Invest Like The Best
Episode 303 Building a Compound Company
Invest Like The Best

Episode 303: Building a Compound Company

Invest Like The Best

Episode 303

Building a Compound Company

Parker Conrad is the co-founder and CEO of Rippling. We explore Rippling's place in the B2B infrastructure stack, the notion of a compound startup, and what Parker has learned about leadership, motivation, and communication.

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[00:02:36] - [First question] - Overview of what a compound startup is 

[00:06:32] - What he’s learned about picking customers effectively 

[00:08:48] - Key chapters when it comes to building a compound startup 

[00:13:48] - What great looks like at the base level infrastructure of employee data

[00:20:15] - His overall philosophy on product development writ large 

[00:25:09] - His role as a capital allocator and distributing resources to his teams

[00:27:19] - The amount of products they offer and whether or not there’s a tradeoff between time, cost, and quality when building software

[00:31:36] - Possibly incorporating an app-like store on top of their existing infrastructure 

[00:34:43] - Speed and the kinds of people that can sustain it for long periods of time

[00:36:30] - What motivates him on a personal level and harnessing motivation in general

[00:42:31] - Whether or not there’s an end to feeling hurt by false public perceptions when building in public

[00:44:12] - The intersection of leadership and communication inside of a business and what he’s learned about great communication 

[00:48:00] - The paradox of how focusing on non-scalable actions perpetuates growth and productivity and his views on productivity-per-person

[00:50:36] - The best example of a moment that required the most grit and perseverance while building his company 

[00:52:28] - How to successfully get former founders to come work for him 

[00:54:47] - What good private equity investors do 

[00:58:31] - The kindest thing anyone has ever done for him  

Building a Compound Company

Introduction

Patrick
My guest today is Parker Conrad, Co-Founder and CEO of Rippling. I wanted to speak to Parker because he is building Rippling in a way that we don't come across often. Rather than focus narrowly on one product, he is building a suite of interrelated products simultaneously to carry out functions of HR, finance and IT for companies. He calls it a compound company, and we discussed the idea as well as some of his other nontraditional theories in detail. Please enjoy this conversation with Parker Conrad.

What Defines a Compound Company

Patrick
So Parker, one of the, I guess, sacred cows or if there's a 10 commandments of start-ups and business, this one would be on there. Is that you're supposed to begin a business for a customer by focusing on one thing and get really, really good at that one thing and serve them well and then you earn the right to transfer from product to platform. And this has become gospel in the world of building young technology companies especially. And I think you have a very, very different take on what might be possible in terms of how to build early on. And I'd love you to lay the groundwork with your concept of a compound start-up or a compound company right at the beginning because I think it will inform just about all the other topics that we talk about.

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