Y Combinator has lost its soul: A YC founder's perspective • Hacker News Board

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

#231

Post by santoshalper » Wed, Jul 22, 2020, 5:49 PM UTC

awillen wrote: post #9

The idea that check sizes should be small so people should be forced into dire financial situations is a terrible one, and one that would absolutely hurt diversity. You're going to end up with a bunch of rich white dudes as founders (because very, very obviously the other way that people can afford to take smaller checks is if they have a lot of money in the bank). The smaller class size issue is probably fair, but r…

That's a great point, but I do think there is a legitimate counterpoint - that by shifting most of the risk from the founder (where $25-$100k is a lot of money) to the VC (where it ultimately is very little money) potentially eliminates a filter criteria and could create perverse incentives or lead to a scattershot approach.

"I believe in this idea so much I am willing to gamble my short-term financial future on it" is a great way to find out what people really care about.

The diversity issue is real though. As is the broader issue of wealthy people being able to take on much more risk than normal people, leading to a reinforcement cycle (winners keep winning) and a winner take all outcome.

Which, now that I think about it, pretty much describes US capitalism perfectly.

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

#232

Post by opportune » Wed, Jul 22, 2020, 5:50 PM UTC

TACIXAT wrote: post #215

Is anyone else unimpressed with the ideas being funded? I look at Work at a Startup and it is just new web frontends on existing industries. I'm sure that makes money but holy hell is it boring. Some are working on cool things, but the founder who has a PhD in that topic will be doing the interesting work and they are hiring for infra or interface. One company was a great match for my skill set but the equity was so…

I just looked at the winter class and I agree a lot of them look like duds. It definitely dilutes the brand if your startup is one of ~150 and almost all the others are just X for Y

From your description, wanting to be the SME, early engineer, substantial equity - maybe you would be better off as a founder?

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

#233

Post by nbardy » Wed, Jul 22, 2020, 5:50 PM UTC

The Bay Area has lost its' soul. I moved here to meet creative people tackling big problems and I've found it's no longer about innovation and risk. Just a big pile of uninspired B2B SaaS companies. SV has become a well oiled money making machine for these kind of companies. If you want to work hard and get rich you come here and follow the grind to get your checks, status, clout, etc...

I've found some creative people tackling big ideas, but they are exceedingly rare and largely unsupported by the community. I've met a lot more people who moved out here with big ambitions and have been railroaded down the route of conformity, which makes the most money for VC's. It leaves them without fulfillment or purpose as they grind on products they care little about. SV will continue to produce billion dollar software companies, but I doubt they will produce real innovation over the next few decades. The bay area has conspired to railroad its' potential for greatness towards profitable mediocracy.

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

#234

Post by santoshalper » Wed, Jul 22, 2020, 5:50 PM UTC

sangnoir wrote: post #211

awillen wrote: post #140

Earlier quoted context omitted.

Great point. People think a willingness to take extreme financial risks is somehow a useful personality trait when it comes to entrepreneurship because of selection bias. People who take that risk and make it tell that story. People who take that risk and don't make it aren't heard from. People who don't take that risk also aren't heard from. There are lots of people with great ideas and the ability to execute on the…

And often, getting credit card debt is not a material risk, but a minor embarrassment when they ask their family to bail them out and/or move in the guest house for a few months, rent-free. When poorer folk take the "same" risk, they can be ruined for decades.

At least in the United States, we have a bankruptcy system that blunts the worst outcomes somewhat. Not sure that applies everywhere.

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

#235

Post by chrisco255 » Wed, Jul 22, 2020, 5:51 PM UTC

evan_ wrote: post #218

chrisco255 wrote: post #201

Earlier quoted context omitted.

Uh, most parents would take their kids back in the event of financial disaster. That's not even rare. Many folks live with their parents until late 20s / early 30s these days.

can't really do that if your parents share an 800 square foot public housing apartment with your sister and her kids. or if they're in prison, or dead, or abusive, or they threw you out for not conforming to their religious choices, or disowned you for not being cisgender and heterosexual, or or or

Of course not, and that might be the case for 10-20% of the population. But you don't have to be some privileged trust fund kid for your parents to give you a place to stay in the event of financial hardship. That's not rare and let's hope that never becomes rare because I'd shudder a world where parents by and large would not do this for their kids.

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

#236

Post by kkolanm » Wed, Jul 22, 2020, 5:54 PM UTC

awillen wrote: post #223

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.

Most of them will be white - basic statistics bear that out. Since my point was that it's incredibly detrimental to diversity, it's obviously relevant to it. If you want to make an argument for something, go nuts, but don't come tell me what defines my own argument. Also, stuff like this is problematic for diversity - you're pretending that race is somehow irrelevant in discussions of socioeconomic status, when in fa…

A wealthy black person can easily start their own business. They may have some advantages and disadvantages vs a wealthy white person but nothing can stop them doing it. They have money. A wealthy Black person is a “have” not a “have not.” A poor white person cannot use their whiteness to pay the bills. Ask millions of white people why they work shitty jobs if you think being white solves economic problems.

They can’t stop working their shifty job to participate in YC if they lowered their investment. A wealthy black founder very obviously could. Clearly the deciding factor is socioeconomic and not race.

So you’re just wrong to talk about racial diversity when the issue is clearly socioeconomic diversity.

The absolute proof is that increased economic diversity necessarily results in increased racial diversity. Contrarily, increased racial diversity does not necessarily result in socioeconomic diversity.

Because one is the root cause of the other.

Your thinking is what leads to “diverse” organizations where many racial and gender groups are represented but they’re all rich people that attended Ivy League schools. And that is not diversity by any meaningful definition. It does nothing to alleviate systemic unfairness.

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

#237

Post by onetimemanytime » Wed, Jul 22, 2020, 5:54 PM UTC

haney wrote: post #210

chrisco255 wrote: post #201

Earlier quoted context omitted.

Uh, most parents would take their kids back in the event of financial disaster. That's not even rare. Many folks live with their parents until late 20s / early 30s these days.

This does make the assumption that the parents are doing well enough to be able to support their adult children. There are some situations where the parents need the support of adult children, instead of the other way around.

Sleep in the couch or basement, food costs very little. That's still a lot of support, means that no matter what you have a place to stay and regroup. Not all parents can do that but most could

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

#238

Post by IAmEveryone » Wed, Jul 22, 2020, 5:55 PM UTC

I'm not usually one to think in these terms, but this somehow still strikes me as a caricature of white middle-class privilege:

"Having to take considerable financial risk definitely sucked, but it was also was a great filtering function. If you didnt have conviction in yourself or your product theres no way you would have been there. For those who made the leap, it made success the only option."

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

#239

Post by santoshalper » Wed, Jul 22, 2020, 5:55 PM UTC

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.

You are correct that the defining selection criteria is wealth. However, white people are disproportionately wealthy in the United States, so indirectly you will also have a racial bias in your outcomes as well.

When winning leads to more winning - groups that have won disproportionately in the past (white people) will continue to win more and more unless we find a way to counterbalance.

This is why almost every sport includes some kind of catch-up model for their franchises (better draft picks for performing teams, salary caps) to encourage balance and competitiveness. We accept this in sports and know that it helps, but we don't want to believe it is needed in our economy, which is the most important competitive sport played in the world.

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

#240

Post by bananaface » Wed, Jul 22, 2020, 6:00 PM UTC

awillen wrote: post #9

The idea that check sizes should be small so people should be forced into dire financial situations is a terrible one, and one that would absolutely hurt diversity. You're going to end up with a bunch of rich white dudes as founders (because very, very obviously the other way that people can afford to take smaller checks is if they have a lot of money in the bank). The smaller class size issue is probably fair, but r…

People who take huge financial risks are IMO much more likely to be just kinda stupid than rationally confident & committed. It strikes me as a really dumb way of filtering for smart people.