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Y Combinator has lost its soul: A YC founder's perspective

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Re: Y Combinator has lost its soul: A YC founder's perspective

#171

Post by cryptonector »

cactus2093 wrote: post #152
cryptonector wrote: post #138

Earlier quoted context omitted.

If you have no capital to bring, then you will have no equity either unless you provide labor for free. Labor compensated with equity is capital, since you have to pay your living expenses out of savings or loans that you are liable for. And you'll just be an employee of sorts, except with less pay and more risk. Why bother? If you're unsure where your next meal is coming from, then you probably aren't currently a go…

The way YC currently works is something like $125k for 7% equity. So founders can pay themselves enough to live on and still own 93% of their company. This wasn't a hypothetical that the parent comment you're replying to made up. So whatever bizarre first-principles argument you're trying to make, which I am not really following, already doesn't match the current reality.

$125k is a salary.

Re: Y Combinator has lost its soul: A YC founder's perspective

#172

Post by danenania »

richajak wrote: post #123

Several years ago I used to read pg old articles (also Joel S, pgreenspun) without realizing who he was or know what YC was. It clicked with my nerds mindset. I had an impression that he was a champion for the underdog, nerds like me who is smart enough (but not genius), willing to work hard and live frugal. I also had the understanding that ambition to be a unicorn not necessary, it is much more important to be rame…

I don't think pg or the YC partners more generally have anything at all against bootstrapping or smaller scale businesses. But they're a business too and have their own investors to answer to. Billion dollar exits are what make their business work.

$5k MRR is a great goal, but you shouldn't expect investors to give you money if you there's no potential upside for them.

Re: Y Combinator has lost its soul: A YC founder's perspective

#173

Post by jfk13 »

yters wrote: post #121
Jommi wrote: post #99

Earlier quoted context omitted.

I don't understand this point. Do you think anyone at any life situation should have equal opportunity of becoming a successful entrepreneur? You do realize that by having a family and owning a house, you're pretty much on a completely different financial and stability level than a single young male.

I am just saying the small grant makes a lot of sense from the YC worldview. And, if someone has family, house, etc. to provide stability do they need YC financial assistance?

Family and house do not necessarily provide stability; they may just provide added responsibilities. I can't feed my house to my kids.

Re: Y Combinator has lost its soul: A YC founder's perspective

#174

Post by graeme »

cardine wrote: post #162
SamReidHughes wrote: post #142

Earlier quoted context omitted.

What sort of joke is this? Having parents with an extra bedroom, once used by kids, is perfectly ordinary.

Perfectly ordinary for you and people in your peer group who share largely similar upbringings. I think this comment is (no offense intended towards you specifically) very indicative of how insulated and lacking in diversity tech is.

What’s your estimate of the percent of the population that could move in with their parents? And then additionally what’s your estimate of the percent of the population that can program that this is true for?

40% of young adults in the USA do live with family, and it’s a good bet that a large fraction of the rest could. It’s certainly not universal by any means, but it’s also far from some great rarity.

https://www.cbsnews.com/news/percentage-of-young-americans-l...

I’ll grant that the original comment talked of having “his own bathroom” and that is reasonably rare, but it’s the least important part of the package compared to a room and shared meals.

Re: Y Combinator has lost its soul: A YC founder's perspective

#175

Post by kylec »

polk wrote: post #104
djsumdog wrote: post #95

> You're going to end up with a bunch of rich white dudes as founders Why not just say "rich dudes" ? That is the qualifier. The race might be true too, but it's not what defines the argument.

I'm surprised you find the race unnecessary, but continue to include the gender. "Rich people" would be all that's required.

I’m surprised you find the gender unnecessary, but continue to include the species. “Rich individuals” would be all that’s required.

Re: Y Combinator has lost its soul: A YC founder's perspective

#176

Post by cryptonector »

awillen wrote: post #147
cryptonector wrote: post #138

Earlier quoted context omitted.

If you have no capital to bring, then you will have no equity either unless you provide labor for free. Labor compensated with equity is capital, since you have to pay your living expenses out of savings or loans that you are liable for. And you'll just be an employee of sorts, except with less pay and more risk. Why bother? If you're unsure where your next meal is coming from, then you probably aren't currently a go…

Yeah, it's commonly known as sweat equity. You do the work, and other people provide the money, then you split up the equity accordingly to the relative value of the two different types of contributions (I mean that's oversimplying but it's generally accurate). If you're unsure where your next meal is coming from, you may still have a great idea and the ability to execute on it. If someone gives you enough money that…

Obviously VC exists because the founders don't have enough capital, but not because the founders have zero capital.

Re: Y Combinator has lost its soul: A YC founder's perspective

#178

Post by natpalmer1776 »

SamReidHughes wrote: post #142
doorstar wrote: post #62

Earlier quoted context omitted.

We have a silicon valley success story in our family. His parents were telling me how he built everything up out of nothing, clearly unaware of their own contribution. He could pour all his money into his start-up because if he'd lost every dime he could have moved back in with them. He'd have his own bedroom, bathroom, and a fresh-cooked meal every night. He could have stayed with them as long has he wanted. Very fe…

What sort of joke is this? Having parents with an extra bedroom, once used by kids, is perfectly ordinary.

I moved around a lot as a child, and in my admittedly anecdotal experience... this is not the case for most people in urban / suburban areas.

In most places in the United States, extra space is a premium that requires consistent stable work at or above the median household income in a single field of work over extended periods of time.

From this alone we can rule out those who work minimum wage jobs, most of those who do not have an established field other than "Service Industry" and many of those who specialize in an "unskilled" trade, e.g. forklift operators.

Those who do manage to purchase a home with the requisite space often don't live in posh neighbourhoods with comfortable amenities, and generally are not swimming in excess income.

Additionally modern society, with its' inundation of appealing marketing campaigns and easy credit, has rendered even your "middle class" families cash-poor, stretching their budgets thinner and thinner with each additional monthly payment.

When you culminate all of these things together with a fundamental breakdown in nuclear families and rising divorce rates, "going home after a rough patch" is not an outcome most are able to, much less willing to, consider.

Re: Y Combinator has lost its soul: A YC founder's perspective

#179

Post by wslh »

SamReidHughes wrote: post #142
doorstar wrote: post #62

Earlier quoted context omitted.

We have a silicon valley success story in our family. His parents were telling me how he built everything up out of nothing, clearly unaware of their own contribution. He could pour all his money into his start-up because if he'd lost every dime he could have moved back in with them. He'd have his own bedroom, bathroom, and a fresh-cooked meal every night. He could have stayed with them as long has he wanted. Very fe…

What sort of joke is this? Having parents with an extra bedroom, once used by kids, is perfectly ordinary.

> Having parents with an extra bedroom, once used by kids, is perfectly ordinary.

Do you mean an extra bedroom with two or more beds for your kids or an extra bedroom per kid? That makes the difference and it is more uncommon.

Re: Y Combinator has lost its soul: A YC founder's perspective

#180

Post by opportune »

czbond wrote: post #32
kemayo wrote: post #6

He lost me with the whole "make founders take on massive personal debt to survive" tweet. Removing that particular stressor, particularly from people from poorer backgrounds who lack the access to that kind of credit is how we get a better sampling of ideas.

I’d suggest the opposite. One who is used to living off $1k a month for 1-2 years have an upper hand on founders used to a more cushy lifestyle. Or even having no income and almost broke for years like many successful founders I know of.

It’s not really possible to live in $1k a month as a single adult in the Bay Area unless you are somehow living rent free. Even if you rent a room in a terrible area out in the boonies, the cost of getting to/from the parts of the Bay Area with the tech industry will push you over.

I agree nobody needs a cushy lifestyle when starting a company but as a single adult in the Bay Area you need at least $2k/month after taxes to live. And somehow you need to get someone to rent to you with an income that low. Not everybody is lucky in having a nearby relative they can live with for free.

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