If you’ve seen the Facebook movie: “The Social Network” you might recall the involvement of one, Peter Thiel. Thiel was the first outside investor in Facebook, actually putting up $500,000 to finance the site’s first expansion in 2004. Thiel was the founder of PayPal, where he made his first fortune when he sold it to eBay for $1.5 billion in 2002. Yeah that’s billion with a “B”. I know, ”wow” right?!
It’s also interesting that although the character based on Thiel appears just briefly on-screen, the movie takes a jab at the venture-capitalist in a single line where it’s said “We’re in the offices of a guy whose hero is Gordon Gekko.”
While he definitely enjoys his wealth (and deservedly so) with various profiles have commented on his Ferrari Spyder, his $500,000 McLaren Supercar, Thiel fancies himself more than some self-indulgent billionaire. He has a big vision putting some of the millions he has made on PayPal, Facebook, and a hedge fund called Clarium behind advancing that vision.
In fact he has recently gone on record regarding his desire to focus his efforts on entrepreneurial ventures that, he states “ may create a new space for entrepreneurial freedom.” This motivation has been reflected in his new desire to give young, aspiring, closet entrepreneurs the opportunity to dramatically alter their life. The Thiel Fellowship has just announced that it will pay would-be entrepreneurs under the age of 21, $100,000 in cash to drop out of school. Incredibly controversial to say the least I know. However, there is a more interesting and compelling story at the source of this effort that I wanted to quickly examine here.
In announcing the program, Thiel made his feelings clear about American universities which, he believes, cost more than they’re worth and hinder what really matters in life, namely achieving the American dream. His scholarships are meant as an escape hatch from what he feels is a trap; institutions of higher learning that create conformist robots who conform and do what they’re told rather than free thinking creators of their future.
He purposely hit on what he feels to be a deficiency in the educational ideology where students are taught to be good employees, with false expectations that they will make $100,000 right out of college. He stated that they are then shackled with a quarter of a million dollars in educational debt and then seek safety in corporate America. He proposed that following this ideology hamstrings an entrepreneurial path when to become an entrepreneur “people need to take risks. They often need to do things where they get paid less than they could earn elsewhere. To start out with enormous amounts of debt that becomes very hard to do.”
He stated that his aim is “to target people who’d like to become entrepreneurs and see if there’s a way to mentor that process along.” Thiel’s program is premised on the idea that America suffers from a total neglect at fostering entrepreneurship, not only in the classroom but in our culture as a whole.
His detractors state rather that we may be on the verge of the opposite, a world in which too many weak ideas find funding and every kid dreams of being the next Mark Zuckerberg. I’ve read where one author stated that “this threatens to turn the risk-taking startup model into a white boy’s version of the NBA, diverting a generation of young people from the love of knowledge for its own sake and respect for middle-class values.”
I would contend that there is no limit of people who can be successful. You will never be cut from a team because the nation only has room for 15 quality businesses. Unlike professional sports, there is no limit on good players, no limit on good ideas. How quickly we forget that America was founded and made great by holding tightly to the entrepreneurial model. In an effort to seek safety under a corporate umbrella, we have abandoned this ideology all together deeming it risky behavior. Over the last 2 generations most never even grew up to see anything different.
The revisionist history we are taught would neglect to connect the obvious cause and effect linking the explosion of large corrupt companies in the industrial revolution helped trigger the great depression…. Much like this economic cycle. I’m not at all saying that there weren’t great technological strides made during the turn of the century but rather that the corporate gluttony and corruption that grew from that (and didn’t need to) was a major contributing factor that brought about a “welfare state” ideology. Then, as soon as large companies were hiring again, the masses went back in droves and taught their kids to seek stability and safety there.
I’m also not saying that there is anything wrong with being an employee at all. I know many people who are doing what they feel they were born to do within a company that pays them well to do it. I am however vigorously stating that I believe we need to wake up as a society and realize that many have been erroneously convinced to prioritize company loyalty at the expense of doing what you were put on this earth to do, what fulfills you.
Though our society has heavily promoted this desire for safety and stability, large companies have seen fit increasingly to give none. There is 17% unemployment in this country (when counting those that ran out of benefits who the gov doesn’t count anymore) and yet we continue to look for a job!? Really?
I believe Thiel’s fellowship program is a breath of fresh air. It’s an effort to change that false ideology and change a public’s perception that “entrepreneurialism = unsafe, risky behavior = foolish to pursue”…until they are successful. It’s about time that we honor the pursuit of such dreams and the character required to follow one’s own passionate pursuit and live life as he sees fit. A perspective every founding father of this country espoused and lived by.
But what are your thoughts? Where do you agree or disagree?
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Patrick Daugherty
The “Biz Coach”
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I totally agree. I went to college in the 60′s…yes I am old…and in that day and age as a woman you were either going to be a teacher or a nurse. I became a teacher.
8 years ago I found my passion and became a small businesses marketer. I love it!
My grandson is 18 and loves to do things his way. He has a plan for a gaming store. He has it all worked out but of course, doesn’t have the money. Maybe he could qualify for The Thiel Fellowship. I think I will look it up online.
Thanks for a great article!
Oh to be 18 again and know what we know now Pam! Kudos for supporting your grandson in that way too! Hey btw, if I can help support or collaborate with your marketing efforts in any way let me know. Always love to find ways to work with and/or support other marketers!!
American citizens ought to be cheering him on. He’s shining a very bright light on all the awful, and disgraceful things our government has done and continues to do, all around the World!! Things, that may end up biting us regular folk in the ass, while others hide safely in their undisclosed locations, sitting atop piles of cash!! We scream and shout about how awesome we are….looks like our shine, is looking a little dull, right now! We behave like a kid who got his hand caught in the cookie jar, with that “what…what did i do?” look on our face. We all shout about wanting the truth, about what our “leaders,” are up to in our name….but when it’s laid out in front of us, we refuse read, see or believe it. Yes, there’s a country that’s a laughing stock around the World, and it’s not Sweden!!
Forget Zuckerberg. This Guy Is Changing Facebook….
Forbes.com Video Network | Business: Forget Zuckerberg. This Guy Is Changing Facebook.
Great post full of useful information. Thanks for the continued tips!
I’m pleased I found this blog, It’s not easy finding decentones these days, especially with the amount out of crappy and spammy ones on the net.
I also run a blog and if you want to do little bit of guest writing for me then feel free to let me know, I’m always looking for good writers to get onboard.
Get in touch if your interested.
You seen this video before? Might make a cool article?
Lots of bloglove
Chanyx
Does Thiel really believe he learned NOTHING at Stanford that influenced his later success?
Well Rusty he evidently he deems that which he did learn to be useless. His perspective is refreshing eventhough I will admit, he often is guilty of “throwing the baby out with the bath water” and this effort seems to fit that description as well.
Thanks for the comment Rusty!
I also attended and matriculated from a University in the early 60′s. Paid my own way, no student loans,
My major was Invertebrate Zoology and Geography. In all classes we were encouraged to THINK, all tests were blue Book Essay and had FUN during the experience.
Interesting follow up is, other than those who went on to advanced specialties, our Group ended up in entrepreneurial activities.
Found it EASY because we were encouraged to Think Independently.
In the past 35 years I have sought associates who have COMMON SENSE experience over “book learning”.
With the WEALTH of information available today to almost anyone, there is little technology or skill that can not be learned, without the “tutoring” of in-experienced professors.
With the exception of those careers which require a Government License, there is much opportunity for the self-starting, self- directed Business Mindset.
A perfect example in our County a few years ago, the finest Superior Court Judge was a retired Police officer who meted justice better than anything I have ever seen.
Unfortunately the elitist “professionals” were able to lobby State Law to require a Law Degree and when he retired the opportunity to have a Common Sense person on the bench was diminished
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It’s funny that I ran across this today as I was joking with my niece about her college finals and how we built a successful business in the last 4 years that is totally different than what I went to college 8 yrs for.
I don’t think that was wasted time for me, as I feel it enriched my life with experiences I would have had otherwise.
But, in retrospect, I wish I could have seen the future and taken classes, if there were any, for entrepreneurs. Even personal growth/development classes would have been a tremendous addition to my schooling.
In just the 4 years we’ve grown a successful business, it’s changed my boys’ thoughts about employment and has them thinking about their own businesses and what they want to do ‘when they grow up.’ For them, it seems normal to be in charge of your own time and to work and save for their own dreams instead of someone else’s. It makes this mom very happy.
Yay for Mr. Thiel. I well remember a discussion at a Live Journal community asking people – of all ages – what is the biggest lie ever told to you. The vast majority of people 30 and younger said “go to college, get a good education, and you’ll make a good living” was the BIGGEST LIE THEY WERE EVER TOLD. I can name a dozen examples of friends and acquaintences with advanced degrees who have a stellar career as cashiers at Barnes & Nobel, or managers for a franchise restaurant. In their book Why We Want You To Be Rich, Donald Trump and Robert Kiyosaki (Rich Dad, Poor Dad) emphasize over and over again that the days of “get a good education, get a good job, live below your means and save” are past as a viable life plan. Myself, I can vouch for putting hubby through college, having him get a great job with a big company – WORLDCOM and you can write the rest of the story from there I am sure. Being an employee is no longer the “safe and sensible” thing to do for our young people. In fact, it is stupid. By all means, if you LOVE English or Math get that English or Math degree – but don’t kid yourself that it means a secure future. Better decide what you REALLY want to do for a living while you have the chance. And if your idea is good enough for someone to back it with $1million dollars – what a great opportunity!
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Unless a student plans on becoming a doctor, lawyer, dentist or some other profession that definitely requires a college education and the student on a clear sense of direction as to where he or she is headed, you are wasting your time and money going to college. Get it into your head people…College is not necessary. You can earn a good living without going to college, or you can get an entry-level job at a good company and have them pay your way through college. If you are in college and have no idea what you are going to do “with it” then you are wasting your time and you’ll enslaved to Sallie Mae for the rest of your life. Don’t take out student loans thinking you’ll be getting a “good” job after you graduate…you may get stuck not being able to pay your loans back and then your credit report ends up getting trashed. If you don’t know where your are headed, don’t go to college thinking you can figure it out while you’re in there. Join the military instead.
My two cents worth,
Dan Annweiler
http://cbpirateincome.com
Not quite finished yet. Obviously the military isn’t your only option. McDonald’s, for example, has a program in place where you can earn credits toward an associate’s degree. Many companies will pay for college courses related to their particular industry and you can complete the other courses at reasonably priced community college in order to complete required courses toward a BA or BS. But don’t be fooled into thinking you have to have a college degree to succeed in life, you don’t. And taking out 10′s of thousands of dollars in student loans to fund your education is simply a bad idea. As King Soloman wrote, “The borrower is slave to the lender.” Another important point to note: Student loans can not be declared in a bankruptcy…that means there’s no way out. If you think you have it in you, take the Thiel Fellowship up on it’s offer.
Another penny’s worth
Dan Annweiler
There are so many things wrong with Mr. Thiel’s philosophy that I don’t know where to start. I find it hard to believe that 100% of the comments were positive. People, you aren’t thinking.
EVERYONE IN A SOCIETY CANNOT BE THE STORE OWNER/OPERATOR. THINK ABOUT IT.
Who will DO THE engineering to design the machines,autos, assembly lines. Who will design the tractors the farmer entrepreneur to raise our food (for the grocery entrepreneur). What will happen to all our scientific advancements. Who will write books for the book-selling entrepreneur. Who will work in the factories to make the products to be sold by the entrepreneur.
Another thing to think about is the ODDs. I don’t remember the exact numbers, concerning the percentage of failures of small businesses. Obviously, it is not 100 percent failure, but it is very, very high. What then, after you invest all your money or your parents money,and it fails. By the way, where will the money come from, unless you are an employee, at least for some amount of time.
Everyone cannot be a successful business owner. Some have to be customers. Even if they buy from each other, the money would soon evaporate.
Sorry for the long comment -got carried away. It irritates me when someone, who obviously, knows better, but gives out bad advice. It usually means they have devious motives, in doing so.
Maybe, talking ordinary persons out of getting educated, would move forward the quest of the ultra-wealthy…That quest of keeping the lower income folks, just that-low income.
Marcus Cauchi, helps startups launch & sell successfully and turns around mature companies struggling with the recession…
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When I initially commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any approach you can take away me from that service? Thanks!
It is quite inspirational. I totally agree with you. I do not think that people who has brilliant ideas are graduates of college or famous university. I believe that business comes from the nature of his or her idea or their sight to society. Life is hard to influence it to society. but we believe that it will be for society to be better .
I guess it is the entrepreuer mind .. what do you think about this ??
Indeed possitive thinking – i believe it is a matter of how long you can hold on your dream, invest wisly and the right tool-investments. And if you have good ideas someone want to invest or buy your first ideas – with the first income you can invest new ideas and keep them for yourself – or use for more tools or for outsourching work you have to do get well known.
Empower yourself is not easy when everybody else around you wants exactly the same. But all you can do is to keep your most important ideas you have for yourself in my opinon even if it is a matter of time still they will succeed….
Why The Founder Of Paypal Wants You To Drop Out & Start Up! | TheBizcoachBlog I’ve read not a single write-up in your blog. You’re a large lad