How a Chicago software firm named itself after signals from outer space
In short: Founded in 1999, 37signals has spent decades defying Silicon Valley norms. From creating the influential Ruby on Rails framework to challenging Apple's app store dominance and pioneering cloud repatriation, the company consistently prioritizes self-reliance, even when it means losing a third of its workforce over internal policy disputes.
The company, originally established as a web design firm by Jason Fried, Carlos Segura, and Ernest Kim, took its name from 37 extraterrestrial radio signals identified by astronomer Paul Horowitz. By 2005, the business pivoted entirely to web application development, producing tools like Basecamp, Backpack, and Campfire. A pivotal moment occurred when David Heinemeier Hansson extracted the Ruby on Rails framework from internal Basecamp development and released it as open source, fundamentally altering web application construction.
37signals has often courted controversy and change. In 2014, it rebranded as Basecamp to focus on its flagship project management tool, only to revert to its original name in 2022 to reflect a broader portfolio including the email service HEY. The company has frequently challenged industry giants; it fought Apple over App Store policies in 2020 and successfully pressured Google to stop competitors from using the Basecamp trademark in search ads. Internally, the culture has faced turbulence, notably in 2021 when a third of the staff resigned following a ban on political discussions.
Recent years have seen the company pursue a strategy of independence from modern tech infrastructure. In 2023, the firm reported saving $1 million through cloud repatriation, moving resources away from external cloud providers. This ethos of control extends to their 2024 launch of the ONCE product line, which offers self-hosted software that customers purchase outright rather than subscribing to. By 2025, the company continued this trajectory by introducing Fizzy, a kanban-style project management tool, further diversifying its suite of self-contained business solutions.
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- Summary by Intellect · source: 37signals
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