We have many famous failures. The Global Corporation failed, the first computer made by Apple Newton failed. But these were all good ideas so it's important to see failure as learning. The best way to learn is to fail. I don't want you to die crossing a street but if you cross the street and a car almost kills you, you’ll learn.
That's how you learn. If you are in a room and people tell you one thousand times how to cross the street you don't learn how to cross the street. The first time you cross it, you learn not to cross the street because a car comes really close and you learn you are not supposed to do that.
and you are supposed to be aware that there are in china that are crazy motorcycles everywhere right. So failure is very important for learning. So the first message is don't call it failure, call it learning. That's really how venture capitalists look at failure. If you failed, they want to see how do you fail. Failure doesn't say anything, if you created a unicorn, that a one-billion-dollar company and then you fail. That's probably really bad, that's really bad. That means that you were not learning anything.
I mean how can you possibly waste so much money, then he looks really bad. But you were in the garage and you try to build something and you use two hundred thousand dollars and you failed. I think venture capitalist are interested in understanding what you learn. Maybe the technology was right, you know, it just that what you did in those six months wasn't the right thing.
The technology maybe was right maybe the deal was right and maybe this venture capitalist will give money for the same idea in the same place. Because you learn something. The second time, it would work. Steve Jobs when he left Apple and tried to do Next there was a failure he wasn't making money out of that but he learned so that's a recurring theme you know sometimes you fail but the failure is exactly what you need to learn. So that's the first thing.
The second thing, of course, that you have to be in the right society I keep saying this society is important. In Europe even if you fail for a very good reason, people don't like you. The vast majority of failures that have seen were bad luck.
And the vast majority of success stories that have seen was good luck that's when I especially when I talk to young people I asked them what is the number one factor for success and they go to the venture capital money, oh, marketing, oh the team and I tell them the number one factor for success is luck. Okay, a lot of these people were just lucky if you ask me.
Google was the best searching in my opinion. I started using it before it was famous. But think Facebook there were other things doing the same thing, why Facebook became so popular? Luck, I think, just luck.
There’s nothing particular that Zuckerberg or the other founders did, it was just luck. People started using it. Half of us just started using it in other places. And then Zuckerberg has the right connections and you know it so there's so many of these stories were just luck.
Well the same is true also failure. Sometimes it just bad luck, you know, in some cases, it’s really so obvious. I mean a friend is great artificial intelligence scientists that invented some great machine learning techniques. Unfortunately as a really annoying disease it's not going to die but of course the disease means he has to stop all the time taking medicines it cannot leave the house because his immune system gets very weak. When it takes this medicine, it’s obvious that's bad luck. so in some cases so obvious that it's just bad luck. But even when you don't have any personal tragedy.
I mean hey me I had a start-up for search engine in nineteen ninety nine and in my open was better than Google and mine was using artificial intelligence so bad luck what was my bad luck number one artificial intelligence had a really bad name in the nineties. Not my fault I didn't do anything wrong but it had a bad name so every time I was talking to eventual capitalist first I had to convince them that a is not bad but in those days every venture capitalist thought that the eyes back, now you know why I don't like venture capitalist okay?