I

Profile Steve Dengler ‘87 & Beric Farmer ‘87

In 1993, Beric Farmer ’87 and Steve Dengler ’87, joined

forces to start a business. They weren’t sure what this busi-

ness would be, but away they went. Shortly thereafter, they

put a simple currency conversion program (what we’d now

call an ‘App’) onto their website as a way to demonstrate to

potential consulting clients how websites can be dynamic

rather than just provide static information. Little did they

know that more than a decade later, based on that simple pro-

gram, they would be heading the most popular currency site

on the Internet – and one of the busiest websites in the world

– with the most convenient and most inexpensive currency

payment service in the world of finance. Many readers have

probably used XE.com simply to convert from one currency

to another. But they also allow you to make payments in a

foreign currency or transfer money between bank accounts

held in different currencies. It’s easy to set up, and very

convenient for those making payments internationally.

Beric and Steve met in grade 9 at St. Andrew’s and have

been fast friends ever since. This friendship, plus their per-

severance and “eyes-wide-open” policy has been a winning

combination ever since their XE.com conversion site hit the

Internet. They have grown surely and steadily, though, they

admit, cautiously. That caution has been fortuitous, keeping

them afloat during the dot-com crash of 2000 when many

good firms like theirs went under.

Talkative, personable and enthusiastic about what they

do, their story is best told through their own words, with

excerpts from a two-and-a-half hour interview conducted

in October 2010.

On the birth of XE.com

STEVE: In 1995, ’96, ’97, the Internet was starting to reach

critical mass. We were doing websites for some people at the

time, but everyone was just using a static page: one page of

information, then another page of information. We wanted to

show people that these pages could actually do something.

We thought: maybe a currency converter. So we made one,

put it up, and right away it started getting used. We were

Netscape affiliate partners back when Netscape was a

big deal. We got onto their “What’s Cool” list. From that

point on we started experiencing tremendous growth.

On the quiet popularity of the site:

STEVE: Everybody out there who needs to know about

currency knows our site, but I don’t think there is an

appreciation that practically everyone else also knows the

site. You might use it, and Fred and Bill might use it,

but you’re not all aware that you all use it. We’re now solid

near a rank of 355 globally, which means there are only

354 sites on the Internet that get used more than we do.

On the keys to the growth of XE.com

STEVE: Really, what was important was just the ability to

get in and get involved and stay involved, because we simply

didn’t have a business model. We used to joke that one day

our company would be nothing but currency services. Pretty

soon that became less and less of a joke until one day that’s

the way it was. That progression from nothing to everything

happened from 1993 to maybe 2000. Seven years, that’s a

long time. Really, it’s all about what they call entrepreneurial

spirit. Not any one particular skill – just staying in the game,

keeping your eyes open and making yourself useful.

BERIC: I don’t think I would have thought of it in these terms

back then, but more just a desire to succeed. You decide to

start this business, so, first, it means you’re willing to work

hard. Second, you care about doing a good job, and, third, you

keep your eyes open. You look, and you realize when something

is not working. You realize when something might be a good

opportunity. One huge part of it was the decision to get involved

in the Internet, which was just becoming commercialized. That

part of things ended up exploding very rapidly. It was a very

forgiving industry to be in at that time, because you could make

mistakes and still grow and succeed.

Currency Giant XE.com Built on Friendship, Perseverance

There are only 354 sites on the Internet that get used more than we do.

“”

30 FALL 2010

Steve and Beric

stand at the entance

to XE.com world

headquarters in

Newmarket

STEPH

EN

KIM

MER

ER

THE ANDREAN 31

On protecting the XE.com market share

BERIC: We have people who come to our site because they

have known about us for 15 years. It’s hard for a competitor to

overcome that habit alone. The way Internet businesses gain

an audience now is to advertise, and it would probably cost

millions and millions of dollars to try and develop an audience

of our size from scratch.... There are larger players who could

make a dent in what we have though. So part of what we are

trying to do is to build up our community – a very large group

of people who use our site all the time. You have to build that

from scratch. You can’t just buy that community.

On the role of their friendship in building a successful business

STEVE: People say, “Oh, luck doesn’t play a role in busi-

ness strategy.” Luck doesn’t play the only role in business,

but it’s in there. I mean, you turn left instead of right, you

meet a person or you don’t meet a person. But it takes a lot

more than luck. First of all: the friendship between me and

Beric. Our friendship has been in many ways the cornerstone

of the business, just because you always know that no matter

how bad something gets – and things have gotten pretty bad

over the years – you know you have someone who is going to

be there. They’re going to be honest with you; they’re going

to be supportive. Or conversely, if you’re making a mistake,

they’re not going to be afraid to say, “I don’t think this is what

we should be doing.” Over the lifetime of the business, that’s

an incredibly positive factor that can’t be replicated by just

taking two strangers and starting a business together.

On the importance of remaining independent in growing

the business

STEVE: We were looking one day at the business – at this

point it was just the two of us, right? We had two guys and we

had the world’s largest currency website. We used to joke, “At

what other point in history could two guys have the biggest

anything?” Even the world’s biggest ball of string would take

at least a dozen people to roll, right? Beric came in and said,

“Look at the money we’re making. We could just go home

and collect cheques.” Funny thing was, it wasn’t too long

after that – around 2000 – that the bottom just dropped out

of the market. We were very lucky because we never had any

outside financing or anything like that. We were completely

bootstrapped and organically grown. Nobody was hovering

over us saying, “No, no, I need profitability two quarters or

three quarters from now!” So when the bottom fell out of

the market we hadn’t grown to rely on that money to pay

investors. Other companies had. When the crash came,

lots of other good companies were gone.

On turning a small company into a big company

BERIC: For years we didn’t have to manage people. When

you’re a small company, everybody knows what’s happen-

ing, so you don’t have to make any intentional effort to make

sure that’s the case. Everybody just knows. As you grow,

you start realizing, “I can’t take that for granted anymore.

I actually have to make an effort to ensure that everyone

understands what’s going on, what we’re trying to achieve,

make sure everyone is on the same page.” You have to start

consciously ensuring that important things are communicat-

ed, and realize that while it’s great to have more resources

to get things done, continuing to develop the business now

requires paying attention to the people side of things within

your company.

On maintaining balance when you run a booming business

BERIC: It’s very good that I got married and had a family.

It keeps me from just working all the time, because I easily

could. When I get my teeth into a problem I tend to be very

tenacious and just hammer away at it until it’s solved. But

when you have kids and a wife, there’s something else in

your life that is very rewarding and enjoyable. Plus, you

realize that you have a role to play and you have to be there.

And so, at the end of the work day, you’re much more likely

to say, “Okay, it’s time to go home.” If I were single, I think

I’d work much longer days than I do. And I’m not sure that

would be good for me.

Today, XE.com operates with 20 employees in a Newmarket

office that is doubling its floor space in anticipation of things

to come. The company is in hiring mode as new possibilities in

the global marketplace bloom.

Steve lives in Woodbridge, about 35 minutes away, with

his wife and two sons, ages 6 and 3. Beric lives in Newmar-

ket with his wife, a son 11 and a daughter 8.

Their new business cards call them “The World’s Favourite

Currency Site,” and include seven words Beric and Steve have

heard more than any other: “I use your site all the time!”

To read the entire interview with Steve Dengler and Beric

Farmer, and to learn more about the fascinating ascension of

XE.com, go to www.sac.on.ca

JIM MCGILLIVRAY

People say, “Oh, luck doesn’t play a role in

business strategy.” Luck doesn’t play the only role in business, but it’s in there.

“

”

32 FALL 2010