During the Q&A following a talk with the a16z investor and Netscape inventor Marc Andreessen at Stanford Graduate School of Business (54 minute-long video recording here, very worth watching), a student sitting in the audience asked the Silicon Valley mastermind about his advice for people who have big ideas that might be very capital intensive. The questioner managed to score some laughter after quoting Elon Musk who – according to him – answered the same question a few years ago with the recommendation to “become an internet billionaire first”.
That’s witty. But it is also the truth. Musk used money he had earned from various deals in the online industry (including his biggest exit PayPal, which was acquired for $1.5 billion and made him a 9-digit sum in USD) to fund the initial stages of both his electrical car company Tesla and his rocket company SpaceX – to the point at which he literally ran out of cash. Without the dotcom companies that the South Africa-born serial entrepreneur did launch and sell before he took on the really big problems, Tesla and SpaceX might not exist. Continue Reading