PayPal co-founder Peter Thiel once challenged Silicon Valley’s relentless “follow your dreams” optimism, arguing that people should think carefully about whether their ambitions are actually worth pursuing.
Peter Thiel Says Failure Is ‘Very Overrated’
In a 2014 interview with CNN’s Fareed Zakaria, Thiel pushed back against the idea that aspiring entrepreneurs should simply ignore doubters and pursue their dreams regardless of the odds.
“I think failure is very overrated,” Thiel said, arguing that people should not be encouraged to fail when better judgment might have prevented it.
For Thiel, the issue is not that entrepreneurs should avoid taking risks. Instead, they should first ask a fundamental question: Is this actually a good idea?
He illustrated his point with Hollywood.
“There are 20,000 people a year who move to Los Angeles to become movie stars,” Thiel said. “Maybe 20 of them make it.”
He questioned whether some aspiring actors could have been advised to pursue something else before uprooting their lives, adding that Silicon Valley likely has its own version of the phenomenon.
“There are a lot of different ways people do well in the Silicon Valley ecosystem,” Thiel said, but added that “we never do people a favor by setting them up for failure.”
PayPal Taught Thiel That Failure Isn’t Always Final
Thiel’s skepticism toward failure does not mean he believes entrepreneurs should give up after their first setback.
In a 2012 60 Minutes interview, he recalled that PayPal’s initial product — an infrared system for sending money between Palm Pilots — was voted one of the 10 worst business ideas of 1999.
But the team adapted and changed direction. “The team was good,” Thiel said.
His broader lesson was that entrepreneurs can have multiple opportunities to get things right.
“It’s not like you get one chance,” Thiel said. “You get many chances so long as you keep trying.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: mark reinstein / Shutterstock.com
Recent Comments