Book Review: "Zero to One"

"Zero to One: Notes on Startups, or How to Build the Future" by Peter Theil and Blake Masters is a revolutionary book that can help change the way entrepreneurs and founders view the world and markets around them. The book is derived from Blake Masters' class notes in Peter's CS183 class at Stanford 2012, you can even see the difference between the class notes and the book here. I both read the book and listened to it on Audible, for ~$15-$20, at ~200 pages / 4hrs, its an easy read with tremendous re-read value. I liked reading the book because of all the graphics, although I listened to a version recorded by Blake Masters, so that was cool. I recommend the book to hackers, inventors, founders, and CEOs alike, anyone thinking of inventing or going into business. Overall, I give the book 9 / 10 stars because I think it's an amazing set of philosophical anecdotes and hard learned business experiences. I've included the review on this blog because I consider this book to be part of my Startup series of reviews, helping hackers and inventors turn their ideas into successful ventures. The following are the chapters and sections of the book, to give you an idea of the historical scenarios and business philosophies covered in this book:

Preface: Zero to One

Chapter 1: The Challenge of the Future

Zero to One: The Future of Progress
Startup Thinking

Chapter 2: Party Like It's 1999

A Quick History of the '90s
Mania: September 1998 - March 2000
Paypal Mania
Lessons Learned

Chapter 3: All Happy Companies Are Different

Lies People Tell
Monopoly Lies
Competitive Lies
Ruthless People
Monopoly Capitalism

Chapter 4: The Ideology of Competition

War and Peace

Chapter 5: The Last Mover Advantage

Characteristics of Monopoly
1. Proprietary Technology
2. Network Effects
3. Economies of Scale
4. Branding
Building a Monopoly
Start Small and Monopolize
Scaling Up
Don't Disrupt
The Last Will Be First

Chapter 6: You are Not a Lottery Ticket

Can You Control Your Future?
Indefinite Pessimism
Definite Pessimism
Definite Optimism
Indefinite Optimism
Our Indefinitely Optimistic World
Indefinite Finance
Indefinite Politics
Indefinite Philosophy
Indefinite Life
Is Indefinite Optimism Even Possible?
The Return of Design
You Are Not a Lottery Ticket

Chapter 7: Follow the Money

The Power Law of Venture Capital
Why People Don't See The Power Law
What To Do With The Power

Chapter 8: Secrets

Why Aren't People Looking for Secrets?
The World According To Convention
The Case For Secrets
How to Find Secrets
What To Do With Secrets

Chapter 9: Foundations

Founding Matrimony
Ownership, Possession, and Control
On The Bus, or Off The Bus
Cash Is Not King
Vested Interests
Extending The Founding

Chapter 10: The Mechanics of Mafia
Beyond Professionalism
Recruiting Conspirators
What's Under Silicon Valley's Hoodies
Do One Thing
Of Cults and Consultants

Chapter 11: If You Build It, Will They Come?

Nerds vs. Salesmen
Sales Is Hidden
How To Sell A Product
Complex Sales
Personal Sales
Distribution Doldrums
Marketing and Advertising
Viral Marketing
The Power Law of Distribution
Selling to Non-Customers
Everybody Sells

Chapter 12: Man and Machine

Substitution vs. Complementary
Globalization Means Substitution
Technology Means Complementary
Complementary Businesses
The Ideology of Computer Science
Ever-Smarter Computers: Friend or Foe?

Chapter 13: Seeing Green

The Engineering Question
The Timing Question
The Monopoly Question
The People Question
The Distribution Question
The Durability Question 
The Secret Question
The Myth of Social Entrepreneurship
Tesla: 7 For 7
Energy 2.0

Chapter 14: The Founder's Paradox

The Difference Engine
Where Kings Come From
American Royalty
The Return of The King

Conclusion: Stagnation or Singularity?

You can also read excerpts from the book published in the WSJ. You can also find excellent summaries of each chapter here. And there are also very positive and some fairly critical reviews out their as well! Overall, I think Thiel makes excellent points on the reality of how business thrive and this is a great book to read if your considering going to market with an invention or product. Peter asks the following questions, that every inventor or founder should ask themselves:

1. Can you create breakthrough technology instead of incremental improvements?
2. Is now the right time to start your particular business?
3. Are you starting with a big share of a small market?
4. Do you have the right team?
5. Do you have a way to not just create but deliver your product?
6. Will your market position be defensible 10 and 20 years into the future?
7. Have you identified a unique opportunity that others don’t see?

Mr. Thiel also strikes back at the methodologies applied in the dot-com boom, stating the opposite of many startups' principals are just as likely. He says to focus on providing new value, profits and sustainable growth. To distill those ideas, he presents the following goals for those taking a product or service to market:

1. It is better to risk boldness than triviality.
2. A bad plan is better than no plan.
3. Competitive markets destroy profits.
4. Sales matters just as much as product.

That said, I do disagree with some of Thiel's philosophies in the book, such as the Singularity in the final chapter, rather I think the world is currently becoming more complex and diversified with our advancements, resulting in new emerging markets and opportunities every day. The following is an interview with Peter Thiel and Blake Masters that was hosted on the Tim Ferris show, it's a great listen that summarizes a lot of these thoughts, although the concepts are laid out more clearly in the book.