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Trillion


Edit Story
Sep 23, 2010,07:51am EDT|


PIERRE OMIDYAR: "RIDICULOUS RICH", AND GIVING IT ALL AWAY

Clare O'Connor

Entrepreneurs
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This article is more than 10 years old.
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Image by Joi via Flickr



Pierre Omidyar was 31 years old when he became a billionaire in one afternoon.
He’d written the code for his auction website eBay just three years earlier,
sitting at home over Labor Day weekend. When the company went public in
September 1998, he became, as he describes it, “ridiculous rich”: By the
following July, when he debuted on Forbes’ 1999 World’s Billionaires list, he
was worth $7.8 billion.

Omidyar was never tempted to blow any of his newly acquired fortune on a
Hamptons mansion and matching Maserati. Quite the opposite, as he told Forbes in
an exclusive interview on the eve of this year’s Forbes 400 list launch.

PROMOTED



“We sort of skipped the ‘regular rich’ and we went straight to ‘ridiculous
rich’,” he said. “I had the notion that, ok, so now we have all of this wealth,
we could buy not only one expensive car, we could buy all of them. As soon as
you realize that you could buy all of them, then none of them are particularly
interesting or satisfying.”



As Omidyar mulled over what he’d do with his vast wealth, he recalled watching,
years earlier, as eBay grew from his weekend hobby to a multibillion-dollar
retail outfit. He was struck by how well-behaved eBay’s users were. Sure, there
were the occasional rip-off artists, but the majority of people trading goods
and services were treating each other with respect – not always the case on the
young and largely un-policed Internet of the late 90s.

“This was something that was new for folks – this sense of values,” Omidyar
said. “If you can get over this initial distrust that people have of strangers,
you can do remarkable things.”

Omidyar had given everyday people a platform to become entrepreneurs, and run
their own retail businesses online, and they’d made a success of it. He took
this concept and applied it to charitable giving, creating the Omidyar Network
in 2004. At the time, this model - venture philanthropy - was relatively new. He
decided to invest in the resourcefulness of others, both in non-profit and
for-profit ventures. To date, the Omidyar Network has committed over $357
million; each year, the amount he pledges increases.



For more on the Omidyar Network and its work, see our video interview below, and
check out other Forbes 400 reports on the Forbes Video Network.

When Bill Gates and Warren Buffett approached Omidyar and his wife Pam earlier
this year and asked them to join in with their billionaire giving pledge, they
didn’t hesitate; they’d committed to giving away the vast majority of their
wealth as far back as an interview with Forbes in 2000, when Omidyar complained
of “too many good causes” that merited investment.

“It was very easy for us to say, ‘yeah, sure, we’ve been on that program for
some time’,” he said. “The importance of this pledge is that it helps attract
people to philanthropy today while they might also be busy running other
businesses, but certainly while they’re alive. You can invest in companies, you
can help grow companies, you can be a venture capitalist – and be a
philanthropist at the same time.”

Omidyar hopes that his fellow young tech entrepreneurs – Mark Zuckerberg, Dustin
Moskovitz and co – will follow his lead, using the creativity and business
acumen that made them billionaires to carve out their own philanthropic
strategies.

“In the same way that you’re driven in your business to keep innovating –
Facebook is a wonderful example of constant innovation – think about doing that
in philanthropy,” he said. “Don’t leave your business hat at the door.
Philanthropy today is not what it was 30 years ago. Using the tools of business
and using for-profit approaches to have a social impact is definitely part of
the ball game today.”

[forbesvid id="fvn/forbes400-10/pierre-omidyar-billionaire-change-maker"
showid="111"]



Clare O'Connor
Follow

I'm a staff writer at Forbes, where I write about women entrepreneurs, workplace
equality, and diversity in Silicon Valley and the tech world. Before taking on
this beat, I... Read More

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Bridge In Pittsburgh Collapses Hours Before President Biden Is Scheduled To
Visit To Discuss Infrastructure
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SHARE: BRIDGE IN PITTSBURGH COLLAPSES HOURS BEFORE PRESIDENT BIDEN IS SCHEDULED
TO VISIT TO DISCUSS INFRASTRUCTURE


A BRIDGE IN PITTSBURGH COLLAPSED IN AN ACCIDENT INVOLVING SEVERAL VEHICLES AND A
BUS ON FRIDAY MORNING, PITTSBURGH AUTHORITIES SAID, HOURS BEFORE PRESIDENT JOE
BIDEN’S PLANNED VISIT TO THE CITY TO TALK ABOUT INFRASTRUCTURE.

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