

David Sacks shares how PayPal & Trulia Navigated Downturns
Apr 7, 2020
45:26
In this episode, Kristin O'Brien, Pete Flint, and David Sacks discuss leading through challenging times, navigating disruption, and the importance of adaptability. They delve into crisis management, the economic impact on startups and VC investments, and the role of paranoia in survival. Insights on wartime CEOs and the response of Silicon Valley to COVID-19 are also shared. The episode concludes with potential long-term pandemic impacts, highlighting the rise of edtech and healthtech.
Today we’re talking with David Sacks & Pete Flint about how to lead a company through an unforeseen downturn, and what it takes to adapt and survive in an unpredictable economy. David is a general partner at Craft Ventures and previously a Co-Founder of PayPal & Yammer. Both David and Pete founded iconic companies and led them through unstable markets to emerge with high growth and success.
In this episode, we discuss:
- The Founder mindset during a downturn
- The Investor mindset during a downturn
- Tactics/frameworks for founders
- Happy Talk vs Hard Talk
- Silicon Valley during COVID-19
Be on the lookout for new episodes on The NFX Podcast and read more NFX content at - www.nfx.com/essays
(0:00) Introduction and guest backgrounds (1:43) Leading through hard times: Tactics and mindset (3:07) Navigating disruption: Cash position and new market conditions (7:44) Adaptability: The danger of legacy thinking and focusing on your best idea (13:02) Crisis management: Dealing with employee anxiety and delaying tough decisions (18:12) Profitability: Impact of the current economic situation on startups and VC investments (23:51) Optimism and clarity: The role of paranoia in surviving tough times (29:31) Wartime CEOs: The influence of Churchill's leadership during crisis (34:05) The response of Silicon Valley to COVID-19: Remote work and the role of tech Twitter (38:33) Long-term impacts of the pandemic on society: Recovery scenarios and the rise of edtech and healthtech