Earlier quoted context omitted.
Not to take anything away from him, but I think his other achievements are far more impressive. Learning to fly or play the piano generally "just" takes time and money. The really hard things are those where you can apply yourself fully and still fail.
Learning to fly takes time and money, but how many people with money and the time to spare have you heard of being able to pilot a plane by themselves at the age of 22? It takes an incredible amount of hours before you can become a pilot. May be trivial, but I think it actually shows just how incredibly committed and talented he actually is. Lets just hope he continues to use his intellectual gifts for good and not t…
Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
61–70 of 91 posts
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#62Earlier quoted context omitted.
> So, yeah. What exactly is it that's so amazing about stripe? You have to remember, they are a Y Combinator funded start-up and this is a Y Combinator site, so there is a fair amount of hype on here about Stripe. That said, I think they are doing something interesting and useful (in a real-world commerce sense), and wish them well with it.
Oh, likewise - I think they've real promise, but they're in a crowded marketplace with a lot of really entrenched players. I guess their principle differentiator is the market they target - but pitching to developers is a big bet. If you've worked around enough enterprises you know by now that developers have little say in business decisions - meaning that their main opportunity is to be chosen by startups, and to ho…
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#63Very impressive achievement for his age, though there is of course also a lot of spin-doctoring involved[1]. Stripe seems to be heading into the right direction. [1] The whole "millionaire at 17" bit decodes to getting a big stock-based exit for Auctomatic with modest cash. Said stock then dropping to pennies shortly thereafter (~40x drop in stock price). Add in the merger and $600k in financing and there probably wa…
So, if we limit the 'millionaire at 17' bit to 'those that made a non-cash exit for 6 figures and up' would that satisfy you? To take cash or stock is a difficult decision for seasoned business people, I really can't fault a 17 year old for going that route and through no fault of their own see the value of that stock evaporate a short while later. I've known quite a few people that went bust during the .com debacle…
Regarding the Auctomatic exit, keep in mind that they were not bought by some gigantic company whose stock price was subject to many outside factors (like ebay - spin doctor much?). Their buyer, Live Current Media, was specifically created as a new public company for their acquisition. The stock price of the company at $2/share is almost entirely an imaginary number (no meaningful capital was raised during the founding "IPO" so there is no external validation - the first real material share transaction a few months later pegs the price below $0.2 already). Cash payment during the transaction appears to have been around $800k which was later converted to convertible notes when Live Current Media couldn't pay and had to restructure the deal in 2009. The remaining stock portion of ~$4M converts to ~2M shares (at $2/share) which then dropped to about $100k. Allocation to the four (or three) founders seemed to have been ~400k shares, so $20k on liquidity (for all of them together) [2].
During that period (new entity in 2008, restructuring in 2009), it appears that one or both of the brothers were part of the management team of the new entity (I am not saying that they caused the stock drop, just that this is different from selling a company to Google and then have Google's stock drop later).
Again, their accomplishment relative to their age is impressive. Building and selling anything is hard. But Live Current Media basically bought a domain name and paid domain name dollars for it (in real dollars).
[1] Ironically, I did sell a company for mid 7 digits (all cash), though I was a few years older than the brothers. Doesn't matter to the argument though.
[2] I know nothing about the transaction but I can read financial reports like this one: http://www.faqs.org/sec-filings/100329/Live-Current-Media-In...
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#64Ok, stripe's wonderful, but... why is stripe wonderful? It's a payment service provider. An expensive payment service provider. They have an API. It's nicely written - but a nicely written API doesn't make a product. They're available in the US and Canada. OK, but there's a whole planet out there. So, yeah. What exactly is it that's so amazing about stripe? I work in eCommerce, run and developed a little platform tha…
Braintree, which was the "pro-developer" option has only recently followed suit and begun offering this "instant underwriting".
http://pandodaily.com/2012/10/01/a-new-twist-in-the-three-wa...
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#65Earlier quoted context omitted.
Oh, likewise - I think they've real promise, but they're in a crowded marketplace with a lot of really entrenched players. I guess their principle differentiator is the market they target - but pitching to developers is a big bet. If you've worked around enough enterprises you know by now that developers have little say in business decisions - meaning that their main opportunity is to be chosen by startups, and to ho…
Honest questions: what percentage of Paypal's revenue comes from eBay? Is Stripe's pricing model unsustainable at the lower tiers? In other words, what's stopping them from serving millions of small merchants instead of a few giant ones?
Pricing model - no, it's great, but as you grow, it becomes uneconomical.
What's stopping them? Fraud. Fraud fraud fraud. They will end up with an approval process, as if they get hit big a few times (they will), their merchant acquirers/clearers will insist on it.
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#66Earlier quoted context omitted.
So, if we limit the 'millionaire at 17' bit to 'those that made a non-cash exit for 6 figures and up' would that satisfy you? To take cash or stock is a difficult decision for seasoned business people, I really can't fault a 17 year old for going that route and through no fault of their own see the value of that stock evaporate a short while later. I've known quite a few people that went bust during the .com debacle…
Jacques, I don't see what relevant my track record has on the argument [1]. I have nothing but admiration for the two brothers. They have done impressive things for their age. My comment was directed at the spin doctoring of Silicon Valley which is likely the aggregate results of marketing effort by Ycombinator (great exit story), their other investors (same), the brothers themselves (CV building) and the general SV…
I'm pretty suspicious of accounts that are made with the express goal of damning other participants here with faint praise.
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#67That's it. I'm doing a startup after med school. ...so what's the policy on using investment money to pay back loans?
It's a no-no unless you negotiate that up front. And likely you'll get a bunch of rejections as a result unless you can come up with a really good reason for that (I can think of a few).
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#68For the hiring/visa issue, would a solution, say if two of their hires were from the EU, start a company in an EU country, employ them with said company, and then have the US company "contract" the EU company for their part of the work?
If you can qualify under some program that is less difficult then I would definitely not advise this route.
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#69Patrick and his brother John are two of the smartest cookies on the planet that I know about. These guys will go very far, and I'll be cheering them on all the way. They are not only successful and smart, they're genuinely nice , and that's a pretty rare combination.
Re: Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
#70Earlier quoted context omitted.
Learning to fly takes time and money, but how many people with money and the time to spare have you heard of being able to pilot a plane by themselves at the age of 22? It takes an incredible amount of hours before you can become a pilot. May be trivial, but I think it actually shows just how incredibly committed and talented he actually is. Lets just hope he continues to use his intellectual gifts for good and not t…
I know a number of people under 22 that have their pilot license. While not a huge percentage, not rare either. And the initial time is not that long at all.
Note: I'm not a pilot, these aren't coworkers, just natural friends.