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ZEROTO ONE
Lecture by Martin Mucha
NYC, April 18th 2015
PETERTHIEL
• PAYPAL
• PALANTIR
• CLARIUM CAPITAL
• FACEBOOK
• ANGEL INVESTOR
• VENTURE CAPITALIST
• MITHRIL
• Y COMBINATOR
CHAPTER 1 -THE CHALLENGE OFTHE FUTURE
horizontal or extensive progress
copying things that work
vertical or intensive progress
doing new things
3
CHAPTER 2 - PARTY LIKE IT’S 1999
• DON’T:
• Make Incremental
Advances
• Stay lean and flexible
• Improve on the
competition
• Focus on product, not sales
• DO:
• It’s better to risk boldness
than triviality.
• A bad plan is better than no
plan.
• Competitive markets
destroy profits.
• Sales maters just as much as
product.
4
PRINCE
“Cause they say 2,000 zero zero party over, oops! Out of
time! So tonight I am gonna party like it’s 1999.”
5
CHAPTER 3 - ALL HAPPY COMPANIES ARE DIFFERENT
Firm A
Firm A
Firm B
Firm B
MonopolyPerfect Competition
6
CHAPTER 4 -THE IDEOLOGY OF COMPETITION
There is no middle ground:
Either don’t throw any punches, or strike hard and end
it quickly.
7
CHAPTER 5 - LAST MOVER ADVANTAGE
• CHARACTERISTICS OF
MONOPOLY
• Proprietary technology
• Network Effect
• Economies of Scale
• Branding
8
• BUILDING A MONOPOLY
• Start Small and
Monopolize
• Scaling Up
• Don’t disrupt
• THE LAST WILL BE FIRST
CHAPTER 6 -YOU ARE NOT A LOTTERYTICKET
CAN YOU CONTROL YOUR FUTURE?
• Indefine Pessimism
• Define Pessimism
• Define Optimism
• Idenfine Optimism
9
CHAPTER 7 - FOLLOWTHE MONEY
• The Power Law of Venture Capital
• Why people don’t see the Power Law
• What to do with the Power Law
Compound interest is the eight wonder of the world. He
who understands it, earns it… He who doesn’t… pays it.
ALBERT EINSTEIN
10
CHAPTER 8 - SECRETS
• Why aren’t people looking for secrets?
• The world according to convention
• The case for secrets
• How to find secrets
• What to do with secrets
mysteriesconventions secrets
11
CHAPTER 9 - FOUNDATIONS
• Founding Matrimony
• Ownership, Possession, and Control
• On the bus or off the bus
• Cash is not king
• Vested Interest
• Extending the founding
12
CHAPTER 10 -THE MECHANICS OF MAFIA
• Beyond Professionalism
• Recruiting Conspirators
• What’s under SiliconValley hoodies
• Do one thing
• Of cults and consultants
0 to 1
cult (dogmatism)consultants (nihilism)
13
CHAPTER 11 - IFYOU BUILD IT,WILLTHEY COME?
• Nerds vs. salesman
• Sales is hidden
Dead Zone
$1 $100 $10,000 $10 M
Viral Marketing Marketing Sales Complex Sales
14
• How to sell a product
• Everybody sells
CHAPTER 12 - MAN AND MACHINE
• Substitution vs. Complementarity
• Technology means Complementarity
• Complementarity Business
• The Ideology of Computer Science
• Ever smarter computer friends of foe?
15
CHAPTER 13 - SEEING GREEN
• The engineering question
• The timing question
• The monopoly question
• The people question
• The distribution question
• The durability question
• The secret question
QESTIONS
7
16
CHAPTER 14 - FOUNDER’S PARADOX
• The difference engine
• Where kings come from
• American Royalty
• The return of the king
17
CONCLUSION
• STAGNATION OR SINGULARITY
• Recurrent collapse
• Plateau
• Extinction
• Takeoff
18
PeterThiel
“The essential first step is to think for yourself. Only by
seeing our world anew, as fresh and strange as it was
to the ancients who saw it first, can we both re-create
it and preserve it for the future .”
19
THANK YOU
MERCI DANKE
धन्यवाद
谢谢
GRACIAS
감사합니다
DĚKUJI
ありがとうGRAZIE ‫תודה‬
‫شكرا‬
СПАСИБО

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Zero to One

  • 1. ZEROTO ONE Lecture by Martin Mucha NYC, April 18th 2015
  • 2. PETERTHIEL • PAYPAL • PALANTIR • CLARIUM CAPITAL • FACEBOOK • ANGEL INVESTOR • VENTURE CAPITALIST • MITHRIL • Y COMBINATOR
  • 3. CHAPTER 1 -THE CHALLENGE OFTHE FUTURE horizontal or extensive progress copying things that work vertical or intensive progress doing new things 3
  • 4. CHAPTER 2 - PARTY LIKE IT’S 1999 • DON’T: • Make Incremental Advances • Stay lean and flexible • Improve on the competition • Focus on product, not sales • DO: • It’s better to risk boldness than triviality. • A bad plan is better than no plan. • Competitive markets destroy profits. • Sales maters just as much as product. 4
  • 5. PRINCE “Cause they say 2,000 zero zero party over, oops! Out of time! So tonight I am gonna party like it’s 1999.” 5
  • 6. CHAPTER 3 - ALL HAPPY COMPANIES ARE DIFFERENT Firm A Firm A Firm B Firm B MonopolyPerfect Competition 6
  • 7. CHAPTER 4 -THE IDEOLOGY OF COMPETITION There is no middle ground: Either don’t throw any punches, or strike hard and end it quickly. 7
  • 8. CHAPTER 5 - LAST MOVER ADVANTAGE • CHARACTERISTICS OF MONOPOLY • Proprietary technology • Network Effect • Economies of Scale • Branding 8 • BUILDING A MONOPOLY • Start Small and Monopolize • Scaling Up • Don’t disrupt • THE LAST WILL BE FIRST
  • 9. CHAPTER 6 -YOU ARE NOT A LOTTERYTICKET CAN YOU CONTROL YOUR FUTURE? • Indefine Pessimism • Define Pessimism • Define Optimism • Idenfine Optimism 9
  • 10. CHAPTER 7 - FOLLOWTHE MONEY • The Power Law of Venture Capital • Why people don’t see the Power Law • What to do with the Power Law Compound interest is the eight wonder of the world. He who understands it, earns it… He who doesn’t… pays it. ALBERT EINSTEIN 10
  • 11. CHAPTER 8 - SECRETS • Why aren’t people looking for secrets? • The world according to convention • The case for secrets • How to find secrets • What to do with secrets mysteriesconventions secrets 11
  • 12. CHAPTER 9 - FOUNDATIONS • Founding Matrimony • Ownership, Possession, and Control • On the bus or off the bus • Cash is not king • Vested Interest • Extending the founding 12
  • 13. CHAPTER 10 -THE MECHANICS OF MAFIA • Beyond Professionalism • Recruiting Conspirators • What’s under SiliconValley hoodies • Do one thing • Of cults and consultants 0 to 1 cult (dogmatism)consultants (nihilism) 13
  • 14. CHAPTER 11 - IFYOU BUILD IT,WILLTHEY COME? • Nerds vs. salesman • Sales is hidden Dead Zone $1 $100 $10,000 $10 M Viral Marketing Marketing Sales Complex Sales 14 • How to sell a product • Everybody sells
  • 15. CHAPTER 12 - MAN AND MACHINE • Substitution vs. Complementarity • Technology means Complementarity • Complementarity Business • The Ideology of Computer Science • Ever smarter computer friends of foe? 15
  • 16. CHAPTER 13 - SEEING GREEN • The engineering question • The timing question • The monopoly question • The people question • The distribution question • The durability question • The secret question QESTIONS 7 16
  • 17. CHAPTER 14 - FOUNDER’S PARADOX • The difference engine • Where kings come from • American Royalty • The return of the king 17
  • 18. CONCLUSION • STAGNATION OR SINGULARITY • Recurrent collapse • Plateau • Extinction • Takeoff 18
  • 19. PeterThiel “The essential first step is to think for yourself. Only by seeing our world anew, as fresh and strange as it was to the ancients who saw it first, can we both re-create it and preserve it for the future .” 19