DEC-002 CORE accepted

Anti-Hooli Corporate Principle

2014-04-13
Authors: Richard Hendricks

Anti-Hooli Corporate Principle

Setting

Pied Piper was founded by former Hooli employees who witnessed firsthand the dystopian corporate culture of Big Tech. Hooli's practices included:

  • Restrictive non-compete clauses (illegal in California)
  • Cult-like corporate spirituality programs
  • User data monetization without consent
  • Acquisition and burial of innovative technology

This principle establishes Pied Piper's core identity as the antithesis of Hooli.

People

  • Responsible: Richard Hendricks (CEO/Founder)
  • Approvers: Founding Team (Richard, Gilfoyle, Dinesh, Erlich)
  • Consulted: Peter Gregory (Initial Investor)
  • Informed: All future employees and investors

Alternatives

Option A: Adopt Standard Silicon Valley Practices

Pros:

  • Easier fundraising from traditional VCs
  • Familiar playbook for growth
  • Lower short-term friction

Cons:

  • Perpetuates harmful industry norms
  • Risk of becoming what we hate
  • No differentiation from competitors

Option B: Establish Anti-Hooli Principle

Pros:

  • Clear ethical foundation
  • Attracts mission-aligned talent
  • Authentic differentiation
  • User trust

Cons:

  • May limit certain business models
  • Harder to monetize
  • Investors may not understand

Decision

Chosen: Option B - Establish Anti-Hooli Principle

Rationale: We started this company because we believed technology should serve users, not exploit them. If we become Hooli, we've already lost.

Core Tenets

  1. No restrictive employment contracts - California law prohibits non-competes; we embrace this
  2. No cult-like culture - No mandatory meditation, no corporate spirituality
  3. No data exploitation - We will never sell user data or enable ad-mining
  4. Technology for users - Our tech must benefit end users, not just shareholders

Consequences

Positive

  • +Clear moral compass for all decisions
  • +Strong team alignment on values
  • +User trust and loyalty

Negative

  • Revenue constraints (no ad revenue)
  • Some investors won't understand
  • May lose deals to less principled competitors

Follow-up Actions

  • Document in founding principles
  • Include in employee onboarding
  • Reference in all major decisions
DEC-002 Authors: Richard Hendricks