The Mafia that you wish you were a part of..
8 lessons from 8 of the PayPal Mafia
• @elonmusk
• @peterthiel
• @rabois
• @DavidSacks
• @reidhoffman
• @mlevchin
• @roelofbotha
• @Chad_Hurley
— THREAD —
8 lessons from 8 of the PayPal Mafia
• @elonmusk
• @peterthiel
• @rabois
• @DavidSacks
• @reidhoffman
• @mlevchin
• @roelofbotha
• @Chad_Hurley
— THREAD —
1/ Who are they?
PayPal founders and employees that built these companies:
@Tesla
@SpaceX
@YouTube
@Yelp
@LinkedIn
@PalantirTech
@Square
@Yammer
@Opendoor
+ investors and advisors in many others
PayPal founders and employees that built these companies:
@Tesla
@SpaceX
@YouTube
@Yelp
@PalantirTech
@Square
@Yammer
@Opendoor
+ investors and advisors in many others
2/ @elonmusk First Principles
First principles are basic assumption that cannot be broken down further. They are the lego blocks of thinking.
“It’s important to reason from first principles rather than by analogy. The normal way we conduct our lives is we reason by analogy.”
First principles are basic assumption that cannot be broken down further. They are the lego blocks of thinking.
“It’s important to reason from first principles rather than by analogy. The normal way we conduct our lives is we reason by analogy.”
3/ @peterthiel Failure is overrated
• Failure is too complicated to result in easily applicable lessons
“Most businesses fail for more than one reason. So when a business fails, you often don’t learn anything at all because the failure was over-determined.”
• Failure is too complicated to result in easily applicable lessons
“Most businesses fail for more than one reason. So when a business fails, you often don’t learn anything at all because the failure was over-determined.”
4/ @rabois Movie Production Method
You don’t discover a startup market, you create it.
“Building a successful product and company is like producing a movie. You have a script and vision first and film the movie. Then you sell tickets.”
(Opposite of @ericries Lean Startup)
You don’t discover a startup market, you create it.
“Building a successful product and company is like producing a movie. You have a script and vision first and film the movie. Then you sell tickets.”
(Opposite of @ericries Lean Startup)
5/ @DavidSacks Friction
Instead of thinking, “how do I build my company?”
Think… “What are sources of friction to this thing scaling and how do I remove it?”
Instead of thinking, “how do I build my company?”
Think… “What are sources of friction to this thing scaling and how do I remove it?”
6/ @reidhoffman 4 Factors to Blitzscale
• Network effects: networks become more useful for all with each new member
• Market size: dominate a niche to to get to mainstream consumers
• Distribution: pick channels that suit speed of your expansion
• High gross margins
• Network effects: networks become more useful for all with each new member
• Market size: dominate a niche to to get to mainstream consumers
• Distribution: pick channels that suit speed of your expansion
• High gross margins
7/ @mlevchin Hiring
“Whenever there’s any doubt, there’s no doubt.”
(Similar to @sivers Hell Yes or No decision framework)
“Whenever there’s any doubt, there’s no doubt.”
(Similar to @sivers Hell Yes or No decision framework)
8/ @roelofbotha Understanding Founder Motives
Learn HOW and WHY the founder makes decisions.
• What are the key decisions you faced in your life and what did you decide? What were the alternatives?
• Why did you go to this school?
• Why did you move to this city?
Learn HOW and WHY the founder makes decisions.
• What are the key decisions you faced in your life and what did you decide? What were the alternatives?
• Why did you go to this school?
• Why did you move to this city?
9/ @Chad_Hurley Empower and Evolve with Users
• Enable users to do things they care about and spread the word about your product
• PayPal originally wanted Beam payments to PalmPilots. Be flexible and notice how your users interact with the product
• Enable users to do things they care about and spread the word about your product
• PayPal originally wanted Beam payments to PalmPilots. Be flexible and notice how your users interact with the product
• • •
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