An explorer ship stumbles on an island full of gold.

An explorer ship (startup) goes on a voyage based on the rumors of an island full of gold. It has a rough map, but a lot is left for interpretation. This is the pre-product-market-fit phase of a startup. (Commando Phase). (Paul Graham’s blog on this.)

Once you reach the island (most ships don’t), the early crew are delighted to see the gold. But they are massively understaffed. There is no way they can mine all this gold. The crew sends out a message to homeland to bring in more staff, with really wild salaries, which can be paid out from the gold mined. The opportunity or the arbitrage is so large that everyone can win and there is plenty to go around. This is the post product-market fit phase with plenty of hyper growth.

These scenarios are rare. This is what early America looked like. “Entrepreneurs wanted” - the notice says. People came in from all over the world to pursue the opportunity.

This is what true wealth creation looks like. Most parts of the world are zero-sum. For you to win, someone should lose. Opportunity is constrained. Except in the tiny tiny pockets of the world, that experience hyper growth.

Welcome to the frontier. It’s rough here. But enjoy your time. Warning – People who have been to the island, never return to civilian life. They either go on another voyage or corner large regions of the island for themselves.