In an engaging talk, Peter Thiel, a famous entrepreneur and venture capitalist, explains why founders are crucial for keeping companies innovative. Using examples from his experience with PayPal and the history of Apple, Thiel shares important lessons on the value of founders.
Here are the key points from his talk:
- Competing with Giants: PayPal faced tough competition from big players like eBay and major credit card companies. Thiel feared that if these competitors mastered the technology, PayPal could be pushed out of business.
- The Choice to Sell: Thiel reflects on the decision to sell PayPal. While it was the right choice at the time, he notes that selling often stops the innovation process, making a once dynamic company more routine and bureaucratic.
- The Early Days of a Company: The initial period of a company, led by its founder, is when most of the innovation happens. Once this period ends, the company tends to become more predictable and less innovative.
- Apple’s Mistake: In 1985, Apple’s board wrongly thought that the computer industry had peaked and could be managed like any other consumer product company. This led to the removal of Steve Jobs, which was a big mistake as it hindered further innovation.
