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The Paypal Mafia – Heroes of Century

Today every person is familiar with Paypal. Paypal is an American based online payment company in the majority of countries. But have you ever heard about “The Paypal Mafia”?

Today every person is familiar with Paypal. Paypal is an American based online payment company in the majority of countries. But have you ever heard about “The Paypal Mafia”?

Definitely your answer is No. Actually it’s totally opposite as it sounds. The term Paypal Mafia means a group of people who were born to make history.

What is Paypal Mafia

It is a group of people including CEOs, Entrepreneurs and founders of popular businesses such as Tesla and Linkedin who are known as Gems of Internet. Let’s dig into detail and see how The Paypal Mafia formed, Who are the members of this mafia.

How The Paypal Mafia was formed

In 1999 Elon Musk formed X.com. The theme of X.com is to make an online money transfer company. Later on this company was named as Paypal. Paypal was sold to eBay in 2002. Due to eBay’s cooperative rules and its culture his first 12 employees out of 50 left eBay. 

These 12 employees later on found many successful companies. Fortune magazine published an article about these members named “The Paypal Mafia” and after that all of these employees are known as Paypal Mafia

Members of The Paypal mafia

Let’s check who the lucky members of this mafia are. 

  • Jawed Karim
  • Andrew McCormack
  • Premal Shah
  • Ken Howery
  • David Sacks
  • Peter Thiel
  • Keith Rabois
  • Reid Haffman
  • Max Levchin
  • Roelof Botha
  • Russel Simmons
  • Elon Musk

1- Jawed Karim

Jawed Karim

At Paypal

Jawed Karim designed and implemented Paypal’s real time anti fraud system and other key components related to this system.

After Paypal

Jawed karim with his fellows found a video sharing site named Youtube in 2005. Later on this video sharing site was purchased by Google.  After development of this site Jawed Karim enrolled at Stanford University and started studying computer science. He continued to work at Youtube as an advisor until Google purchased it for $1.5 billion in 2006.

After that Jawed Karim started a new business named Youniversity Ventures in 2008. The purpose of this  startup is to help students to develop their ideas.

2- Andrew McCormack

Andrew McCormack

At Paypal

Andrew was an assistant to Peter Thiel 

After Paypal

Andrew and Thiel set up a huge fund company named Clarium Capital after leaving Paypal. He also founded a restaurant group in San Francisco. In 2008 he also joined Thiel capital for cooperative rules at ecourt which is now a part of US banking citigroup.

3- Premal Shah

Premal Shah

At Paypal

Premal Shah served six years as product manager in paypal.

After Paypal

Premal Shah started a non-profit organization named Kiva after resigning from Paypal. This Organization allows people to lend money for upcoming entrepreneurs and startups. This site is much more popular as it rises about $1 million every third day in 2013.

4- Ken Howery

Ken Howery

At Paypal

Ken Howery was Cofounder and also CFO (Chief Financial Officer) at Paypal from 1998 to 2002.

After Paypal

Ken Howery co-founded Popexpert after leaving paypal. Popexert is an online teaching program which allows users to connect face to face with experts. He is also available for consultancy with $100,000 of fee.

5-  David Sacks

David Sacks

At Paypal

David was basically COO (Chief Operating Officer) at Paypal.

After Paypal

After eBay owned Paypal Sacks left the company and joined Hollywood. He produced and financed Golden Globe nominated movies. The very next year he started a genealogy website named Geni.com. He also developed a tool for productivity and inter office communication. Soon this tool was acquired by Microsoft. 

6- Peter Thiel

Peter Thiel

At Paypal

Peter Thiel was CEO and Co-founder of Paypal.

After Paypal

Peter earned $55 million after Paypal sold to eBay. He immediately started hedge fund Clarium.

7- Keith Rabois

Keith Rabois

At Paypal

Keith was Executive Vice President and performed duties in the field of Business development, public affairs and policies in Paypal.

After paypal

After leaving Paypal Keith started a job as a senior person in Linkedin and Square which is an electronic payment firm. He left Square because of threat of law of sexual harassment. 

Nowadays he is a partner at Venture Capital and also a member of board of directors in Yelp and Xoom.

8- Reid Hoffman

Peter Thiel

At Paypal

He was chief operating officer at paypal before paypal was taken over by eBay.

After Paypal

Reid Hoffman is a cofounder of Linkedin and is the most connected person in Silicon valley. He made investments in top reputed firms including Facebook, Flicker, Digg and Zynga. He is also known as the most clever or lucky person in the Paypal Mafia.

9- Max Levchin

Max Levchin

At Paypal

Max Levchin performed his duties as Chief technology officer and also cofounder of paypal.

After Paypal

Levchin got $34 million after eBay took over Paypal. Soon he found Slide and he was picked up by Google in 2010 for $182 million. He performed as vice president of Google’s engineering department. After one year Google closed Slide and Levchin department. 

He started a company named HVF (hard, Valuable, Fun). He keeps himself busy till now.

10- Roelof Botha

Roelof Botha

At Paypal

Botha joined Paypal as Chief Financial Officer before compilation of his graduation. Soon he became director of cooperative development in Paypal.

After Paypal

Botha joined Sequoia Capital in 2003 as a partner and till now he is working there. He is also a board member of 13 more companies including Xoom, Evernote and Jawbone.

11- Russel Simmons

Russel Simmons

At Paypal

Russel Simmons was a lead software architect at paypal.

After Paypal

Simmons and Jeremy Stoppelman co-founded Yelp. Russel Simmons started performing his duty as Chief Technical Officer in Yelp. In 2012 Simmons launched Learnirvana, a web teaching platform which helps students to learn different languages.

12- Elon Musk

Elon Musk

At Paypal

Elon Musk is the most popular person of this Mafia. Musk was also the largest shareholder of Paypal before selling it to eBay. Musk earned about $165 million in eBay’s deal.

After Paypal

Elon Musk started a number of big startups including Zip2, SpaceX and Tesla motors. He also made history, it was May, 22, 2012 when his company SpaceX launched first rocket named Falacon 9 into the space. Here you can read biography and Musk Companies history.

All these Paypal Mafia members were young  when they became millionaires. 

Read More: Elon Musk 


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