Reading Founders at Work: Max Levchin
Sunday, March 30th, 2008I picked up Jessica Livingston’s book Founders at Work: Stories of Startups’ Early Days the other day and started reading through it for inspiration. I had always noticed Jessica’s name at the bottom of Paul Graham’s essays in the acknowledgements section. Paul’s essays have been like a shot of startup adrenaline: whenever I need a little bit of entrepreneurial fuel, I read (or reread) one of the essays to get pumped up. I suppose it’s kind of like listening to Metallica before a football game or something. Anyways, The book contains a series of interviews with startup founders. The first one is an interview with Max Levchin, cofounder and CTO at PayPal. A couple of things jumped out while reading the interview with Max that I wanted to touch on.
- Startups are about people. Finding good cofounders really matters. Finding good employees at the start really matters. “If you have a good team, you are halfway there.”
- Determination matters. Max was absolutely determined to get his technology to work. He pulled all-nighters. He coded until it got done.
- Naivete can be a strength. Max wasn’t aware of the technical challenges they were going to come up against in dealing with fraud, but was confident they would solve the problems as they came up. “People like Citibank and other large financial institutions that also competed with us that understood the fraud thing very well–they knew from years of practice that this was going to become a huge problem–didn’t really approach it with the same happy abandon that we did. … We thought, ‘we don’t know how to do this; let’s just invent it.’” Sometimes not knowing how hard a problem is can be a blessing. You may approach the solution from a different angle or try something that others had been unwilling to try because it appeared to daunting.
- Entrepreneurs just want to start something. Perhaps my favorite quote was about his drive to start a company: “I think the hallmark of a really good entrepreneur is … you realize one day that you can’t really work for anyone else. You have to start your own thing. It almost doesn’t matter what that thing is.” I know exactly the feeling. There is something empowering about working at the startup level. It’s like programming in assembly–you have access to the bare metal, no abstractions or obstructions.
Max has continued to show his drive for starting something as he has moved on to work on Slide and Yelp.
