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Stripe's 22-Year-Old Irish-Born Founder Is Just Getting Started
- ronnier 14y agoWow, this guy is amazing. Read his wikipedia page: http://en.wikipedia.org/wiki/John_Collison http://en.wikipedia.org/wiki/John_Collison
- DigitalSea 14y agoHe's also a pilot and pianist and he's only 22. I'm now asking myself where did my life going wrong?
- clicks 14y agoHe also got his company sold to eBay at the age of 17 for $5 million. Our Dani Fong here has a similar story -- dropped out of Princeton at the age of 17... where she was doing her doctorate. I think the parents of these two need to come out and explain to us what exactly their parenting methods are.
- madaxe 14y agoIf there's one thing I've seen in common among entrepreneurs who've been successful and started young, it's an absence of parenting, or at least very hands-off parenting. Having mom or dad to go running to trains you to spend your entire life hiding under the wing of "mom" or "dad". Having parents who go "So?" when you go "Timmy hit me at school" teaches you to sort out your own problems and find your own solutions. The vast majority of people I know who've made it/are making it (the one's who're actually profitable, or have product(s) attracting investment) have either no, or highly dysfunctional, relationships with their parents.
- whitewhim 14y agoOh wow I'd never realized that she was from my home town. She's done some pretty spectacular things.
- mahyarm 14y agoDani Fong was allowed to stop going to normal school at around age 12, because she hated it to the bone and her parents listened. After that she went on to an alternative track that involved programming, horse back riding and community college and shortly after, a physics undergrad that took 5 years. That's what I gathered from her history. I know of a bunch of people that could of been like that, but stuck to normal school and the pace that it sets with it's busy work and so on limited their potential. I think there is a lot of kids where you could just 'skip the bullshit' and put them in some sort of college degree but instead they flounder in a school system where they don't fit in and is not suited for them. She started her own company because similarly, she really doesn't like being an employee. http://daniellefong.com/about-the-author/ http://daniellefong.com/about-the-author/
- DaniFong 14y ago'Skipping the bullshit' is in fact the lesson I'd like people to draw on. And it doesn't end with school. Too many people are stuck in jobs and relationships and situations they don't enjoy. Get unstuck. Although, I will annotate to your analysis -- the reason I started this particular company was that I wanted to make a difference. The reason I had to start some company was because I am rather insubordinate, and lack consistency of attendance and effort on things that I am less than passionately attached to.
- Jach 14y agoBe careful of generalizing parenting methods, also don't put too much weight on parenting when there's at least as much (though probably more) due to genetics. (There's also a nice low-hanging fruit plucked by making sure the child has enough iodine in the womb/early infancy[1].) With parenting tricks, what seems to "work" remarkably well for one child might not work at all for another child, even in the same family! I'm not a parent so I observe this lack of generalized techniques from multi-sibling families with very different sibling life outcomes and also from Feynman's anecdote on his son and his daughter. Here's him telling it: http://www.youtube.com/watch?v=Fzg1CU8t9nw http://www.youtube.com/watch?v=Fzg1CU8t9nw (at the 49 minute mark). [1] http://www.gwern.net/Nootropics#iodine http://www.gwern.net/Nootropics#iodine
- skeletonjelly 14y agoI was thinking this before I read your comment.
- subsystem 14y agoNot to take anything away from him, but I think his other achievements are far more impressive. Learning to fly or play the piano generally "just" takes time and money. The really hard things are those where you can apply yourself fully and still fail.
- raverbashing 14y agoYes His father may be a businessman (yes, I read the part where he says he's an electrical engineer), I'm not sure. Based on what things cost in Ireland today and the salary one can make, it does not look good. And any salary considered 'high' pays 41% in taxes (where high is > $41k per year)
- j_col 14y ago> And any salary considered 'high' pays 41% in taxes (where high is > $41k per year) That's incorrect. You don't pay the high rate of income tax on all of your income, but only on income over a certain threshold depending on your circumstances. Actually we have pretty low income tax rates when compared to other EU countries: http://www.revenue.ie/en/tax/it/leaflets/it1.html#section3 http://www.revenue.ie/en/tax/it/leaflets/it1.html#section3
- raverbashing 14y agoI know that (and this often confuses people), I didn't want to add all the explanation there. But yes, you'll pay 41% on what goes over a certain limit (that is, above $41k annually or 32.8KEUR). About your second statement, not really: http://en.wikipedia.org/wiki/Tax_rates_of_Europe http://en.wikipedia.org/wiki/Tax_rates_of_Europe
- rmc 14y agoComparing taxes is hard. There are various other 'hidden' taxes that Ireland doesn't have. e.g. no 'council tax' or property tax (though they are bringing one in, most likely just for people who own, not rent), there are no water charges (yet), etc. All of this can mean that someone can have more in their pocket at the end of the month in Ireland. It all depends.
- thewarrior 14y agoI was born the same year as this guy . How do I reconcile myself to the fact that I may never achieve so much even in my entire life ? Is it a matter of lowering ones expectations ? If this is the kind of brilliance it takes to succeed in the start up world I'm quite discouraged.
- danieldk 14y agoHow do I reconcile myself to the fact that I may never achieve so much even in my entire life ? Is it a matter of lowering ones expectations ? Just let go. If there is success, there is success. If there is no success, there is no success. If you reach a decent standard of living, there will be plenty to enjoy. Do not forget to do so.
- deleted 14y ago[deleted]
- jacquesm 14y agoNo, that kind of brilliance is not what it takes to succeed. It doesn't hurt either, but the biggest factor is perseverance. If you get discouraged because someone younger than you can succeed when you can't then that perseverance element is exactly what you have to work on. For every Patrick and every John there are 10's of thousands of people that succeed. And almost all of them are not nearly as brilliant or as young. Imagine a world without them. In that world you would be closer to the top. But your chances of success would not be diminished, nor would they be decreased. Now repeat that process for all those that are smarter, richer and more dedicated than you. At some point you'll be the one at the top. What would you blame it on if you then still did not succeed? In the end, all that matters is when and how you decide to make a go of it, how much you apply yourself, how well you'll deal with the unavoidable hardships and how much luck you will have and how the timing will favor you. It doesn't really matter how much higher than 120 your IQ is, plenty of people with less than that have succeeded at a level that even Patrick or John will never exceed simply by being in the right place at the right time and making use of every opportunity that life threw at them. If you want to measure yourself do it with people that started off with less than you had and that still made it. Then figure out what they did right that you're doing wrong and go for it.
- safetyscissors 14y agoReally amazing guy. Kinda makes me feel inadequate all of a sudden :(
- jacquesm 14y agoI wouldn't worry about it, just try a little harder. In the long run it doesn't really matter what your situation is today, what matters more is how you allocate your future time and how you will deal with the opportunities that come your way. The luck element is out of control for everybody, timing you only control so much, execution and attitude you control 100%.
- jacquesm 14y agoPatrick and his brother John are two of the smartest cookies on the planet that I know about. These guys will go very far, and I'll be cheering them on all the way. They are not only successful and smart, they're genuinely nice, and that's a pretty rare combination.
- sjtgraham 14y ago+1 I've met John and spoken to Patrick on email. Both super nice dudes.
- destraynor 14y agoNever was there a comment I agreed more with on HN
- wiradikusuma 14y agoLoosely related with the article, do you need to give significant share to "locals" if you're starting a company in the US? For example, in Malaysia and Singapore (CMIIW), unless you put huge amount of money up front, foreigners are required to partner with locals and give >50% share to them. I.e. foreigners cannot have majority share if they start a "normal" company (not big).
- jacquesm 14y agoNo, you don't. You can even incorporate as a sole proprietor without any locals having a stake at all. Ditto in Canada and most of Western Europe with some exceptions.
- czcar 14y agoJust to clarify - this is not the case in Singapore. A local director is required if the directors do not have work visas, but the companies can be wholly owned by foreigners.
- ngsayjoe 14y agoNo way what you're saying is true for both Singapore and Malaysia. Some shares need to be allocated to locals though if you IPO in the country.
- wiradikusuma 14y agohttp://onlinebusinessmalaysia.com/starting-a-business/setting-up-a-business-in-malaysia-for-foreigners/ http://onlinebusinessmalaysia.com/starting-a-business/settin... and read the first comment (by Denis)
- vecinu 14y agoIt's interesting to see people put their studies on hold to pursue something they loved. I don't quite understand why they moved to San Francisco; the article didn't really make that clear. I'd love to have a cup of coffee with either of them though. Great people!
- GuiA 14y agoProbably pressure from investors/YC/friends/etc and own desire. TBH, if you're starting a tech company and have the opportunity to move to the SF Bay Area (ie no family imperatives etc.), you'd be silly not to take it.
- lynchdt 14y agoPatrick writes about this extensively here http://patrickcollison.com/post/stripe-ireland http://patrickcollison.com/post/stripe-ireland
- vancouverite 14y agoVery impressive achievement for his age, though there is of course also a lot of spin-doctoring involved[1]. Stripe seems to be heading into the right direction. [1] The whole "millionaire at 17" bit decodes to getting a big stock-based exit for Auctomatic with modest cash. Said stock then dropping to pennies shortly thereafter (~40x drop in stock price). Add in the merger and $600k in financing and there probably wasn't left other than a bailout for the investors. http://www.otcmarkets.com/stock/LIVC/chart http://www.otcmarkets.com/stock/LIVC/chart
- jacquesm 14y agoSo, if we limit the 'millionaire at 17' bit to 'those that made a non-cash exit for 6 figures and up' would that satisfy you? To take cash or stock is a difficult decision for seasoned business people, I really can't fault a 17 year old for going that route and through no fault of their own see the value of that stock evaporate a short while later. I've known quite a few people that went bust during the .com debacle in exactly the same way and none of them was 17 or even close to it. It's easy enough to identify your mistakes after the fact (heck, I've made plenty, just this particular one I've managed to avoid), but the big trick is to predict them ahead of time. How are you doing? What company did you sell for any amount when you were 17? And was that in stock or cash?
- jacalata 14y agoI didn't read the parent as saying 'not actually a millionaire because he's an idiot', you seem a little touchy here. It seems reasonable to ask for that clarification - if you make the assumption that both brothers came into control of millions of dollars worth of available assets, you might wonder what they were doing with the money, especially as related to their continuing business ventures. The additional information that they don't actually have it answers that question.
- jacquesm 14y ago'spindoctoring' indicates a conscious effort to increase the stature of the subject of the article, and is a word with a strong negative connotation. The fact that they had an idea, built it and executed their vision successfully enough that another company bought them out are the bits that matter. That the buying party was significantly reduced in value after the acquisition is not their fault, and even if it had not it would have been stock (likely with all kinds of encumbrances) not cash. Doing a stock deal is risky at best and can end very bad for the acquiree. Assets are not money, stock is not money, even so for a 17 year old that was an absolutely amazing track record. I'm not clear on the details of that particular deal, and frankly I don't even care. All I know is that most people here would dream of doing a deal like that or even being in the position to make that particular mistake, and hindsight (the company acquiring tanking shortly thereafter) is 20/20.
- MojoJolo 14y agoThis guy inspired me. I'm just reading about Stripe a while ago and I don't know the founder is just 22! I'm 20, and I think I need to rush some things. I don't want to be late.
- bimozx 14y agoThe experience of reading young success stories is both exhilarating and depressing to me. On one hand it expands my vision of what is really possible at such young age, on the other I realize that I am at the point in my youth where people like Patrick and John have achieved so much. It shows a little ingenuity and complete persistence can make you go real far. Kudos to both of them, and godspeed on their current endeavor.
- kyro 14y agoThat's it. I'm doing a startup after med school. ...so what's the policy on using investment money to pay back loans?
- jacquesm 14y ago> ...so what's the policy on using investment money to pay back loans? It's a no-no unless you negotiate that up front. And likely you'll get a bunch of rejections as a result unless you can come up with a really good reason for that (I can think of a few).
- sudhirj 14y agoWhat's also impressive is the choice of project: pg has written about this (think he calls it the schelp filter or something). Payments is one of the most difficult, red-tape entangled, regulation-choked domains to start a company in. Not to mention the extreme security requirements and general unsexiness of it all. Think they've managed to do an awesome through all the hurdles - if I ever decide to follow their example and start a payments company in India it will simply be "Stripe-API compliant". That's pretty much all the marketing / features it will need.
- rsmaniak 14y agoAmazing guy, inspiring and at the same time, depressing...
- madaxe 14y agoOk, stripe's wonderful, but... why is stripe wonderful? It's a payment service provider. An expensive payment service provider. They have an API. It's nicely written - but a nicely written API doesn't make a product. They're available in the US and Canada. OK, but there's a whole planet out there. So, yeah. What exactly is it that's so amazing about stripe? I work in eCommerce, run and developed a little platform that does a few £bn a year through it, so know my PSPs, and fail to see the differentiation.
- olalonde 14y ago> It's nicely written - but a nicely written API doesn't make a product. I believe you should revisit that assumption. Stripe is successful because of its API and UI. Likewise, Facebook and the iPhone largely succeeded because of their UI and API.
- madaxe 14y agoFacebook succeeded because they got the network effect right, and Zuck chose the initial rounds of members at Harvard carefully (mostly girls, mostly rabid networkers/socialisers), and the ensuing rollout to other colleges/countries were staged carefully to maximise demand. iPhone - marketing, marketing, marketing, marketing, and the US had never really seen a smartphone before. Then, ecosystem and snowball. That said, I agree that UI is a fundamental part of any product - API, however, not so much - Joe Public doesn't care and neither does your CFO - and as posited, developers, no matter how much we'd like to think we are, are not influencers in the markets where PSPs are entrenched.
- yesimahuman 14y agoThe Stripe API is really good...but it's not perfect. It still requires a huge amount of manual development that services like Recur.ly and Spreedly already implement. Having implemented several Stripe sites, I found I preferred more of an automated recurring subscription management service, and then Stripe is just a gateway at that point. That being said, I use Stripe extensively and love it.
- j_col 14y ago
- antihero 14y agoFor the hiring/visa issue, would a solution, say if two of their hires were from the EU, start a company in an EU country, employ them with said company, and then have the US company "contract" the EU company for their part of the work?
- jacquesm 14y agoI've done the opposite: Launch a Canadian subsidiary from Europe, then employ myself at the subsidiary. That worked but it is a pretty roundabout way. If you can qualify under some program that is less difficult then I would definitely not advise this route.