The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Carvana CEO on Buiding a $50B Company, Losing 99% and Coming Back | Ernest Garcia: Inside the Mind of the Most Misunderstood CEO in America
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Apr 7, 2025 
Ernest Garcia, Co-founder and CEO of Carvana, transformed the online used car industry into a $50 billion powerhouse. He candidly shares his journey, including the staggering 99% stock drop and the incredible comeback to a $35 billion valuation. Garcia explores the traits of successful entrepreneurs, the hurdles of securing funding, and the realities of running a public company. He also discusses the complexities of using debt strategically, lessons in parenting wealth, and the balance between ambition and personal fulfillment.
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Stubbornness and Vertical Integration
- Early in Carvana's fundraising, Silicon Valley VCs wanted them to be a software layer on top of dealerships.
- Ernie and his team stubbornly persisted with their vision of vertical integration, leading to near-death experiences but ultimately shaping Carvana's success.
Near-Death Experiences and Risk
- Near-death experiences reveal that companies have more options than they initially think.
- Ernie learned that risk is less risky than perceived because problem-solving becomes more effective under pressure.
Fundraising Challenges and Assessing Risk
- Carvana struggled with early fundraising because it didn't fit the popular patterns of marketplaces and software solutions.
- Ernie believes conviction in the team's ability to solve problems is crucial when assessing risk, especially with layered risks.