Gurley recommends founders imagine setting advertising budget to zero to force creative thinking.
“I think if you run an exercise, which I mentioned in that blog post, where you say set marketing budget, the advertising budget to zero, now what are you going to do?”
Gurley explains Elon Musk uses time constraints like Jobs used physical constraints to force creative problem-solving.
“And I realized what he's doing is the exact jobs would tell them the phone has to be this thick.”
Gurley realized Elon uses time constraints like Jobs used physical constraints to force creative problem-solving.
“I realized what he's doing is the exact jobs would tell them the phone has to be this thick. And then their mind can only operate within that constraint. And Elon's doing that with time.”
Gurley describes Collison probing how Elon uses extreme time constraints to force creative problem-solving.
“I think the world has been trying to figure out how Elon does what he does, especially from a leadership standpoint.”
Gurley explains VCs are limited to about two boards yearly so cannot fund everything above hurdle rate.
“And and so they don't have limited shot unlimited shots on goal. They can't fund everything that's over 12% hurdle rate.”