"all right good afternoon uh today's speaker is Peter teal Peter was the founder of PayPal and paler and Founders fund and has invested in uh most of the tech companies in in silica Valley and he's goi..."

"today I'd like to um I'd like to start by saying something about um the the basic idea of uh when you start one the companies um how you go about uh creating value and there's this question what makes..."

"there's if you sort of compare the US airline industry with a company like Google on search um if you sort of measure by the size of these industries you could you could say that airlines are still mo..."

"efficient especially in a world where things are static because you have all the consumer surplus gets captured by everybody and uh and politically it's uh What uh what we're what we're told is good i..."

"businesses and so let me say a little bit about the lies that people tell and so you basically um the basic uh if you sort of imagine that there was a spectrum of companies from perfect competition to..."

"work and so um you know the the the basic uh lie you tell as a non-m monopoly is that we're in a very small Market the basic lie you tell as a monopoly is that the market you're in is much bigger than..."

"this where you and the the sort of the bad really bad versions you just take a whole series of buzzword sharing mobile social apps you combine them and you have some kind of uh narrative and whether o..."

"uh you you look and uh no we're not the Monopoly the government's looking for and we should not get regulated in any way whatsoever and so I think one has to always be super aware that there are these..."

"another and so I think almost all the successful companies uh in Silicon Valley had some model of starting with small markets and expanding and you know if you take Amazon you start with you start wit..."

"uh that's what made them so valuable um now I think the opposite version of this is always where you have super big markets and um and I there's so much so many different things that went wrong with a..."

"characteristics of these Monopoly businesses um that I like to um focus on and U there's probably no no sort of single formula to it and I I always think that uh that in technology there's always a se..."

"the the technology is designed to give you a massive Delta over over the next the next best thing I think um I think there often are network effects that can kick in that really help the thing that's ..."

"Power now the critical thing about these monopolies is um is it's it's not enough to have a monopoly for just a moment the critical thing is to have one that lasts over time um and so you know in Sili..."

"and so one of the things that uh we always overvalue in Silicon Valley is growth rates and we undervalue durability because uh growth is something you can measure in the here and now and you can alway..."

"innovation where there was tremendous Innovation but no one made any money so uh you know dis Drive Manufacturing in the 1980s um you could you could do a better dis build a better dis Drive than anyb..."

"your business typically um and then um economies of scale uh where I talked about so so I think anyway so I think this last mover thing is is very critical I'm always tempted you know I don't want to ..."

"analogous thing that one can say about science where uh we've lived through centuries of of enormous amounts of innovation in in in science as well and um and the the thing that I think um people alwa..."

"of the value and so I think there is this sort of whole uh history of um science and technology that can be told from the perspective of how much value was actually captured and um and certainly there..."

"so um one is uh these sort of vertically integrated complex monopolies which people uh did build in the Second Industrial Revolution at the end of the 19th and start of the 20th century and so this wa..."

"more and then I think there is there is something about software itself that's very very powerful um software has these incredible economies of scale these low margin costs and there is something abou..."

"I would suggest what I would want to leave you with is there are sort of these different rationalizations people give for why certain things work and why certain things don't work and I think these ra..."

"of innovation has been this uh this history where uh the the the the microeconomics the structure of these industries has mattered a tremendous amount and when um and um and and and there is sort of t..."

"talk this competition is for losers idea which um is always this provocative way to to title things because we always think of the losers as the people who are not good at competing we think of the lo..."

"also a psychological blind spot where we find ourselves you know very very attracted to competition in in one form or another um we find it reassuring if other people do things the word ape already in..."

"I think the Olympics are a little bit better because you have a you know um you can sort of figure out pretty quickly whether you're good or not so it's there's a little bit less of a dead weight loss..."

"there's always sort of a personal uh version of this that I I tell where um you know I was sort of hyper hypert tracked I you know my e8th grade Junior High School yearbook one of my friends wrote in ..."

"take a few questions or sorry oh yeah people want to take I'll take a few questions we have a few minutes time yeah go ahead um since yeah as you mentioned earlier often monopolies and competition oft..."

"second what's you like second is what what with the iPhone uh head oh this is that's that's a that's a there sort of a set of companies that are doing different copycat payment systems on on mobile ph..."

"so I I am personally quite skeptical of all the uh Lean Startup methodology I think the the the really great companies um did something was sort of somewhat more of a Quantum Improvement that really d..."