A Founding Manager (aka Project Entrepreneur) Has the Motivation, Knowledge, and Power to Keep His Firm Innovative

In my Openness book, I discuss “project entrepreneurs” who overlap considerably with what is called “founder mode” in the commentary quoted below.

(p. B4) People like Elon Musk and Steve Jobs at times seemed to have a je ne sais quoi that allowed them to act and behave as leaders of their companies in ways that would have tripped up mere mortals.

This past week, Silicon Valley put a name to it: “Founder Mode.”

It’s a term coined by Paul Graham, co-founder of Y Combinator, an influential startup incubator in the San Francisco Bay Area. He wrote an essay this month gaining a lot of attention in tech circles that pits his “Founder Mode” against what he calls “Manager Mode.”

Graham tries to put his finger on the special relationship entrepreneurs have with their companies that he argues outsiders just lack.

. . .

In a podcast late last year, Chesky, who co-founded Airbnb originally as AirBed and Breakfast, talked about the three traits he said better equip a company’s founder over an outside manager.

“They’re the biological parent—you can love something but when you’re the biological parent of something, like, it came from you, it is you, there’s a deep passion and love,” Chesky said. “The second thing a founder has is they have the permission…like I can’t tell another child what to do but if they were my child I probably could.”

This empowers a founder to make dramatic changes, such as rebranding.

And finally, according to Chesky, a founder knows how the company was built in the first place. “You know how to rebuild it, you know the freezing temperature of a company, you know at what temperature it melts,” he said.

. . .

Before publishing his essay, Graham ran it by a few tech titans, including Musk. After it was published, Musk weighed in on X with his own endorsement: “Worth reading.”

For the full commentary see:

Tim Higgins. “Micromanaging Is Cool Again in Tech.” The Wall Street Journal (Monday, Sept. 9, 2024): B4.

(Note: ellipses between paragraphs added; ellipsis within paragraph in original.)

(Note: the online version of the commentary has the date September 7, 2024, and has the title “With ‘Founder Mode,’ Silicon Valley Makes Micromanaging Cool.” The French phrase is italicized in the print version.)

My book, mentioned above, is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Musk Will Downsize Government and “Remove Absurd Regulations”

(p. B4) If Elon Musk becomes chief red-tape cutter in a second Trump administration, he is already giving a taste of what’s to come.

. . .

. . ., he often talks about how regulations can be like little strings that collectively tie down a giant like Gulliver, and strip us of our freedoms.

. . .

A Trump victory could give the country, according to Musk, a rare opportunity to clean house unseen since the Reagan administration’s massive deregulation effort.

“It’s been a long time since there was a serious effort to reduce the size of government and to remove absurd regulations,” Musk said during an appearance this month at the “All-In Podcast” conference.

While he skirted what exactly he would do, Musk made it clear that the EPA was the kind of agency on his mind. He pointed to a proposed fine of about $148,000 by the EPA announced this month over claims of SpaceX improperly discharging deluge water and spilling liquid oxygen at its South Texas launchpad.

Musk called it an example of “irrational regulation” and compared the company’s actions to dumping drinking water on the ground. “There was no actual harm done,” he said. “It was just water to cool the launchpad during lift off.”

. . .

Neuralink announced a regulatory win this past week. Musk’s brain-implant company said the Food and Drug Administration had awarded its experimental Blindsight microchip, which aims to restore sight, a special designation intended for medical devices aimed at treating life-threatening or irreversible debilitating conditions.

If successful, it sounds like the stuff out of TV’s “Star Trek: The Next Generation.”

“Provided the visual cortex is intact, it will even enable those who have been blind from birth to see for the first time,” Musk said this past week.

It is those kinds of advancements that excite his fans and why it can be so hard to rein him in amid public support.

For the full commentary see:

Tim Higgins. “As Musk Picks Fights, Stakes Are Rising.” The Wall Street Journal (Monday, Sept. 23, 2024): B4.

(Note: ellipses added.)

(Note: the online version of the commentary has the date September 21, 2024, and has the title “The Fight Elon Musk Is Ready to Pick in a Trump Administration.”)

Musk’s Predictions Are “Just Guesses,” Part of “a Conversation”

(p. B4) In the past, Musk has suggested that sometimes people read too much into what he says.

“People shouldn’t hold me to these things,” Musk said in 2022 during a TED Talk interview. “What tends to happen is I’ll make some like, you know, best guess, and then people in five years, there’ll be some jerk that writes an article: ‘Elon said this would happen, and it didn’t happen. He’s a liar and a fool.’”

“It’s very annoying when that happens,” Musk continued. “These are just guesses, this is a conversation.”

For the full commentary see:

Tim Higgins. “How Misunderstood Is Tesla’s Musk?” The Wall Street Journal (Monday, June 24, 2024): B4.

(Note: the online version of the commentary has the date June 22, 2024, and has the title “Is Elon Musk Misunderstood, or Understood All Too Well?”)

Starlink Gives Remote Tribes Voice, Information, and Fast Help in Emergencies

(p. 12) . . . Starlink, . . . has quickly dominated the satellite-internet market worldwide by providing service once unthinkable in . . . remote areas. SpaceX has done so by launching 6,000 low-orbiting Starlink satellites — roughly 60 percent of all active spacecraft — to deliver speeds faster than many home internet connections to just about anywhere on Earth, including the Sahara, the Mongolian grasslands and tiny Pacific islands.

Business is soaring. Mr. Musk recently announced that Starlink had surpassed three million customers across 99 countries. Analysts estimate that annual sales are up roughly 80 percent from last year, to about $6.6 billion.

. . .

. . . perhaps Starlink’s most transformative effect is in areas once largely out of the internet’s reach, like the Amazon. There are now 66,000 active contracts in the Brazilian Amazon, touching 93 percent of the region’s legal municipalities. That has opened new job and education opportunities for those who live in the forest. It has also given illegal loggers and miners in the Amazon a new tool to communicate and evade authorities.

One Marubo leader, Enoque Marubo (all Marubo use the same surname), 40, said he immediately saw Starlink’s potential. After spending years outside the forest, he said he believed the internet could give his people new autonomy. With it, they could communicate better, inform themselves and tell their own stories.

Last year, he and a Brazilian activist recorded a 50-second video seeking help getting Starlink from potential benefactors. He wore his traditional Marubo headdress and sat in the maloca. A toddler wearing a necklace of animal teeth sat nearby.

They sent it off. Days later, they heard back from a woman in Oklahoma.

. . .

Allyson Reneau’s LinkedIn page describes her as a space consultant, keynote speaker, author, pilot, equestrian, humanitarian, chief executive, board director and mother of 11 biological children. In person, she says she makes most of her money coaching gymnastics and renting houses near Norman, Okla.

. . .

Enoque was asking for 20 Starlink antennas, which would cost roughly $15,000, to transform life for his tribe.

. . .

[Allyson Reneau said] “One tool would change everything in their life. Health care, education, communication, protection of the forest.”

Ms. Reneau said she bought the antennas with her own money and donations from her children.

. . .

The internet was an immediate sensation.

. . .

They spend lots of time on WhatsApp. There, leaders coordinate between villages and alert the authorities to health issues and environmental destruction. Marubo teachers share lessons with students in different villages. And everyone is in much closer contact with faraway family and friends.

To Enoque, the biggest benefit has been in emergencies. A venomous snake bite can require swift rescue by helicopter. Before the internet, the Marubo used amateur radio, relaying a message between several villages to reach the authorities. The internet made such calls instantaneous. “It’s already saved lives,” he said.

For the full story see:

Jack Nicas and Victor Moriyama. “The Internet’s Final Frontier: Remote Amazon Tribes of Brazil.” The New York Times, First Section (Sunday, June 2, 2024): 1 & 12-13.

(Note: ellipses, and bracketed words, added.)

(Note: the online version of the story was updated June 21 [sic], 2024, and has the title “The Internet’s Final Frontier: Remote Amazon Tribes.”)

Biden’s Tax and Regulation Plans Shift “Demonized” Silicon Valley Toward Trump

(p. B1) In 2021, David Sacks, a prominent venture capital investor and podcast host, said former President Donald J. Trump’s behavior around the Jan. 6 [2021] riot at the U.S. Capitol had disqualified him from being a future political candidate.

At a tech conference last week, Mr. Sacks said his view had changed.

“I have bigger disagreements with Biden than with Trump,” the investor said. Mr. Sacks said he and his podcast co-hosts were working on hosting a fund-raiser for Mr. Trump, which could include an interview for their “All In” show.  . . .

Such public support for Mr. Trump used to be taboo in Silicon Valley, which has long been seen as a liberal bastion. But frustration with Mr. Biden, Democrats and the state of the world has increasingly driven some of tech’s most prominent venture capitalists to the right.

. . .

(p. B5) Delian Asparouhov, an investor at Founders Fund, the investment firm founded by Mr. Thiel, recently marveled at how much the political winds had shifted. This month, Mr. Trump made a virtual appearance at a venture capital conference in Washington. There, he thanked attendees for “keeping your chin up” and said he looked forward to meeting them.

“Four years ago you had to issue an apology if you voted for him,” Mr. Asparouhov wrote on X.

Mr. Sacks, Mr. Palihapitiya and Founders Fund did not respond to a request for comment. Sequoia Capital declined to comment.

The comments and activity by the group of tech investors are particularly noticeable given Silicon Valley’s blue background.

. . .

The . . . “techlash” against Facebook and others caused some industry leaders to reassess their political views, a trend that continued through the social and political turmoil of the pandemic.

During that time, Democrats moved further to the left and demonized successful people who made a lot of money, further alienating some tech leaders, said Bradley Tusk, a venture capital investor and political strategist who supports Mr. Biden.

“If you keep telling someone over and over that they’re evil, they’re eventually not going to like that,” he said. “I see that in venture capital.”

That feeling has hardened under President Biden. Some investors said they were frustrated that his pick for chair of the Federal Trade Commission, Lina Khan, has aggressively moved to block acquisitions, one of the main ways venture capitalists make money. They said they were also unhappy that Mr. Biden’s pick for head of the Securities and Exchange Commission, Gary Gensler, had been hostile to cryptocurrency companies.

The start-up industry has also been in a downturn since 2022, with higher interest rates sending capital fleeing from risky bets and a dismal market for initial public offerings crimping opportunities for investors to cash in on their valuable investments.

Some also said they disliked Mr. Biden’s proposal in March [2024] to raise taxes, including a 25 percent “billionaire tax” on certain holdings that could include start-up stock, as well as a higher tax rate on profits from successful investments.

Mr. Sacks said at the tech conference last week that he thought such taxes could kill the start-up industry’s system of offering stock options to founders and employees. “It’s a good reason for Silicon Valley to think really hard about who it wants to vote for,” he said.

. . .

Mr. Andreessen, a founder of Andreessen Horowitz, a prominent Silicon Valley venture firm, said in a recent podcast that “there are real issues with the Biden administration.” Under Mr. Trump, he said, the S.E.C. and F.T.C. would be headed by “very different kinds of people.” But a Trump presidency would not necessarily be a “clean win” either, he added.

Last month, Mr. Sacks, Mr. Thiel, Elon Musk and other prominent investors attended an “anti-Biden” dinner in Hollywood, where attendees discussed fund-raising and ways to oppose Democrats, a person familiar with the situation said. The dinner was earlier reported by Puck.

For the full story see:

Erin Griffith. “Silicon Valley Notables Are Shifting to the Right.” The New York Times (Friday, May 24, 2024): B1 & B5.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date May 22, 2024, and has the title “Some of Silicon Valley’s Most Prominent Investors Are Turning Against Biden.”)

SpaceX Embraces Fast Failures as the Best Path to Fast Fixes

(p. B1) SpaceX’s Starship spacecraft pulled off an extended flight through space on its third test mission, marking major progress for a vehicle that could one day transport astronauts to the moon and beyond.

Shortly after launching the nearly 400-foot-tall rocket Thursday [March 14, 2024], SpaceX successfully separated the booster from the spacecraft, which proceeded to fly for around an hour before it was lost while re-entering Earth’s atmosphere, according to a company livestream.

The mission advanced much farther than the company’s previous two Starship test flights. It was a milestone for a vehicle that is a centerpiece of SpaceX’s commercial ambitions, NASA’s space exploration plans, and company founder Elon Musk’s goal of one day sending humans to Mars.

. . .

(p. B4) Current and former SpaceX leaders have said the company embraces failing fast to try to rapidly identify fixes and improve. The company took 63 corrective actions to address issues that emerged during the initial launch, and an additional 17 following the second, according to the FAA.

For the full story, see:

Micah Maidenberg. “SpaceX Starship’s Third Test Mission Marks Major Progress Before Explosion.” The Wall Street Journal (Friday, March 15, 2024): B1 & B4.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story was updated March 14, 2024, and has the title “SpaceX’s Starship Makes Major Progress in Third Flight Test.”)

Musk Calls German Anti-Electric-Vehicle Ecoactivists “Dumber Than a Doorstop”

(p. B1) GRÜNHEIDE, Germany—When Tesla opened its first full-scale European factory in this sleepy community outside of Berlin, Elon Musk was feted as a hero, the chancellor gave a speech and workers cheered the rollout of new Model Ys.

On Wednesday [March 13, 2024], almost two years to the day later, Musk was back, this time to cheer up workers after an act of sabotage by suspected eco-activists shut down the plant for more than a week.

. . .

Tesla didn’t respond to requests for comment on the various incidents. In a post on his X social-media platform, Musk has called the eco-activists “dumber than a doorstop” for their criticism of electric vehicles.

As the plant’s managers and workers gathered in a tent on the factory grounds for a “team huddle” on Wednesday, Musk could be seen carrying his son. Hoisting the boy onto his shoulders amid calls of “Elon, Elon,” he shouted back: “They can’t stop us!” and “Ich liebe Dich!”—German for “I love you.”

As he left, reporters asked him whether he was still committed to expanding the plant and producing vehicles in Germany.

“Yes, absolutely,” he said. “Germany rocks!”

For the full story, see:

William Boston. “Tesla Faces Blowback in Germany.” The Wall Street Journal (Friday, March 15, 2024): B1-B2.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date March 14, 2024, and has the title “Elon Musk’s Plans to Conquer Europe Collide With Germany’s Culture Wars.”)

Musk Fights for Right of Individuals in Sweden to Enter into Contracts

(p. A15) Sweden is the West’s most corporatist society. Powerful interest groups, often described as “social partners,” use collective bargaining to set rents for apartments and wages earned in labor markets.

This model is being challenged by Tesla CEO Elon Musk, who is refusing to enter into collective wage agreements with Swedish trade unions. The unions have responded with strikes and blockades on Tesla operations in the country.

. . .

Liberal democracy presupposes fundamental rights and freedoms. Some of these, such as the freedoms of opinion, press and expression, are enshrined in the Swedish constitution. But the right of the individual to enter into contracts isn’t similarly guaranteed.

. . .

Liberal democracy is being threatened globally by growing populist and illiberal movements. The government in Stockholm should counteract this threat by strengthening people’s individual rights and freedoms in the Swedish constitution. If this happens, Mr. Musk will have given Sweden a great gift.

For the full commentary, see:

Lars Jonung. “Musk Fights Sweden’s Unions.” The Wall Street Journal (Wednesday, February 14, 2024): A15.

(Note: ellipses added.)

(Note: the online version of the commentary has the date February 13, 2024, and has the same title as the print version.)

Zuckerberg Praises Musk for Not Being Too Shy to Reduce Staff at X

(p. R3) At the beginning of the year, many were quick with predictions of X’s demise, in part because of the dramatic staff cuts made by Musk.

. . .

Perhaps the biggest impact of Musk’s staff reductions was provoking a broader conversation about staffing needs and overall productivity throughout Silicon Valley.

Even rival Mark Zuckerberg praised Musk for removing layers of management. “I also think that it was probably good for the industry that he made those changes because my sense is that there were a lot of other people who thought that those were good changes but who may have been a little shy about doing them,” the Facebook co-founder said.

For the full commentary, see:

Tim Higgins. “Elon Musk as Technoking? More Like DramaKing.” The Wall Street Journal (Monday, Dec. 18, 2023): R3.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date December 16, 2023, and has the title “In the Year of a DramaKing: Elon Musk.”)

“Context Switching Is the Mindkiller”

(p. B7) “My mind often feels…like a very wild storm,” Musk said Wednesday in the same interview. “I’m a fountain of ideas. I mean I have more ideas than I could possibly execute. So I have no shortage of ideas. Innovation is not a problem, execution is a problem.”

He was speaking at the New York Times DealBook Summit on Wednesday [Nov. 29, 2023] in New York City, a high-profile event run by one of the media juggernauts he has been openly needling.

He was only there, Musk said, because of his friendship with the host, Andrew Ross Sorkin. Or, as Musk called him on stage, “Jonathan.”

“I’m Andrew,” Sorkin said.

. . .

“Context switching is the mindkiller,” he tweeted the day after Thanksgiving, a favorite axiom of his that mixes a quote from the sci-fi book “Dune” with computer lingo for multitasking.

In “Dune,” fear is the mindkiller—the idea that the primal reaction to fear is to recoil rather than go forward. In essence, fear is an obstacle to be overcome to reach success. For Musk, the challenge to overcome is being able to handle switching between rockets and tweets and cars and brain computers and drilling machines and superhuman artificial intelligence.

. . .

In the moment that ricocheted around the world, Musk told advertisers unhappy with him to go f— themselves, saying he was unwilling to pander to their “blackmail” and warned they threatened to bankrupt the social-media platform he acquired slightly more than a year ago. And if they were successful, he warned, “See how Earth responds to that.”

. . .

To Musk, the likes of Disney are trying to squelch his freedom of speech. To others, they are simply exercising their rights to walk away.

“Go. F—. Yourself,” Musk said on stage to a stunned audience. “Is that clear? I hope it is. Hey, Bob, if you’re in the audience.”

For the full commentary, see:

Tim Higgins. “Storm in Musk’s Mind Casts Shadow on Vehicle Launch.” The Wall Street Journal (Monday, Dec. 4, 2023): B7.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the commentary has the date December 2, 2023, and has the title “The Storm Brewing Inside Elon Musk’s Mind Gets Out.” The 7th, 8th, and 9th sentences quoted above, appear in the online, but not in the print, version of the commentary. Also, the online version of the sentence on being able to handle switching, contains seven added words of detail.)

The science-fiction Dune book mentioned above is:

Herbert, Frank. Dune. Deluxe ed. New York: Ace, 2019 [1st ed. 1965].

Elon Musk Is Not Antisemitic; He Is Anti the Censorship of “a Specific Jewish Group, the Anti-Defamation League”

(p. A15) Major papers like the Journal, New York Times and Washington Post report that advertisers are again fleeing the service previously known as Twitter because, these papers explain, owner Elon Musk endorsed “an antisemitic post.”  . . .

. . .  A user @breakingbaht expressed a lack of sympathy for “Jewish communities” (emphasis added) that allegedly encouraged “the exact kind of dialectical hatred against whites that they claim to want people to stop using against them” while supporting immigration of “hordes of minorities.”

After Mr. Musk responded “You have said the actual truth,” the New York Times cited equally undefined “Jewish groups” as detecting in the original tweet a common antisemitic trope. In one Times account, the phrase “Jewish communities” was transmuted into “Jewish people.”

. . .

The Journal examined the context and suggested Mr. Musk was really exercised about a specific Jewish group, the Anti-Defamation League, which has largely adopted the identitarian and censorship agendas of the progressive left.

For the full commentary, see:

Holman W. Jenkins, Jr. “BUSINESS WORLD; How Elon Became an ‘Antisemite’.” The Wall Street Journal (Wednesday, Nov. 29, 2023): A15.

(Note: ellipses added. In the original version, the phrase “Jewish communities” (but not the rest) is emphasized by italics.)

(Note: the online version of the commentary was updated November 28, 2023, and has the title “BUSINESS WORLD; Opinion: How Elon Became an ‘Antisemite’.”)