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How Y Combinator Started

ycombinator.com

31–40 of 105 posts

Re: How Y Combinator Started

#31

One of the things that I noticed is how YC's opinion regarding patents has evolved since its founding. >" If you're accepted, we'll deal with the paperwork for you. We'll incorporate you, get you a corporate bank account, supply simple, generic employment agreements for you to use, and so on. We can give some advice about patents, though you don't have to deal with that in the earliest stages; you have a year after m…

To be fair, patents were a far less ugly beast back then. They were still stupid, but not the existential threat they pose today.

Patents were a brutal business weapon seven years ago. Indeed they have been for more than a century. [http://en.wikipedia.org/wiki/Elisha_Gray_and_Alexander_Bell_...]

However, the claim that they have recently become an existential threat is dubious, in my opinion.

Yes, there are lots of stories in the techpress about industry titans battering each with patents and partisan ranting which often accompanies it. What there aren't is stories on HN about startups forced to shutter because of patent claims.

But more importantly, funding for startups is accelerating not slowing as would be expected if software patents were a serious threat on the scale your post implies.

The problem with software patents for an investor such as YC is that they are hard to quantify as a risk and thus create uncertainty. What I see is that YC's initial approach to software patents was naive from an investment standpoint, i.e. that the risks of uncertainty turned out to be significantly greater than the potential gains from patent licensing.

I don't think YC's change was do to wholesale adoption of a FOSS ideology or conversion to Stallmanism. The day patents become a true existential threat, YC will not be funding software startups.

Re: How Y Combinator Started

#32
post #28

One of the things that I noticed is how YC's opinion regarding patents has evolved since its founding. >" If you're accepted, we'll deal with the paperwork for you. We'll incorporate you, get you a corporate bank account, supply simple, generic employment agreements for you to use, and so on. We can give some advice about patents, though you don't have to deal with that in the earliest stages; you have a year after m…

As he wrote this, PG asked me if I remembered the chronology of certain things and it was very hard. So much is blurred together in my mind. But I remember the night we decided to start YC and this photo. It wasn't just happiness that I was quitting my job. I was also so excited about this idea and the opportunity to work on something that could make a difference in the world.

It shows and I wasn't intending to trivialize what I know was a complex decision. [edit] There's nothing quite like the person one loves confirming that it truly is for better or worse.[/edit]

Congratulations on a job well done.

Re: How Y Combinator Started

#33
post #28

One of the things that I noticed is how YC's opinion regarding patents has evolved since its founding. >" If you're accepted, we'll deal with the paperwork for you. We'll incorporate you, get you a corporate bank account, supply simple, generic employment agreements for you to use, and so on. We can give some advice about patents, though you don't have to deal with that in the earliest stages; you have a year after m…

As he wrote this, PG asked me if I remembered the chronology of certain things and it was very hard. So much is blurred together in my mind. But I remember the night we decided to start YC and this photo. It wasn't just happiness that I was quitting my job. I was also so excited about this idea and the opportunity to work on something that could make a difference in the world.

That picture was priceless. I'm so happy pg captured the moment :)

Re: How Y Combinator Started

#34

"But the founders in the first batch turned out to be surprisingly good. And great people too. " I'd love to read a "where are they now" post on the first couple batches of founders, along with some quotes from them.

Reddit - Acquired by Conde Nast.

Kiko - Acquired by Tucows, team founded Justin.tv

Loopt - Raised 15million in Series A and B financing, at it's peak was valued at $500m, sold for $40m to Green Dot

Simmery - Closed. Founder went back to uni.

Infogami - Merged with Reddit.

MemAmp - Never launched, one founder (Chris) joined reddit one (Zak) went back to uni.

FireCrawl - Never launched, team founded TextPayMe and got acquired by amazon.

ClickFacts - YC stake acquired by private investors because YC wasn't a good fit. Company still exists.

Re: How Y Combinator Started

#35
post #34

"But the founders in the first batch turned out to be surprisingly good. And great people too. " I'd love to read a "where are they now" post on the first couple batches of founders, along with some quotes from them.

Reddit - Acquired by Conde Nast. Kiko - Acquired by Tucows, team founded Justin.tv Loopt - Raised 15million in Series A and B financing, at it's peak was valued at $500m, sold for $40m to Green Dot Simmery - Closed. Founder went back to uni. Infogami - Merged with Reddit. MemAmp - Never launched, one founder (Chris) joined reddit one (Zak) went back to uni. FireCrawl - Never launched, team founded TextPayMe and got a…

Amazon just announced today that TextPayMe will be shut down.

Re: How Y Combinator Started

#36
post #22

It's amazing to see the humble roots of YC and what it has grown into now. As a person who made it through 2/3 of the previous batch I can honestly say there is no other experience like it and solely the intelligence of the people you are placed in the same room as week in and week out is enough for you to be at least as ambitious as the founders of YC were. Quit your job, make the leap, build something great.

I'd love to read your story on how you only made it through 2/3, and not the whole YC session.

you probably wouldn't honestly. just a simple founder dispute which lead to me leaving, nothing too eventful there

Re: How Y Combinator Started

#37
post #23

Earlier quoted context omitted.

what I wonder is if/when YC will start to take institutional money....that's what's going to take YC up to upper caliber of VC funds.

sequoia is already an investor

no, I meant like direct to institutions like pension funds.

why would a pension fund give money to Sequoia, and then have them give it to YC? that's an unnecessary management fee the pension funds have to pay

Re: How Y Combinator Started

#38
post #25

"If we'd had enough time to do what we wanted, Y Combinator would have been in Berkeley." As a co-founder of Berkeley based company from YC S11 batch. Darn it! Berkeley would have been a great place to start YC. With Berkeley campus supplying a lot of CS students and the easy-going counter-culture that Berkeley provides (which gels well with counter-intuitive funding strategy of YC). It would have been great! Of cour…

I had the opposite reaction: "What good fortune that they didn't have enough time!" Not that Berkeley isn't great, but it isn't in the Valley. It's hard to imagine YC being quite as successful if it weren't right in the thick of things.
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