Building and Rebuilding a $50B Company

"You need to take risks to do something meaningful, and I think risk is less risky than most people believe."

• Ernie believes that embracing risk is necessary for significant achievements.
• Founders often underestimate their ability to solve problems under pressure.
• Accepting risk can lead to breakthroughs and long-term success.

"I think that there's like an archetype of a person that is extremely common... They're usually very smart, they're usually very conceptual... but they lack the ability to get practical and to find the occasions where they're wrong."

• Ernie warns against hiring individuals who can't implement practical solutions.
• Such people may hinder progress despite their charisma and intelligence.
• Founders should ensure team members can translate ideas into actions.

"I think abstraction is very bad, at least for a person who starts conceptual... The closer you get to the ground, the better you are, and I think that like the pressure of scale pushes everyone up the pyramid."

• Ernie advises founders to stay involved in day-to-day operations.
• Being close to the ground helps in understanding real issues and driving success.
• Founders should resist the tendency to become distant as the company grows.

"I've always been a deeply competitive person... I had to compete, but I also just hated losing and I think that transferred a little bit into like, okay, like if my dad can do it, I can do it and I can do it better."

• Ernie's competitiveness fueled his determination to succeed.
• Personal motivations can drive founders to find and secure PMF.
• Founders should harness their intrinsic motivations to overcome challenges.

"At the time that we were trying to do our early fundraises, you know, capital intensity, operational intensity were not popular... We didn't fit the patterns, and I think that we didn't have the relationships that gave investors the opportunity... to have deep enough conviction."

• Ernie suggests that VCs may overlook startups that don't fit current trends.
• Founders of unconventional startups might face additional fundraising challenges.
• Building strong relationships can help overcome investor biases.

"There's no stories of companies that make it with no volatility... you need to just know that there's no avoiding that. And if you know that, then it's like when that happens, just use it."

• Ernie emphasizes accepting volatility as part of the startup journey.
• Founders should focus on their convictions rather than external market reactions.
• Using challenging times as motivation can strengthen the company.

"I think that it's a group of people that are not motivated by status as much as most are... They'd been through hard times together and believed in what they were building."

• Ernie credits team longevity to shared values over personal status.
• Facing challenges together strengthens team cohesion.
• Founders should cultivate a culture focused on collective success.

"I would way rather take a person in any role that is respected by someone that I respect than someone who's done it before. My personal view is like, I don't care that much if you've done it before."

• Ernie values mutual respect over prior experience.
• Hiring people respected by trusted individuals fosters a strong team.
• Founders should prioritize character and reputation when building teams.

"I think that if you can pick one, I think you want operators... But then I think the ceiling of your possible success is a function of the conceptual thinker. And so to me, like marrying those things together, I think is really, really important and really hard."

• Ernie highlights the need for both practical operators and conceptual strategists.
• Combining both skills can maximize a company's potential.
• Founders should strive to pair these complementary talents within their teams.

"...we kind of believed that vertical integration was very important. Honestly, I think every bit as much so for control over the entirety of the customer experience as for the economic benefits and strategic benefits that come from being totally stacked and having access to all the economics."

• Ernie emphasizes sticking to core beliefs despite investor skepticism.
• Founders should not compromise on fundamental aspects of their business model.
• Conviction can lead to success even when facing fundraising hurdles.