The best way to measure the acquisition effect is usually by the percent of organically acquired users and the customer acquisition cost going down over time (within a network until a certain point).

One of the litmus tests for us when we consider any investment opportunity is as we've discussed before, the size of the prize. Let's assume that everything you're telling me to be true becomes true. How big is the outcome? How big is the impact on the world? And clearly man on the moon, computer on every desk, those are very quickly understood.

Number two, I think, would be picking markets that don't exist

The systems-level thing is that we actually have to be very fast about getting back to people. Being able to schedule an all-partner in 48 hours or less is actually really important. Being able to make an investment decision with a group process without short circuiting due diligence within 48 to 72 hours, just speed is important because speed kill... See more

sometimes as an entrepreneur, you have to over-index to courage. You have to think about the world that you wish to exist, not the one that does exist. As investor, I'm constantly looking at distribution of probabilities, that those outcomes will in fact be achieved.

Like you said, you examine the invention and then it tells you so much about the inventor. What that also tells me is if I were, instead of an investor at that moment at Y Combinator, if was trying to decide if I was going to go work there, that was going to be the way I could tell I wanted to work there

One of the most important lessons for me, another lesson learned, in the areas I invest in, which is largely consumer, I think it's critical you have a theory and defensibility. And for me, that defensibility typically has been network effect.

All of these consumer brands end up being about two things, customer acquisition cost and lifetime

Taking the time to make sure that every hire early on is the right person and the right fit, the right combination of courage, brains, and heart is incredibly important. I've always been very focused on that. The mistakes you ask about. I guess my advice to entrepreneurs out there, and I guess any businessperson honestly, is that it takes some expe... See more