Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#1

Post by startingup » Sat, Jan 17, 2009, 7:07 PM UTC

Sorry for the attempt to be cute with the title :) but seriously, isn't there a substantial overlap between these two? Does it matter if two YC companies end up directly competing? As a very occasional angel, I wonder how this works ...

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#2

Post by qhoxie » Sat, Jan 17, 2009, 7:12 PM UTC

I believe that PG has said in the past that YC has no problem investing in companies within the same market. If they are promising enough and the market is sufficiently large, it won't be an issue.

The storage market with these two companies seems like a pretty good example.

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#3

Post by pg » Sat, Jan 17, 2009, 7:30 PM UTC

Originally they weren't competing. ZumoDrive evolved out of Versionate. Even now there are significant differences in the way the two work. They should be able to both succeed.

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#4

Post by mattmaroon » Sat, Jan 17, 2009, 7:48 PM UTC

Due the fact that companies often evolve substantially from their original business models, it is impossible to make a lot of investments without at some point having clashes among your portfolios. A group that makes 40 per year couldn't possibly avoid such a thing.

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#5

Post by [deleted] » Sat, Jan 17, 2009, 7:48 PM UTC

qhoxie wrote: post #2

I believe that PG has said in the past that YC has no problem investing in companies within the same market. If they are promising enough and the market is sufficiently large, it won't be an issue. The storage market with these two companies seems like a pretty good example.

[deleted]

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#6

Post by ajkirwin » Sat, Jan 17, 2009, 9:02 PM UTC

Dropbox.

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#7

Post by perezd » Sat, Jan 17, 2009, 9:10 PM UTC

I'd like to know the answer to this too, I feel like there are a ton of viable options out there now, but I am waiting to see who stands out as defacto.

The ZumoDrive/iTunes integration is truly innovative, though. Majorly cool!

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#8

Post by Dilpil » Sat, Jan 17, 2009, 9:12 PM UTC

Nothing wrong with diversification. If it is good for the economy at large to have so many competing smaller entities, then perhaps it is good for an individual fund to have stakes in many competing smaller entities as well.

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#9

Post by wensing » Sat, Jan 17, 2009, 9:13 PM UTC

pg wrote: post #3

Originally they weren't competing. ZumoDrive evolved out of Versionate. Even now there are significant differences in the way the two work. They should be able to both succeed.

Will those significant differences be obvious to the consumer?

Re: Ask YC: YC (Dropbox) vs YC (ZumoDrive)?

#10

Post by rokhayakebe » Sat, Jan 17, 2009, 9:24 PM UTC

mattmaroon wrote: post #4

Due the fact that companies often evolve substantially from their original business models, it is impossible to make a lot of investments without at some point having clashes among your portfolios. A group that makes 40 per year couldn't possibly avoid such a thing.

And given the current funding climate, it would be great for such companies to merge.