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The default of how you do these things is very powerful, if you ve been in the industry for a long time. So we were sort of beneficiaries of our na vet . We thought, We don t know how to do this; let s just invent it.

Smolin: Though you weren t happy being an engineer in the oil patch Matfield: Well, you know, I did a lot of different jobs, but I just got to the point where I felt cramped by working for large organizations I rose up through the management ranks and the managed groups But I found that limiting because I couldn t choose the people who I was working with, and I had to take whomever I was assigned And large organizations have policies that, you know, sometimes will get well, let s say were counter to my own values For a long time, when I worked at Volvo, I felt actually a bit like a fish out of water I didn t feel like my values were very well aligned with the company.

Livingston: What else worried you Levchin: There was always something, every day. I could not sleep well for

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4 years. If you are in charge of technology at a really fast-growing company that gets lots of publicity, there s always something that worries you. In early 2000, it was scalability. We had a few days when the site was down. Even though we were adding servers and rewriting code to be more scalable, at a certain point the original design was starting to crack. It was kind of painful. Peter was pretty good at insulating me. He d be talking to the reporters saying, We re growing so fast. eBay lost, I think, 20 percent of their market cap one time they had this downtime, when the system went down because of scalability concerns a few years before and so the reporters were asking, Is this like eBay Are you guys going to be down for a week So it was really tense.

Livingston: What were some of the more intense moments Levchin: One of the more intense moments was when Peter and our PR guy

You know, as I got to know myself better, it became more and more of an issue for me Smolin: So you dropped out and moved over to where you are now Matfield: I moved into a little backwater It was a gut life choice decision to move somewhere which was attractive, with lower pay, although the quality of life is higher And then my wife and I tried to figure out, you know, OK, we re here now, what are we going to do I always liked doing programming, so I hung up a shingle and started doing contract work and I think actually, you know, I read an Access book from start to finish and a VB [Visual Basic] book from start to finish, and then I was loaded and dangerous [laughter].

were flabbergasted with this reporter who demanded to talk to someone technical, because he wanted to hear from the horse s mouth what s going to happen. I was on the phone with the guy, and he asked, Is this just like eBay Are you guys going to crash Are you not going to be able to scale I said, Dude, I haven t slept for 3 days trying to fix the problem. Of course he said, I m going to quote you on that. Peter was worried. It s one of those things where you have to fly by the seat of your pants all the time. It would be nice to test some hardware and set up a big lab: We have x systems now; let s 2x the systems and get twice the amount of hardware and see if it can scale. But, it doesn t work that way because, by the time you are done testing 2x, the real system is 3x because the growth is so fast. We were getting 20,000 new active users every day. The transactional growth is exponential because people are sticking around. It s not like people came in, did one thing, and left. They came in, did one thing, and stayed. And they kept doing more.

Livingston: Was the growth viral Levchin: We built the system to be viral from day one. The idea was: I can send

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