How Y Combinator made it smart to trust founders
111–120 of 127 posts
Re: How Y Combinator made it smart to trust founders
#112This mirrors the military doctrine of "mission tactics" which entrusts subordinates with wide latitude in executing orders. But it requires a high degree of alignment and competence, which explains why YC focuses on founders over product or idea. This makes sense in a dynamic environment with sensitive local conditions and "network lag" in the chain of command. But in more static or settled market environments it may…
I'm a huge fan of Mission Command. If you want to read more, I'd recommend the Army's official doc on it: https://armypubs.army.mil/epubs/DR_pubs/DR_a/ARN34403-ADP_6-... (it's 110 pages but you really only need to read Chapter 1). This was eye-opening. I used to think militaries were completely centralized and top-down, but a friend who was an officer explained this to me and pointed me to the literature. It was fasc…
> Commanders, staffs, and subordinates ensure their decisions and actions comply with applicable U.S., international, and, in some cases, host-nation laws and regulations. Commanders at all levels ensure their Soldiers operate in accordance with the Army Ethic, the law of war, and the rules of engagement. (See FM 27-10 for a discussion of the law of war.)
Not sure this was followed very recently.
Re: How Y Combinator made it smart to trust founders
#113This mirrors the military doctrine of "mission tactics" which entrusts subordinates with wide latitude in executing orders. But it requires a high degree of alignment and competence, which explains why YC focuses on founders over product or idea. This makes sense in a dynamic environment with sensitive local conditions and "network lag" in the chain of command. But in more static or settled market environments it may…
I'm a huge fan of Mission Command. If you want to read more, I'd recommend the Army's official doc on it: https://armypubs.army.mil/epubs/DR_pubs/DR_a/ARN34403-ADP_6-... (it's 110 pages but you really only need to read Chapter 1). This was eye-opening. I used to think militaries were completely centralized and top-down, but a friend who was an officer explained this to me and pointed me to the literature. It was fasc…
> I used to think militaries were completely centralized and top-down
It is my understanding that the Russians do it that way, which does not seem to work out great for them.
Re: How Y Combinator made it smart to trust founders
#114Earlier quoted context omitted.
And now that they're eliminating diversity in their investments are you still certain they will pick the next generation's winners? All they're investing in are AI companies... Once upon a time someone like me for whom engineering competence is a core aspect of my identity would have never considered turning my back on YC. But now I'm just embarrassed by them. The things they now think are the only things worth inves…
Both Mark Andreessen and Andrej Karpathy say AI is unique as a new technology in that small teams and individuals seem to be the earliest and most cutting edge adopters. (unlike computers and the internet which were used by government and then large companies) YC just so happens to invest super early in small teams. So the overlap of YC and AI is inevitable. AI is not an investment genre per se but it can be used to…
It's funny, because in my industry it's the slavish attention to AI by goliath-scale companies like Microsoft that is leading them to set fire to quality, innovation, and consumer trust, when then gives me and my tiny startup the opportunity to jump in and eat their lunch.
Re: How Y Combinator made it smart to trust founders
#115Earlier quoted context omitted.
Over the next 10 years, no, I think the market will course correct within that time frame. AI is the sauce that's being slathered on everything right now and demand for it is driving record valuations, particularly for AI startups and their founders. That demand is all investor-driven though: investors are falling over themselves to make AI investments, while consumers are not actually especially eager to have all hu…
> That demand is all investor-driven though: investors are falling over themselves to make AI investments Largely true. > while consumers are not actually especially eager to have all human contact progressively stripped from their lives Hmm… I agree with this sentiment, but I think it’s mostly a straw man. There are many things that AI can do well that people will end up embracing directly or indirectly. Medical sca…
I dunno, I see problems with every one of those things.
You could make a customer service AI that was an advocate for the consumer, but it would likely spend the company's money liberally. So instead you'll end up with AI agents incentivized to be stingy and standoffish about admitting the company could improve, just like the humans are.
You can tutor with AI, but there's no knowing what it will teach you. It will sound as convinced of itself when it teaches you why the earth is flat as it does teaching you why the earth is round. The one thing it will certainly do is reinforce your existing biases.
You can practice with AI, but you'd learn more by posing yourself the questions.
A doctor can have AI look at medical scans, but they can't defer to AI judgement and just tell the patient "AI says you have cancer, but I don't really know or care one way or the other". So again, the skill in reading results needs to be in the doctor.
Re: How Y Combinator made it smart to trust founders
#116This mirrors the military doctrine of "mission tactics" which entrusts subordinates with wide latitude in executing orders. But it requires a high degree of alignment and competence, which explains why YC focuses on founders over product or idea. This makes sense in a dynamic environment with sensitive local conditions and "network lag" in the chain of command. But in more static or settled market environments it may…
If it focused on founders over product or idea you’d see some actual heterogeneity in the YC set. It has been a few months since I last skimmed the startup lists but it seemed like 95% were LLM for X companies.
Re: How Y Combinator made it smart to trust founders
#117Y Combinator forged a long-term, high-trust ecosystem to the benefit of all tech founders. The video games industry needs to do the same.
I feel like this is impossible given how many games flop each year.
The thing is when a game flops it can be popular in the future. It is still a game that does game things. When $dumbapp flops though, it is a stronger signal that whatever it is trying to do may have no market at all. Like giving a fish a skateboard.
Re: How Y Combinator made it smart to trust founders
#118Earlier quoted context omitted.
I'm a huge fan of Mission Command. If you want to read more, I'd recommend the Army's official doc on it: https://armypubs.army.mil/epubs/DR_pubs/DR_a/ARN34403-ADP_6-... (it's 110 pages but you really only need to read Chapter 1). This was eye-opening. I used to think militaries were completely centralized and top-down, but a friend who was an officer explained this to me and pointed me to the literature. It was fasc…
> Commanders, staffs, and subordinates ensure their decisions and actions comply with applicable U.S., international, and, in some cases, host-nation laws and regulations. Commanders at all levels ensure their Soldiers operate in accordance with the Army Ethic, the law of war, and the rules of engagement. (See FM 27-10 for a discussion of the law of war.) Not sure this was followed very recently.
It isn't very complicated from a military law perspective. The chain of command (following orders) has a lot more weight on it than a given solder's interpretation of military, constitutional, or international law.
If you believe you are being a given an order that is illegal and refuse, you are essentially putting your head on the chopping block and hoping that a superior officer (who outranks the one giving you the order) later agrees with you. Recent events have involved the commander in chief issuing the orders directly, which means the 'appealing to a higher authority' exit is closed and barred shut for a solider refusing to follow orders.
That doesn't mean a soldier isn't morally obligated to refuse an unlawful / immoral order, just that they will also have to pay a price for keeping their conscience (maybe a future president will give them a pardon?). The inverse is also true, soliders who knowingly follow certain orders (war crimes) are likely to be punished if their side loses, they are captured, or the future decides their actions were indefensible.
A punishment for ignoring a command like "execute those POWs!" has a good chance of being overruled, but may not be. However an order to invade Canada from the President, even if there will be civilian casualties, must be followed. If the President's bosses (Congress/Judiciary) disagree with that order they have recourse.
Unfortunately the general trend which continues is for Congress to delegate their war making powers to the President without review, and for the Supreme Court to give extraordinary legal leeway when it comes to the legality of Presidential actions.
Re: How Y Combinator made it smart to trust founders
#119And yet YC still makes bets on pretty easily detected BS like Pickle VR[0]. That's a startup I sure wouldn't trust. Pickle is one of the most egregious examples, but I've noticed a trend of these fly-by-night operations with YC backing getting found out as frauds over the last handful of years. I don't know if it's happening more or if I just wasn't aware of them or if the rate was the same but people started talking…
It is the nature of YC that you're going to get instances like Pickle. YC invests at a very early stage in lots of companies. 40% are literally just an idea. It isn't a scam that one of the companies pivot, it's expected. They're meant to work on their idea, and if it doesn't work or they have a better idea they pivot. What Pickle is doing is essentially they're falling on the wrong line of "fake it to you make it",…
> It is the nature of YC that you're going to get instances like Pickle. YC invests at a very early stage in lots of companies. 40% are literally just an idea
But the whole supposed point of YC is investing in people not founders. If that's the pitch and you invest in a moron, that makes you look bad too. YC should be good at telling if people are morons - that's kind of their entire job.
> But the way YC works, they don't actually have the power to tell Pickle what to do.
They get 7% of your company. They do actually have some power.
Re: How Y Combinator made it smart to trust founders
#120> we were successfully acquired by Ziff Davis who owns IGN.
Ah, now I know why the vibe of Humble Bundle changed.
The first ones were truly fun packages with soul. Now they're churned out without feelings, it feels all algorithms.