Ebay, Friendster, France discussed on Masters of Scale with Reid Hoffman
That isn't bundled with your monopoly market service. Read also warned EBay about the dangers of crossing pay pal. Making sure that they understood that there would be a huge cost trying to shut us down making sure that pay pal customers were being very public and vocal about how much they love the service. Ultimately this customer. Love is what saved pay pal? Ebays customers overwhelming preference for pay pal made it diplomatically difficult for EBay to oust them, but how did pay actually win over EBay customers in this case? It didn't involve making anyone a hero. No, sometimes fortune favors the fast or hold trick to dominating that platform was to be faster than the EBay technology, the EBay technology determine the auction winner. And then sent an Email, and here's the crazy tiny detail that allowed pay pal to win. So you would frequently get a notification from paper eighty ninety percent of the time that you and won the auction before EBay had notified you that you had won the auction because oh you won the auction here you can pay with PayPal. So EBay customers us pay pal because pay pals emails arrived. I you just never know which small tactic will let you emerge the hero. As you mayo. Already know read story at pay pal ends well EBay buys pay pal for one point five billion dollars and read has what you might call freedom fund that will make it possible to launch his long delayed second startup, but the timing isn't great. This is fall two thousand and two when the deal closes, and the Silicon Valley intelligencia, everyone is concluded that the internet trend has played out like every other technological trend which had been semiconductors and enterprise software and networking equipment. Some winners then you move onto the next trend. Investors assume that the web was dead but read sought differently and what I realized was that the internet was just starting. It's going to transform how we live our lives. How we were how we buy stuff. All that was actually still in its infancy. Read now had a movie playing in his head, and that movie the biggest wins of the internet age were still ahead. Some of them would come from social networks anchored in your real identity and read would be among the heroes who had helped create this new world. Now, he was considering which kind of hero. He wanted to be when I was interested in was playing out this new rebirth of the internet both as an investor and as an entrepreneur, and I didn't know it'd be a good investor or not I was like I'm doing some investing to see if that's what I understand. I'm doing some entrepreneurship to see. That's the thing. I would do. And so I wanted to kind of place a set of bets. So what was the I bet that read placed the first pure angel investment was friendster friendster. Of course reads. I investment was friendster if you were writing a movie about a character named Reid Hoffman. You had have his first angel investment. Be in friendster. Here's why friendster was the first. First of the modern social networks. It was everyone has a real identity. Everyone connects people whose names and pictures, they see a huge believer in real entity real relationships on as a platform for applications, but how you navigate your life. And so that made friendster very easy. It was easy for me to invest in friendster and not just because it had the potential of great returns read invested because friendster was building the kind of social network. Read believed in France success would make read a hero in his own story. And this is such an important lesson for anyone seeking investors. Don't just look for money. Look for people whose personal mission.