RC: I’ve invested in 500 companies over 12 years — there’s a ton of data. People ask all the time what’s the success rate. 1/3 fail, 1/3 you get money back, 1/3 you get 2x to Googlex — I THOUGHT. That’s not accurate. If you go back to the bubble: 1997-2001 — the failure rate (out of business investors get nothing) was 77%. It was catastrophic. But we got Google, PayPal, etc. We were lucky. Others weren’t. That failure rate has plummeted to closer to 40% now. That’s post-Bubble from 2002 to today.
PG: But the failure rate is going to be much higher overall. This is just your portfolio.
RC: That’s right. Just our portfolio that we picked closely from. Repeat entrepreneurs have a 66% of being successful on startup #2."
RC: Zuck has grown in maturity at an algorithmic scale. He’s a leader. You are a different person than you were 6 months ago. One other point that I think is interesting. People are saying ‘every 10 years we get a Google.” That’s not true. I invested in AskJeeves, then came Google. 4 years later was Facebook. 2 years later was Twitter. 2 years later was Foursquare, Zynga, etc. Great companies are being created at a much greater rate. Awesome news for entrepreneurs. Giant companies every 2 years.