all founded by members of the paypal mafia. what was special about all of you? did you -- what did you have in common? reid: paypal collected a whole bunch of people that were young and intense, and entrepreneurial themselves. and then all of a sudden, it was bought by ebay. so all of these folks were like, okay, what do i do next? and so chad and steve do youtube. elon goes to do tesla and spacex, jeremy and russ do yelp, i do linkedin. and yet, because we had this intense experience together, we all have still a really tight network. we are calling each other going, i'm thinking about doing this, what do you think? emily: who do you call for what? reid: for example, for macroeconomic, financial, bold models, i will call peter. the intersection of kind of interesting business models or business technology, big data, i will call max levchin. for a willingness to just think super big, with risk as not a variable, elon. [laughter] reid: right? emily: what do they call you for? reid: laughs. no. [laughter] emily: i have heard you are quite funny. reid: occasionally

emily: what determined how everyone in the paypal mafia ended up going their separate ways and how didou and steve end up together? chad: after i left paypal, i would meet up with steve and a few other engineers. we would meet for coffee on university avenue. and everyone had at that time a digital camera that had a video mode. this was right before cameras took off in cell phones. people had video files on their desktop that they could not share, including ourselves. how could we make it as easy as sending an e-mail? that was really what inspired us. emily: this is 2005, before smartphones, really, before high-speed internet was the norm. how difficult was it to get this off the ground? chad: i think because we knew nothing about video, we were not scared about getting into it. i think the same thing with paypal and payments. i think if we realized how much fraud and how many other hoops we would have to jump through in the finance industry, we probably would never have started the project. same with video, dealing with bandwidth and hosting and streaming issues. so because of that, w

but he took his first job out of school at apple, and then later joined the now legendary paypal mafiaoffman sits on seven boards. he is the author of "the startup of you" and now a new book, "the alliance." our guest today on "studio 1"