I agree with him that technology can make us all richer, but I disagree that it necessarily creates greater inequality, even if some startup founders become very rich.It only does that if companies don’t create real value in return for that wealth.
And as I’ll outline below, I think you have to ask yourself how much this “financialization of the economy” is also a major contributor to the Silicon Valley wealth that you celebrate in this piece.]The solution to this puzzle is to realize that economic inequality is not just one thing.
It consists of some things that are very bad, like kids with no chance of reaching their potential, and others that are good, like Larry Page and Sergey Brin starting the company you use to find things online.[Google’s founders created enormous wealth for themselves — Larry Page and Sergey Brin are each worth somewhere north of $35 billion — and through stock options distributed to every employee, they have also created wealth for everyone who has worked for Google, as well as for those who invested in the company.
The growth of income inequality is such an important conversation to frame properly!
We have to understand what’s wrong with the world as it is, because only then can we envision the world we want to create, and think about how to get there.
begins a 3-part series reviewing the key points from this legendary essay. Graham states, ‘You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible.’ According to Mr. Graham begins this chapter by describing what he means by ‘good people’. Graham, when he was looking to hire for his own startup he wanted people who could be described as being an ‘animal’. Graham, this meant the super tenacious, never-let-up, hyper-aggressive attitude of someone who would not be satisfied with anything less than their very best. Graham, this is a quality necessary to succeed in a startup. Graham then applied three additional tests when hiring his new employees: ‘Was the person genuinely smart? And finally, since a few good hackers have unbearable personalities, could we stand to have them around? Graham, these tests were unique to his company, but served well to determine the type of person they wanted to bring on board. Graham, the most likely hire you will make early on are of friends and personal contacts. However, with more than four founders, disagreements are bound to arise and decisions will be difficult to make. Graham, one of the founders should be an expert in the field, but this is not necessarily a requirement. To back this claim up, he states that at the time of his writing only 5 of the Forbes top 50 CEO’s held an MBA. Graham, they were people with technical backgrounds, like Steve Jobs and Bill Gates.
Graham, a startup that does all three of these things will have the best chance to succeed. Graham, should make anyone setting out to start a startup very excited because all three are very doable. As far as whether one of the founders should be a ‘business person’, according to Mr. The one reason to include businesspeople however, is because at least one founder should be focused on what customers actually want. Graham, if you can’t understand users you should, ‘Learn how or find a co-founder who can.
(Note that the value creation number from Varian’s study is US only, while the revenue figure is worldwide.) Given that Larry and Sergey founded Google in 1998, you can count the cumulative economic impact in the trillions of dollars.
And the You can see from this example that there is no problem when a company’s founders and investors reap enormous value and become members of the very top 0.01% of the wealth distribution.
Graham states if there is one message he wants to convey to anyone looking to build a successful startup it is this: It’s hard. “Good people can fix bad ideas, but good ideas can’t save bad people.” – Paul Graham Mr. Graham, being friends with a person for only a few days will tell you much more about them than any job interview ever will. Graham suggests the ideal environment may be to work on project you want to with people you like. Graham recommends having at least two – but, no more than four. Graham, at least two are required because everyone needs to share the load of a startup with someone. ‘You just try to get people to pay you for stuff.’ And it’s that simple. Graham’s philosophy is that anyone can learn to do business.
Graham, even a brilliant idea is not really worth all that much in the grand scheme of starting a company. Graham is that so often in startups success requires a pivoting. Graham states great ideas are certainly great to have, he also emphasized they should be viewed as merely the starting point. Graham are the teams and people who execute these ideas, a theme he tackles in his next chapter.