Lucy Guo on Optimizing for Learning, Shipping at 90%, and Founding Again Without Fear of Failure

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Overview

Lucy Guo co-founded Scale AI and later founded Passes. In this interview Guo covers a daily routine, a childhood spent looking for ways to make money online, the decision to drop out of college, lessons from Snap, the messy path to Scale, and the thinking behind a second company. One idea recurs throughout: Guo judges big decisions by how much they will learn, and by whether the work makes them happy, rather than by the conventional measure of risk.

16 min read

A Day Built Around Not Sitting Still

Guo describes waking between 5:30 and 6:00 a.m. every day and going straight to a Barry's workout. Guo chose their house specifically because it is five minutes from Barry's and five minutes from the office, which keeps the commute short and means they don't really need a car. After showering, Guo goes to work, where the day is usually back-to-back meetings. Guo tries to block off time for hands-on product work, such as being in Figma and giving feedback on designs. Work usually runs until about 8 or 9 p.m., then dinner, then more work, and sleep somewhere between 11 p.m. and 1 a.m.

Guo cites Y Combinator's advice that founders should only do three things: work out, talk to customers, and build. Guo says they now see why working out belongs on that list. It puts you on a schedule and tests your discipline. No matter how bad Guo feels, they still get up and exercise, because they know it will leave them with more energy for work that day. Guo sums up the philosophy as "don't sit still." They say they don't spend time scrolling TikTok or watching TV or movies, and credit this with letting them use their time efficiently and invest it in things that make them happy.

What Drives the Work

Besides Scale AI and Passes, Guo mentions Backend Capital and HF0, and says they have angel invested in more than a hundred companies. Asked how success changed their life, Guo jokes that their DMs are "popping," which is "not life-changing, but it's been cool." When people ask what they are buying with their money, Guo answers that happiness drives everything they do. Building Passes makes them happy because it brings challenges into their life and lets them change people's lives.

Guo describes Passes as infrastructure for creators to monetize their brands. In Guo's view the largest creators are effectively unicorns, and they point to Kim Kardashian with Skims, Logan Paul with Prime, and MrBeast with Feastables. Guo says they are excited for Passes to eventually help build a unicorn creator.

A Bored Child Who Learned to Make Money Online

Guo says they believe they were suspended from kindergarten for telling the teacher that what the class was learning was dumb. Their explanation is that their parents already had them doing abacus competitions, multiplication, and division, while school was teaching the alphabet. Bored, Guo taught themselves things, at first mostly ways to make money. Along the way they discovered a love of product. Early signs included trying to start a virtual pet site after getting addicted to Neopets, and working out how to launch an online arcade game website while playing a lot of online games.

Guo traces their entrepreneurial side to one problem: their parents kept finding Guo's hidden cash and taking it away. Guo had to find somewhere the money couldn't be confiscated. When PayPal appeared, they found they could buy a Visa debit card, open a PayPal account, and start earning money online. That led to building websites, and websites led to hackathons.

Guo calls the hackathons the turning point, the moment they moved from building bots to wanting to build lasting companies. There they were exposed to the startup world and realized, as Guo puts it, that they could build apps used by millions of people.

Landing in Computer Science by Accident

Guo describes both parents as brilliant and technical. Even so, the parents discouraged Guo from a technical field. According to Guo, they imagined a woman's place was to marry and have grandchildren, though they still wanted Guo in an intelligent environment to find an intelligent partner.

Guo says they ended up in computer science almost by accident. Chemistry was their favorite subject, they excelled at AP Chemistry, and they planned to become a chemical engineer. While looking for application help on the forum College Confidential, a stranger looked at Guo's extracurriculars and told them they were an idiot and should apply for computer science if they wanted to get into the best college. Guo found that reasonable and did it.

In college Guo attended hackathons every few weeks, including MHacks and HackMIT, and made many friends there. Those friendships later mattered for hiring. When Guo first needed employees, the first people they approached were college friends, and those friends joined without asking questions. Guo jokes that this was concerning and that they should have at least asked what their equity was worth. Guo attributes the quick yes to trust built in college. The lesson Guo draws is that "your network is your net worth": you can hire the friends you made in college because you already know they are good.

Dropping Out: "This Is Not a Risk at All"

Guo says that without a rebellious streak they would probably have been the "good girl" their parents wanted and stayed in school. Guo knew leaving was hurting their parents, but part of the motivation was wanting to prove them wrong and show they could succeed without college.

Guo says they never doubted the decision. What helped them commit was reframing it as not a risk at all. College would always be there, while this was a once-in-a-lifetime opportunity. Guo felt they weren't learning practical skills in school, since everything useful had come from hackathons. Diving into the startup world would teach them far more and let them build products used by millions, instead of theory they would probably never use at work.

Guo calls "optimize learning" their number one rule in life. Leaving something may feel risky, but Guo argues it isn't much of a risk if you are optimizing for learning, because knowledge always retains value and makes you more valuable later.

Most people, from parents to friends to strangers, told Guo they were an idiot. Part of the reaction came from how close Guo was to finishing: only four CS classes and about one year remained. Guo understood that the risk math looked wrong to others, but their own reasoning was that staying meant losing time. The worst case was taking a job; the second-worst case was going back to college. Guo chose to optimize for learning and for being surrounded by extremely ambitious, intelligent people.

Lessons from Snap: Think Bigger, Ship at 90%

Guo says Snap taught them to think much bigger. When they joined, they didn't grasp Evan Spiegel's vision for the company. They found it inspiring to hear his ideas about eventually competing with Amazon and Google, which Guo notes almost nobody associates with Snap even today. Watching him think innovatively about product, without caring much about A/B testing, taught Guo to be open-minded and product-driven.

The other lesson was about perfection. Guo's takeaway is to "just get to 90%" rather than spend years going back and forth on a design. Guo's example is the zoom-out feature in Snap Maps. According to Guo, no one at the company wanted to build it because everyone thought it was dumb, but Spiegel kept insisting, and it became a natural interaction that people love and use. Guo reads this as evidence that consumers don't really know what they want. An idea can sound ridiculous, and you have to try it anyway. Had Spiegel relied on research and feedback, Guo believes the feature would never have shipped. Only once it was in people's hands did they realize they wanted it.

From this Guo draws a working method. Spend about two weeks designing a product, ship it, and see how it does. If it gets traction, iterate and improve. In Guo's view people will use products they want even when they are very buggy and the UX is poor. So it is better to ship at 90% with no user research and then double down if it catches on, rather than spend months on research only to have the launch fall flat.

How Guo Weighs Career Risk

Guo describes a two-part framework: a risk-benefit analysis, and whether they will be learning. Leaving Snap meant giving up a few million dollars, but Guo didn't consider that amount life-changing. They preferred to optimize for learning while taking a shot at truly life-changing money. If the company failed, they would still have gained knowledge and could move to a better-paying job. The real cost would be one to two years, roughly the time it takes to learn whether a company can work. Guo adds that some founders pivot for much longer, including friends who pivoted for six years before finding something, and that those are the founders Guo loves backing.

Guo admits the calculation depends on the stakes. Asked whether they would have left if they had been making a hundred million dollars at Snap, Guo says that realistically they probably would not have.

The Road to Scale: Two Bad Ideas First

Guo describes the start of Scale casually. Over lunch, Guo and their future co-founder wondered whether they should start a company together someday and agreed to do it. Over winter break they began working through ideas. The first, which Guo calls horrible, was "ClassPass for clubbing." It got some traction, but Guo jokes that you know an idea is bad when only VCs subscribe. They pivoted to Ava, a healthcare app meant to help people find the best doctor for a specific procedure, such as a root canal. Guo calls that a terrible idea too, but it got them into Y Combinator.

Guo says they knew they would be accepted because they had talked with YC partners before and after the interview. The partners said the pair would get in because both were very smart: Guo from Snap and the Thiel Fellowship, and the co-founder from MIT. Once in YC, they concluded the idea was still bad and pivoted to Scale.

Painful Failures: Trusting the Wrong People

Asked about failures, Guo says the most painful have come from trusting people they shouldn't have, especially at work. Guo's example is an employee who underperforms and, when fired, tries to extort the company. Guo's point is that you don't want people around you who make you constantly feel you might be stabbed in the back.

To decide whom to trust, Guo admits the advice is a cliché: go with your gut. Beyond that, they recommend reference checks with friends and with acquaintances of the person, since acquaintances will probably give a more honest answer. The best way to build trust is to be extremely authentic. But Guo also says that once trust is broken it sometimes can't be repaired, and then you may need to separate. Guo calls recognizing this a sign of maturity.

Motivating a Team Through Impact and Hands-On Leadership

Guo says the team largely motivates itself through innovation. Seeing a product ship in two weeks when a stagnant large company might take years is exciting, especially when the product is tied to real revenue. Guo keeps emphasizing that connection and believes it explains why many engineers choose startups: they want impact they couldn't get at a big company.

Guo argues that leaders need to do individual contributor work, because the only way to judge people's work is to have done it yourself. At Scale, Guo describes an all-hands-on-deck culture where nothing was too big or too small. Everyone was on Intercom. When a new customer pilot came in, engineers, Guo, and others would gather in a war room and label the data themselves to make sure it was perfect. The principle was that nothing is beneath you; if your time is best spent helping close a deal, you do that.

Guo's example is customer support. A leader who never answers tickets won't know whether reps respond fast enough, give correct answers, or should be expected to know a given answer versus one that is genuinely obscure. In Guo's words, you only build that "muscle" by doing the work.

Hiring for Intelligence, Hard Work, and Availability

The number one thing Guo looks for is intelligence combined with hard work. Even the smartest person won't affect a company without effort. Hard work matters especially at Passes, whose culture Guo describes as "creator first": because creators can be active around the clock, the company needs to be too. Guo says with pride that if a creator messages them at 2 a.m. about a bug, they can call their engineers and one will pick up and fix it. Guo calls this critical in that industry. They clarify this doesn't mean working every weekend, but they want people who will show up when needed.

Guo names kindness as one of their biggest values as a leader, meaning wanting the best for everyone. When they lose an engineer, whether excellent or weak, they still want that person to succeed. Guo describes themselves as giving. They offer chances, and if someone who seems smart and hardworking isn't succeeding in a role, Guo tries to find one that fits them better.

Why Guo Started Passes

Guo gives several reasons for founding again. One was living with founders, whose energy rubbed off on them. Guo also wanted other founders to build the idea that became Passes, but no one would. Around then a friend asked Guo to be CEO of his AI company. Guo got excited and realized they felt ready to be a founder again.

Guo says the main reason they hadn't started another company sooner was fear of failure. Eventually they decided failure didn't matter: their life would be fine either way, and although most people don't build two successful startups, the right move was to stop fearing failure and act.

Guo didn't want another AI company. They had done B2B enterprise and knew how it worked, and if they were going to risk failure on a second company, they wanted to at least have fun. Guo had always been drawn to consumer products, as their many side apps show, and Snap had been one of the most fun experiences of their life. Guo had been sitting on the idea for a while. Looking at competitors, they found essentially only Patreon, which had existed for a decade, and saw an opening.

Guo validated the idea by "selling before building." They asked creator friends whether they would use such a product, got an emphatic yes, then talked to their LPs, who told them, in Guo's words, "Here is money. Go build." Guo says all of this happened within roughly 24 hours of the friend's CEO offer.

Guo's View of the Creator Economy

Guo expects AI to act as a co-pilot for creators and expects more creators to become entrepreneurs. They note that more children want to be creators than ever and that creator marketing spend is rising in nearly every country. Guo attributes this to brands recognizing that creators' audiences and reach are a stronger use of money than ads. As a result, Guo expects creators to work so closely with brands that they are effectively co-founders, or to launch their own brands. Guo sees Passes' role as helping creators get access to the best brands and secure equity for long-term generational wealth, or, where it makes sense, helping them build their own next product.

What Guo Would Tell Their 20-Year-Old Self

Guo says that at 20 they would have stopped complaining about colleagues and instead gotten to know them and lifted them up. Their reasoning is that most companies are gossipy, so complaints spread, reach the person being criticized, and drive them away. Guo believes the most positive work environments are those where you act as everyone's cheerleader, and wishes they had put more effort into seeing the good in people.

Guo closes with something they admit sounds "very LA": they feel they have manifested everything in their life. Their belief is that with a focus on positive energy, hard work to make dreams real, and positive people around you, anything is possible. Guo calls this cheesy but says they truly believe it. They credit their friends, who constantly encourage them and go out of their way to help, and say that with such people around them, they only look at the upside.