When you begin the journey of building a business, the early days are super important. You need to create a culture where people support and believe in each other. At PayPal, the team was so close that many of them even started new companies together. Start-ups are usually tiny, and each person on the team plays a big role. So, before you invest in a company, it’s not only about the skills and vision of the people but also their personal connections that matter.

The author learned the hard way about the impact of weak personal ties on a team. He invested in a company Luke Nosek had started with someone he barely knew, and their personal differences caused the venture to fail, along with the author’s investment.

So, be careful about the people you start your company with, and make sure everyone’s interests are balanced. Founders might want to develop products patiently, while the board of directors aims for quick profits. While these interests can work together, they might lead to conflicts. It’s essential to find ways to resolve such conflicts early. Company culture isn’t just about perks like a pool table or a soda machine for employees. It’s about building strong relationships, which takes time and effort.