Tim O'Reilly

So why did I do the Pearl Conference? I thought we could be of some use to this community. And this kind of goes to entrepreneurship. We've perverted the idea of entrepreneurship, I think, in Silicon Valley. It's become about this is this way to get rich. And there's always been a thread of it. But there's also this essential thread that we forget at our peril, which is- Right.

So why did I do the Pearl Conference? I thought we could be of some use to this community. And this kind of goes to entrepreneurship. We've perverted the idea of entrepreneurship, I think, in Silicon Valley. It's become about this is this way to get rich. And there's always been a thread of it. But there's also this essential thread that we forget at our peril, which is- Right.

And it's this thing. Oh, wait, there's this opportunity to be of some use. So the opportunity to serve is also the opportunity to profit, because if you serve customers and they pay you for what you do. that becomes a business.

And it's this thing. Oh, wait, there's this opportunity to be of some use. So the opportunity to serve is also the opportunity to profit, because if you serve customers and they pay you for what you do. that becomes a business.

But this whole idea that now the whole game is, it reminds me a lot more of the mortgage business before the big crash of 2007 than it ought to, where the idea is what we're really trying to do is create a financial instrument that we can sell to other investors. And yeah, and it's so driven by growth and so on and the whole blitzscaling idea of

But this whole idea that now the whole game is, it reminds me a lot more of the mortgage business before the big crash of 2007 than it ought to, where the idea is what we're really trying to do is create a financial instrument that we can sell to other investors. And yeah, and it's so driven by growth and so on and the whole blitzscaling idea of

If we can tell a story that gives us a higher and higher valuation, we can eventually walk home with a ton of money, even if the business isn't sustainable. You look at WeWork as an example of that.

If we can tell a story that gives us a higher and higher valuation, we can eventually walk home with a ton of money, even if the business isn't sustainable. You look at WeWork as an example of that.

I think it's a sickness in our entire economy that you can make so much more money by financializing a business than by delivering value to customers. So again, there are absolutely cases where you need to raise a ton of money. Think about Tesla building out the supercharger network, or thinking about Amazon building out its warehouse and delivery infrastructure.

I think it's a sickness in our entire economy that you can make so much more money by financializing a business than by delivering value to customers. So again, there are absolutely cases where you need to raise a ton of money. Think about Tesla building out the supercharger network, or thinking about Amazon building out its warehouse and delivery infrastructure.

But it's really interesting because Jeff Bezos actually understood that because he was actually delivering value to customers, he was getting their money up front. He didn't actually raise that much money. He borrowed a ton of money. Amazon was funded with debt. And I had that once. Our version of venture capital tended to be joint ventures.

But it's really interesting because Jeff Bezos actually understood that because he was actually delivering value to customers, he was getting their money up front. He didn't actually raise that much money. He borrowed a ton of money. Amazon was funded with debt. And I had that once. Our version of venture capital tended to be joint ventures.

I built my international business in joint ventures with a company called International Thompson. And then I bought them out at some point. When we started the first web portal called the Global Network Navigator, we sold to AOL and we had a joint venture with them on the first content side of the web, something called Songline Studios, a content studio. We eventually bought them out.

I built my international business in joint ventures with a company called International Thompson. And then I bought them out at some point. When we started the first web portal called the Global Network Navigator, we sold to AOL and we had a joint venture with them on the first content side of the web, something called Songline Studios, a content studio. We eventually bought them out.

And in a similar way, we started this, what we called Safari Books Online with our biggest competitor starting in 2000. And then in 2014, we bought them out. Essentially, because I had a conversation, I thought, oh, well, we'll have to take some venture capital. And I talked to an old friend of mine who was a private equity guy.

And in a similar way, we started this, what we called Safari Books Online with our biggest competitor starting in 2000. And then in 2014, we bought them out. Essentially, because I had a conversation, I thought, oh, well, we'll have to take some venture capital. And I talked to an old friend of mine who was a private equity guy.

And he said, I'd love to invest in your business, but why wouldn't you do this with debt? We had cash flow from the business, positive cash flow. So we ended up buying it with a loan. So I think there's a bigger palette of financing opportunities if you're not thinking your goal is to exit, but to actually build and run a business.

And he said, I'd love to invest in your business, but why wouldn't you do this with debt? We had cash flow from the business, positive cash flow. So we ended up buying it with a loan. So I think there's a bigger palette of financing opportunities if you're not thinking your goal is to exit, but to actually build and run a business.

But so much of Silicon Valley, it's like you start the company with the idea that you are going to sell it, sell it as fast as possible for as much as possible. And occasionally, people are really clear, I want to build this as a business, but not often enough.

But so much of Silicon Valley, it's like you start the company with the idea that you are going to sell it, sell it as fast as possible for as much as possible. And occasionally, people are really clear, I want to build this as a business, but not often enough.