From social media to automobiles From venture capital to aerospace Today only 14 people are ruling all these domains together. These 14 people made 10 billion dollar companies Which is not only dominating the market but is also changing this world. THE PAYPAL MAFIA. After all, what is the PayPal mafia? and who are there in this mafia? And what is this group doing after all, which is very important for us to know?.
So this story begins in 1998 when Peter Thiel was building the technology for the person to person payment platform with his friend Max Levchin There were no smartphones at that time, so people used to do something else Palm Pilots- which were also known as PDS It was a small portable device that looked like a phone but functioned as a computer device In those days any transaction was done either by phone or by cheque At that time online payments used to be a dream And to make that dream come true, Peter and Max started a company called Fieldlink Which later got the name of Confinity. So PayPal Mafia Whose Core Members Are Peter Thiel, Reid Hoffman, Luke Nosek, and Jawed Karim.
And we are forgetting one- Elon Musk But the question comes how did Elon Musk become a part of this PayPal mafia? And if you look carefully at the photo of the PayPal mafia at this moment, you will not see Elon Musk anywhere in it The question is, why is Elon Musk not in this photo? So it was a matter of days when Peter Thiel was busy building confinity Everything was going very well but somewhere far away there was someone who Had a greater vision than confinity He was none other than Elon Musk After selling the company (Zip 2) for 22 million dollars he formed with his brother.
Elon Musk starts a new company with Gregory which is named as- X.COM Where Peter was building an online transaction gateway Whereas Elon Musk wanted to make a completely online bank, not a gateway Elon Musk’s X.Com becomes the world’s first online bank And when it is launched, everyone’s senses fly away Because where till today people were dealing only with cash and cheque, now those people could do all the transactions sitting at their home with their computers And soon the growth of x.com started touching the sky Within a month, more than 200,000 people had joined X.Com and everything was going great.
But one thing was certain, the speed with which X.COM was growing, Confinity was going to be bankrupt But this thing was not acceptable to Peter Thiel and he made a backup plan and the name of the same backup plan was- PayPal PayPal was not a company at that time, it was just a service to do online transactions The way people could do online transactions through X.Com, they could also do through Paypal But then a company comes which brings these two companies together and the company was none other than eBay Started just 5 years ago, eBay today had more than 1000000 customers who were required to do B to B, Peer to Peer transactions on daily basis eBay also had sellers selling goods online and Buyers buying goods online.
But the only problem was that the transactions between Buyers and Sellers used to take 5-7 days Why? Because there was no other way except to do the transaction by cheque and cash Now until this transaction was not over, the sell on eBay would not end So now see how X.Com and Paypal have solved these things X.Com used to be an online bank so having an account of both the buyer and seller was a requirement If they want to buy or sell anything on eBay Now once both of them have an account on X.Com, that’s when PayPal comes in the PayPal used to facilitate whatever transaction happened between these two And because both of them have account on x.com, then this process of Paypal used to be even faster.
And the process which used to take 5-7 days for Ebay, now that process started happening in 24 hours that too because X.COM was an online bank and PayPal an online transaction service Due to this, all the transactions were very secure and very fast How exciting is all this, isn’t it?? but there was a bigger problem And that problem was that the users of X.Com were increasing day by day but PayPal was loosing money day by day Paypal’s daily cash closure had reached 100k and if nothing was done soon then that company would have been bankrupt And this was where Peter Thiel proposes a partnership to Elon Musk He says that both the companies should be merged together.
Why? because X.COM was an online transaction bank and PayPal was an online transaction service and both the companies were very much complimentary towards each other This partnership was very important for Peter Thiel and Elon Musk also found this partnership very profitable That’s why both the companies merge together and the name of the company is Paypal Year 2002, over 77% of the transactions on ebay started happening through PayPal only Looking at the thing,ebay finally acquired Paypal in July 2002 for 1.5 billion dollars But after this acquisition of PayPal, everything had changed inside PayPal. From the structure of the company to the culture of the company, everything started to be according to ebay And the structure and the culture that was set by the employees of the PayPal was removed by ebay.
And due to these things, there were so many problems inside the company that The people who set up that company all of them left the company And this is where PayPal Mafia begins… The top 14 people of PayPal leave the company and in the future, 6 of these people become Billionaires Even more important than these 6 people becoming billionaires are the companies that these 6 people are running I know you guys must be thinking that what is so special in these companies which these 6 people are running And what are these people doing after all, due to which even today these people control the major portion of the Silicon Valley And the most important thing is how these people got the name of the paypal mafia Well, the story behind all this is very interesting.
After leaving PayPal, all of them have created their own digital companies, and digital is a separate universe in itself where things move very fast and the most important thing in this digital world is, ‘Data’. Today data has become so much valuable that the company takes decisions on the basis of its data. Companies analyze future trends on the basis of data And it is this data that provides a competitive edge to the companies Alexa, Siri, Social Media and Even Food Delivery, data is being used everywhere Due to which the demand of data scientists in the market has spiked And companies are at war so that they can select the best data scientist and bring them to their companies.
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So that you can become industry ready and give a good growth to your career. in today’s date it is very important for all of us to stay updated and to stay updated it is necessary to upskill ourselves If you also want to upskill yourself and want to boost career, then you can checkout scaler the learners from scaler are doing job in the top most companies of this world and on an average a scaler learner gets and average hype of 126% why?? because they have the best industrial skills the link for scaler has already been put in the description and the comment box for you all if you also find it valuable, then you can checkout scaler. coming back, when these people left PayPal they had enough money,.
Enough skills, as well as an experience to run a company after exiting paypal, these 14 people started their own companies And not only created their own company but also supported each other’s companies Reid Hoffman, who was the executive vice president of PayPal started LinkedIn which in today’s date is world’s 34th most visited site and the net worth of Reid Hoffman is 3.5 billion dollars in today’s date Luke Nosek who was the vice president in the marketing field of PayPal with Peter Thiel started founders fund.
And in today’s date Luke’s net worth is also 1.5 billion dollars And the most interesting thing is that the first investment of Founders Fund is inside Elon Musk’s company SpaceX. After that, Ken Howery who was the chief financial officer in PayPal, joined Peter Thiel in founders fund and the net worth of Ken is 1.5 billion dollars After that comes, Jeremy Stoppelman who was the vice president in paypal’s engineering department He started a company called Yelp and today even yelp is a billion dollars company after that comes Roelof Botha who is the partner of sequoia capital and sequoia capital is one of the biggest investment banks in this world.
And then comes Jawed Karim, Chad Hurley and Steve Chen all the three of them started youtube where you all are watching this video right now And last but not the least Elon Musk, whom we all already know and the companies started by Elon Musk so be it SpaceX, Tesla, The Boring Company, Starlink, Neuralink it has been creating a revolution in many parts of the domain All of these companies which they have form, either they are dominating in their field Or they are controlling startups in some way or the other by funding Startups in Silicon Valley I know you still must be thinking how was this group named PayPal mafia? well, behind this name is Forbes magazine the name is not given by any other person but the ones responsible for the Forbes Magazine.
When Forbes Magazine called them to click the picture of all these people After that the forbes magazine named them as the ‘PayPal mafia’ Interestingly, I know what you must be thinking that why can’t be Elon Musk be seen in this picture? So the reason behind not being able to spot Elon Musk is that the moment Forbes were clicking these pictures Elon Musk was being busy in his work And because of the same reason he couldn’t arrive to click these pictures. And this is the reason why you can’t ever see Elon Musk in the pictures of PayPal Mafia But elon musk is the most important part in this PayPal mafia The people in paypal mafia got so successful as the culture decided by these people in PayPal was so competitive that everyone could develop their skills so excellently that they could take PayPal towards it’s path of success.
And this was the only reason why they sold PayPal at 1.5 million dollars in just a span of 4 years And of course, skills reminded you that if you also want to upgrade your skills especially in terms of data science and machine learning Then don’t forget to check out scaler You can get the links in the description and the comment box of the video interestingly, do you know that in this world there is a company whose revenue is just 21 billion dollars but has an evolution of more than 750 billion dollars and the people working in the company are called, ‘The shadow company’ Because if this company did not existed then it wasn’t possible for you to use your computer as well as your mobile phones But this company holds such secrets which has allowed it to reach at this point.