Elon Musk role in the history of PayPal
Talk in Silicon Valley:
- I have built a business from scratch with your own hands and after 3 years sold it for $ 50 million
- It's okay, you do not be disheartened importantly, can the next project will be a success ... blockquote> For us at Web-payment.ru , a project of the payment systems, is very interesting to observe the development Elon Musk, he is engaged in fantastic designs and especially inspiring that all this thanks to the early success of the mask in the field of payment systems and Internet technologies. That is what he has created the conditions to do so in a tight, to which he had a passion for life - science, engineering and business space. In March 1999 he founded X.com - one of the first service that provides functionality for selling services online, quickly turned into one of the leading financial companies in the Internet. In 2000, X.com acquired Confinity and turned to PayPal - a global leader in payment transfers. At PayPal, he served as President and Director for the control of production and is its largest shareholder as long as no Ebay bought PayPal in 2002 for 1.5 billion dollars. Prior to PayPal, Mr. Musk co-founded Zip2 - the company that created the software for Internet services.
(on the photo: Peter Thiel and Elon Musk) i>
1995 - Zip2 h4> Musk and his brother founded the company Kimbalom Zip2, which specialized in software for news organizations.
«I worked from morning to night. Lived in the same warehouse, where they filmed the office, and went to take a shower in the locker room of the local stadium. But I save money on renting an apartment, and in the first two most difficult years kept the company afloat. » Blockquote> In 1999 Zip2 was acquired Compaq for $ 307 million. Musk has received 7% of sales ($ 22 million). "After Compaq bought my baby, it merged with Altavista» - kommentriuet Elon.
1998 - Confinity h4> Confinity began operations in December 1998 as a company for cryptographic Palm (cryptography - is one of the skills of Max Levchin). Max Levchin has developed an application for encryption. It uses infrared light to transmit the identification information from one device to another Palm.
(pictured, 1999, the company creates software for Confinity PalmPilot . Peter Thiel in the second row from the left in the blue shirt behind him wearing glasses and a white shirt Max Levchin) i>
1999 - X.com h4> In March 1999, Elon Musk co-founded X.com
2000 - X.com buys Confinity h4>
In 2000 there was the acquisition of Confinity, one of the offices which had the name PayPal. Both systems (X.com and PayPal) is engaged in providing personal electronic money transfers via e-mail.
(on the photo: Peter Thiel and Elon Musk) i>
From March to October 2000 Elon Musk served as CEO PayPal. In October, became CEO Peter Thiel.
2002 - sale eBay h4>
In October 2002, PayPal was acquired corporation eBay for $ 1.5 billion.
Several reasons why Elon Musk should be considered a full-fledged co-founder of PayPal (without detracting roles Max Levchin and Peter Thiel):
1. B> As the LA Times David Sachs (COO PayPal, until its sale eBay), namely Elon Musk had the idea of "viral" growth mechanism.
2. B> The business model of charging only the biggest seller, not the buyer or small traders was developed Elon Musk and other managers X.com. Using this model, the company PayPal is not deprived of profit.
3. B> A large number of valuable workers came from X.com
moreRoelof Botha (Roelof Botha). He studied financial management and external financial cost of capital structure. Being on the CFO, he held a PayPal through a very difficult stage of the public offering of shares. Now he is engaged in the company of Sequoia. In addition, he is a founding member of the notorious YouTube. Rowe Ami Clement (Amy Rowe Klement) ran the whole group of different services in PayPal before 2006. Julia Anderson Ankebrandt (Julie Anderson Ankenbrandt) and Sal Gyambanko (Sal Giambanco, still vice president of human resources management PayPal). They managed to create from scratch a group of customer support and fraud investigation. Their group has hundreds of employees in the summer of 2000, when Elon Musk has served as CEO. Without them, PayPal would be mired in a sea of online fraud and customer claims. Sanjay Bhargava (Sanjay Bhargava), a former employee of CitiBank. He developed the world's first inexpensive method for identifying bank accounts. This was a very essential factor for the further work of business models PayPal. Stoppelman Jeremy (Jeremy Stoppelman), served as Vice President of Design PayPal before summer 2003. Went to Harvard Business School, and after became one of the founders of Yelp.
4. B> The company X.com (X) had more employees, user accounts, and the growth rate also exceeds the same index Confinity (but she had more eBay users).
5. B> Elon Musk was the CEO and chairman of the board of directors of X / PayPal in the period between January 1999 and October 2000. A little more than half the life of the joint venture before it agreed to sell eBay in June 2002. Musk was also on the board of directors of all time. Elon ran the joint company from April 2000 to October 2000, that is 7 months. It was a time when X.com/PayPal (it was called the X until 2001) was a leader in the e-mail payments. This was facilitated by "viral" growth model, calculated business model, with growth of 60 to several hundred employees, the appearance of a customer service center, and anti-fraud support debit cards, money market fund support, also laid the basis for the World Service and receiving various currencies.
6. B> By the time Peter Thiel became CEO of X / PayPal (it happened in the end of October 2000), by and large, the company was already just be what it is known today.
7. B> When PayPal was sold to eBay, Elon Musk was the largest shareholder.
Elon Musk says: "It is said that between me and Peter Thiel and Max Levchin not have any significant hostility or rivalry. The only negative thing was associated with a book titled "The PayPal Wars", written by Eric Jackson sycophantic fool. Peter Thiel offered to sponsor him and helped with the publication of the book. However, in defense of Peter can say that he absolutely had no idea that the book received so awful. He personally apologized to me in the house of David Sachs. »
(on the photo: 2002, Peter Thiel and Max Levchin a few seconds after the completion of the auction. The initial stock price $ 13, end - $ 20. PayPal held an initial public offering and a half months before the sale of eBay) i>
What now? H4> and the mask continues to think "over what problems have to solve the world and mankind in the future" and founded SpaceX (2002), Tesla Motors (2003), SolarCity (2006)
Host: - And you decided to create a space company. How do you do such a thing could come to mind?
Elon Musk: - I am often asked this question. And often joke: "Heard about the guy who amassed a small fortune on space technology? And he began with a large fortune. " I always answer that I wanted to find the quickest way to turn a large fortune into a small. Blockquote>
I am convinced that there is a huge gap between the exciting destiny of humanity, which conquers space, explores the stars and planets, and the fate of mankind, which imprisoned himself in the world and rushes to inevitable death. Blockquote>
Source: habrahabr.ru/company/web_payment_ru/blog/232005/
