Zuck is unemotional. He doesn't get influenced by ego. Chamath Palihapitiya More Quotes by Chamath Palihapitiya More Quotes From Chamath Palihapitiya What you should be in a rush for isn't necessarily the immediate monetary return, but it's to know that this equation existing between an employee and a company is being honored. What's the equation? I'm going to give you my most precious thing that I have - my time and my reputation. That's what the employee says. And the company says I'm going to take your time and your reputation and direct it at things that we believe collectively have a huge impact opportunity to do something extremely positive. And that positivity will get measured in impact and also economic upside. Chamath Palihapitiya positivity opportunity believe As you start the company, you start spending spending spending ahead of revenue but then you come out of it and very quickly you should become a company that spends less than it makes. And what I mean by very quickly, is that window of time should be in that 6 to 8 year time frame. And the reason is because if you build your business model correctly it's almost unavoidable. Chamath Palihapitiya reason mean window I think the reality is that it's never been a better time to be an entrepreneur, it's never been a better time to work at a startup. You work at a really intellectually free environment, you get to work with people who are like-minded, it's very energetic. It's wonderful. Chamath Palihapitiya reality people thinking If the investors themselves are not sophisticated, if they themselves are not putting a lot of their own money to work, if they themselves don't understand the continuum of capital and how different parts of the capital structures react differently, then they're basically worthless. They're not going to give great advice to these entrepreneurs who then need it. So that is unfortunately the cycle we're in and we have to break the cycle. Chamath Palihapitiya entrepreneur advice giving If you look at the ecosystem, entrepreneurs as a class have gotten younger, younger, and younger. They also as a class have become less and less and less experienced. The good part about that is that you're unlocking this ability to start a company to so many more people. That's an amazing positive. The negative is they're coming to that job with dramatically less experience than they've ever had. So there needs to be someone around the table that can then help them. Chamath Palihapitiya entrepreneur people negative People should absolutely have a point of view about the political process themselves individually, but we're also at a point in the evolution of capitalism where any one individual's impacts are over estimated because there is enough regulation and guard rails. They may be odious and grotesque in what they say, but the practical day-to-day impacts from a policy perspective tend to be limited because the system made it so. That's why you see a lot of political apathy because people have internalized the inability for anyone either really really good or really really bad to do anything. Chamath Palihapitiya perspective political people Startups should be, if you graph their financial performance, it should be what's called a J curve. You start out at zero, you're not making any money, you're not losing any money. Chamath Palihapitiya financial losing The point of Silicon Valley at least when I moved here was we're all trying to do stuff and none of us quite felt like we fit in anywhere else. But we were all trying to do good things. And the money was just the byproduct of good things. The idea that there's an obligation to have that thing happen in four years or five years or six years, I think we need to disavow that. Chamath Palihapitiya fit trying thinking The goal of a private company is, first, zero to one. Get past the product market fit, figure out whether people actually care about what you're trying to build and someone will pay you money for that. That's the zero to one problem. So scaling, one through N, is figuring out can you do that at scale and how big is the scale. And when people pay you more than what it costs for you to make it, does that equation end up leaving you with money left over, i.e. profits. Chamath Palihapitiya goal people past It's OK, by the way, that it takes 10 years for you to make "money." Since when was it that being in your mid-30s to make a few hundred thousand dollars or a million dollars was like egregiously unfair? I think we have to have a sense of perspective here. We're all going to live into our 80s or 90s. So what is everybody in such a rush for? Chamath Palihapitiya making-money perspective thinking The entrepreneurial struggle is the same at basically every stage in the sense that there's maybe slightly less risk but strategic issues are generally always the same. Now there's so much existential risk from another company either being able to compete or to disrupt you in the same way you're disrupting somebody else, an entrepreneur needs a real steady partner who has the ability to start working with them in the Seed or the A and be credible and value-add with strategic advice, and just be backstopped by so much capital that you can do any growth round or even a public round. Chamath Palihapitiya entrepreneur real struggle If you're trying to get to profitability by lowering costs as a startup then you are in a very precarious and difficult position. You need to grow through profitability. Chamath Palihapitiya difficult trying The reason to go public is that it is a massive branding, marketing, credibility, trust-building exercise with your customers, and then it allows you to consolidate power and scale and market share. Do we want to be a huge company with a huge impact? If the answer to that is yes, the only way that that happens is by going public. It is effectively a branding event that catalyzes interest. It helps with recruiting, it helps with marketing, it helps with sales. It just helps on many dimensions. I think it's basically a litmus test for the CEO's ambition. Chamath Palihapitiya ambition exercise thinking I think going public should not be a goal and the more that we make it a goal, the less it will be a goal. It's kind of like, I have three young children and when I tell them to eat vegetables, the last thing they will ever do is eat vegetables. I think it's just this weird thing where entrepreneurs have a reflexive negative reaction when people are pushing for it. I think you have to view going public for what it is, which is a transitional moment where you can consolidate mindshare and win at an even larger scale. Chamath Palihapitiya winning children thinking I think unfortunately in this gold rush mentality that we've been in for the last years there has been not enough focus on business model quality. So when push comes to shove, there actually aren't that many great businesses that can go public. Because I think if you're going to thrive as a public company, it presupposes that you make more money than you spend. Chamath Palihapitiya quality focus thinking The half-life of companies is shrinking. So in the same ease in which you can start a company today to disrupt an incumbent, you have to also realize that somebody will do that to you as well just as easily. So if you're not just going to get on top but stay on top, that will require a real prepared mind across many companies. Chamath Palihapitiya real mind today I would tell startups to just keep your head down, keep building. Your contingency plan, if you have one, should be because you are still spending more than you make and you still don't have a line of sight for that J curve. That is the most important contingency. Because otherwise you are betraying that equation to your cofounders, to your investors, to your employees and to your customers. Chamath Palihapitiya employee building important If you believe in and if you care about A.I. [Artificial Intelligence] and its role in the world, be long Amazon, be long Google, but be long Box. Chamath Palihapitiya top-news That’s what we’re dealing with, and imagine taking that to the extreme, where bad actors can now manipulate large swathes of people to do anything you want. It’s just a really, really bad state of affairs. Chamath Palihapitiya latest-headlines I want children who can make eye contact. I want children who know how to resolve conflicts with their peers. I want children who understand the dynamics of interpersonal relationships that are physical and tactile. I do not want children that only know how to interface with the world through a screen. Chamath Palihapitiya understand eye children world
