The Meta Platforms, Inc. CEO Mark Zuckerberg once reflected on one of the most pivotal — and costly — missteps in Facebook's early history during a candid talk at Y Combinator's Startup School.
A Costly Lesson In The Early Days of Facebook
In a 2013 Y Combinator Startup School talk, Zuckerberg said that an early misstep in handling his partnership with fellow Facebook co-founder Eduardo Saverin probably cost him billions of dollars, but he learned from it and pushed forward.
Saverin, who served as Facebook's first CFO, was part of the founding team while the social network was still operating out of a Harvard dorm room.
“I knew nothing when I got started,” he said, adding, “You have to remember I was 19 years old when I started Facebook.”
He then spoke about his lack of experience in the early days and how it played a role in the conflict he had with Saverin.
Tensions Rose After Peter Thiel Introduced Vesting Schedule
The Meta CEO recalled that when investor Peter Thiel came in, he insisted all founders have vesting schedules (a way of earning equity over time so people can't just leave with their full share).
However, Zuckerberg didn't even know what that was.
"Part of the early conflict that I had with um with Eduardo, who’s one of our our founders … We hadn’t heard vesting schedules and then he [Saverin] just bounced, he never moved out to California with us," he stated.
Adding, "So Peter was like ‘oh all you guys have to be on vesting schedules … but it’s fine, I mean it’s like that mistake probably cost me billions of dollars, but it’s fine … You just kind of keep pushing forward."
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From Dorm Room Partners To Co-Founders To Legal Dispute
In 2005, tensions between Zuckerberg and Saverin escalated over business disagreements, reported Business Insider.
While Zuckerberg sought to secure venture capital funding and grow the platform, Saverin allegedly resisted dilution of his stake.
Saverin famously sued Zuckerberg after his ownership stake in Facebook was significantly reduced — a dispute later settled out of court and dramatized in the 2010 film "The Social Network."
Saverin retained the title of co-founder and reportedly walked away with a sizable fortune when Facebook went public in 2012.
Saverin Is A Billionaire Today And Have No Hard Feelings Toward Zuckerberg
He currently has a net worth of $42.1 billion, according to Bloomberg's Billionaire Index. In 2011, the billionaire gave up his U.S. citizenship.
In a 2012 interview with reporter Fábio Altman, published that weekend by Veja, Saverin addressed the now-infamous email Zuckerberg sent to fellow Facebook co-founder Dustin Moskovitz about potentially reducing Saverin's stake in the company.
He said, “I have only good things to say about Mark, there are no hard feelings between us.”
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