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I Am Sam Altman, President of Y Combinator. AMA

news.ycombinator.com

711–720 of 768 posts

Re: I Am Sam Altman, President of Y Combinator. AMA

#711

Hey Sam, Any comment regarding Jason Calacanis being banned from YC's upcoming demo day? Jason tweeted[1] his side but didn't know what the YC side of it was and was curious. [1] https://twitter.com/Jason/status/710176806184349696

If anybody has questions about what it's like to have Jason as an investor, feel free to message me. Jason was our first investor and I have ton of respect for him. Here's how Jason has been founder friendly for us: * He always has your back — he'll encourage you even when times are hard * He responds to your updates with thoughtful questions and suggestions * He's happy to make intros and use his network on your beh…

thanks for the candid review....

Re: I Am Sam Altman, President of Y Combinator. AMA

#712
Sam, I know you've commented that valuations are generally meaningless re early stage start-ups. I don't disagree, but there are a lots of funds with holding in early stage start-ups....in some fund formats (not trad'l PE/VC funds) they collect management and performance fees based on "fair market value" of fund assets. Agree true valuation is best determined at a realization event, i.e. An ipo or other form of exit, but what are your views on determining fair market value marks along the way...last round pricing, market comps, dcf models, or none of the above.

Re: I Am Sam Altman, President of Y Combinator. AMA

#713
post #653

Earlier quoted context omitted.

That not a great example. A better one is to build a v0.00000001 that actually works but is obviously not the final product nor even an MVP. E.g. a technical demonstration of some component.

Can you get more concrete? "a technical demonstration of some component" isn't really an example.

My point is, a simulation is not going to impress anyone.

Re: I Am Sam Altman, President of Y Combinator. AMA

#714
post #608
post #59

Earlier quoted context omitted.

We fund companies with no traction/revenue all the time, though the bar is higher. A really compelling idea is more important to us than traction or revenue. We understand how quickly exponential growth happens.

It is interesting that on this AMA you say both "ideas are worth so little" and "a really compelling idea is more important to us than traction or revenue." Can you elaborate?

It is striking. My guesses:

1. Revenue/traction are worth even less.

2. Not the idea itself, but the passion and resolve it evokes in the founder, and their backgound and general ability to be able to execute it.

Re: I Am Sam Altman, President of Y Combinator. AMA

#715
post #497
post #463

Earlier quoted context omitted.

I'd love to hear what you find so objectionable about the tweets to linked to. It seems radical but not offensive.

Shanley also signs off a lot of her content with 'kill all men' and has doxxed critics before.

I can see the doxxing being an issue (although, if you're referring to Milo Yiannopoulos, I think the case might be more complicated), but I think anyone who reads 'kill all men' as a anything more than a rhetorical flourish is being a bit over literal.

Re: I Am Sam Altman, President of Y Combinator. AMA

#716
post #241

Is it possible to apply with no idea? Assuming that the applicants are able to demonstrate: - they can build stuff - they're a good team fit (e.g. showing a small project from the past) - they can generate ideas which they're passionate about If not: do you have a tip for improving these nearly graduated* university applicants? * 80 hours of course work left

Wait until you have an idea. We once tried funding companies with no idea. It didn't work. I'm not totally sure why. Perhaps the time pressure of YC is bad for coming up with a really good idea (the best ideas often start out seeming bad). Perhaps the best founders always have ideas.

Idealess-founders was an interesting experiment; that YC tries such things is a defining characteristic.

Theory: it's not the value of the idea in itself, but the motivating effect it has on the founder. An idealess founder goes nowhere. "Going somewhere" is necessary for exploration - even if your destination turns out worthless, you might find something better than you imagined along the way. But there's no serendipity without a journey.

- What is the current theory of the role of founder ideas at YC?

→ What experiment could disprove it?

Re: I Am Sam Altman, President of Y Combinator. AMA

#717

Is it possible to apply with no idea? Assuming that the applicants are able to demonstrate: - they can build stuff - they're a good team fit (e.g. showing a small project from the past) - they can generate ideas which they're passionate about If not: do you have a tip for improving these nearly graduated* university applicants? * 80 hours of course work left

Up for a pitch?

Re: I Am Sam Altman, President of Y Combinator. AMA

#718

I'm working on a piece about universal basic income, and I have the following summary of the how I think that many tech people like yourself believe UBI is going to work: 1. Companies innovate by doing things more cheaply with automation than human workers can do them. 2. As a result of automation, the more efficient companies reap all the profits in a market as they drive the less efficient companies out of business…

> This bonanza of profits that automation yields is taxed. Optimizing companies will do everything possible to avoid the corporate taxes (>60%) required to make universal basic income a reality. If you are assuming that winning companies are the best at implementing automation and reducing cost, it is a fatal mistake to assume that they will suddenly become charitable when it comes to wealth redistribution - no, they…

I quoted you here: http://exolymph.com/2016/03/19/universal-basic-income-is-it-...

Re: I Am Sam Altman, President of Y Combinator. AMA

#719
post #351

Earlier quoted context omitted.

Honestly, we are so busy, there are so many companies, and ideas are worth so little, that most of us don't think twice about a specific company once we move on to the next applications. The very best ideas usually don't seem worth stealing.

Sam, this conception of an "idea" is in astoundingly strong conflict with the conceptions of ideas elsewhere in business and national security that are commonly strongly and seriously protected as classified national security secrets (e.g., how stealth works, how the engines on the SR-71 worked, the details of the Navy's version of GPS), intellectual property, trade secrets, patents, how academic honors are awarded,…

(e.g., how stealth works, how the engines on the SR-71 worked, the details of the Navy's version of GPS)

None of these are "ideas", they are implementations/executions of ideas. They are the result of trial and error (even thought-experiments) that ultimately resulted in real world impact and observable changes. Ideas are unexpressed potential. How the Navy's version of GPS works isn't valuable until after the Navy starts using it. Before that, it's just conjecture. But at the point where the Navy deploys GPS, while it is information, it's not solely an idea; it's pragmatic.

Even knowledge of a newfangled GPS system the Navy is working on or going to deploy and start using on a certain date isn't an idea anymore: it's actionable information that can be traded on. An idea is a kind of information, but not all information is an idea. And while thoughts can be information, not all thoughts are ideas.

That being said, I think you are partially right: the concept of an idea not having value is unintuitive, and a lot of other industries are commonly in the habit of presenting ideas as having value. You'll see this when people talk about patents, as if having a patent somehow conveys value on the thing that is patented beyond just the government enforced exclusivity. A patented idea that can not be brought to market in some fashion isn't that valuable (and actually has negative value: not only is it not brought to market; without bringing it to market, you can not reap the benefits of exclusivity; and you've paid for obtaining the right to a patent you are unable to exploit. So it's a net negative).

Re: I Am Sam Altman, President of Y Combinator. AMA

#720

Earlier quoted context omitted.

Can you elaborate on what makes a company "not very good"? Would you ever consider releasing anonymized data on companies that apply and are accepted along with those who apply but aren't accepted into a batch? That'd give future applicants much more insight into the process.

EDIT: i should emphasize this is only my experience as a startup hiring manager. maybe YC attracts nothing but geniuses, i dunno. i'm just a guy on the internet. since yc is obviously not going to talk shit on their own applicants, i'm going to go out on a limb here and guess that it's just like every other job application process when six figures (or more) of money is on the line. big paychecks attract plenty of, sh…

> the easy thing is the dipshits and fakers are easy to spot-and-drop almost immediately.

You seem pretty sure about this. How would you validate that belief? What are the consequences if you're wrong?

> i can basically glance at a resume and disqualify it in 10-15 seconds if it's not good enough.

I'd suggest taking a more systematic approach. You may be rejecting some great candidates without decreasing the likelihood of false negatives.

> you just can't bullshit someone far smarter, more experienced, and better at bullshitting than you.

If you can't spot the fish, then ...

Also, why you no use capitalization? It makes your post read dumb.

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