Peter teal: I why invest in reality and inspections, and give up Uber and tesla

note: hunting cloud in the field of science and technology venture, Peter, is known as the godfather level in silicon valley, is the result of the once great entrepreneurial experience and current earnings strong investment philosophy. After, he then domestic media interview, detailed interpretation of its investment philosophy. The following for tencent technology for the interview:

a lot of people may have heard the “PayPal Mafia,” tesla founder elon musk and Linkedin founder Reid hoffman’s two members of the gang. In this gang, there are four members in high school made a bomb, to manage such a group of “heterogeneous” is afraid is difficult? So PayPal who is who?

he is Peter teal, PayPal, the founder of the original. He was born in Germany, my father is an engineer, because of work needs to be moved frequently, before the age of ten she just turned seven times in different countries. He graduated from Stanford law school and then entered a famous law firm in New York. But three days less than seven months, Peter, he choose to leave, he said that he doesn’t want to life.

the teal back in Palo Alto in silicon valley, and in 1998 set up the PayPal company. After he led the company listed in 2002, bought by eBay PayPal. After thirteen years, she became a investor, and set up several companies, including the global hedge Fund manager Clarium Capital Management, science and technology company Palantir and risk investment company raised Fund.

raised Fund to invest a lot of star enterprise, such as capsules, Linkedin, Yelp, DeepMind, reality and the Oculus, etc. Teal or Facebook and inspections of the first outside investors.

in 2012, teal, professor at Stanford university entrepreneurship for students this paper he learned about the content of the business, technology, entrepreneurship. One of his students Blake Masters will lecture notes on the Internet, sparked a huge response, a well-known silicon valley venture home Mark Andreessen said, almost every one of silicon valley entrepreneurs have seen those notes.

the teal last year will be important integration point of view To Zero To One in the book, the Chinese version of this book just published from 0 To 1, he was invited To come To China To participate in the 2015 venture geek BBS, combined with their own practical experience To share out what is the secret of the great enterprise? Teal in accepted an exclusive video interview with tencent technology after the meeting.

an exclusive interview Peter teal: Beijing entrepreneurial atmosphere behind silicon valley

the teal impression of Beijing venture? How he feels about fast taxi and qianshou drops a taxi? In addition to the fast iterative innovation and disruptive innovation, jobs using the third innovation model is what? In an exclusive video interview with tencent’s science and technology, Peter, have made a good answer.

q: what about China, which views is believe in yourself, and others don’t agree with? a lot of americans think China is a country of optimism, but I think it is China’s surprisingly pessimistic, because China’s savings rate is very high. Americans almost don’t save money, but China’s savings rate is as high as 40%, the high savings rate reflects people’s fears of the future, and I think people panic is justified.

the past one hundred years in China is very crazy, a lot of things happened, I think the Chinese should be more optimistic, China should have a better future. In the past thirty years China has been very good, believe in the coming decades, China will be better.

q: what’s your first impression of Beijing venture?

a: I think Beijing’s entrepreneurial very has the vigor, the entrepreneurs are key. They carefully thinking, work very hard. I don’t want to compare the United States, but in the United States, in addition to silicon valley, we can find and entrepreneurial atmosphere match areas of Beijing, Beijing has a commanding lead, more than in Western Europe, more than the other parts of the world.

q: uniqueness “from 0 to 1” the book says, do not copy, do you think China has this kind of original enterprise?

a: when we say imitation of the west of China, in fact this is not in criticizing China. If you are not a developed country, the simplest and most natural, the most correct way is to imitate already successful model. In the past 30 years, China is very good, China has the development by leaps and bounds, avoid a lot of mistakes, the United States and Western Europe, the modernization of urban design more Chinese imitation is very good, even on the basis of the improved.

but if we are to look before, when China caught up with Europe and the United States, for China, innovation becomes critical. The example of Japan is worthy of reference, Japan spent decades after the United States. But in the 1980 s, Japan is more than the United States. Because culturally, Japan is a country it is difficult to innovation, so I think China should be able to do better than Japan, it is in another ten years in China are faced with the problem.

q: fast taxi and drops on valentine’s day has just announced a merger with taxi, they now account for about 99% of the market, how do you see the deal?

a: try to monopoly of a particular market is valuable. Car rental market competition is fierce, merged to become the market leader is valuable, so in China, the same to other parts of the world. PayPal is composed of two companies merge, in March 2000, we in the form of shares half-and-half merger, create great value for the company.

I believe that all successful companies have some form of monopoly, from the perspective of the society We can debate is good or bad, if they created a new thing, the impact on the society is good; If they become parasites, can produce adverse effect to the society. But if you are the founder or founders, you are always on the look out for monopoly, because this is the reason why you would eventually make money.

q: please talk about PayPal and (founded by elon musk) in 2000, the story behind the merger?

a: two and a half months of the time, we have been in a state of intense competition. Our two companies are located in downtown Palo Alto in silicon valley, but four blocks away, but it’s like two family feud, has been carrying on the fight, the two companies have created a lot of capital.

but we all think we should meet to talk about each other. Whether can consider to set the power of the two, in the end we did merge, proved that merger is the right choice.

in March 2000 after few weeks, the Internet bubble burst. After we merge, so there is enough cash flow to support at the time, to find the right business model, and in the late 2001 s profit. To sum up, our merger proved to be valuable.

but merger is not a panacea for all problems, you should pay attention to product, enterprise strategy, talent, and a series of other things, just sometimes merge is crucial.

q: why is an investment, rather than investment Uber? Because of regulatory issues?

a: they were regulated to some extent, a lot of things, I prefer the reality, I think that the characteristics of the housing environment, make appear more natural monopoly. Because in a city, rent five hundred different houses, they are all different.

maybe thirty house in a community, there are three house for you live together with the dogs, there was a price is very cheap, so there are five hundred kinds of house company, must be able to overcome only fifty kinds, because every house is different, and need the different consumers.

but if you’re a five hundred car rental companies, you will face competition from only 50 car companies, because all the cars are the same. From the consumer’s point of view, they don’t care about the source of the car. So for Uber, social marketing is difficult, scale operation is also very difficult.

as an investor, I always ask myself, when I was watching these companies are missing out on something? I will answer two questions: first, it is a good company? Second, if others don’t understand. Why? If I can find a perfect answer to the question of a second, usually it will be a successful investment.

q: why investment capsules, tesla without investment?

a: as investors, we always have some own shortcuts, there are some investment law, although the law does not necessarily always correct. But over the past decade, especially from 2005 to 2005, investment in silicon valley has a rule, we must not investments in clean energy technology co., LTD.

a lot of people tried to invest, but its business model doesn’t work, we decided not to buy into these companies. I don’t think they are a correct investment universal laws, because a lot of related business failed, but the resulting as a result, we should be more carefully to observe tesla, rather than only according to the law, to do judgment to make law instead of the real investigation.

q: last year, Google (weibo) spent over $500 million for artificial intelligence firm DeepMind, as of early investors, why do you think it has potential?

a: I’ve been interested in the field of artificial intelligence for a period of time, I am hesitant, don’t know the technology is quickly implemented, still need to wait one hundred years or more.

we ran into some artificial intelligence researchers, is that they will be Deep Mind team recommend to me. After we talk I believe this is one of the most powerful team, they to computer science, neurobiology, and the problem of how to design the generalized artificial intelligence can see very clear. It is also a Deep Mind team for their commitment to achieve goals.

they came to the conclusion that need to use a lot of resources, not profit within the next decade, the need for a decade of research. Such companies to attract financing is very difficult, because investors often focus on short-term interests, so finally they decided to cooperate with Google.

q: artificial intelligence and big data and cloud computing, are now has become a popular word, if now have a company like DeepMind, you will invest?

a: can you guess my idea, this kind of scary (laughs). Investment companies like now, I would be very nervous, because the artificial intelligence has become the popular vocabulary. Problem is that there are so many different people discuss the artificial intelligence, so I worry about whether make a mistake, missing something? When everybody agree with me, I always feel nervous, I wonder if this idea is not so interesting.

in May 2012, I participated in the silicon valley a BBS. BBS on five venture investors, each of the two trends to predict the future five years, and all of the two hundred guests will vote. One of the most unwelcome trends is that a guest prediction of electric cars.

everyone tired of clean energy technology, we all voted against the four guests. The audience voted 91% of the audience, the remaining 9% vote in favour. When I left the BBS, I think maybe everyone is too passive, perhaps tesla stock investment is a good choice, proved that should be our buy shares a great year, tesla from May 2012 to early 2012, tesla stock up several times.

q: please talk about your favorite book?

a: I like reading all kinds of books, one named Rene Girard, philosopher, wrote a book titled Things Hidden Since the Foundation of the World, far-reaching impact on me.

it’s hard for me to go to sum up all, but the book has such a view, imitation is a very important part of human nature, it has created the human society, has created our relations with others, mimicking energy than we imagine to be strong.

but many will suppress or hide the imitation, we won’t be very clearly say oneself in copying other people’s things, because it is very embarrassing, we imitate the number of times more than we admit. Imitation is a kind of very good, it let us learn the language, understand the culture, but in many cases, imitate also make mistakes, like a group of people flock to a market bubble, the financial bubble, etc.

q: when you are young why choose to leave the famous New York firm?

a: I was in his early 20 s, feel met young characteristic of that kind of crisis. People often say that after 40 years old, and he will be having a midlife crisis. I began to question the value and reason why I do many things. I grow up in a very competitive environment, than the result, the score. I am very good at competition and win in competition, into a good university, a good company.

but I didn’t ask myself, why should I? Why do I have to do these things? I am really interested in these things? Competition at the end of the day you enter a to outsiders very good company, but work in insider point of view is not so interesting, it made me rethink a lot of problems, works in a bank for a few years after I left, and then returned to California, just in time to catch the wave of the rise of the Internet.

q: please talk about you in the eyes of three kinds of innovation?

a: innovation have different patterns. First, it is rapid iteration, step by step perfect products, this is perhaps the most common patterns of innovation; Second, is a major breakthrough, such as COINS; Third, the Complex Coordination (Complex Coordination), that is, you will be the existing things together, I think this model is more widely used.