Elon Musk, Peter Thiel, Reid Hoffman, Max Levchin, David O. Sacks, Roelof Botha, Chad Hurley, Russel Simmons, and Jeremy Stoppelman are among those considered the “PayPal Mafia”. These are cofounders or early team members of PayPal who went on to found or invest in major tech companies like Yelp, Palantir, YouTube, Facebook, SpaceX, X, LinkedIn, Affirm, Airbnb, and others. In this episode, CJ is joined by Jimmy Soni, bestselling author of The Founders, which chronicles the early years of PayPal. He delves into some of the lesser-known aspects of PayPal's history. He sheds light on Peter Thiel's prediction of the dot-com collapse, why he advocated for the employment of Roelof Botha as CFO at the age of just 26, and his second-chance philosophy for hiring failures. The conversation covers PayPal’s “frenemy relationship” with eBay, how they convinced their users to advocate for them, and pivotal moments that influenced their IPO and sale. Tune in for unique insights into one of the most important "seed funds" in tech history.

—

LINKS:

Jimmy Soni on X (@jimmyasoni): https://x.com/jimmyasoni

Jimmy Soni on LinkedIn: https://www.linkedin.com/in/jimmysoni

The Founders: The Story of PayPal and the Entrepreneurs Who Shaped Silicon Valley: https://www.amazon.co.za/Founders-Paypal-Entrepreneurs-Shaped-Silicon/dp/1501197266

CJ on X (@cjgustafson222): https://x.com/cjgustafson222

Mostly metrics:

http://mostlymetrics.com

RELATED EPISODES:

How Upwork CFO Erica Gessert Drove 20 Points of EBITDA Growth in Just 3 Quarters:

—

TIMESTAMPS:

(00:00) Preview and Intro

(02:12) Sponsor – Pulley | Brex | Aleph

(07:40) Jimmy’s Approach to Writing the Book

(08:56) An Intro to the “PayPal Mafia”

(10:57) The 1998 to 2002 Time Period

(12:36) Present-Day Successes of “PayPal Mafia” Members

(14:06) Challenges of Interviewing High-Profile Figures

(16:06) Sponsor – RightRev | Navan | NetSuite

(19:46) Comparisons to Other Influential Tech Groups

(21:05) PayPal, YouTube, and the Embed Strategy

(23:21) The Company’s $20 Referral Program

(27:10) Peter Thiel’s Prediction of the Dot-Com Collapse

(30:48) The Fallout From the Merger That Resulted in PayPal

(33:00) The Evolution of PayPal’s Business Model

(36:58) The Unique Skillset That Roelof Botha Brought to the CFO Role

(41:04)) Fraud-Fighting Techniques

(43:26) PayPal’s “Frenemy Relationship” With eBay

(47:10) Challenges Faced by PayPal That Modern Fintechs Still Grapple With

(49:13) How PayPal Made Its Users Advocates for the Business

(53:44) PayPal’s Talent Acquisition and “Misfits” Culture

(56:54) Peter Thiel’s Talent-Spotting Abilities and Second-Chance Philosophy

(1:00:12) The Outcome of the eBay Sale

(1:05:03) One of the Most Important “Seed Funds” in Tech History

(1:08:07) Advice for Moving From Fast Work To Slow Work

(1:11:18) Favorite Behind-the-Scenes Anecdote

(1:13:04) The Most Underrated Member of the “Mafia”

(1:14:04) One of the Most Pivotal Decisions Made

(1:15:03) Wrap

—

SPONSORS:

Pulley is the cap table management platform built for CFOs and finance leaders who need reliable, audit-ready data and intuitive workflows, without the hidden fees or unreliable support. Switch in as little as 5 days and get 25% off your first year: pulley.com/mostlymetrics.

Brex offers the world's smartest corporate card on a full-stack global platform that is everything CFOs need to manage their finances on an elite level. Plus, they offer modern banking and treasury as well as intuitive expenses and accounting automation, bill pay, and travel. Find out more at brex.com/metrics

Aleph automates 90% of manual, error-prone busywork, so you can focus on the strategic work you were hired to do. Minimize busywork and maximize impact with the power of a web app, the flexibility of spreadsheets, and the magic of AI. Get a personalised demo at getaleph.com/run

RightRev automates the revenue recognition process from end to end, gives you real-time insights, and ensures ASC 606 / IFRS 15 compliance—all while closing books faster. For RevRec that auditors actually trust, visit rightrev.com and schedule a demo.

Navan is the all-in-one travel and expense solution that helps finance teams streamline reconciliation, enforce policies automatically, and gain real-time visibility. It connects to your existing cards and makes closing the books faster and smarter. Visit navan.com/Runthenumbers for your demo.

NetSuite is an AI-powered business management suite, encompassing ERP/Financials, CRM, and ecommerce for more than 41,000 customers. If you're looking for an ERP, head to https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

#PayPalMafia #JimmySoni #CAPTCHA #PayPal #fintech

Get full access to Mostly metrics at www.mostlymetrics.com/subscribe

Inside the “PayPal Mafia”: One of the Most Influential “Seed Funds” in Tech History with Jimmy Soni

Run the Numbers