Former Google CEO Eric Schmidt: “The great founders are frugal”

When Eric joined Google as CEO in 2001 — two years after the company had raised a $25 million Series A — he shared an office with four engineers. He even had to lend one of the founders his car when theirs broke down.

He believes this frugality is common attribute of the best founders:

“I can always tell when we’re dealing with a proper founder by how they are spending their money… Whenever I go to startups that have beautiful offices and really nice chairs, I cringe.”

He continues:

“The great founders are frugal. They understand that the money needs to be used precisely for certain areas. Many of the most successful founders begin with no salary at all… If you’re not prepared to live that, you don’t really understand what being a founder is like.”

Full video: Startup Grind “ERIC SCHMIDT | GOOGLE | STARTUP GRIND EUROPE” (Jun 2016)

P.S. We’ve put together a YouTube playlist with every Eric Schmidt insight we’ve ever shared. You can watch it here: "Best startup advice from former Google CEO Eric Schmidt"