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Y Combinator Traded Prestige for Growth

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Re: Y Combinator Traded Prestige for Growth

#171

Post by michaelt »

dgreensp wrote: post #106

Full disclosure, I'm a YC alum whose last start-up was acquired by Google, who applied to this batch and didn't get an interview. YC is not the stamp of quality it once was, to be sure, though it still works as social proof, because investors (especially VCs) want to invest in companies other investors like (or failing that, companies they imagine other investors would like). YC would say that they aren't trying to b…

> Original YC would not reject founders over their current product strategy and because they haven't figured out the right way to structure their business--haven't put together the "proof" that they could be on track to be a unicorn, etc.

Imagine you ran a startup accelerator that didn't invest in a particular business model or product, but instead invested in a team of founders you thought had the potential to produce something great, even if it takes a few pivots.

Now imagine you didn't want to invest in a given company. Would your rejection letter say you disliked the founders, as people?

Of course not, you want to be on friendly terms, just in case. Far safer to just be "unconvinced" about their "product strategy" in its "current form".

Re: Y Combinator Traded Prestige for Growth

#172

Post by dgs_sgd »

pbiggar wrote: post #52

One of the biggest shocks to me was that YC now invests in war and killing people. Before their closest connecting to killing people was investing in companies that had severe negative effects for society, like Doordash or AirBnb. Now they're helping people make missiles. https://www.ycombinator.com/companies/ares-industries

[flagged]

Re: Y Combinator Traded Prestige for Growth

#173

Post by mlsu »

This reminds me of something that appeared on hacker news a couple days ago:

https://sohl-dickstein.github.io/2022/11/06/strong-Goodhart....

Basically, the proxy objective is "getting into YC" -- the real objective is producing value of course.

We've started optimizing for the proxy. Which produces outcomes like this, where YC is a Thing You Do, after Graduating From Stanford, and before Becoming a YC Alum.

Re: Y Combinator Traded Prestige for Growth

#174

Post by codegeek »

dgreensp wrote: post #106

Full disclosure, I'm a YC alum whose last start-up was acquired by Google, who applied to this batch and didn't get an interview. YC is not the stamp of quality it once was, to be sure, though it still works as social proof, because investors (especially VCs) want to invest in companies other investors like (or failing that, companies they imagine other investors would like). YC would say that they aren't trying to b…

YC's original appeal was for builders/creators who were truly passionate about building a great product that solved a real problem. Dropbox for example at the time.

In my opinion, effectiveness of anything dilutes over time especially as you increase volume. There is no way you can maintain the same level of vetting and quality when you have a batch of 50 vs batch of 500+ which is now where YC is. So they must have to pivot to a different model of vetting companies.

I am curious as to why they continue to do more batches instead of less. Is it really a numbers game now ?

For example, what was the last truly great product out of YC built by a true hacker/team ?

Re: Y Combinator Traded Prestige for Growth

#175

Post by blitzar »

dgreensp wrote: post #106

Full disclosure, I'm a YC alum whose last start-up was acquired by Google, who applied to this batch and didn't get an interview. YC is not the stamp of quality it once was, to be sure, though it still works as social proof, because investors (especially VCs) want to invest in companies other investors like (or failing that, companies they imagine other investors would like). YC would say that they aren't trying to b…

This sounds like an episode of "Shark Tank" - If you have $1 mil in orders which will generate a profit of 500k they will fight each other to invest 100k for 40% of your company. If you dont have a full order book and a production pipeline - no bueno.

I can only assume your product didnt fit into the current hype investment bucket (you should have put Ai in the pitch and you would have been funded). LPs in the VC funds want their Blockchain Ai and whatever hype they hear about exposure - the VCs have to deliver it and have it in their portfolio. The investment hype cycle is self reinfocing; as the investment headlines get bigger and the hype gets bigger.

Re: Y Combinator Traded Prestige for Growth

#176

Post by [deleted] »

codegeek wrote: post #174
dgreensp wrote: post #106

Full disclosure, I'm a YC alum whose last start-up was acquired by Google, who applied to this batch and didn't get an interview. YC is not the stamp of quality it once was, to be sure, though it still works as social proof, because investors (especially VCs) want to invest in companies other investors like (or failing that, companies they imagine other investors would like). YC would say that they aren't trying to b…

YC's original appeal was for builders/creators who were truly passionate about building a great product that solved a real problem. Dropbox for example at the time. In my opinion, effectiveness of anything dilutes over time especially as you increase volume. There is no way you can maintain the same level of vetting and quality when you have a batch of 50 vs batch of 500+ which is now where YC is. So they must have t…

[deleted]

Re: Y Combinator Traded Prestige for Growth

#177

Post by blitzar »

codingwagie wrote: post #167
dgreensp wrote: post #106

Full disclosure, I'm a YC alum whose last start-up was acquired by Google, who applied to this batch and didn't get an interview. YC is not the stamp of quality it once was, to be sure, though it still works as social proof, because investors (especially VCs) want to invest in companies other investors like (or failing that, companies they imagine other investors would like). YC would say that they aren't trying to b…

What I am seeing is that among Harvard/Stanford grads, being the CEO of a venture backed startup is the highest status. Some of them hate technology and view programming as "low class". But they still go into it, so when they see their peers its something to brag about. They may even stretch the runway as far as possible to maintain the status. YC is just another brand they can add. It was so odd for me when I first…

Founder, CEO and Serial Entrepreneur.

How many here have that (unironically) on their linkedin profile ...?

Re: Y Combinator Traded Prestige for Growth

#179

Post by itsoktocry »

nordsieck wrote: post #75
hobofan wrote: post #26

Earlier quoted context omitted.

> You don't want to attract founders who figure YC is a low-risk alternative to grad school Of course YC would want that (in the short- to mid-term). The only thing YC has to do is produce a portfolio of companies that looks good enough that other VCs invest into that. This is completely disconnected to building viable businesses, as they just don't have to be the ones that are left holding the bag, and as an acceler…

> The only thing YC has to do is produce a portfolio of companies that looks good enough that other VCs invest into that. This is completely disconnected to building viable businesses, as they just don't have to be the ones that are left holding the bag, and as an accelerator they are in the best position to do that. That's really short term thinking. It might work for a class or two, but eventually VCs will realize…

>That's really short term thinking.

Isn't that exactly what we're discussing happening to YC?

Re: Y Combinator Traded Prestige for Growth

#180

Post by qq66 »

KerryJones wrote: post #123
dgreensp wrote: post #106

Full disclosure, I'm a YC alum whose last start-up was acquired by Google, who applied to this batch and didn't get an interview. YC is not the stamp of quality it once was, to be sure, though it still works as social proof, because investors (especially VCs) want to invest in companies other investors like (or failing that, companies they imagine other investors would like). YC would say that they aren't trying to b…

This hits pretty dead center from what I've seen. You really hit home for at #3, that's the type of companies I want to see. If you start such a fund, I'd really enjoy working on that project.

He won't be starting such a fund for awhile, because the two of us are building company to make technology to foster a creative and curious childhood. We would be a good fit for any investors trying to do (3) though :)

https://cartwheelcomputer.com/

amal@cartwheelcomputer.com

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