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Y Combinator Failed Startups

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Re: Y Combinator Failed Startups

#81

Earlier quoted context omitted.

After stealing HomeJoy's customer DB for another start-up, she is now a YC partner... Move fast and break things?

She railroaded our YC interview for having a similar model (albeit in a different vertical) simply because she failed, so naturally we would also fail. Aaron Harris, another failed entrepreneur turned YC partner, has routinely done the same I've heard. We're now 2 years later pushing $2M ARR profitably and about to raise our Series A. YC not taking 7% of our company was the best thing that ever happened to us. YCombi…

That’s just what happens when worthwhile initiatives get too big and bloated. I’m sure there was a sweet spot YC was in years ago but I guess it’s no longer that.

Re: Y Combinator Failed Startups

#82
post #76

Earlier quoted context omitted.

Ok, the situation seems to be: brother and sister cofounded startup; startup failed; brother acquired failed startup’s assets via legal proceedings. Which part of this is illegal, or — I’ll meet you halfway — unethical? It seems like a straightforward business transaction. If I’m missing something nefarious, I’d like to educate myself to avoid it. What do you see as the problem? (Apologies if my facts are incorrect;…

I'm not familiar with the story, but this is what I found: https://www.businessinsider.com/aaron-cheung-brings-homejoy-... > The weird tale begins with an email that John Salzarulo received Tuesday afternoon. A Los Angeles based user, Salzarulo received an email from Cheung that "$20 cleaning is back!" thanks to its local partner. > "I wanted to reach out personally today to invite you to join a private house cleanin…

Hmmm.

Thank you for finding that! This opens up a fascinating discussion about ethics.

So, to start from a purely capitalistic viewpoint, it seems like you are free to use your property that you own however you wish, subject to the law. That raises questions like: in this situation, is it legal for the CC numbers to be stored in that way? From the customer’s POV, they authorized HomeJoy to store their CC info, not Fly Maids. But that leads to the question of: those CC numbers are stored somewhere (or the authorization token) and those assets were a part of the sale.

I don’t know. It’s a massive advantage to have your customers in a position of “just click this button to give us money” rather than pestering for CC details.

It’s a little odd, to be sure, but... it seems like unless it’s illegal, it might not be unethical to take advantage of that opportunity. It depends how you feel about capitalism, I suppose. If there was nothing illegal here, which seems perhaps likely, then it seems valid.

From another point of view, it sounds like he was just trying very hard to succeed, and in some sense Fly Maids was the continuation of his previous endeavor. So I sort of understand why it might have felt natural to reach out to the customers you were already doing business with.

But again, all of this has two important assumptions: (a) he legally owned all assets, and (b) used those assets to the letter of the law. If those are mistaken then someone with more experience should definitely call it out.

"When we contacted customers, we didn’t tell them we were Homejoy relaunching because we wanted to gauge reception to our new model without the influence of Homejoy’s brand," Cheung allegedly wrote. "As a result, we scared many customers, who expected the worst had happened to their data. We should have told customers upfront who we were, what we were testing, and used original content."

I dunno. This seems pretty reasonable, honestly. It kind of alarms me that you see this as clearly unethical, because I could see myself making this same mistake, in a different life. If you feel like explaining more of the reasoning regarding the ethics, I’d personally find it interesting to listen.

Re: Y Combinator Failed Startups

#83

Earlier quoted context omitted.

After stealing HomeJoy's customer DB for another start-up, she is now a YC partner... Move fast and break things?

I guess people can brand themselves as "successful" after what is by all objective standards a spectacular failure. I have no idea how impressive Adora is and I cannot speak to her qualifications, but HomeJoy should be a textbook example of an SV failure.

This comment a little sexist. Is it just me?

Re: Y Combinator Failed Startups

#84
post #17

How can you make a list of failed yc companies and not mention homejoy? $66m raised, bad operations, bas unit economics, lawsuits and an abrupt shutdown. All of that after being the calley darling for so long.

After stealing HomeJoy's customer DB for another start-up, she is now a YC partner... Move fast and break things?

In the hedge fund world there is a mindset that if you're going to fail, you must fail BIG (without breaking the law). Then you get a sort of undeserved glamor associated with the failure that can actually lead to new opportunities. For example, the case of Brian Hunter, if he failed small he would've been long forgotten.

Re: Y Combinator Failed Startups

#85

Earlier quoted context omitted.

I guess people can brand themselves as "successful" after what is by all objective standards a spectacular failure. I have no idea how impressive Adora is and I cannot speak to her qualifications, but HomeJoy should be a textbook example of an SV failure.

This comment a little sexist. Is it just me?

How is my comment sexist?

Re: Y Combinator Failed Startups

#86

Earlier quoted context omitted.

After stealing HomeJoy's customer DB for another start-up, she is now a YC partner... Move fast and break things?

She railroaded our YC interview for having a similar model (albeit in a different vertical) simply because she failed, so naturally we would also fail. Aaron Harris, another failed entrepreneur turned YC partner, has routinely done the same I've heard. We're now 2 years later pushing $2M ARR profitably and about to raise our Series A. YC not taking 7% of our company was the best thing that ever happened to us. YCombi…

There's a phenomenon I've noticed in job interviews where the interviewer will in a sense torture the interviewee if it's a domain that the interviewer has expertise in, asking needlessly complex questions as if to grandstand and show off. It becomes theatrical and I can only attribute that to some level of sadism- or narcissism-like traits. I am not impugning Adora's motives here just commenting on my own experience.

Re: Y Combinator Failed Startups

#87
post #28

Worth noting that the proximate cause of death is often times largely uninformative as to why the startup actually failed. Most failed startups fit into the following timeline: was burning more money than it was making => failed at raising more money => did a round of layoffs / cost cuts to get economics under control => couldn't right the ship and shut down / did a fire sale or acquihire But, the above timeline does…

As a relative outsider, I would hope being labeled as one of the biggest failures would be a mark of experience among a set that claims or claimed to uphold the “fail fast” mentality and treats failure like the learning experience it is.

Re: Y Combinator Failed Startups

#88
post #76

Earlier quoted context omitted.

I'm not familiar with the story, but this is what I found: https://www.businessinsider.com/aaron-cheung-brings-homejoy-... > The weird tale begins with an email that John Salzarulo received Tuesday afternoon. A Los Angeles based user, Salzarulo received an email from Cheung that "$20 cleaning is back!" thanks to its local partner. > "I wanted to reach out personally today to invite you to join a private house cleanin…

Hmmm. Thank you for finding that! This opens up a fascinating discussion about ethics. So, to start from a purely capitalistic viewpoint, it seems like you are free to use your property that you own however you wish, subject to the law. That raises questions like: in this situation, is it legal for the CC numbers to be stored in that way? From the customer’s POV, they authorized HomeJoy to store their CC info, not Fl…

Not everything is an asset. You do not legally own the credit card numbers. At most you own the right to use them to fulfill a contract. Just like if I share my screen with an IT support company that does not give them the right to suddenly transfer my screen to an advertising company, except if I have been explicitly told that would happen (and no, terms and conditions are not enough for that, because it is way out of the expected behavior of the contract, just like having terms that make the user pay a billion dollar on each visit would not make it work either).

Re: Y Combinator Failed Startups

#89

Earlier quoted context omitted.

After stealing HomeJoy's customer DB for another start-up, she is now a YC partner... Move fast and break things?

She railroaded our YC interview for having a similar model (albeit in a different vertical) simply because she failed, so naturally we would also fail. Aaron Harris, another failed entrepreneur turned YC partner, has routinely done the same I've heard. We're now 2 years later pushing $2M ARR profitably and about to raise our Series A. YC not taking 7% of our company was the best thing that ever happened to us. YCombi…

I understand there's probably a desire to stay at least pseudo-anonymous, given that your account was created 42 minutes ago as of this posting, but I'd like to hear more of this story. Feel free to post here or contact me directly via the info in my profile.

Re: Y Combinator Failed Startups

#90

Earlier quoted context omitted.

I guess people can brand themselves as "successful" after what is by all objective standards a spectacular failure. I have no idea how impressive Adora is and I cannot speak to her qualifications, but HomeJoy should be a textbook example of an SV failure.

This comment a little sexist. Is it just me?

It's just you.
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