The founders of Paypal are often asked if they are a bank. They are not a bank because they are not involved in fractional lending, nor are they backed by the Federal Reserve. Peter likens Paypal to a money market fund.
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Peter’s advice to eBay for the future of Paypal is to keep scaling the business. At the beginning, it made sense to integrate Paypal's product closely with eBay, but now they are starting to develop applications outside of eBay and these should be vigorously promoted.
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To mark the first major funding round, the Paypal founders staged the famous Beaming at Bucks, where the Paypal money encryption technology was used to send the funding money from one PalmPilot to another across the room in a publicity demonstration. There was a mad rush before the demo...
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The negotiations with eBay were difficult because eBay did not originally recognize Paypal as an essential part of their business model. After a year-and-a-half long negotiation (and a few marketing ploys by Paypal), eBay recognized the Paypal’s value and the two companies were able to ...
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Entrepreneurs generally describe themselves as either unlucky or brilliant, depending on whether or not they were successful. Since the company can never be founded again, Peter Thiel says it is hard to know whether they were in fact brilliant or merely lucky with Paypal. He does say th...
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Paypal was the first company to file for IPO status after 9/11 and consequently faced much-stricter-than-normal scrutiny. Additionally, the night before a deadline the founders found out that they were being sued for patent infringement. After a sleepless night and rushed meeting with a...
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Max met Peter at a free lecture on the currency market held in Terman. The lecture only had six attendees and Max approached Peter afterwards to tell him he was going to start a company. Peter had lots of friends that had been involved in startups, most of which had blown up catastroph...
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Though Paypal launched the Palm model and the internet model at roughly the same time with roughly the same number of customers, the internet model took off while the Palm side remained stagnant. Consequently, Paypal shifted its company focus toward the internet model.
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The concept of digital cash had been around long before Paypal. Paypal was unique in that it was successfully able to create a compromise between security, privacy and convenience that was acceptable to the customer.
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There is no set formula to make viral marketing successful. Rather, it depends on the situation. It worked with Paypal because customers were able to transfer money to non-customers, therefore growing the network quickly.
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