7% on $100K with a "7 figure" domain name, means that YC is already making a return on the investment even if the domain is only squatted.
This was the easiest investment ever.
My story of applying, getting in, and being a mom in Y Combinator
81–90 of 108 posts
Re: My story of applying, getting in, and being a mom in Y Combinator
#82Earlier quoted context omitted.
YC really has succeeded in building a recognized brand in the tech startup space, such that they can really define that space. I'd compare YC to Harvard or Davos (the World Economic Forum), where the challenge is to get accepted. Once you have passed the gateway, the wealthy/powerful recognize this by extending opportunities to new members. This is true of almost any club (the Free Masons, your local BPOE, Boy Scouts…
Feedback loops and echo chambers are an excellent way to describe it. There is an analogy that I think is relevant but most people don't get when I bring it up or just think I'm plain crazy. The analogy is the fire ecology. In certain ecosystems fire is a necessary component of ecological vitality. It is destructive in the short term but leads to a more robust and diverse ecosystem in the long term. Coming back to yo…
"Coming back to your points we have reached a certain kind of equilibrium in the startup ecosystem where the incumbents through network effects have become entrenched"
So, with ~50% of the top venture backed companies being founded by immigrants and 75% of them having immigrants in key product/management positions, you think we're in a "burn it down" moment? This doesn't even account for the non-immigrants-non-insider people who succeed in the Valley every day. I'm all for working to reduce cronyism, racism, ageism, etc. But I don't think we're remotely near needing to set fire to things (metaphorically or otherwise).
Re: My story of applying, getting in, and being a mom in Y Combinator
#83"Access to venture capitalists: Raising money is incredibly hard and incredibly distracting. The faster you can get it done, the faster you can get back to building something people want. YC is the perfect forcing function to help you raise capital. Network: Being an entrepreneur is a lonely path. There are few people who truly understand what you’re going through and even if your friends (or parents) are well meanin…
I had never heard the history of Loopt. It'd be interesting to hear Sam comment with his side of the story.
Re: My story of applying, getting in, and being a mom in Y Combinator
#84Earlier quoted context omitted.
> Expanding who you know, how much they like/admire you, and how much they want to work with you is part of meritocracy. Imagine it as a multiplier to product merit and,as a founder, you NEED to imagine it as part of your job. Why are you counting these as part of meritocracy, rather than deviations from it? (If they're sufficiently small deviations, you could still call the overall ecosystem a meritocracy. But then…
"Why are you counting these as part of meritocracy, rather than deviations from it?" Because hiring, sales, pr, marketing, bizdev and fundraising are all part of startup success... Building and cultivating a good network is hugely valuable for all of that, no?
It is in today's culture. In another country, maybe it's hugely valuable to know the correct officials to bribe. That doesn't mean it would be valuable in a meritocratic culture.
The question is whether or not SV is meritocratic; your argument appears to be along the lines of "these things are valuable in SV, so they are part of meritocracy", which is circular.
Re: My story of applying, getting in, and being a mom in Y Combinator
#85"Access to venture capitalists: Raising money is incredibly hard and incredibly distracting. The faster you can get it done, the faster you can get back to building something people want. YC is the perfect forcing function to help you raise capital. Network: Being an entrepreneur is a lonely path. There are few people who truly understand what you’re going through and even if your friends (or parents) are well meanin…
First, I think it's unwise to underestimate the value of good advice early on. Advice and it's best friend encouragement are often necessary ingredients. People do not function best in a vacuum. There is a reason why startups (and lots of things) happen in clusters. Second, there is a tendency to think for "meritocracy" as a very cold, dead thing. This kind of thinking is like applying an engineering mentality to hum…
Yes Warhol was running a cronyism ring. The entire point of his work was success based on celebrity, in contrast to the ponderous quality judgements of the previous generation of abstract expressionists.
Re: My story of applying, getting in, and being a mom in Y Combinator
#86Earlier quoted context omitted.
This is another strawman argument. Of course there's cronyism, racism, sexism, ageism, etc. And of course we should discourage that. Was I championing any of those things you're attacking? I'm going to add some stats to my OP.
You said "You need to expand your view of meritocracy beyond just product/code. Expanding who you know, how much they like/admire you, and how much they want to work with you is part of meritocracy." So yes, you may as well be championing gender, race and background, since you've already redefined 'merit' (in a rather perverse way, imho). Edit: I see others have also commented on this and the Wikipedia link from anot…
Can you point me to a definition of merit that I redefined?
I guess I'll try to say it slightly differently to clarify: "it's worth working to expand who you know, how much they like/admire you and how much they want to work with you". This is a skill you can get better at. It's hard work that you need to do. And yes, sadly, this work is certainly easier if you're a 25 year old white guy who went to Stanford.
Do you think people who have worked to have a deep network of folks to sell to, hire from, get introductions from, etc., have done meritorious work? I'm suggesting that how hard you work on this stuff (and how good you get at it) is part of your merit (in the world of startups/entrepreneurship). I certainly don't think it's the only part.
Given that about half of the top venture backed startups are founded by immigrants, I'd say the startup is more meritocratic than a lot of people seem to think. But I'd agree with you that we have a ways to go.
Re: My story of applying, getting in, and being a mom in Y Combinator
#87"Access to venture capitalists: Raising money is incredibly hard and incredibly distracting. The faster you can get it done, the faster you can get back to building something people want. YC is the perfect forcing function to help you raise capital. Network: Being an entrepreneur is a lonely path. There are few people who truly understand what you’re going through and even if your friends (or parents) are well meanin…
Two points. There was a non-rich mom in my batch in 2008 (one of the hardest fundraising climates in the last decade). She and her co-founder kicked ass and raised more money than most of the batch. Point #2: You need to expand your view of meritocracy beyond just product/code. Expanding who you know, how much they like/admire you, and how much they want to work with you is part of meritocracy . Imagine it as a multi…
> You need to expand your view of meritocracy beyond just product/code. Expanding who you know, how much they like/admire you, and how much they want to work with you is part of meritocracy.
These things may very well be critical to success, but that's not what the term 'meritocracy' actually means as it is commonly used and understood.
"I hired hitwomen to slay all of my competitor's developers. We are now on top because of our company's longstanding culture of meritocracy."
Edit: Meritocracy is not synonymous with success. In the way you are going, all successful startups become meritocracies by virtue of being successful.
Re: My story of applying, getting in, and being a mom in Y Combinator
#88Earlier quoted context omitted.
> Expanding who you know, how much they like/admire you, and how much they want to work with you is part of meritocracy. Imagine it as a multiplier to product merit and,as a founder, you NEED to imagine it as part of your job. Why are you counting these as part of meritocracy, rather than deviations from it? (If they're sufficiently small deviations, you could still call the overall ecosystem a meritocracy. But then…
"Why are you counting these as part of meritocracy, rather than deviations from it?" Because hiring, sales, pr, marketing, bizdev and fundraising are all part of startup success... Building and cultivating a good network is hugely valuable for all of that, no?
You are caught in a semantics discussion. "Meritocracy" in tech circles _is_ talking about "code/product" as you say. When a company advertises saying "We are a strict meritocracy" they are not saying, "We value code but also your ability to schmooze". Of course things other than code matter, a lot more than code itself, but that isn't how the term is used in the industry.
Re: My story of applying, getting in, and being a mom in Y Combinator
#89I guess I fail to see what would differentiate between a father/mother. Like why does any option make a difference?
Statistics and surveys consistently tell us that fathers invest much less time in their newborns than mothers, so unless you've only ever met outliers, it's a bit silly to pretend there's no difference.
Re: My story of applying, getting in, and being a mom in Y Combinator
#90"Access to venture capitalists: Raising money is incredibly hard and incredibly distracting. The faster you can get it done, the faster you can get back to building something people want. YC is the perfect forcing function to help you raise capital. Network: Being an entrepreneur is a lonely path. There are few people who truly understand what you’re going through and even if your friends (or parents) are well meanin…
It's easy if you're a 24 year old with no commitments. You can work in a cheap rental, and you can spend as much time as you like on the project, and eat ramen or whatever. People with families have to make a much more difficult commitment. They have to ensure they have startup cash, they have to move their whole family, or do a work around like she did, and they still have to provide childcare, schooling, and parental support.
If you are accepted to YC you get $120K in funding, a portion of which is more than enough to let you survive for three months in SV. That is enough whether you are a poor mom or a rich mom.
There are stories every day about moms making it, there just aren't that many in tech, mainly because of attitudes like yours that actually reinforce stereotypes.
The woman who wrote the article had already shown some skill in getting a hard-to-acquire domain name. I've been on both sides of those kinds of negotiations, and it's a nightmare. But she took the risk and had some vision. She also managed to save enough money when she left FB to kickstart her project. Yet you criticize her! What, she wasn't poor enough to be accepted? She worked at FB, so she had a leg- up, so she shouldn't be accepted? Now she's part of the club, so she's tainted? These are all ridiculous straw men. She's obviously a smart person -- and was accepted on her merits like any other applicant -- so good luck to her.
I don't know if you are in SV or not, but for those outside SV it is incredibly difficult to break in. I am currently based in Florida, and it's very difficult to get access to anyone with money, even though there's plenty around. The rest of the country is closed -- and it is lonely. At least with YC you have a chance.
All you need to do is look at the way SV worked before YC - you had to get a personal introduction to a VC, which is almost impossible for most people (and is still the case for those of us outside SV). YC says that if you "make things people want" then you have a chance to be considered with all the other applications. That's a great chance for many founders, and so far over 600 companies have been able to get access.
Finally, to say that Mr Altman's experience is indicative is way off the mark. In any group there will always be successes and failures. The point is the chance of success is much higher with a supportive and engaged community.