Pod Insights How I Built This with Guy Raz Cisco Systems & Urban Decay: Sandy Lerner (2018) About this episode In the pre-Internet 1970's, Sandy Lerner was part of a loosely-knit group of programmers that was trying to get computers to talk to each other. Eventually, she and Len Bosack launched Cisco Systems, making the routing technology that helped forge the plumbing of the Internet. But when things turned sour at the company, she was forced to leave, giving her the chance to start something entirely new: an edgy line of cosmetics called Urban Decay.
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5:06 Guy Raz? or get started building for free today at framer.com/built for 30% off a Framer Pro annual plan. That's framer.com/built. Rules and restrictions may apply. Okay, so on to today's show. It's from our archives and is truly one of the wildest stories you will ever hear about backend internet technology, in large part because of the person in question, Sandy Lerner, who co-founded Cisco Systems. It's a company that probably helps you do what you do without you even knowing it. But the story is also interesting because Sandy founded the punk aesthetic makeup brand Urban Decay
5:49 Guy Raz? and went on to build one of the largest private libraries of Jane Austen books on earth. Yep, all that and more in this one. We first ran this story in October of 2018. Enjoy.
6:06 Speaker 01 I had to go get another job besides Cisco. And we had only my income. And we were mortgaged the house to the hilt, which we might have lost at any particular time. And we had creditors up the wazoo. And I had people calling me at 2:00 in the morning complaining because they didn't have their routers. Yeah, it was very hand-mouthed in a way that I think that people who want to be entrepreneurs these days really don't understand.
6:38 Guy Raz? From NPR, it's How I Built This, a show about innovators, entrepreneurs, idealists, and the stories behind the movements they built.
6:49 Guy Raz? I'm Guy Raz, and on today's show, how Sandy Lerner helped launch one of the most successful companies in the world, why she had to leave it, and how she went on to remake herself again and again and again.
7:06 Guy Raz? If you use the internet today, or if you're listening to me right now through your smartphone or a computer, there's a pretty good chance that that information is flowing through a network that was developed by Cisco Systems. Cisco is the largest networking company in the world. Its hardware, servers, routers, and software touch almost every part of the internet. Now, the idea that one computer can talk to another computer isn't particularly earth-shattering, right? But in the early '80s, this was a pretty big challenge, even at Stanford University. If you worked on a computer in, say, the engineering department, it couldn't talk to a computer in another part of the campus.
7:51 Guy Raz? Things that we take for granted, like email, or instant messaging, or Slack, there was no infrastructure to make these things work on a big scale. But there was an informal group of graduate students at Stanford that was trying to solve this very problem, and Sandy Lerner happened to be part of that group. She and another grad student, Len Bozak, founded Cisco Systems. Today, it has a market cap of around $200 billion. But that growth, it happened largely after Sandy and Len left the company, after Sandy was pushed out. It was pretty devastating at the time, and we'll get to some of that story.
8:34 Guy Raz? But we'll also hear how, after all of that, Sandy went on to build another successful and entirely different type of business, a cosmetics company called Urban Decay. And then she reinvented herself yet again by starting an 800-acre sustainable farm in Virginia, where she now lives. And even Sandy's childhood almost sounds like a fairy tale. Her mom and dad split up when she was just four years old. And there was so much turmoil in the family that Sandy was sent off to live with one of her aunts, which sounds like it could have been pretty traumatic, except her aunt lived in Beverly Hills and made Sandy the center of her life.
9:16 Speaker 01 I thought it was a wonderful thing to go and stay with my aunt. She was very cool. And she had a very elegant world. We would go to the May Company Tea Room and sit in that gorgeous blue dining room. And I didn't think life got any better.
9:31 Guy Raz? So you, your childhood was spent largely in living with this aunt in Beverly Hills?
9:37 Speaker 01 Until I was six. And then there came a day when my aunt's sister said, "If you come and live with me, I'll give you a pony." And my other aunt, Beverly Hills, said, "Well, if you live with me, when you're 16, you can have a car." But you know, when you're six, you're thinking, "My god, I might not even live that long. Maybe there won't be cars." So I took the pony.
9:57 Guy Raz? Wait, they were competing for you to live with them?
9:59 Speaker 01 Did I hit the jackpot or what?
10:01 Guy Raz? So you, at age six, moved to where?
10:04 Speaker 01 Clipper Gap. It's in the higher Sierra foothills up on the northeastern part of the state.
10:11 Guy Raz? Of California.
10:12 Speaker 01 Of California, yeah.
10:13 Guy Raz? And what, where did they live? Was it a ranch? Was it a farm?
10:17 Speaker 01 Well, it started out 108 acres. And they were farming pears. And my grandpa lived up there also, and raising some cattle. And I just fell in love with farming.
10:29 Guy Raz? So you, I guess, when it was time to go to college, you stayed pretty close, right?
10:36 Speaker 01 Oh, I left home at 15 and got a job working at the bank for a year and a half.
10:40 Guy Raz? Oh, you left. So where did you go?
10:42 Speaker 01 To Auburn, six miles down the road.
10:44 Guy Raz? Was that interesting? Did you, was it just a job?
10:47 Speaker 01 You know, my uncle, it was a very small town. My uncle went to Kewaunis with the bank manager. And, you know, I think my uncle was kind of watching out for me and making sure that I had a safe place to work. But it was a terrible job. The bank owner made all of the tellers kneel so he could check that our skirts were long enough. And he called us all Louise.
11:06 Guy Raz? This is in like 1970, 1971?
11:08 Speaker 01 1970, 1971, 1972. We were all Louise because he knew Louise and she'd been there a while and we didn't really rate our own names.
11:16 Guy Raz? And were you, at that time, were you enraged about that? Did you seethe about that?
11:22 Speaker 01 You know, it was the first time I'd ever experienced any sort of sexism. I mean, on the farm, I was the kid, you know? So you did the boy jobs, you did the girl jobs, you did, you know, I loaded the gas trucks, I drove a truck for a summer. You know, you just, you just got on with it. And it was the first time I hit sexism and it just completely rattled my world and I needed to get out. I just needed to get out.
11:46 Guy Raz? So I guess it was around that time that you did decide to go to college and you went to, I think it was Chico State in California. What did you, what did you study there?
11:55 Speaker 01 My undergraduate degrees are in international relations with an ESS assigned comparative communist theory and a minor in Marxist economics.
12:03 Guy Raz? Wow.
12:04 Speaker 01 These were the Vietnam years, remember?
12:06 Guy Raz? Yeah, right. Did you have a sense of what you wanted to do?
12:09 Speaker 01 Oh, absolutely. I went through college in two years and I wanted to be, I had it all mapped out. I would have my PhD by the time I was 22.
12:17 Guy Raz? You did your degree in two years?
12:18 Speaker 01 Mm-hmm.
12:19 Guy Raz? I mean, obviously, you're, we'll get to this, I mean, you're a highly intelligent person, but were you just sort of, did you feel unusual? I mean, that's, that's very fast.
12:28 Speaker 01 I mean, it was, it was a lot of work. It was, it was a tough two years. But on the other hand, I was so convinced I was never going back to that bank. Never.
12:37 Guy Raz? Yeah.
12:38 Speaker 01 Never, ever, ever going back to that bank and having to put up with that. And I ended up getting an absolutely first-rate education.
12:44 Guy Raz? So how did you go from studying Marxist economics and international relations to studying computers?
12:51 Speaker 01 Well, I went to Claremont Graduate School because I had a full scholarship. And the first quarter, I ended up being an advisor in the computer room. And, you know, in 1975, I was making 25 bucks an hour computer programming. And, you know, to me, it was easy and it was something that I thought would pave the way to being able to enter the job market in a good place.
13:16 Guy Raz? So you are studying, you're sort of exposed to computing at Claremont. And then what? What was your next move?
13:24 Speaker 01 Well, at this point, I still thought I wanted to be an academic. And so I picked up my little self and applied to Stanford. And because the political science department there needed programmers, because of course, they were getting to the point where you couldn't publish anything if it didn't have some numbers in it, they let me in. And I got in and immediately segued into the statistics and computer science department.
13:49 Guy Raz? Now, 1975, 76, Stanford, like, now it's a legendary time, right? I mean, it's like, we're talking about, you know, the beginnings of the internet and all these, you know, the people influenced by JCR Licklider and Steve Jobs going through Parx Xerox, all that era. That was an amazing time. So you get to Stanford in the late 70s. What does a computer look like at that point? Like, what were you working with there?
14:18 Speaker 01 Well, I was really lucky. At Claremont, we had a DEC System 10. And that's what I learned to program on. And I learned a number of the programming languages and did a little bit of systems programming. But when I got to Stanford, they also, they had DEC 10s and DEC 20s, which was great because it's a huge time-sharing system that would have 200 simultaneous users. And since I'd been running the math and statistical software on the time-sharing computing at Claremont, they had the Lots volunteers, and so I became a Lots volunteer.
14:48 Guy Raz? A Lots volunteer.
14:49 Speaker 01 A largely overloaded time-sharing system.
14:51 Guy Raz? Got it.
14:52 Speaker 01 A little orange time-sharing system.
14:53 Guy Raz? So just explain this to me in language that I can understand. When you say you were programming these computers, you were taking in raw data and helping them to create statistics from that raw data?
15:07 Speaker 01 That's right.
15:08 Guy Raz? And this was just, this just would come to you intuitively? Like, you just kind of learned this by playing around with it?
15:15 Speaker 01 Absolutely not. I worked my butt off. When I was in high school, girls didn't get to take fourth year calculus. And when I was in high school, girls didn't get to take physics. So I had to learn all that stuff in graduate school.
15:26 Guy Raz? You had to learn how to program a computer?
15:28 Speaker 01 Oh, absolutely.
15:28 Guy Raz? What did you love about it?
15:31 Speaker 01 Two things. One, the money. And two, the independence that it offered was hugely attractive to me. You know, not being tied to hours, not being tied to a desk. You know, I've always been kind of an anarchist. And the idea that you could come and go, and as long as you got the work done, nobody cared about your day.
15:49 Guy Raz? Yeah. When you got to Stanford, what was your impression of the place? Was it like, wow, I've finally arrived to this amazing, Valhalla of technology?
16:00 Speaker 01 No, not technology, of smart people.
16:02 Guy Raz? Huh.
16:03 Speaker 01 I wasn't a freak anymore. They were very welcoming, and I had great friends at computer science, and at Lots, the time sharing system. And we would have two meals a day together, and-
16:15 Guy Raz? With who? This group of engineers?
16:18 Speaker 01 Yeah.
16:18 Guy Raz? All hanging out around computer labs, basically?
16:21 Speaker 01 The computer system, absolutely.
16:23 Guy Raz? We hear a lot about the, and we know a lot about the, gender gap in the tech world. We're talking about the late 70s. I mean, you must have been like, one of one or two or three women around all of these male graduates.
16:39 Speaker 01 There were very few, I think. I was the only graduate level female. But it was also a very welcoming group, and they didn't care really if you were three foot high green and stink, as long as you could, as long as you had the technical chops and you kept up. And I could do that.
16:53 Guy Raz? It was a small group of people?
16:55 Speaker 01 You know, there were probably about eight, 10, or 12 of us. People would sort of drift in and drift out. But remember, we had two meals a day together. We spent the weekends in Lots together. I mean, I would leave these people at 2:00 in the morning.
17:07 Guy Raz? These guys, these were just computer geeks, just total programmers, total-
17:11 Speaker 01 One, the people had written the first spell checker and typed in the entire dictionary in itself. One of us had a triple major at Stanford and a master's degree in four years. And we were all computer addicts in love with this particular architecture. We built our own internet. We maintained our own internet. We built our own printer interfaces. We built our own computer terminals. It was just one of those times in life where what you gave, you got back.
17:41 Guy Raz? How did you meet Len Bozak?
17:44 Speaker 01 I met Len the first time when he was interviewing Stanford. And I mean that. Stanford was not interviewing Len. Len was interviewing Stanford.
17:52 Guy Raz? To become a student there?
17:53 Speaker 01 Well, he was thinking about getting a master's degree. And he was kicking around thinking he needed something to do. And on that day, I remember we went to Chinese food. And remember, these guys are all largely overweight. And they're not the people who were picked on the baseball team. And we're all sitting around there, and these guys are flaming themselves out with hot oil on the Chinese food. And they're like all red, and they're like perspiring and everything. And Len sat there, and they were all like being very noisy and, you know, of questionable hygiene. And Len sat there, and his clothes were ironed, and his clothes matched. And he had this beautiful blond hair and this very soft voice. And he could eat with a knife and fork. And when they would get all done arguing with each other, they would look at Len and
18:35 Speaker 01 they would say, well, you know, basically, essentially, what is the answer? And Len didn't join in until they invited him. And then he would tell them the answer. And then they would have another topic and argue and argue. And then they would come back and say, well, Len, what is the answer? And I was just absolutely enchanted. I had never seen a more perfect human being in my entire life.
18:56 Guy Raz? And basically, you guys became partners?
19:00 Speaker 01 It was very quiet because the dynamics of the group were that, you know, you weren't supposed to have favorites. That would have been very destructive to kind of the collegial kind of group dynamics there. And so it was, really, nobody even knew we were seeing each other until we decided that we wanted to get married.
19:20 Guy Raz? So I'm trying to get a sense of what some of the problems you were dealing with at Stanford in the early 80s. Basically, Stanford, at the cusp of, you know, at the bleeding edge of the technological revolution, lots of computers all over Stanford, presumably, but I guess they couldn't communicate with each other? Was that, that was a problem?
19:44 Speaker 01 Well, it used to be that you either bought DEC computers, you bought IBM, or you bought HP, or you bought Data General, or you bought Wang, or you bought whatever.
19:52 Guy Raz? Because those were the only ones that could communicate, like IBM could only communicate with IBM.
19:56 Speaker 01 No, it wasn't. That is true, but the reason was that it was so new, you entered into this unholy alliance with the vendor, and they would help you.
20:04 Guy Raz? I see. So some departments had IBM, some had DEC, some had Wang, whatever was around.
20:11 Speaker 01 Well, whatever they felt matched their research or their pedagogical requirements. They were a law unto themselves, and they bought what they wanted.
20:21 Guy Raz? Which is typical of universities, right? Everybody wants autonomy. So there are 5,000 computers, probably many more at Stanford today, obviously, but this is the late 70s, and these computers could not talk to each other?
20:33 Speaker 01 That's right.
20:34 Guy Raz? And meanwhile, Stanford, I guess, was actually trying to build its own computer network, right? I mean, and that wasn't working, so what, in the meantime?
20:43 Speaker 01 We built one.
20:44 Guy Raz? You were doing a shadow network yourselves.
20:46 Speaker 01 Yeah.
20:47 Guy Raz? You, Len, and this group of engineers, you guys are trying to figure this out.
20:50 Speaker 01 And plus, all the people in the ARPANET community who were working on parts of this.
20:55 Guy Raz? And ARPANET is this precursor to the Internet. This was a thing funded by the government.
20:59 Speaker 01 Yeah, and that's what ARPA was for. It was a network to foster the interaction and intersharing of ideas and information among the different people who were taking ARPA money. And that's what we were doing.
21:13 Guy Raz? So how are you doing this? Was Stanford aware of what you were doing?
21:17 Speaker 01 Officially? Absolutely not. We were definitely under the radar, and we kept it under the radar, and it wasn't until one day.
21:26 Speaker 01 I think it was 1981, our time-sharing Ethernet became the Stanford University Network.
21:33 Guy Raz? Wow.
21:34 Speaker 01 Just one day, it just, you know, the benediction went in our direction and then we were the Stanford University Network.
21:41 Guy Raz? So you created a system that would allow these computers to communicate, what today we would, I guess, call a router. You build a network at Stanford. What was the thing that was motivating you guys? Why did you want to do this for Stanford?
21:56 Speaker 01 I didn't do it for Stanford. I think there's a lot of misunderstanding about those early ARPA years. We did it because it was the right thing to do. ARPA was giving money. It was all public, public domain. Nobody had a financial motive. And the thing that ARPA did that was so amazing even today was it gave the right people the right money. It wasn't political. It wasn't, there wasn't any religion involved in it. It was just this collection of these incredibly smart, dedicated people who made things. And I was really, really lucky to get to be a part of that. I mean, everything that you could do every day. And you could hook something new up or you could,
22:41 Speaker 01 you know, you could get a message someplace or you could, you know, you could get these milestones. And it was, I guess, if you're a nerd, it was just a tremendous adrenaline rush.
22:51 Guy Raz? So you are in your 20s at this time. And ARPA, this government agency, is funding all these cool projects that eventually would help to create the Internet. You are part of this team that creates a network that Stanford then adopts as its protocol. And at that point, these 5,000 computers are able to talk to each other?
23:15 Speaker 01 Mm-hmm.
23:16 Guy Raz? So what, at that point, you and Len, were you married at that point?
23:20 Speaker 01 Yeah, we married in 1980. We both graduated from Stanford, same department, same, same platform in June of 1981 with master's degrees. And Len had walked into a job as the head of computing systems for the Department of Computer Science. And I'd gotten a job running computers for the business school. So we were looking at Long, happy, nerdy careers in that environment.
23:46 Guy Raz? But didn't you want to do something with the routing technology that you'd worked on?
23:50 Speaker 01 Oh, absolutely. But Stanford said, no, you cannot license this technology. They would not entertain any licensing. We had done our part and we had taken the government's money. This is all public domain. We'd invented all of these wonderful things, but the Office of Technology Licensing didn't let anything out. And Stanford was not even letting us sell it to the universities.
24:12 Guy Raz? So you and Len are frustrated because you believe that this technology needs to get out into the world, that there's all kinds of uses.
24:21 Speaker 01 We took ARPU money. This is United States money. We don't have a right to this stuff. We didn't develop. We did develop it, but we didn't invent it. It was a community of people who were very smart and very committed in all of these different places and in Stanford, all of these different departments. There was a huge community at that point. And Stanford was saying, just no.
24:42 Guy Raz? And you didn't care. You weren't saying, hey, we're going to take the money for this. No. The money would go to Stanford or whoever owned.
24:48 Speaker 01 We didn't care.
24:49 Guy Raz? You didn't care.
24:49 Speaker 01 We didn't care.
24:49 Guy Raz? You just wanted it to be out in the world.
24:50 Speaker 01 Stanford could have taken 100% of it as long as, you know, they paid the bill for the parts.
24:54 Guy Raz? I see.
24:54 Speaker 01 We had good jobs.
24:56 Guy Raz? So was it at that point where you and Len just said, we better start a company and do it ourselves?
25:01 Speaker 01 At that point, I believe that Len knew a whole lot more about business than I did. And at some point, he looked at me and he says, well, we're just going to have to go and build this stuff on our own money because we can't do it. The university won't allow us to do it within the university. So one day I drove up to San Francisco with a $5 bill and started the company.
25:19 Guy Raz? A $5 bill for?
25:20 Speaker 01 It cost $5 at that point to register with the California Secretary of State for a new company.
25:25 Guy Raz? And so you are trying to build a company that, just in layman's terms, would help computers communicate?
25:34 Speaker 01 We were trying to build terminal servers and routers.
25:36 Guy Raz? Right. And you called it?
25:38 Speaker 01 Well, that came later. Cisco was actually the 36th name that we tried to get. Anything having to do with computers, we couldn't have.
25:47 Guy Raz? Because it was taken by someone else?
25:49 Speaker 01 Yeah.
25:49 Guy Raz? So Cisco as in San Francisco?
25:51 Speaker 01 Yes. And I designed, it was my name. And I came up, because remember at that point, a router's a gateway. So I came up with a little logo of the Golden Gate Bridge.
25:58 Guy Raz? Which is still the logo for Cisco.
26:00 Speaker 01 Absolutely. And it was a part of San Fran and Cisco. And so we just, with tears on our eyes, basically said, well, I guess we've got to go do this. I had no idea what we were getting into.
26:11 Guy Raz? I mean, you had no interest in leaving your jobs at Stanford at that point, leaving this comfortable life, you know, sort of servicing their computers.
26:19 Speaker 01 By this time, this was 1984, and there were starting to be creaks. I mean, I was paid half of what my predecessor made, and I was paid a third of what my successor was paid.
26:30 Guy Raz? Wow.
26:31 Speaker 01 And, you know, when the faculty would meet at the beginning of the year to plan the curriculum, even though I was the head of all of the computing facilities, both administrative and the curriculum computing, I went and had lunch with the faculty wives because where they had their annual meeting didn't allow women.
26:49 Guy Raz? This is in 1983, 84?
26:52 Speaker 01 Yeah. So it was starting to creak, and I was getting a little bit bored, and, you know, the microcomputers were starting to come in, and I really didn't have a lot of interest in that. So I would say that I was ready for something else, but, you know, it's a complete misunderstanding of the times to think that Len and I had huge dollar signs in our eyes and knew that this company was going to go public and make a bazillion dollars.
27:17 Guy Raz? Okay, so Sandy, based on whatever, this is really where the story gets a little complicated here. So I'm going to try and abbreviate things and just say that during that period, you, I think, you leave Stanford, and then Len also leaves, and then around the same time, Stanford looks at what you guys are doing with Cisco, and they claim that you've stolen their technology, right? And they threatened to take legal action.
27:45 Speaker 01 Yep.
27:46 Guy Raz? So how did you deal with that situation?
27:48 Speaker 01 Well, when Len and I left, well, when Len left Stanford, a great deal of the engineering team behind the Internet at Stanford left, and so Stanford was left with a network it didn't have any ability to run and certainly nothing to maintain. So within that very fortunate confluence of events, a very serendipitous confluence of events, we actually did have some bargaining power, and we ended up paying them, I think, a very fair royalty for the first, gosh, I want to say $3 million a product or something, very fair royalty. And we had to fix their network for three years.
28:23 Guy Raz? So that's a pretty good deal.
28:25 Speaker 01 You know, it's the deal they should have made to begin with.
28:27 Guy Raz? Yeah.
28:28 Speaker 01 You know, if they'd have said, "Here, pay us a modest royalty that you can handle from a cash flow point of view and maintain our network," we'd have gone, "Okay."
28:36 Guy Raz? And how are you, first of all, how are you funding your company? I mean, to build-
28:40 Speaker 01 Credit cards. We mortgaged, we mortgaged our home. A friend of mine that used to work for me at Stanford would sit on the telephone and tell our vendors that the check was in the mail.
28:50 Guy Raz? How were you even getting customers? You were just, just word of mouth?
28:53 Speaker 01 The internet. The internet knew, me and Len, the internet knew about the routers. The internet was the internet.
28:58 Guy Raz? And everybody who was part of that wanted what you were offering?
29:02 Speaker 01 Absolutely. By 1987, with no sales force, we were booking a quarter million dollars a month.
29:08 Guy Raz? Wow. Who were, who were your customers?
29:11 Speaker 01 Our first customer was Hewlett Packard Laboratories. The second one was Rutgers University. The third one was Boeing. And by that time, the internet community had matured and it was no longer just the bleeding edge that, that we're ordering these inter-networks, which were networks of networks. So it had kind of moved into the keeping up with the Joneses in the sense that if you didn't have an internet, it was kind of, you were backwards. So the style had changed.
29:37 Guy Raz? And you guys were building these in a-
29:39 Speaker 01 In our living room, Len's parents-
29:41 Guy Raz? With like soldering irons?
29:43 Speaker 01 Absolutely.
29:44 Guy Raz? I'm trying to figure this out.
29:45 Speaker 01 Absolutely.
29:46 Guy Raz? Really?
29:47 Speaker 01 Well, jobs started in garage. At least I had a living room. I had heat.
29:50 Guy Raz? What did the actual, when, I'm trying to imagine you guys soldering and building these routers. What, what did they look like? Was it, was it a giant thing? Was it the size of this room?
30:01 Speaker 01 You know, I would say it was the size of a good sized bread box.
30:04 Guy Raz? So it wasn't that much, it was more or less the size of today's routers?
30:08 Speaker 01 Well, today's routers are that size, but you know, it was-
30:11 Guy Raz? iPhone size, right?
30:12 Speaker 01 It was the size of a microwave.
30:13 Guy Raz? Yeah. Can I ask you a dumb, I'm gonna ask you a dumb question because you and Len were programmers. You, you guys could sit at a terminal and figure out how to create these programs that would then do things.
30:26 Speaker 01 Cisco was a hardware company.
30:27 Guy Raz? That's what I'm, that's what I want to know. How did you, how did you know how to build the hardware? Is this something that you just kind of figured out?
30:34 Speaker 01 I had nothing to do essentially with the hardware, but Len is a superb hardware engineer and that's how Cisco made its money because of Len and his hardware engineering. Len also happens to be- An unparalleled systems programmer. Len's just really good.
30:51 Guy Raz? Were you stressed out about, I mean, OK, I understand that you were not motivated by money, but you had to have money, the company had to be sustainable.
31:00 Speaker 01 Oh, absolutely. I had to go get another job besides Cisco. I worked for Slumberjé Computing, Computer Systems Laboratory, running their computers. And we had only my income, and I didn't have a car. And we had seven people that we were working, we were mortgaged the house to the hilt, which we might have lost at any particular time. And we had creditors up the wazoo. And I had people calling me at 2:00 in the morning complaining because they didn't have their router or their terminal server. And, yeah, it was stressful.
31:30 Guy Raz? Because you didn't have a factory. You were making each one.
31:33 Speaker 01 We didn't have the money to build the damn things. We were having to buy parts on credit.
31:36 Guy Raz? Wow.
31:37 Speaker 01 We had every credit card maxed out. Kirk Laheed, who was one of the founders, gave us $10,000. Len's parents gave us $10,000. Robert Michaels loaned us $10,000. He worked at HP, HP Labs.
31:49 Guy Raz? But everybody, all these people wanted to buy them from you. You just could not make them fast enough, and you didn't have the money to make them.
31:55 Speaker 01 Well, think about the university payment cycle. You know, universities, by the time, they're budgeted.
32:01 Guy Raz? Right. They're paying you 90 days later.
32:04 Speaker 01 Yeah. And, I mean, literally, we would get the money. We had pretty good margins. I mean, we were doing a good business. We would get the money, and we would pay off the two months' bills before.
32:16 Guy Raz? Wow.
32:17 Speaker 01 But then, if you had an order for another 20 boxes.
32:20 Guy Raz? You would borrow it.
32:21 Speaker 01 We had no collateral. We had already mortgaged the house.
32:26 Guy Raz? So here's what I don't get. You guys, it's just a few of you, mainly you and Len at the beginning, trying to build this. You obviously have this thing that a lot of companies are interested in, a lot of universities, a lot of people are interested. Why didn't you just go and get some investors to put some money into the company?
32:44 Speaker 01 We went through about 70 or 80 of them.
32:46 Guy Raz? 70 or 80?
32:48 Speaker 01 And the problem was that, you know, at this point, the investor community, which is a whole bunch of old Fairchild semiconductor salesmen. They didn't think that you could make any money on a public protocol, because of course, everybody would do it. You know, DecNet was a proprietary protocol. SNA was proprietary protocol. PUP was proprietary protocol.
33:06 Guy Raz? But of course, your technology was in the public domain. So they thought, you know, anybody could do this, right? You don't own this.
33:13 Speaker 01 Right. Everybody else was going to do it.
33:15 Guy Raz? Which makes sense, right?
33:17 Speaker 01 Except that if everybody could do it, why didn't they?
33:20 Guy Raz? So when you went to investors and you pitched them on this?
33:24 Speaker 01 They had no clue what I was talking about. First of all, there was a woman founder. And they're all 60 or 70. They just didn't know how to relate to a woman in business. And you know, Len is a great guy, but he's not normal.
33:38 Guy Raz? Meaning?
33:38 Speaker 01 Well, two of us are pretty abnormal. I mean, so I was basically a translator a lot of times.
33:43 Guy Raz? You were the face? You were the front man?
33:45 Speaker 01 Well.
33:46 Guy Raz? Front woman?
33:46 Speaker 01 Not a lot of people can have a conversation with Len.
33:49 Guy Raz? And were you feeling, I don't know, were you feeling dejected or nervous or anxious? I mean, you needed to build these? You didn't have money?
33:59 Speaker 01 I think that, I've never been in a war, but I think that we had, all of us who were there, there were probably about 10 or 12 of us at that time, very much had a trench mentality.
34:09 Guy Raz? How were you paying everybody?
34:11 Speaker 01 We could get enough income, fast enough to meet payroll. And we had a whole bunch of free labor. Len's parents were building cables and my aunts came down and did Xeroxing for us. And I was managing the cash flow. But it was very hand mouth, in a way that I think that people who want to be entrepreneurs these days really don't understand.
34:32 Guy Raz? Was it exciting? Or was it?
34:35 Speaker 01 No.
34:35 Guy Raz? It was nerve wracking?
34:37 Speaker 01 If you can imagine being in a World War I trench in the mud, being constantly shelled by the Germans and the mustard gas and no food and no relief and no sleep, it was that exciting.
34:50 Guy Raz? When we come back, how Sandy and Len finally did get their funding for Cisco Systems and why they both eventually walked out of the company they built. Stay with us. I'm Guy Raz and you're listening to How I Built This from NPR.
35:34 Guy Raz? Hey, welcome back to How I Built This from NPR. So by the mid 1980s, Cisco Systems was up and running. And Sandy and Len went through a bunch of different investors trying to get their router company funded, until finally, they found the guy they needed. I guess it's at that point where you come across a guy who is, becomes pretty well-known to people who follow the investment, the VC world, a guy named Don Valentine. You come across him, and this is a time where you were really desperate for cash. And what does Don Valentine, he's with Sequoia Capital, what does he say to you?
36:12 Speaker 01 Don told us that, well, you know, I've taken 200 companies public. You walk into his office and, you know, like your little cubes back there, he's got like all these lucid cubes, you know, making this kind of untenable mountain. And he says, you know, you'll be part of the Don Valentine group of companies.
36:26 Guy Raz? He had already launched tons of companies.
36:28 Speaker 01 Yeah, including Apple and Intel.
36:29 Guy Raz? Wow.
36:29 Speaker 01 Oh, yeah.
36:30 Guy Raz? So the guy who launched Apple and Intel is coming to you and saying, I'll invest in you.
36:35 Speaker 01 Yes, and telling us that, don't worry about getting your own lawyer, we'll, you know, we'll pay for it. You know, Len and I walked into a four-year vesting plan after funding the company for three years, clearly a mezzanine investment. We're making, we were booking a quarter million dollars a month at that point.
36:50 Guy Raz? Four-year vesting plan means that you're...
36:53 Speaker 01 We had four years to put in to get our stock and no employment contract.
36:58 Guy Raz? And what did he get? What did he give you and what did he get?
37:01 Speaker 01 He gave us $2.6 million, and Len and I got about 30%. But remember, he was the chairman of the board of the company, and he got stock from that, and all of his friends got stock.
37:10 Guy Raz? Right. Okay. I think we're foreshadowing that this story does not end well, but we're going to get to why. So Don Valentine is now essentially the boss.
37:23 Guy Raz? Right. And so, does he say to you guys, "I don't want you to run the company anymore"?
37:28 Speaker 01 No, no, he was, Don is much more clever than that. You know, Don said, "Well, for the good of the company, we need to get you a professional CEO. For the good of the company, you know, we need a professional CFO." And Len and I were still kind of doing the, I think we wanted to believe it.
37:41 Guy Raz? Yeah.
37:42 Speaker 01 You know, we had given our health, our marriage, everything for this company. And here's this guy who's been wildly successful. And, and we, we truly did want to believe that that was for the best. And his next strategy was to bring someone in who was hostile.
37:55 Guy Raz? As a CEO.
37:56 Speaker 01 As a CEO.
37:57 Guy Raz? This is John Morg- this is John Morgridge.
37:59 Speaker 01 Yeah. And he denies it, but I will swear on the lives of my cats, the first thing he said to me was, "I hear you're everything that's wrong with Cisco."
38:05 Guy Raz? When the first time you meet-
38:07 Speaker 01 The first-
38:07 Guy Raz? The new CEO of the company that you started, he said-
38:09 Speaker 01 I will swear that.
38:12 Guy Raz? So, when John Morgridge comes in to run the company, tell me what he would have thought was wrong with Cisco?
38:20 Speaker 01 Well, Cisco by this time had a sales force. But remember, the sales force looked like Don Valentine, but younger. Salesmen way into the, this current millennium are still having the parties with the naked girls jumping out of the cake and, and all of this stuff.
38:36 Guy Raz? There was a type, you're saying, that came into Cisco?
38:38 Speaker 01 Yes. And these guys were used to having a product that they frankly didn't understand. But to sell a Cisco box, I think you had to understand some part of it because it's what made us different and it's what's made us successful. And at one point, I looked at Don and I said, because he was arguing that we didn't need more floor space because we, we literally didn't have a place to set the boxes that we were making. And he says, "Every company I invest in always wants more space and they always go out of business." And I said, "You don't understand, Don. This is going to be a $1 billion company." And he looks at me and he goes, "How do you know that?" And I said, "Look at the people here." And then I said the most stupid thing I've ever said in my life, which was, "Leaving me out of it. These people are really, really special."
39:23 Speaker 01 And I did it because I felt, I grew up with a grandma who said, "Pretty is as pretty does, and you don't say nice things about yourself." You know, I was being modest. I was saying, you know, "Even if you don't like me," which he didn't, he loathed me, "look at these other people, they're truly special." I mean, these were people that came out of Stanford at the end of the 70s. You don't know what you've got here.
39:44 Guy Raz? How many women worked at Cisco at that time?
39:46 Speaker 01 Well, not very many, although we had a couple that were doing inside sales. And we had my friend, who was still at that point running the purchasing department. I do remember that at the executive meeting, the head of HR, who was the former Miss California, and I were the only women.
40:02 Guy Raz? So, this is another part of the story where it's a little complicated. And there are obviously different versions of what happened. But essentially, there was a lot of tension at Cisco. And it seems pretty clear that there was somebody or some group of people who wanted you out.
40:22 Speaker 01 That's right.
40:23 Guy Raz? And so I guess, one day, your CEO, John Murgridge, calls you into his office. And what do you remember about that day?
40:33 Speaker 01 Everything.
40:34 Guy Raz? What happened?
40:35 Speaker 01 I was just sitting in my little office in the corner, as I did every day. And he came in and he sat down in the chair without making an appointment. And he said, "You know, I think it's time you retire."
40:45 Guy Raz? That was it?
40:46 Speaker 01 He says, "You've got all this money now, you're just timed to retire." And I said, "Well, John, I'm not even half vested yet, and I've got a lot I still think I'm doing here." And I started, of course, in my practical way to tell him what I was doing. And he practically told me to shut up, and basically, I was fired.
41:02 Guy Raz? Wait, but your share of the company was going to fully vest in four years. This is two years.
41:10 Speaker 01 Bingo.
41:11 Guy Raz? So, if you were to walk out at that point...
41:13 Speaker 01 I'd be walking out with half my net worth. I noticed they only fired me and not Len.
41:19 Guy Raz? And you could do nothing about that?
41:22 Speaker 01 You know, at that point, it was women don't get along, they're not playing team players. You know, this was six months after the company IPO. So you fire one of the founders, big deal. And Len and I were not getting along. We did have an adjustment period where it was very difficult.
41:37 Guy Raz? Your marriage was, was suffering at that point.
41:40 Speaker 01 We'd given everything up for the company, our health, our marriage, you name it.
41:44 Guy Raz? Which it sounds like it. I mean, I don't know how you could have had a normal marriage.
41:48 Speaker 01 You can't. And people handle stress in different ways. And they were simultaneously pandering to Len's ego. And I had no idea Len had an ego until then, but you know, he went on the road show. He got the board seat and I was literally chopped liver. And so they, they very consciously tried to drive this wedge between us and.
42:07 Guy Raz? Sounds like it was working.
42:08 Speaker 01 Well, except for one thing, and someone like Don Valentine has no way to really internalize Len for all of his things that can make him very unusual and sometimes very difficult. He is fundamentally fair and decent and it is inviolable. And I went to him and I said, Len, I don't know, you know, you're on the board, whether you've heard about this, but Mortgage just fired me. And Len looked at me in his usual way, his little nose kind of goes up one side. He says, I am sure you are mistaken. And I said, well, I'm sure I'm not. The words you are fired, leave the building were said.
42:49 Speaker 01 And so Len, I think you probably could have knocked over both Valentine and everybody else like little bowling pins when Len walked up there and walked out with me.
42:58 Guy Raz? He walked out in solidarity with you?
43:01 Speaker 01 He absolutely did.
43:02 Guy Raz? He gave up half of his.
43:04 Speaker 01 Potentially. We ended up getting it back, but only because it would have looked very bad for the stock six months after when both of the founders walk out and you can't tar and feather the other one with girls don't know how to play on a team.
43:18 Guy Raz? Wow. So you did manage to retain your one third stake in the company?
43:23 Speaker 01 With, with our lawyer and threatening to expose all this stuff six months after the IPO.
43:29 Guy Raz? Right. It speaks to the power of your.
43:35 Guy Raz? Intellectual partnership that Len walked out with you. I mean, it speaks to how much he respects you.
43:42 Speaker 01 I agree with you, and Len and I, you know, we respect each other as people, and we adore each other, and we're each other's best friend.
43:51 Guy Raz? Hmm, and I should say, you're no longer married.
43:55 Speaker 01 That's right. But what fundamentally hit was something that they could not have reckoned on, and that is that there exists people in the world who fundamentally see black and white, right and wrong. And Len is one of those people that has an inerrant sense of ethics.
44:13 Guy Raz? Did they, they must have panicked when he walked out with you.
44:17 Speaker 01 They did.
44:18 Guy Raz? That could have, that could have sunk the company.
44:21 Speaker 01 They were wholly, wholly taken aback. They had no plan B.
44:25 Guy Raz? Hmm. So Sandy, somebody who knows, somebody who's hearing the story and knows a little bit about it, might ask you this question, which is, when you and Len walked out, it's been reported you walked out with $170 million. Their argument, Cisco's argument, was, look, you guys are now rich, just go enjoy life. And so, I mean, you did have all that money. Was any part of you like, yeah, all right, I mean, I did my job here, and, okay, I'll move on?
45:00 Speaker 01 You know, it could have been that way had the sequence of events been less brutal and less personal.
45:06 Guy Raz? Yeah.
45:07 Speaker 01 They could have bought Len and I out. We could have kept, you know, a facade of a relationship. It could have been done 500 ways that would have been a positive thing. Yeah, it was probably time for me to go. It was probably time for Len to go. We're just not good people in a collaborative environment.
45:23 Guy Raz? So you both leave the company. And how was your emotional state at that time?
45:28 Speaker 01 Oh, I was a wreck. You know, my entire adult working life was tied up in everything that had been done and sacrificed and built in that company. And the people who stayed there were now longer not my friends.
45:41 Guy Raz? Yeah.
45:42 Speaker 01 The people who were customers of them were no longer now not my friends. And it was, it was a time that...
45:52 Speaker 01 You know, any kind of tentacle or root that I had managed to put down was just forcibly ripped up. I was on my own. I had a comfortable amount of money. Remember that right after that, Len and I put 70% of the proceeds into charitable vehicles.
46:06 Guy Raz? Which does not get distributed until both of you guys are long gone, right?
46:09 Speaker 01 Well, yeah, and we've paid out about $50 million on a private charity that we've been funding since that time. So, you know, I had money, but we're not talking about billions. We're talking about, you know, a 10th of that.
46:24 Guy Raz? You guys sold all your stock.
46:25 Speaker 01 We did. You know, certainly people would say, well, you look, you're crying all the way to the bank. Yeah, how much money can you spend? How much money do you really need? I'm not somebody that, you know, I live in a log cabin. You know, what they had taken from me was what they meant to take from me, which was basically my whole working identity.
46:43 Guy Raz? And the amazing thing is, you were 35 years old when this happened. You were a very young person.
46:48 Speaker 01 Yep.
46:49 Guy Raz? So you're 35, you're ousted from the company that you founded. You do have quite a bit of money at this point. So what did you do?
46:58 Speaker 01 You know, I come from a family that believes very strongly in the common good. I've been given great values with respect to work and, you know, I decided that animals were always my first love.
47:12 Guy Raz? Hmm.
47:13 Speaker 01 And there were five animal shelters in the Bay Area that if your pet happened across the street, it could end up in a shelter 60 miles away. And they had no way to tell where your pet was. And a lot of times, by the time you figured it was really missing, it had been euthanized. And I went across the street to the animal shelter and I said, you know, hey, I have this idea for Network. And we could put all these animals, you know, in this database that would be shared by all of these five networks that ring the bay and we could call it PetNet. And, you know, you guys could just sit there and, you know, take a picture of the animal and like type in a few things about it. And people could sit at home and see where their animal was. So I just started working really, really hard with Marin and Peninsula and San Jose
47:56 Speaker 01 and Palo Alto and the Oakland shelters, building PetNet.
48:02 Guy Raz? You spent a couple of years in the Bay Area after you were ousted from Cisco. And then I guess in the mid 90s, you started a cosmetics company, Urban Decay, which is completely, like, totally different direction, right?
48:17 Speaker 01 Oh, yeah.
48:18 Guy Raz? How did that happen?
48:19 Speaker 01 My aunt, whom I adored, I was turning 40, and she said, hey, kid, it's time to lose the t-shirts and jeans, and by the way, you could use a little makeup. And I adored her, and I thought she loved me, and so I took that to heart. And I thought that jeans and t-shirts were not a negotiable item, so I would concentrate on the makeup. And I went to go look at that, and I went to the department store, and it was all great if you were Christie Brinkley. You know, I don't look like Christie Brinkley. And I've always been kind of a hippie, kung punk sort of person, just because I don't fit in. So I tend to gravitate toward those fashions that belong to those people who enjoy not fitting in. And, you know, it was all pink. And I just go, I can't do this for the rest of my life.
49:04 Speaker 01 This is not right. Why is your nails red? Well, because it has to match your lipstick. Why? Do you stand there and put your hands up by your face? No, your nails should maybe match your clothes. How about that? What if your nails matched your clothes? So makeup's a very easy thing. You do it three weeks. We're on the shelf in three months. You know, just add $50,000 and stir.
49:23 Guy Raz? Wait, hold on one second. Because at this point, you were like, I am never going to outside investors ever again.
49:29 Speaker 01 Bingo.
49:30 Guy Raz? So you had the money.
49:31 Speaker 01 Bingo.
49:32 Guy Raz? And you funded this company.
49:33 Speaker 01 That's right.
49:34 Guy Raz? And because you could do that, you could make it happen quickly on your terms. And so what was Urban Decay? What would make it different?
49:39 Speaker 01 Well, I just thought, you know, there's a whole market for people like me that really grew up in the time of, you know, Vietnam War, and hippies, and punks, and, you know, I was really heavy into the punk scene at that point. I was a little delayed gratification. So I just started making these really cool colors.
49:57 Guy Raz? Like?
49:58 Speaker 01 Beautiful blues. We had a kind of a light steel blue that was called UVB. We had Plague, which was kind of purple with a green tint. Roach, which was an absolutely drop dead gorgeous brown. And we had mildew, which was a really lovely, lovely green. We had Uzi, which was a gorgeous kind of steel, steel color.
50:20 Guy Raz? Wow. So you were making up colors and giving them some interesting names.
50:24 Speaker 01 And really, really good ingredients. The first place we were in was in Nordstrom's and Neiman Marcus. We were using top of the line ingredients and it was absolutely committed to no animal testing.
50:37 Guy Raz? And because you put your money behind it, you were able to, like, how did you get Nordstrom to agree to carry it?
50:44 Speaker 01 Because A, it was a really good product. And B, I think it was good timing because, you know, you're talking about the mid 90s. You know, you're talking about Nirvana and, you know, the grunge wave and, you know, Pearl Jam and that whole thing. And I think Nordstrom rightly felt that they were missing a market.
50:59 Guy Raz? So it's, I mean, it's really cool because you sort of had spent so, the previous, like, two decades, really understanding, learning, mastering computer technology. And I have to assume that you had to dive into cosmetics in the same way because I, I mean, did you know?
51:16 Speaker 01 No, it's really easy. You know, the base of the nail polish, how much mica you want to put in it, the base for the, you know, the color cosmetic eyeshadow, what kind of mica you're using, how much mica, how much pigment you're putting in it. Everybody uses the same stuff. It's just how they put it together and what they're willing to pay for.
51:32 Guy Raz? So you, so you would go to these factories that would make, that'd make makeup for 100 different companies and you would tell them exactly what you wanted?
51:40 Speaker 01 No, we would make it.
51:41 Guy Raz? You'd make it?
51:42 Speaker 01 We would sit on the bench with the people and, and make it. And we had three weeks to get it out on the shelf before the same company would, would knock it off for the other people down the street.
51:50 Guy Raz? I mean, you were and you are such a highly respected technology pioneer and, and you had all these friends in this community. Did anybody ever say, Sandy Cosmetics, that's interesting. That's like a total departure.
52:05 Speaker 01 I wanted it to be a total departure because, and I was, I was using my technical chops for PetNet. So I was doing that and the makeup to me was really, I was quite offended by the makeup industry putting all the women in this pink box. You know, our first, our first ad for Urban Decay was, does pink make you puke? You know, to me it was about choice.
52:28 Guy Raz? I guess to illustrate like how kind of punk this Urban Decay was, I've read that Dennis Rodman used it.
52:37 Speaker 01 Dennis Rodman, The Cure used it. Gwen Stefani used it. I mean, we had a whole lot of people who were using our makeup.
52:46 Guy Raz? So why did you? I mean, I think it was like five years after you launched Urban Decay that you sold it to LVMH, which is the company that includes Louis Vuitton. Why?
52:58 Speaker 01 Oh, for the simple reason that there's no intellectual property. You can't patent color.
53:04 Guy Raz? Right, meaning like other companies could keep knocking you off. So you just figure...
53:10 Speaker 01 Done with this.
53:11 Guy Raz? Yeah, done with this. Was it worth the price? Was it worth selling it?
53:14 Speaker 01 I made money.
53:16 Guy Raz? And I believe, by the way, I think Urban Decay is now owned by L'Oréal.
53:19 Speaker 01 Yep, $400 million.
53:20 Guy Raz? $400 million. That's not what they paid you in 2000, unfortunately, right? But still, you know, you started this company. It's probably cool to see this around. I mean, it's still around.
53:31 Speaker 01 Absolutely.
53:32 Guy Raz? So you have this entirely other part of your life, which is arguably the biggest part of your life, which now, which is a sustainable farm in Virginia. You completely left the West Coast. You built your life in the Virginia countryside where you raise rare breeds of cattle and pigs and chickens.
53:57 Speaker 01 And turkeys.
53:58 Guy Raz? And turkeys. Tell me about that. How did that start?
54:01 Speaker 01 Well, you know, I was raised on a farm, and I believe in eating meat. I mean, we've got these pointy teeth right here. But, you know, the idea that you would factory farm to me was beyond horrifying. And I absolutely believe that. We did not use that kind of farming when I grew up. We farmed the way my grandfather knew how to farm, which was the manure on the fields, and you fed your cows good things. And at the end of the time, your cow fed your neighbor. I mean, we would no more have poisoned our cows because we would have poisoned our neighbors at that point. So I was convinced that I could find an economic model because I had the resources to raise large livestock profitably in a sustainable, organic, and humane paradigm.
54:40 Speaker 01 And I am.
54:41 Guy Raz? But I mean, but I have to imagine that like doing this kind of farming is hard.
54:46 Speaker 01 You know, I'm one of those people that doesn't have, I guess, the good sense God gave it act to, to just not do something because it's going to take a whole lot of hard work. Farming is the hardest thing I've ever done, much, much harder than learning calculus as a graduate student and, you know, physics and the rest of all of that stuff. It's, it's, it's much, much, much harder than anything I've done and it takes more work and more heartache and more aggravation than you can ever imagine.
55:13 Guy Raz? You know, Sandy, something that, that is really striking to me is that you, you still have this partnership with Len, like, like even though you haven't been married since like the 90s, you still collaborate together and, and clearly like you still value each other tremendously.
55:30 Speaker 01 Yeah, and our foundation is called the Ampersand Foundation because it stands for Len and Sandy.
55:35 Guy Raz? Oh, that's so cool.
55:36 Speaker 01 And we both have put our money in, no matter what we do with our personal lives for the rest of our lives, we are each other's legatees.
55:42 Guy Raz? Yeah.
55:43 Speaker 01 But, you know, it is good that, that Len and I found each other because we've probably were more suited to each other than most everybody else on the planet. You know, my parents thought Len was a space alien until, until he fixed my uncle's chainsaw. Then he was like the golden boy. But when my parents and Len's parents met each other for the first time, I think they were each expecting sort of like ET and, and wife, you know, because both of their children were so bizarre.
56:13 Speaker 01 You know, it was, it was a little, it was a little touchy there for a while.
56:17 Guy Raz? I mean, I know you've been asked this before and it's a bit of a touchy question, but I want to ask you it anyway. You have been able to do almost anything you wanted to do and you've given away so much of your wealth. Had you and Len kept that stock, you would have been, it would have been worth 50, maybe more billion.
56:38 Speaker 01 Yeah, last time I checked, I think I would have been, been worth nine billion, but it's, it's probably gone up since then.
56:44 Guy Raz? What do you think about that?
56:46 Speaker 01 You know, I think that nobody can see the future and that Len and I agreed to sell our stock on a very joint basis and we did it because we fundamentally had no respect for people running the company. And it wasn't really that we didn't believe in the company. I mean, I was the one who said that Cisco would be a billion dollar company and I knew that that was, as long as those people stayed there, even without me and Len, they had a technology legacy, that they would be successful. It was because Len and I did not wish to live our lives with those people having any more control over our day. It had nothing to do with financial. You know, we made a pile of money and it really had nothing to do with, you know, ROI
57:29 Speaker 01 or, you know, P and E rates and, you know, what that company was going to do. It had to do with the quality of our life and how we wanted to look at the morning.
57:39 Guy Raz? How much of your success do you attribute to your intelligence and your hard work? And how much do you attribute to just luck?
57:48 Speaker 01 You know, I've always said that it's a third being smarter, a third working harder, and a third luck.
57:54 Speaker 01 No, I take that back. It's a half being smarter, half working harder, and a half pure luck because that adds up to more than one. And there were times that Cisco could have just been an asterisk and a footnote. I mean, there were so many times that company could have gone under and we were saved by circumstances out of our control. So there was huge luck in there. I still work harder than anybody I know. That's my great gift and I love work. I'm besotted with work. You know, I've already designed my epitaph. It has one word on it. What do you think it is?
58:34 Guy Raz? One word. Wow, that's tough.
58:36 Speaker 01 One word.
58:36 Guy Raz? I can't summarize your life into one word, Sadie. I don't know. I have no idea.
58:44 Speaker 01 Bold. Bold.
58:50 Guy Raz? Sandy Lerner, co-founder of Cisco Systems and founder of Urban Decay Makeup. By the way, Sandy did guess right. When she once predicted that Cisco was going to be a billion-dollar company, it is now more like a $200 billion company. In addition to running Ayrshire Farm and running its restaurant, Sandy also started a library in the UK, the Chotten House Library, which contains thousands of books written by female authors around the time of Jane Austen, who Sandy says is her drug of choice. In fact, a few years ago, Sandy wrote a Pride and Prejudice sequel. It's called Second Impressions.
59:35 Guy Raz? Thanks so much for listening to the show this week. If you're not a subscriber, please do subscribe wherever you get your podcasts. If you want to write to us, our email address is [email protected] . If you want to follow us on Twitter, we're at HowIBuiltThis or at @GuyRaz. And on Instagram, you can follow at HowIBuiltThisNPR or my account, at Guy.Raz. This episode was produced by Rachel Faulkner, with music composed by Ramtin Arablouei. Thanks also to Janet Oo Jung Lee, Liz Metzger, Farah Safari, Derris Gales, J.C. Howard, Julia Carney, Neva Grant, and Jeff Rogers. I'm Guy Raz, and you've been listening to How I Built This.
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