Parker Conrad: The Zenefits Redemption Story That Led to Rippling ($11B)
The Logan Bartlett Show: Untold stories from tech's inner circle
When Parker Conrad was forced to leave Zenefits as CEO, his board member from a16z told him, "you don’t have another company in you." Today, Parker’s next company, Rippling, is valued at over $11B.
In revisiting a particularly impactful episode from our podcast archives, here are a few lasting insights from my conversation with Parker…
Click here to view the episode transcript | Watch on Youtube | Listen on Spotify or Apple Podcasts
✉️ Episode Memo
What founders really want from VCs
Many VCs think their best value-add is enhancing the probability of founder success, but their real contribution is the brand value and validation they offer. Prospective employees are more likely to respond to emails, potential customers worry less about the company going under, and the public starts seeing your business as legit.
Plus, you can tell your family and friends that a prestigious firm invested in your company. While it starts as a psychological shift, the brand value inherently contributes to higher odds of success.
The most important job of a CEO
Typically, what can be achieved in a set timeframe far exceeds initial expectations, and it's your role to get people to accomplish more than they think they are capable of. To do so, Parker prioritizes hiring people with a chip on their shoulder.
People with a chip on their shoulder and no sense of humor can be insufferable, but the combination of the two is powerful. The difference in what two people can accomplish within the same timeframe is remarkably high, making it essential to seek out these rapid executors who have something to prove.
When facing fundraising struggles = traction wins
When raising a round at his early company, SigFig, Parker pitched over 70 VCs and eventually heard no’s from all of them. Frustrated with the fundraising process when starting Zenefits, Parker planned to seek only a small amount of capital and grow an immediate cash-flowing business. However, the early traction led Parker to raise much larger sums, and the capital flowed way easier.
More of Parker’s entrepreneurial lessons from growing four companies (including two that reached unicorn status) in the full episode.
⭐ Trailer
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