The Biggest Names That Emerged from the PayPal Mafia

Discover the top companies founded by the PayPal Mafia, including Tesla, YouTube, and LinkedIn, and their impact on the tech industry.
Aug. 7, 2024
Unlock Free Stock Insights + 50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

In 2002, eBay bought PayPal to the tune of $1.5 billion. In the transaction, the e-commerce player acquired a ragtag bunch of engineers, designers, and businessmen who had thrived in the chaos of an early internet start-up.

They didn’t last long in eBay’s ranks.

Frustrated by the confines of corporate structure, only 15 of PayPal’s original 50-person staff were still at eBay by 2006. However, what they had learned within PayPal would go on to reshape the tech world and the market.

They would become known as the PayPal Mafia.

The term was first coined in a 2007 Fortune cover story by Jeffrey M. O’Brien. Big names include Elon Musk, Peter Thiel, Reid Hoffman, and Max Levchin. Following the eBay acquisition, these tech pioneers branched out to create some of the most successful ventures in the industry and are often credited with re-introducing consumer-facing tech. More importantly, they supported each other through investments, collaborations, and board seats, helping their new companies thrive.

Here are some of the most notable companies that originated from the PayPal Mafia:

1. Tesla

Founded by Martin Eberhard and Marc Tarpenning, Tesla became a household name when Elon Musk, a co-founder of PayPal, joined the company in 2004. Musk's vision and leadership transformed Tesla into a leader in electric vehicles, pushing the boundaries of automotive technology and renewable energy solutions.

2. YouTube

YouTube, the world’s leading video-sharing platform, was co-founded by Steve Chen, Chad Hurley, and Jawed Karim, all of whom were early PayPal employees. Launched in 2005, YouTube revolutionized online video content, eventually being acquired by Google in 2006 for $1.65 billion in stock.

3. Facebook

In August 2004, Peter Thiel made a $500,000 angel investment in Facebook for a 10.2% stake in the company, marking the first outside investment in Facebook and valuing the company at $4.9 million. As a board member, Thiel provided critical guidance on funding rounds, helping Facebook secure its financial future before the 2008 financial crisis.

4. Yelp

Jeremy Stoppelman, a former VP of Engineering at PayPal, co-founded Yelp in 2004. Yelp has since become a go-to platform for user-generated reviews of local businesses, significantly influencing consumer decisions and local marketing.

5. SpaceX

SpaceX, founded by Elon Musk in 2002, aims to revolutionize space travel and make it more affordable. The company has achieved numerous milestones, including the first privately-funded spacecraft to reach the International Space Station and the development of reusable rockets.

6. LinkedIn

Reid Hoffman, a former PayPal COO, co-founded LinkedIn in 2002. LinkedIn has grown to become the world’s largest professional networking site, connecting millions of professionals and providing a platform for career development and business networking.

7. OpenAI

Elon Musk was one of the biggest initial investors in OpenAI, a research organization dedicated to advancing artificial intelligence in a safe and beneficial manner. Founded in 2015, OpenAI focuses on ensuring that AI technologies benefit all of humanity.

8. Palantir Technologies

Co-founded by Peter Thiel, Palantir Technologies specializes in big data analytics. Since its founding in 2003, Palantir has provided solutions for various industries, including defense, finance, and healthcare, leveraging data to solve complex problems and drive innovation.

PayPal the Foundations of Modern Tech

The PayPal Mafia's influence extends far beyond the companies they created or invested in. Their collaborative spirit, willingness to take risks, and support for each other's ventures have reshaped the tech industry, leaving a legacy that continues to inspire new generations of entrepreneurs.

Should you invest $1,000 in PayPal right now?

Before you buy stock in PayPal, consider this:

MyWallSt founder Emmet Savage and his team of analysts have been successfully picking stocks for more than 25 years and their favorites are crowned Stock of the Month.

MyWallSt’s Stock of the Month service has more than quadrupled the return of the S&P since 2018* and will provide you with all the guidance you need to confidently build a market-beating portfolio.

Shopify became Stock of the Month in January of 2017 and has since returned 1323%*.

Join MyWallSt Invest Plus to enjoy Stock of the Month and other great benefits like:

  • Ten Foundational Stocks to hold until 2034
  • A new stock pitch each week from 60k worldwide
  • A ranked library of 60+ international stocks

Check Out Stock of the Month

*As of May 2024

Read More From MyWallSt:

Unlock Free Stock Insights +50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.

Services

Content

Social

Company

Support

Resources

This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.