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Y Combinator has lost its soul: A YC founder's perspective

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Re: Y Combinator has lost its soul: A YC founder's perspective

#401

Earlier quoted context omitted.

This is rich with availability bias. Just because you have had this experience doesn't mean that's possible for other people to do routinely. It sounds like a long tail event and using it as an example seems to be baseless. Congrats on being able to get him going, but I certainly wouldn't rely on that happening.

Care to elaborate on what "rich with availability bias" means? I've never heard that one before. Also, the individual in reference wasn't the of the gender you're assuming.

Availability bias is a behavioral psychology term.

> The availability bias is the human tendency to think that examples of things that come readily to mind are more representative than is actually the case.

Ahh, my apologies, and thank you for the correction on gender.

Re: Y Combinator has lost its soul: A YC founder's perspective

#402
post #220
post #69

Would love to know YC's real matriculation rate. I know of several teams that got accepted in and opted not to go, in part because of ballooning batch size and dilutive terms.

then why did they apply? signaling?

The YC application process in and of itself can be very useful for founders. It forces them to really think about what they're building and why it's going to bring value to customers.

Re: Y Combinator has lost its soul: A YC founder's perspective

#403
post #245

Earlier quoted context omitted.

Great point. People think a willingness to take extreme financial risks is somehow a useful personality trait when it comes to entrepreneurship because of selection bias. People who take that risk and make it tell that story. People who take that risk and don't make it aren't heard from. People who don't take that risk also aren't heard from. There are lots of people with great ideas and the ability to execute on the…

As one who bootstrapped, took that risk, and lost ... everything ... I've been talking passively about this for a while. I speak with startups who have a product that is poorly differentiated, me-too like, that think they are going to take over the world. The reality, the vicious Darwinian reality, is that you and your team have to bust your collective rear-ends. And get lucky. Really, I hate to deflate many many bub…

> I speak with startups who have a product that is poorly differentiated, me-too like, that think they are going to take over the world. The reality, the vicious Darwinian reality, is that you and your team have to bust your collective rear-ends. And get lucky.

Even being Early (or in our case the first to do something) doesn't always work, we had to give our services away for free, or at a significant loss when operating costs were accounted for, because we were using technology that was not really understood (much less by our demographic) and had not been attempted in the past to facilitate or service the Industry we chose. So we had to engage our future paying customers in a way that they relied on us for something they found useful and pay for it in the future, so I boot-strapped and fell back on my other skill-sets, that ultimately took time from further development that could have otherwise yielded a better product in less time, but again... uncharted territory means you are make the Map as you go along, with all the mistakes and hidden landmines along the way.

> This is very ... very hard for bootstrapped companies, operating on shoestring budgets at best.

I'd say Bootstrapping is a Pyrrhic Victory, because on a financial level, had I decided to stay on the sidelines and just DCA while trimming the fat from my budget working a normal day job, as so many now in this space did, I'd have an ROI way better than my Startup, and most ever created in that space for that matter, ever was. They thought they were geniuses, when in reality they were just 'free-riders' that directly benefited from the work done by risk takers and people who actually did the heavy lifting to get the project to where it was and currently is. But ultimately looking at our holdings and net-worth on paper wasn't the point for some of us, it was to bring our vision into existence and prove a technology could solve far more problems than even it's core developers and even the greater community at large could ever think it could and bring about a desirable change to the Enviorment. And for that it takes a lot of sacrifice, which ultimately made me understand that 'disruption isn't always profitable' is a very true statement in a financial sense, but can be very profitable if you're goals are to do more than that. It's just how you quantify it.

> And the cost to you, financially, mentally, physically, will be huge. Not can be. Will be.

Agreed. Still dealing with that to this day. Just my Physical Therapy costs alone have been something I didn't anticipate to be so expensive in every sense of the word.

Re: Y Combinator has lost its soul: A YC founder's perspective

#404
post #371

Earlier quoted context omitted.

Have you blogged or told your story anywhere? I'm curious to learn more!

Not all of it. I blog here[1]. The post where I talked about the end is here[2]. Note the 'laws' I quote at the end of the post. My first post is here[3]. There I talk about the HPC market, accelerators, and some of our plans. We were working on board level inexpensive accelerators before these were a thing. We gave up trying to get funding for this in 2006. I did say, you have to be at the right place, at the right…

> Or when you go visit customers, they love your product, the benchmark results are mind blowing … and then the CIO/CFO kills the deal because, you know … you are too small.

We've been in similar situations several times. We're serving a niche, but this niche is a core piece of our customers business. Without software like ours, their whole operation stops.

Anyway, we'd have demos. Department heads were on fire, wondering if we could install same day we had demo, all smiles, everything looked great. And then we lost because someone higher up decided we were "too small". We're small, but we're pretty much the best in our niche and we have had very solid financials for decades.

Those we lost went with bigger, supposedly "safer" competitors and had some very sub-par years with them before they had to pay their way out of those contracts and come back to us.

Re: Y Combinator has lost its soul: A YC founder's perspective

#406
post #9

The idea that check sizes should be small so people should be forced into dire financial situations is a terrible one, and one that would absolutely hurt diversity. You're going to end up with a bunch of rich white dudes as founders (because very, very obviously the other way that people can afford to take smaller checks is if they have a lot of money in the bank). The smaller class size issue is probably fair, but r…

Completely agree with the point except the needless use of racial stereotyping on an economic issue. The reality is that millions of white people come from impoverished backgrounds. And millions of Indian, Asian, and yes even Black and Latino people are from wealthy backgrounds. Polices designed to help economic diversity will necessarily and disproportionately help certain racial minorities and that’s all for the go…

Diversity doesn't only mean race, it also means socio-economic backgrounds, which is what I think the original comment was referring too.

But also, most of the data in VC does suggest that racial/gender diversity is seriously lacking.

Re: Y Combinator has lost its soul: A YC founder's perspective

#407
post #306

Earlier quoted context omitted.

Thank you for sharing this. I've been slowing down turning my idea into a startup because it isn't much more than a CRUD app for a specific market. My interest has been diminishing because in my day job I work with growth companies that are built upon revolutionary technology, leading me to falsely conclude that a CRUD app isn't good enough anymore. I needed the reminder that the technology isn't what's important, ra…

Get feedback from people that will use it.

Do this before you make a proof-of-concept, unless you just want to make something.

Re: Y Combinator has lost its soul: A YC founder's perspective

#408
post #250

(throwaway as YC founder for obvious reasons) I've spoken to a half dozen YC founders this morning -- no one disagrees except the check size debt thing. Mostly "that is dumb" for that one. For those who worked at startups when they were small (5–20 people), the difference between then and when they grew to be 100 or 200 people is night and day. Very real difference. For those who haven't, think of class sizes. Do you…

That perspective makes sense, but I think it's also worth considering that it is likely that not all of those YC founders would have been accepted if batches were smaller. You're totally right that per founder, YC was more valuable when batches were small, but I think it's less clear whether the aggregate value is higher.

Well, sure, but then YC in the _present day_ is collecting value based on what YC was in the _past_.

Re: Y Combinator has lost its soul: A YC founder's perspective

#409
post #371

Earlier quoted context omitted.

Not all of it. I blog here[1]. The post where I talked about the end is here[2]. Note the 'laws' I quote at the end of the post. My first post is here[3]. There I talk about the HPC market, accelerators, and some of our plans. We were working on board level inexpensive accelerators before these were a thing. We gave up trying to get funding for this in 2006. I did say, you have to be at the right place, at the right…

Oh man, I remember reading your blog when I was in grad school (mid-2000s) doing molecular simulations on HPC systems (and not really enjoying the science aspect, but I did like working on the tools), thinking that you were a great example of being able to bootstrap a business in the HPC space. Sad to hear it didn't work out.

Thanks! I've gone to visit sites and heard a few people whispering near me "its the scalability.org guy". Blew me away.

I still write, albeit less frequently, and I have to keep to a narrower range of topics.

Re: Y Combinator has lost its soul: A YC founder's perspective

#410
post #83

Earlier quoted context omitted.

Then don't start one if you can't consume the risk. I'm not sure what your point is -- that people who have kids should be given special exemption where they make more money from sales and inventment oportunties to compensate for choices they made?

>Then don't start one if you can't consume the risk. Absolutely mind-boggling when YC literally exists to support and incubate startups so founders don't have to take on life-ruining risks.

Maybe not life-ruining risk, but YC offers a measly 120k in funding for your entire startup and G/FB/NFLX will pay you 350k per person per year for a senior engineer. Founding and joining startups entails a massive opportunity cost from what you can make at the top paying public companies.
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