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PayPal was started in 1998 by a group of ambitious entrepreneurs with a lofty goal of digitizing the financial world.

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Co-founder Peter Thiel said "There was this question about financial cryptography. Could you start a new currency? Could you start some new secure financial product? And so that was sort of the intellectual set of ideas that we were exploring."

EBay had emerged as the leading online marketplace, and PayPal simplified the transaction by facilitating the exchange of money.

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However, Peter didn't love these users. As he says , "Sellers​ ​flocked​ ​to​ ​PayPal,​ ​and​ ​they​ ​caught​ ​us​ ​by​ ​surprise.​ ​ ​Who​ ​were​ ​these​ ​users?​ ​ ​Not the​ ​ones​ ​we​ ​imagined."  Despite these users being different than they originally imagined, they listened to their users and tweaked the product accordingly.  

Peter believes, "I do think that for a really valuable business you have at some point try to achieve escape from the competition. The benefit is that you achieve escape velocity from the black hole that is hyper competition."

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Reid Hoffman, co-founder of LinkedIn, shares a similar sentiment: "​I​ ​believe​ ​that if​ ​you​ ​want​ ​your​ ​company​ ​to​ ​scale,​ ​it’s​ ​not​ ​enough​ ​to​ ​beat​ ​the​ ​competition.​ ​You​ ​have​ ​to break​ ​free​ ​of​ ​the​ ​competition​ ​altogether."

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