| Dear Friends and All,
The KS Way to Scale Up a Compounder: The Case of WhatsApp, Phison and Naver
“I want to do one thing, and do it well.. On the internet there is a lot of flash and fad. What we are trying to build here is a long-term persistent sustainability.. The simplicity and utility of our product is really what drives us. We won’t stop until every single person on the planet has an affordable and reliable way to communicate with their friends and loved ones.. People starting companies for a quick sale are a disgrace to the Valley. If you run a startup and your goal is to get on techcrunch, you are doing it wrong. Next person to call me an entrepreneur is getting punched in the face by my bodyguard. Seriously. ”
– Jan Koum, WhatsApp founder
“We are our own worst enemy. We have to be patient and concentrate on the things we are doing.. The first question I asked them was, why do they want to create their own startups and be an entrepreneur. About 70% of them immediately replied me that they want to be rich. If that is the case, then I believe that 99% of them will fail.”
– KS Pua, CEO of Taiwan-listed Phison Electronics
How can 55 full-time employees (32 engineers) handle more than 19 billion messages and simultaneous connections per day (50 billion across seven platforms), equivalent to the total worldwide volume of SMS text messages, with speed, reliability and few technical errors (99.9% uptime)? Disruptions under load – whether coming from hardware failures (servers, network gear), software breakdowns or management misadventures in serving the growing user population base – has prevented the scalability of business model as the business grows bigger. The value destruction risk that comes from limitations in scaling up the core business inevitably diverts the attention of entrepreneurs to seek alternative growth paths, often self-dealing ones, resulting in fads and fashion in the business and tech world with no genuine compounders to last the distance in a bubbly valuation playground. Read more of this post |
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