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Interview with Max Levchin (nytimes.com)
80 points by misotaur on Dec 11, 2016 | hide | past | favorite | 62 comments


The glorification of stress in start-ups is an interesting thing. I've always wonder if it's because it's a mental thing. If an industry glorified their employees physically harming themselves, it'd be horrific.

It took me a while to learn, but working hard doesn't equate to being stressed, and being stressed is more than likely to result in mediocre results.


I don't think he's referring to "working hard." He's referring to how you behave in hard times, e.g. from the article:

"It’s about having compassion even when you feel you may not have the strength for it in the moment."


I don't read the article as glorifying stress, merely acknowledging it.

Edit: on closer inspection, this is an example of the uncanny power of titles to focus attention, magician-style, on only one thing. Certainly Levchin didn't write the title and the interviewer probably didn't either. We shouldn't pick the most provocative detail and then react exclusively to that.

I can almost guarantee that if the headline had singled out his fierce astronomer grandmother instead, the comments here would be about fierce astronomer grandmothers. Which come to think of it would be a lot better.


I agree with you - coming back and rereading the article, I didn't have nearly the same reaction. Originally I focused exclusively on that single segment, which my fault.


Right. This is a classical example of priming.


I think its a strange distinction from most west coast folks. I remember at school it was pretty common for people to have huge courseloads who would generally downplay their stress/effort. On the flip side, my friends from the east coast thought it was some kind of rite of passage to talk about how their heavy workloads and how hard they were working all the time. Similar for coworkers from France.


I would argue that if you're not engineering for reduced stress, you're doing it wrong. IMO - that means bursts of stress, possibly, to make sure you build things right the first time. In my experience, prologed periods of stress are a symptom of poor process, poor communication, giving in to feature creep, and other such negative patterns.


Startups have always glorified stress it is simply part of the modus operandi. Stress is part of life in general and a high-paced, uncertain and extremely competitive work environment compounds this.

I think Max's point in discerning between an all-nighter and continued and long-term stress is very smart. Everyone has and can pull an all nighter, but dealing with problems for weeks on end is a rare trait and most will break. Hence this is a quality he and most in this business should seek: can the candidate handle prolonged stress? If so, he's built for the challenge.

There is nothing impressive about someone writing code to fix a big for 24 hours straight. This doesn't move the needle forward at all.


I think his go-to "how did you handle layoffs" interview question is interesting and probably a good heuristic, but I would think that a discussion of individual firings rather than mass layoffs would provide a better data point for evaluating managers.

Layoffs are bad if they involve a lot of people, no question about it, especially if there's been a sense of dread around them for the days/weeks leading into the announcement. But at the end of the day, "we're laying you off" means one or more of: "our business is not healthy enough to support the team we think we need" and/or "we made a poor managerial decision and mistakenly hired a whole bunch of the wrong people" and/or "the nature of our business is changing and we don't need you to do what you currently do".

Telling people they don't have a job sucks, but it's a lot harder to fire individuals for underperformance, especially if they've been trying hard and don't want to go....they like their jobs and they don't want to deal with the finality of "we don't want you to work here anymore, $name."


Can I get a tl;dr on who is Max Levchin? I'm surprised to see this article on the FP of HN with such an empty content. He was also giving a crypto prize at last year Real World Crypto.


You noticed his crypto involvement - as the original CTO of PayPal he was known for his anti-fraud measures.


Founding CTO of PayPal.


[flagged]


> Not sure how you're in the industry without knowing who this guy is.

Please edit dismissive personal swipes out of your comments here.

Also, not everyone here is "in the industry".


>> Peter Thief

Not sure whether intentional or not


Not sure if indirect Freudian slip or typo. Corrected. In any case, Peter is a brilliant guy. No doubt about that.


Well...he helped steal the election right? ;)

Jokes aside, seems his popularity on HN did drop with his endorsement of Trump.


That's because SV is so knee-deep in their own world / bubble, clarity and perspective is something many simply do not posses. It's a shame really.


> Not sure how you're in the industry without knowing who this guy is.

Max is one of a handful of people who had successful startups of varying long-term influence ten years ago. Knowing his name is hardly a prerequisite for working in this industry, unless this guy happens to work at Paypal, in which case yeah it'd be weird not to know.

Myself, I use Paypal maybe a couple of times a year.

Honestly I'm kinda envious of folks who have been able to stay out of the startup celebrity culture and the glorification of founders at the expense of the thousands of employees and innovators who create value.


> Knowing his name is hardly a prerequisite for working in this industry, unless this guy happens to work at Paypal, in which case yeah it'd be weird not to know.

I'd venture to guess that employees at any of the PayPal Mafia[1] companies are reasonably likely to recognize the names of most PPM folks.

[1] https://en.wikipedia.org/wiki/PayPal_Mafia


Max changed the way money is sent for better or for worse. He changed the landscape along with Thiel and Musk. PayPal ended up breeding a dozen or so entrepreneurs who have similarly changed the game. How this is not monumental is beyond me.


>>Not sure how you're in the industry without knowing who this guy is.

I caution against such assumptions that every one on HN is privy to SV mythology.


> He wrote all of PayPal's fraud algorithms and built the entire platform.

And that's pretty difficult for a giant lumberjack!


I think that no-one is capable of handling stress for long periods of time without huge side-effects, for example obvious health problems. But in the end guys like Levchin are capitalists not health-gurus, as long as those start-up people are willing to sacrifice their health so that their investors can get their money back multiplied by 50 or 100 then everyone is happy. The start/up founders knew what they were getting into (or at least I hope so), investors like Levchin do not care one iota about what said start-up founders will do with their lifes after all is said and done (i.e. after everyone has cashed out)


> investors like Levchin do not care one iota about

You can't possibly know all the iotas someone else cares about. Please don't give into cheap attackiness here, especially not when mentioning a specific person.

(Edit: I originally wrote "what iotas", but "all the iotas" perhaps makes the point clearer.)

We detached this subthread from https://news.ycombinator.com/item?id=13154540 and marked it off-topic.


> But the right thing to do is to go be there with the people you just laid off and help them cope, help them pack and tell them that you’re going to do your best to hire them back once the company’s on good footing. It’s about having compassion even when you feel you may not have the strength for it in the moment.

I read this paragraph from the article twice, I think it backs my point, meaning that people like Levchin put their company's and investors' interests first and foremost before the interests of people which are their employees (I generally tend to ignore the "compassion" in speeches like this, I cannot pay rent or my bills with "compassion" once I'm out of a job).

I'm not saying that what Levchin (or any-other person in his situation) does is bad, because that's what capitalism is all about, I just wanted to say that we shouldn't foul ourselves in thinking that the employer-employee relationship is a "Hare Krishna"-type of thing.


That's a very different point than the one I reacted to. And it's so uncharitable a reading of that paragraph that I wonder if one could invert its meaning any further.

I have no idea if Levchin meant what he said, but I'm pretty sure he said what he said.


> You can't possibly know all the iotas someone else cares about. Please don't give into cheap attackiness here, especially not when mentioning a specific person.

Expanding on your point:

While it may be reasonable to extrapolate (provisionally) some of the iotas $NAME cares about in his role as an investor, care should be taken to avoid conflating $NAME-the-investor with $NAME-the-person, about whom there is probably less evidence from which to draw conclusions.

This is particularly important to keep in mind since, even though $NAME-the-person likely influences the behavior of $NAME-the-investor, there are very good reasons for $NAME to avoid signaling the extent of that influence.


    “[Mayer] is by far the hardest working person in Silicon Valley,”
    Max Levchin told Pando’s Sarah Lacy. “She gave birth to twins and
    then traded emails with me about a feature of a product she was
    launching in a week, within, from what I could tell, 20 minutes
    of giving birth,” said the PayPal cofounder, speaking before a
    group of people. 

    The audience tittered. “She is intensely committed to her cause.
    She’s awesome,” said Levchin, who is now devoted mainly to a new
    consumer finance startup called Affirm. He also talked about how
    much he respects Mayer for being a pioneer and one of the few
    women to ascend to such a high level in tech. “She is a woman
    who rose through the ranks in the male-dominated world,” he
    said. “I think that’s pretty special.”

    Levchin’s comments do more than just celebrate his friend,
    though. Applauding such an extreme work ethic sends a pretty
    clear message to those interested in growing and developing 
    their careers: Work all the time and give up everything if
    you want to succeed. 
http://www.huffingtonpost.com/entry/marissa-mayer-overwork_u...


This is an excellent illustration of the point dang made: Here you have a Huffington Post editor getting extremely close to putting words into someone else's mouth. It's a dark pattern in journalism.


OK, let's cut it down to just the quote from Levchin:

    "[Mayer] is by far the hardest working person in Silicon Valley.
    She gave birth to twins and then traded emails with me about a
    feature of a product she was launching in a week, within, from
    what I could tell, 20 minutes of giving birth. She is intensely
    committed to her cause. She’s awesome."
Per Levchin: Marissa Meyer is awesome because she emailed Max Levchin about a product twenty minutes after giving birth.

You can draw whatever conclusions you want to from that, but that sounds wildly unhealthy to me, and is nothing I would ever want anyone working for me—or anyone I work for—to venerate.


You completely changed the subject by hopping to a nearby prospective outrage and then getting outraged about it. And then you rewrote the outrage into your own higher-snark phrase, just in case the reader didn't get how outraged you are.

That's not a convincing response to a call for more careful thinking. In fact, it's arguably not thinking at all. It's a game of labels, seeking an emotional payoff.


paganel: "investors like Levchin do not care one iota about what said start-up founders will do with their lifes after all is said and done"

dang: "You can't possibly know what iotas someone else cares about"

aaronbrethorst: Here's a quote that describes what Levchin cares about.

greglindahl: "Here you have a Huffington Post editor getting extremely close to putting words into someone else's mouth"

aaronbrethorst: Here's just the quote that describes what Levchin cares about.

dang: "You completely changed the subject"

I give up.


What have we learned here except the futility of guessing what famous people are thinking? dang is right to call out this vacuous behaviour.


The error is that your quote doesn't cover every iota he cares about. That's like searching a list to make sure it has no odd numbers in it and stopping when you find 42. We don't commonly make that kind of mistake while programming, but we do commonly make it while venting.

Many users come to internet forums to release pent-up emotional energy at their favourite symbolic targets. Monkeys do that too, only with feces rather than words, and not on the internet. We're all monkeys in this respect (edit: i.e. I don't mean to pick on you personally), so I don't believe HN can be immune to this (not for a while anyhow). But I do think we can do a little better.

The point here is not about Max Levchin, of course. The point is that feces-throwing is extremely predictable (that's part of its pleasure) and therefore extremely tedious. It cuts against the mandate of this site, which is to gratify intellectual curiosity—the polar opposite of tedium.


Insulting people as shit slinging monkeys and quibbling about yet unknown iotas reads like a transparent deflection from losing the argument. Look, I agree that outrage signalling and unsubstantiated imputation of value systems on specific people are generally toxic -- but how does this help? To any normal person not caught up in some weird startup death cult the quotes proffered suggest that Max Levchin is probably not about maximizing your physical and mental health at expense to your economic output. This seems fair to point out, even if it could have been formulated better.


> I agree that outrage signalling and unsubstantiated imputation of value systems on specific people are generally toxic -- but how does this help?

Since you agree with this, we agree on the only thing I'm arguing for.

What helps is (a) not doing it, (b) trying not to do it, and/or (c) being conscious that one is doing it— in that order.


I know Max and I know how before PayPal he started three failed companies, maxed out his credit cards and still pulled it off in the end. He slept in a sleeping bag under the desk, working 90-100 hr weeks. Rationalize all you want, but the end result is that Max writes in NY times and you write second level comments here...


> the end result is that Max writes in NY times and you write second level comments here

Please don't. It just poisons the well further, and is not a very positive way to defend somebody.


Sorry. BTW, you guys need a "collapse thread" feature: sometimes very long threads at the top obscure valuable first level comments below.


I believe that's what the [-] link in the comment header does.


Can someone explain to me why there are two [-] [-] links? Is this some bug in my browser (perhaps related to using the hckr news plugin to highlight recent comments?)


I suspect that's the case. Can you disable the plugin to see if the second goes away? Do they both work as expected? I've only ever seen one [-] at the end of the comment header.


Ah, yeah, that was it. Shouldn't have even had to ask.


Glad you got it sorted!


Doesn't matter who's writing where, and good for him that he chose to give up on some good things in life (I don't see anyone having a relevant social and personal life while working "90-100 hr weeks and sleeping under the desk") for future hypothetical gains, I was just trying to imply in my comment that demanding from others the same sacrifices is not ok from a human point of view even though it helps the financial bottom-line.


I've watched other people lose their friends, significant others, and marriages doing this. What's especially tragic, and far more common, when people do this in less impactful situations where they have far less to gain from success.


I can't believe this guy is into credit lending now. A bit sleezy tbh.


Shallow dismissals are a scourge on HN, and you made it worse with the snark of "I can't believe" and "this guy". In fact, with a single drive-by swipe you dismissed not only the article and someone's current project, but the entire person and an entire business sector to boot. That's a lot of dismissing—it reminds me of the fairy tale, "Seven in one blow." And it's harmful here, so please don't post like this.

If you have a case to make, you're welcome to make it substantively. If you can't do that or don't have time, please don't post at all. That way you at least won't degrade the thread.


Having known Max, I stand by my comment.


This comment isn't substantive—it merely alludes to substance.


Do you think retail credit lending isn't sleezy, dang?


Totally disagree. Lots of companies in lending are sleazy but Affirm seems the opposite. They mark-up at the start so you know what you are getting into. As far as I can see, Affirm does not want you to carry a balance and get trapped into the compounding interest nightmare. To be fair, I have not used the service, but this is what I gather from scoping out the company and product usage.


> A bit sleezy tbh.

Care to explain yourself? Are you confusing Levchin with Thiel? Granted they co-founded Paypal, but if you see Levchin's public talks (at SXSW, YC School etc), you'll see he's a very honest individual.

Affirm itself was formed because Max felt it wrong that Big Banks makes a majority of Profits on hidden, sleezy, fine-print fees. He says this so himself at the SXSW Talk (search in youtube).

Affirm touts itself as being honest and upfront about each and every charge or fee for their service.You can see it on their website.


There are only so many areas where having capital and calculating the same numbers that everyone else has differently can reap great profits. I think lending is one such area.


[flagged]


> What have you done aside from posting comments on HN?

Personal attacks are not allowed here and will get your account banned, so please don't.


appreciated


[flagged]


Affirm was initially supposed to be an alternative credit rating system based on social signals, and I believe credit ratings are highly regulated, so they pivoted to money lending, which is not as nice of a business. Levchin seems pretty desperate to be a successful serial entrepreneur and compares himself to other ex-Paypal people who have gone on to do big things[1]. This is despite having made a ton of money via investing in Yelp. He did manage to exit Slide to Google, but I don't know how successful of an acquisition that is considered within Google. There was that Sarah Lacy book called "Once You're Lucky, Twice You're Good" in which he was pretty prominently profiled, so successful serial entrepreneurship must be a prestige thing for him. I agree with you that retail money lending seems a bit desperate and unseemly, and definitely not on the same level as SpaceX or LinkedIn. It feels a bit like Square getting into payday loans to gin up revenue.

[1] https://pando.com/2013/08/08/with-another-6m-glow-is-max-lev...


I think you nailed it about his drive for successful serial entrepreneurship. Slide was sold for an ok price but was shut off. I don't know how Levchin fared at Google but I assume he probably didn't like working for someone else. I think he chose an area where it was almost guaranteed they would make a lot of money / perceived success. Affirm is definitely that, they will make a lot of money, but it is not far off from payday loans and rent-to-own furniture, no matter how good the PR is.


I always consider it a bad sign for a startup whenever their founder is interviewed on topics completely irrelevant to the company. This article had nothing to do with Affirm, and is only generic hiring advice that purports to be about startups, but in fact applies equally to a large established company (e.g., perseverance)


Successful startup founders are not one-dimensional business machines, they're usually smart people who have some kind of different view on the world (which enables them to succeed in the first place). As such, you can assume that they have interesting things to say.

I don't see why you'd deny them the right to speak about topics outside the narrow band of their startup.


Sorry, I know my comment is negative in nature. And I'm not saying someone can't or shouldn't talk publicly outside their narrow band. Just pointing out that when the few public interviews a founder gets are outside their actual venture, you begin to worry about the venture.


I'm not sure whether the relationship between startup success and public speaking engagements is established. Why do you think the relationship/correlation should be negative?




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