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Copyright©2014byPeterThiel
Allrightsreserved.
PublishedintheUnitedStatesbyCrownBusiness,animprintoftheCrownPublishingGroup,adivisionof
RandomHouseLLC,aPenguinRandomHouseCompany,NewYork.
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LibraryofCongressCataloging-in-PublicationData
Thiel,PeterA.
Zerotoone:notesonstartups,orhowtobuildthefuture/PeterThielwithBlakeMasters.
pagescm
1.Newbusinessenterprises.2.Newproducts.3.Entrepreneurship.4.Diffusionofinnovations.I.Title.
HD62.5.T5252014
685.11—dc232014006653
HardcoverISBN:978-0-8041-3929-8
eBookISBN:978-0-8041-3930-4
BookdesignbyRalphFowler/rlfdesign
GraphicsbyRodrigoCorralDesign
IllustrationsbyMattBuck
CoverdesignbyMichaelNagin
Additionalcreditsappearonthispage,whichconstitutesacontinuationofthiscopyrightpage.
v3.1
Contents
Preface:ZerotoOne
1TheChallengeoftheFuture
2PartyLikeIt’s1999
3AllHappyCompaniesAreDifferent
4TheIdeologyofCompetition
5LastMoverAdvantage
6YouAreNotaLotteryTicket
7FollowtheMoney
8Secrets
9Foundations
10TheMechanicsofMafia
11IfYouBuildIt,WillTheyCome?
12ManandMachine
13SeeingGreen
14TheFoundersParadox
Conclusion:StagnationorSingularity?
Acknowledgments
IllustrationCredits
Index
AbouttheAuthors
Preface
ZEROTOONE
EVERY MOMENT IN BUSINESS happens only once. The next Bill Gates will not build an
operating system. The next Larry Page or Sergey Brin won’t make a search
engine.AndthenextMarkZuckerbergwon’tcreateasocialnetwork.Ifyouare
copyingtheseguys,youaren’tlearningfromthem.
Of course, it’s easier to copy a model than to make something new. Doing
whatwealreadyknowhowtodotakestheworldfrom1ton,addingmoreof
somethingfamiliar.Buteverytimewecreatesomethingnew,wegofrom0to1.
The act of creation is singular, as is the moment of creation, and the result is
somethingfreshandstrange.
Unless they invest in the difficult task of creating new things, American
companieswillfailinthe future no matter how big their profits remain today.
Whathappenswhenwe’vegainedeverythingtobehadfromfine-tuningtheold
lines of business that we’ve inherited? Unlikely as it sounds, the answer
threatenstobefarworsethanthecrisisof2008.Today’s“bestpractices”leadto
deadends;thebestpathsarenewanduntried.
In a world of gigantic administrative bureaucracies both public and private,
searching for a new path might seem like hoping for a miracle. Actually, if
Americanbusinessisgoingtosucceed,wearegoingtoneedhundreds,oreven
thousands, of miracles. This would be depressing but for one crucial fact:
humansaredistinguishedfromotherspeciesbyourabilitytoworkmiracles.We
callthesemiraclestechnology.
Technologyismiraculousbecauseitallowsustodomorewithless,ratcheting
upourfundamentalcapabilitiestoahigherlevel.Otheranimalsareinstinctively
driventobuildthingslikedamsorhoneycombs,butwearetheonlyonesthat
can invent new things and better ways of making them. Humans don’t decide
whattobuildbymakingchoicesfromsomecosmiccatalogofoptionsgivenin
advance;instead,bycreatingnewtechnologies,werewritetheplanoftheworld.
Thesearethekindofelementarytruthsweteachtosecondgraders,buttheyare
easytoforgetinaworldwheresomuchofwhatwedoisrepeatwhathasbeen
donebefore.
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