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Sean Parker: Why do businesses fail?

Sean Parker, managing partner of the Founders Fund and cofounder of Napster, dishes on Facebook, Myspace, and why failure is not about a single mistake, but systematic incompetence.

FAST COMPANY: Why do businesses fail?

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SEAN PARKER: mySpace never would have existed if Friendster had been a properly managed company. Most of my friends were investors, I was advisor to the CEO, we were all screaming the sky is falling, no one was doing anything about it, classic case of where a company just blew it. And mySpace is another case where a company just blew it. Facebook had not chance to win, we should not have won the market, the network effects at mySpace were so powerful, the only reason we won was because of the gross incompetence of mySpace, systematically, over many years.

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