This post builds on the Dhando Investor post which with 20 comments was getting a bit cumbersome. Deepak Nadiger made an interesting comment and I wanted to respond and decided to do it with a fresh post. The hurdle rate discussion is an opportunity to be innovative and delight customers. In the businesses I have built in the past these have been central themes and I believe that there is an opportunity to build interesting plays that scale fast using the approach of innovation and delighting customers. In 1985 in India we used this approach and in four years built a business which had revenues of $12 million.

Time is the enemy of IRR which is why startups need to work extra hard to create value quickly. In the case of PayPal start to IPO was two years ( four is a hard par for the course). The PayPal IPO was post dot com bubble. In fact it was in late 2001 which was really dot com winter and a very tough time to IPO.

As usual please chime in with your views.

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