18.5 million penalty.

This setback could have been catastrophic for many companies, but the Durov brothers used their resilience to keep Telegram afloat. Pavel funded the company's operations using proceeds from the sale of his VK shares, ensuring that Telegram’s development continued without compromising its core values.

Reaching New Heights: Telegram Hits 1 Billion Downloads

In August 2021, Telegram surpassed 1 billion downloads. This milestone may largely be attributed to the surge in downloads coinciding with WhatsApp, Messenger, and Instagram’s poor handling of relaying its privacy policies to its massive user base. During this period, Telegram grew significantly, amounting to over 70 million new users shouting alternatives for messaging services. This milestone reflects Telegram’s growing popularity and its appeal to the masses, particularly due to its focus on privacy and a broad range of features that the app offers.

Monetization and the Introduction of Freemium

After Telegram's attempt to revolutionize blockchain fell through, the company shifted its focus to monetization through a freemium model. In 2022, the platform introduced paid subscriptions that offered enhanced features, such as faster download speeds, voice-to-text transcriptions, and premium stickers.

By 2024, Telegram's in-app revenue had exceeded $1 million, thanks to its loyal user base willing to pay for advanced functionalities. Despite these changes, the core values of privacy and security remained untouched, which helped maintain user trust.

Durov Detained by the French government

On August 24, 2024, with 12 alleged criminal violations relating to the cloud-based messaging app, Telegram founder Pavel Durov was detained at the Le Bourget Airport in France based on an arrest warrant issued by the French judicial police. Durov is currently released on bail but is barred from leaving France until the case is resolved.

He is faced with allegations of criminal activities on the Telegram platform which includes money laundering, drug trafficking, cyberbullying, and the promotion of terrorism and could serve up to 20 years in prison for his charges. Telegram has been on the French authorities’ radar for tracking illicit purposes and additionally the company’s refusal to share private information when required by law gradually snowballed into his arrest two weeks back. Prosecutors also argue that Telegram’s encryption and security puts on additional difficulties for authorities to monitor communications happening over the private messaging platform. 

Durov has been clear on his stance and belief to provide an impartial platform available to all users, hence his arrest also sparked international debate and controversies about the balance between free speech and the collective responsibilities of tech companies in their practices concerning the moderation of content and the role of tech platforms in global politics. Elon Musk, the owner of X (formerly Twitter) and CEO of Tesla and SpaceX, in his series of tweets, expressed his disapproval and criticism of Europe’s freedom of expression in today’s times, calling for the release of Pavel Durov.

Conclusion: The Takeaways for Founders

The Durov brothers’ journey offers valuable lessons for founders and cofounders in the tech space:

1. Core Values Matter: Pavel and Nikolai’s commitment to privacy and free speech remained steadfast throughout their journey, from VK to Telegram. Founders who remain true to their core values can build trust and loyalty with users, even in the face of adversity.

2. Resilience is Key: The setbacks with VK and the TON project could have deterred many entrepreneurs, but the Durovs remained undeterred. Founders should be prepared to face challenges head-on, turning obstacles into opportunities for growth.

3. Security Sells: In a world increasingly concerned about data privacy, products that emphasize security can stand out. Telegram’s focus on encryption made it a leader in the messaging space, setting it apart from competitors who faced scrutiny over their data practices.

As the Durovs continue their journey with Telegram, they offer a blueprint for founders who prioritize innovation, resilience, and, most importantly, privacy.

If you’re inspired by this story and want to start exploring your own ideas and find someone to get off the ground with, join us at CoffeeSpace.

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Banner image credit to Freepik

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