Dec 16, 2022, 12:11 PM ETInterview, Fireside Chat

Hadi Partovi: How I Became an Advisor to Mark Zuckerberg; Lessons from Steve Ballmer | 20VC #961

Hardy started in startups at 22 by co-founding Link Exchange while watching his brother and friends (Alfred Lin, Tony Hsieh) launch ventures.
He left Microsoft at 26 to found Tell Me Networks with former Netscape rivals.
He began angel investing and advising at 30, driven by the realization that the school system fails to prepare students for a technology-driven future.
Code.org was founded to fix the gap between the curriculum and the demands of the modern tech economy, aiming to teach computer science globally.
Hardy cites a desire to escape the poverty and instability of his childhood in post-revolutionary Iran as a primary motivator.
His family lost significant wealth during the Iranian revolution; his grandparents were previously "billionaires" in local currency.
Hardy views his career as a mission to correct an unjust world where the "American Dream" is not accessible to everyone.
He explicitly rejects the idea of being the wealthiest person possible, choosing to optimize for societal impact instead.

Hardy facilitated the acquisition of Tell Me Networks by Microsoft, leveraging a decade-long personal relationship with Steve Ballmer.
He secured the meeting with Ballmer during a jog, noting that this bypassed standard corporate bureaucracy, which reportedly annoyed other Microsoft employees.
Hardy notes that Ballmer deserves more credit for Microsoft's phenomenal earnings growth, even if the stock price lagged during his tenure.
Both Bill Gates and Steve Ballmer were known for extreme detail-oriented reviews where they often knew the material better than the presenters.
Hardy distinguishes the leadership styles: Gates focused on technology and products, while Ballmer focused on numbers, sales, and motivation.
Ballmer is described as a charismatic "cheerleader" whose energy was infectious, whereas Gates was more analytical.
Hardy admits to struggling with the balance between micro-management and delegation, but leans toward being detail-oriented himself.
He believes great consumer technology leaders (Jobs, Gates, Zuckerberg, Musk) are deeply involved in minutiae rather than purely trusting delegation.
Hardy has not been "crushed" in these reviews, crediting his success to being exceptionally prepared and viewing the pressure as a catalyst for high performance.

In 2005, Hardy met a 9-person Facebook team and identified Mark Zuckerberg's vision as the "future of identity" and "manifest destiny," distinct from Sean Parker's sales pitch.
Hardy became an advisor to Facebook, securing a $10 million valuation entry point rather than the $100 million term sheet they were considering.
He advises founders that the first 5–10 hires are as critical as the first investment, as they set the cultural tone for the next thousand employees.
Hiring should prioritize passion and grit alongside IQ, as "mediocre" hires dilute the team's quality.
Hardy suggests treating hiring like fundraising: selling the vision and betting on the person, as employees are making a "life bet."
He argues that many companies are currently "overweight" due to the previous era of zero interest rates, which masked poor financial decisions.
In a high-interest environment, Hardy advises cutting once and deeply to preserve morale, rather than "dribbling" cuts over time.
He warns against hoarding cash during inflation, noting that cash loses value over time unless used for strategic certainty.
For early-stage startups, Hardy believes internal execution risks (e.g., product-market fit) outweigh macroeconomic "doom and gloom."

Hardy defines high performance as working hard and smart, driven by intrinsic inspiration rather than external pressure, which prevents burnout.
He prioritizes the speed of decision-making, advocating for acting on 60% of the information to allow for iterative adjustments.
He eliminated meetings to prepare for meetings at Microsoft, arguing that direct action is superior to excessive planning.
Hardy has codified a 10-page decision-making framework at Code.org to empower his leadership team to make decisions independently.
Key pillars of his framework include:
- Long-term focus: Prioritizing long-term impact over short-term gains.
- Return on Investment (ROI): Measuring the cost per impact (e.g., keeping computer science instruction under $20 per student).
- Ecosystem thinking: Identifying unique organizational roles vs. areas where partners can act.
His most "seismic" career decision was stepping off the "wealth treadmill" at 40 to focus on societal impact rather than material accumulation.
He admits to feeling "insecure demons" regarding missing out on wealth but finds relief in the permanent impact of Code.org's work.

Hardy argues that the current curriculum is obsolete, noting that schools teach calculus to a degree that only 5% of adults use, while neglecting statistics and financial literacy.
He questions the relevance of teaching foreign languages and traditional math when AI and translation tools can perform these tasks instantly.
He advocates for a "blank slate" approach to education, focusing on skills that will be relevant in the late 2030s.
Computer Science is identified as the safest bet for education, as all future technological changes are driven by software.
Hardy believes schools should shift to student-driven, project-based, and collaborative learning to foster creativity and problem-solving.
He notes that 41% of code is now generated by AI, meaning coding education must evolve to teach higher-level conceptual understanding rather than syntax.
Reskilling the existing 3 billion workforce is necessary, but Hardy emphasizes that the primary leverage is reshaping the 1.5 billion students currently in school.
He predicts that future jobs will be increasingly digital and creative, with automation filling shortages in sectors like healthcare and education.

Favorite Book: Sapiens for its framework on human history.
For-Profit Return: Not planning to return to for-profit business, though he won't say "never."
Regrets: Regrets passing on the CEO role at Facebook due to loyalty to his twin brother; views it as a missed "incredible success."
Best Board Member: Jeff Wilkie (ex-Amazon), valued for his availability and his method of "teaching through asking questions."
Desired Company to Join: Axon, for its combination of massive growth potential and direct societal impact on law enforcement accountability.
Contrarian Belief: The world is getting better (lower poverty, fewer wars) despite the "doom and gloom" bias of social media and news cycles.
Fatherhood Philosophy: Setting a good example and ensuring children feel accepted to avoid "father's disappointment" as a source of stress.
Five-Year Goal: To increase the number of U.S. states requiring computer science for high school graduation from 5 to 25.