PayPal Mafia

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"PayPal Mafia" is a term used to indicate a group of former PayPal employees and founders who have since founded and developed additional technology companies[1] such as Tesla Motors, LinkedIn, Palantir Technologies, SpaceX, YouTube, Yelp Inc., and Yammer.[2] Three members, Peter Thiel, Elon Musk, and Reid Hoffman, have become billionaires.

History[edit]

Originally, PayPal was a money-transfer service offered by a company called Confinity which was acquired by X.com in 1999. Later X.com was renamed PayPal and purchased by eBay in 2002.[3][4] The original PayPal employees had difficulty adjusting to eBay's more traditional corporate culture and within four years all but 12 of the first 50 employees had left.[5] They remained connected as social and business acquaintances,[5] and a number of them worked together to form new companies in subsequent years. This group of PayPal alumni became so prolific that the term PayPal Mafia was coined.[3] The term[4][6] gained even wider exposure when a 2007 article in Fortune Magazine used the phrase in its headline and featured a photo of former PayPal employees in gangster attire.[4][7][8][9]

Legacy[edit]

The PayPal Mafia are sometimes credited with inspiring the re-emergence of consumer-focused Internet companies after the dot com bust of 2001.[10] The PayPal Mafia phenomena has been compared to the founding of Intel in the late 1960s by engineers who had earlier founded Fairchild Semiconductor after leaving Shockley Semiconductor.[3] They are discussed in journalist Sarah Lacy's book Once You're Lucky, Twice You're Good. According to Lacy, the selection process and technical learning at PayPal played a role, but the main factor behind their future success was the confidence they gained there. Their success has been attributed to their youth; the physical, cultural, and economic infrastructure of Silicon Valley; and the diversity of their skill-sets.[3] PayPal's founders encouraged tight social bonds among its employees, and many of them continued to trust and support one another after leaving PayPal.[3] An intensely competitive environment and a shared struggle to keep the company solvent despite many setbacks also contributed to a strong and lasting camaraderie amongst former employees.[3][11]

Members[edit]

Individuals whom the media refers to as members of the PayPal Mafia include:

See also[edit]

References[edit]

  1. ^ Staff Writer. "David Sacks: Biography". Wall Street Journal online. Retrieved August 30, 2013. 
  2. ^ Duke Harris (October 22, 2009). "PayPal finally poised to enter Web 2.0". San Jose Mercury News. 
  3. ^ a b c d e f g h i j k Miguel Helft (October 17, 2006). "It Pays to Have Pals in Silicon Valley". The New York Times. 
  4. ^ a b c d e O'Brien, Jeffrey M. (November 26, 2007). "Meet the PayPal mafia". Fortune (CNN.com). Retrieved December 4, 2009. 
  5. ^ a b c d Rachel Rosmarin (July 12, 2006). "The PayPal Exodus". Fortune. 
  6. ^ "Thiel, Levchin and the PayPal Mafia". Fortune. November 15, 2007. 
  7. ^ a b "More PayPal Mafia Mugshots". ValleyWag. 
  8. ^ a b c "Why Elon Musk isn't in Fortune's PayPal Mafia picture". Valleywag. 
  9. ^ "The Paypal Mafia Personified". Valleywag. 
  10. ^ Marcus Banks (May 16, 2008). "Nonfiction review: 'Once You're Lucky'". San Francisco Chronicle. 
  11. ^ Dylan Tweney (November 15, 2007). "How PayPal Gave Rise to a Silicon Valley ‘Mafia’". Wired. 
  12. ^ O'Brien, Jeffrey M. (November 26, 2007). "Meet the PayPal mafia". CNN Money. Retrieved August 13, 2013. 
  13. ^ Ari Levy (February 21, 2012). "'PayPal Mafia' Gets Richer: Yelp and Facebook's IPOs will give another boost to Silicon Valley's influential PayPal alumni". Bloomberg BusinessWeek. 
  14. ^ "Secure.caplinked.com". Secure.caplinked.com. Retrieved August 31, 2013. 
  15. ^ Dan Fost (May 21, 2008). "The Coffee Was Lousy. The Wait Was Long.". The New York Times. 
  16. ^ Sarah Lacy (April 7, 2008). "Something to Yelp About". Bloomberg BusinessWeek. 
  17. ^ J.J. Colao (March 2, 2012). "Aviary is Quietly Cornering a Billion-Dollar Market". Forbes. 
  18. ^ "Tagged.com". Tagged.com. Retrieved August 31, 2013. 
  19. ^ Scott Duke Harris (November 2, 2009). "Greylock raises $575M fund, adds LinkedIn's Hoffman as partner". San Jose Mercury News. 
  20. ^ "Where Are They Now? The PayPal "Mafia" Is More Powerful Than Ever". BusinessInsider. 
  21. ^ "Dave McClure Hits 500". BusinessInsider. 
  22. ^ "How did Yishan Wong get recruited to PayPal?". Quora. 
  23. ^ "Luke Nosek « Founders Fund". Foundersfund.com. Retrieved August 31, 2013. 
  24. ^ "Ken Howery « Founders Fund". Foundersfund.com. Retrieved August 31, 2013. 

External links[edit]

Note: links to other company websites and personal home pages may be found on the articles linked to above.