Take away quote from the article:

"My hypothesis is that most children are emotionally damaged by [growing up in a dysfunctional family]. But a small percentage, whose brain chemistry and wiring is set for resilience, come out of this with a compulsive, relentless and tenacious drive to succeed. They have learned to function in a permanent state of chaos. And they have channeled all this into whatever activity they could find outside of their home – sports, business, or …entrepreneurship."

I was going to come and post this. Its a very long article to make this very simple point.

“Steve, almost all my CEO’s came from very tough childhoods. It was one of the characteristics I specifically looked for. It’s why all of you operated so well in the unpredictable environment that all startups face.”

I guess my company wouldn't receive funding from her, since both my co-founder and I come from functional families!

I wonder if she used any other highly scientific predictors, such as reading a founder's tea lees or checking to see whether they have the "entrepreneur" bump on their skull?

You have to make decisions with incomplete and unscientific data all the time. If there was a scientific predictor to business success, VCs wouldn't pick lemons ~80% of the time. There's nothing wrong with making decisions based on features like that, as long as you're accurately measuring your results. Who knows, maybe his VC friend is "retired" for a reason?

Without any real backing, this would be discrimination, however.

A very interesting correlation. As for the cause & effect goes resilient behavior is well explained and I buy that argument.

However what strikes me the most is not about the traits dysfunctional families force you to develop but the part he notes "those who have channeled all the chaos for a positive effect" - a very small percentage does.

And they have channeled all this into whatever activity they could find outside of their home – sports, business, or …entrepreneurship."

Even a high number of criminals, under world dons and other socially unacceptable traits are also correlated highly to dysfunctional families. They too are resilient and in fact have a lot of traits that entrepreneurs have except for the value system, a socially acceptable behavior & positive contribution.

A very small percentage of dysfunctional families would generate great entrepreneurs and I would like to believe that this is just a correlation. One is probably better off to grow in proper functional and stable families but with good exposure/support to possess necessary traits.

Edit: Additionally an unstable or dysfunctionally childhood even among those small percentage might have caused them to have extreme bahaviours on rudeness, temper, patience, trust etc. which is very adverse for startups.

I agree with most of what is said, but I think the word "dysfunctional" is incorrect and implies the wrong characterization of these situations. Show me the entrepreneurs who came out of childhood situations where fighting, alcohol and drug abuse are the norm? I would agree that many entrepreneurs come out of childhood situations where their family struggled through chaotic situations (characterized by uncertain future, time spent living on the margin, etc.), but that the key element is that the family can remain functional and successful in these conditions, thus being closer to the exact opposite of what is normally categorized as "dysfunctional". I can point to the many cases of first generation immigrants who go on to be successful entrepreneurs. Their parents, as immigrants, faced exactly this sort of chaotic situation and had to find a way to remain functional.

I have to agree with the more general case if not his exact point. middle class is the enemy of rich and dysfunctional is probably highly correlated with household income.

So I tied an onion to my belt. Which was the style at the time.

Back then, nickels had pictures of bumblebees on them. "Gimme five bees for a quarter," you'd say.

You couldn't get white onions, because of the war.