4 ms·

Uh, no. That's not what PG said, and if he ever used the term "lifestyle" he didn't mean it that way. Most companies YC funds do not have the potential to be

by MCRed 11y ago

Uh, no. That's not what PG said, and if he ever used the term "lifestyle" he didn't mean it that way. Most companies YC funds do not have the potential to be on a stock market index, because they are features as much as products at that stage and often addressing smaller markets. They are still startups. YC and VC are very particular avenues for startups, but they are not what DEFINES a startup. YC and VC are the sillicon valley model and that is really actually a small part of the total startup ecosystem, though it is the one that makes the most noise.

jcrubino 11y ago
True, I am not trying to provide the exact definitions for what qualifies as a PG or YC startup per se. But I believe you can quote PG as saying the "ideal exit" for any startup YC incubates is a public offering. Additionally the idea of "lifestyle" startups is well known in SV and the concept is also well known to be frowned upon by the VC's who make the most noise who are looking for a big exit one way or the other.
- MCRed 11y ago
  > Additionally the idea of "lifestyle" startups is well known in SV and the concept is also well known to be frowned upon by the VC's You're confusing hacker news with "silicon valley". That's a mistake. And VCs are irrelevant, really, in this age of angels. Thank god they are going away, though of course they don't realize it yet. VCs are the enemy. If you want to have a successful company, never deal with them, except at the very latest stages where you give them a bond like return in exchange for them getting to claim they invested in your company. Angels are generally your friend, though. Your thinking will be better off if you just don't think of the term "lifestyle" business. It's a pejorative used to manipulate you into wasting your life in service to someone else's narrative. I'm not some kid with a keyboard- I've spent nearly 30 years in the trenches dealing with VCs and helping startups.
  - greghendershott 11y ago
    > Your thinking will be better off if you just don't think of the term "lifestyle" business. It's a pejorative used to manipulate you into wasting your life in service to someone else's narrative. Exactly. I've only ever heard this from someone seeking transaction fees. As in, "Not there's anything wrong with running a lifestyle business." While their body language suggests everything is wrong with that.
T-A 11y ago
From Note #1, http://www.paulgraham.com/swan.html http://www.paulgraham.com/swan.html : "The biggest exits are the only ones that matter financially, and those are guaranteed in the sense that if a company becomes big enough, a market for its shares will inevitably arise. Since the remaining outcomes don't have a significant effect on returns, it's cool with us if the founders want to sell early for a small amount, or grow slowly and never sell (i.e. become a so-called lifestyle business), or even shut the company down."
- MCRed 11y ago
  "only ones that matter financially" Who are you serving? Investors or yourself? The SV model is that this is all that matters but a 50M business is still a damn good business and not a "lifestyle" business. Also, read the rest of the quite-- lifestyle business was only one of the options. It's quite possible to build a fast growing business that you never sell, that's not a "lifestyle" business. The either/or dichotomy is disproven by your quote.
  - deleted 11y ago
    [deleted]

by MCRed 11y ago

jcrubino 11y ago

True, I am not trying to provide the exact definitions for what qualifies as a PG or YC startup per se. But I believe you can quote PG as saying the "ideal exit" for any startup YC incubates is a public offering. Additionally the idea of "lifestyle" startups is well known in SV and the concept is also well known to be frowned upon by the VC's who make the most noise who are looking for a big exit one way or the other.

MCRed 11y ago
> Additionally the idea of "lifestyle" startups is well known in SV and the concept is also well known to be frowned upon by the VC's You're confusing hacker news with "silicon valley". That's a mistake. And VCs are irrelevant, really, in this age of angels. Thank god they are going away, though of course they don't realize it yet. VCs are the enemy. If you want to have a successful company, never deal with them, except at the very latest stages where you give them a bond like return in exchange for them getting to claim they invested in your company. Angels are generally your friend, though. Your thinking will be better off if you just don't think of the term "lifestyle" business. It's a pejorative used to manipulate you into wasting your life in service to someone else's narrative. I'm not some kid with a keyboard- I've spent nearly 30 years in the trenches dealing with VCs and helping startups.
- greghendershott 11y ago
  > Your thinking will be better off if you just don't think of the term "lifestyle" business. It's a pejorative used to manipulate you into wasting your life in service to someone else's narrative. Exactly. I've only ever heard this from someone seeking transaction fees. As in, "Not there's anything wrong with running a lifestyle business." While their body language suggests everything is wrong with that.

T-A 11y ago

From Note #1, http://www.paulgraham.com/swan.html http://www.paulgraham.com/swan.html : "The biggest exits are the only ones that matter financially, and those are guaranteed in the sense that if a company becomes big enough, a market for its shares will inevitably arise. Since the remaining outcomes don't have a significant effect on returns, it's cool with us if the founders want to sell early for a small amount, or grow slowly and never sell (i.e. become a so-called lifestyle business), or even shut the company down."

MCRed 11y ago
"only ones that matter financially" Who are you serving? Investors or yourself? The SV model is that this is all that matters but a 50M business is still a damn good business and not a "lifestyle" business. Also, read the rest of the quite-- lifestyle business was only one of the options. It's quite possible to build a fast growing business that you never sell, that's not a "lifestyle" business. The either/or dichotomy is disproven by your quote.
- deleted 11y ago
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