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YC Demo Day Session 1

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Re: YC Demo Day Session 1

#11

Post by napoleoncomplex »

TheMakeA wrote: post #8
napoleoncomplex wrote: post #2

I loved it when they started including non-profits, and I'm loving that they're including biotech/medical now. They (Gingko/Glowing Plant/Bikanta) sound insane and very risky, which is exactly the ideas the best incubator in the world should be funding. Casual observation, none of the above describe themselves as "X for Y".

Honest question: Is $120k really that big of a risk when you're already giving away money for free to non-profits?

It isn't, but the abundance of funding cash everywhere hasn't really translated into more insane (technically) ideas being funded lately, YC or elsewhere. At least that's been my impression, and it feels like YC is changing that with their recent batches.

Re: YC Demo Day Session 1

#12

Post by soneca »

alexchamberlain wrote: post #6

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

In Brazil we have a startup with the exactly same model (www.cabenamala.com.br).

First of all, the math used in the example only makes sense if the individual bringing the laptop doesn't pay the taxes forit. At least in Brazil, this is illegal. Even if you are bringing a laptop for personal use, you must pay some high taxes (~50%). Cabe na mala says in its pitch that all travelers pay the according taxes.

But the difference between USA and Brazil prices are so big that even with the taxes, it makes sense. The cost comes down from mainly two factors: distribution and price strategy from the manufactors. For distribution, a traveler in need of cash might be very cheap to carry a laptop back home. And as price strategy, Sony, Apple and others often position their products as a more "premium" product in Brazil than in USA. So in Brazil you are paying an extra for the brand, for the privilege, for the luxury of having an iPhone or a PS4.

EDIT: For clarifying, i used "we" in the sense of our startup community, as a brazilian or seomthing like that. I am in no way related to this startup, I don't even know the founders. Just listened a pitch from them.

Re: YC Demo Day Session 1

#13

Post by alexchamberlain »

benologist wrote: post #9
alexchamberlain wrote: post #6

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

Many airports only do spot checks on bags and they're specifically looking for their own citizens smuggling locally-expensive luxuries in by the suitcase. This will be a short-lived company because if you have a significant volume of stuff you don't declare you will either be taxed on the spot or arrested. If you have a discrete amount of stuff then you'd need eg, 5 or 6 people to fulfill an order for 10 iphones, and…

It is encouraging illegal activity, though, correct?

Re: YC Demo Day Session 1

#14

Post by benologist »

alexchamberlain wrote: post #13
benologist wrote: post #9

Earlier quoted context omitted.

Many airports only do spot checks on bags and they're specifically looking for their own citizens smuggling locally-expensive luxuries in by the suitcase. This will be a short-lived company because if you have a significant volume of stuff you don't declare you will either be taxed on the spot or arrested. If you have a discrete amount of stuff then you'd need eg, 5 or 6 people to fulfill an order for 10 iphones, and…

It is encouraging illegal activity, though, correct?

Yes. The entire purpose is to save money by not paying taxes on items by illegally not declaring those items when you enter a country.

It may break US exporting laws and embargos, or international laws too. It's almost certain the founders and everyone near them is going to end up arrested and probably imprisoned like any other smuggling organization.

Re: YC Demo Day Session 1

#15

Post by mind_heist »

alexchamberlain wrote: post #6

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

- Well,I have a partial understanding of this. Its typical for people travelling back to South East Asian countries to buy stuff that are super expensive there ( like mentioned in the original explanation , MacBooks are expensive ; Xbox , Playstations , Premium Watches , Booze (due to local taxes) ; mostly electronics and high end fashion stuff.

- With respect to import taxes : You wont be stopped by the customs unless you are carrying a crazy amount of electronics ; Like if you carry a couple of laptops - and justify it as one for personal and one for work ; they let you go. With respect to this service , I guess its upto you to be cautious & decide how much to carry.

- And there are a lot of Duty free airports; And the purchase made at Duty free airports are mostly overlooked at the destination airport.

Re: YC Demo Day Session 1

#16

Post by soneca »

pptr1 wrote: post #3

I can't figure out the reason why some of these companies got selected into YC. I can see why Bikanta, Helion Energy, Ginkgo Bioworks, BitAccess, and ProductHunt might get in. However, some other companies look like run of the mill startup. I use non-YC companies on https://news.ycombinator.com/show , ProductHunt, and AngelList for comparison. In comparison the quality signal of recent YC companies (the ones not ment…

Well, YC often brags about how they learned to select the right people. So there will be the difference.

Also, you are over estimating your ability to detect the quality of a startup from public signals. I don't think it is that easy to identify which company will win on a specific sector based on profile of the founders, their twitter, github pages and the product.

If YC companies were such an obvious choice for an acceleration, there would be a lot more of YCs around.

Re: YC Demo Day Session 1

#17

Post by fnom »

mind_heist wrote: post #15
alexchamberlain wrote: post #6

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

- Well,I have a partial understanding of this. Its typical for people travelling back to South East Asian countries to buy stuff that are super expensive there ( like mentioned in the original explanation , MacBooks are expensive ; Xbox , Playstations , Premium Watches , Booze (due to local taxes) ; mostly electronics and high end fashion stuff. - With respect to import taxes : You wont be stopped by the customs unle…

you dont know the german BGS ... if you dont have a receipt for anything electronic that doesnt look like its 5 years old you are basically fucked. additional to the tax you have to pay you get a hefty fee because its treated as tax evasion. you can do a lot of stuff ... but not tax evasion.

Re: YC Demo Day Session 1

#18

Post by fnom »

alexchamberlain wrote: post #6

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

Backpack is basically a network for tax evasion and smuggling stuff. sounds ... fishy.

Re: YC Demo Day Session 1

#19

Post by mind_heist »

- If there is a lot of risk involved in carrying stuff through backpack , does it offer a certain insurance policy for the travelers ? What if the product gets seized by customs ? or you are levied a large unexpected fine ? The service doesnt seem to offer any advice on these at all.

Re: YC Demo Day Session 1

#20

Post by ISL »

alexchamberlain wrote: post #6

>> Backpack is a company that arbitrages the cost of goods in different countries by using international travelers as a distribution network I don't understand this one - with a world focused on security and import taxes, how does this work out?

Furthermore, it looks like the traveler takes on all the risk for damage/theft during transport.

Even with the risks and paying all applicable duties, there should be some products where this idea can help to cap the maximum-possible regional differential pricing schemes; the invisible hand made visible.

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