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I would argue that solving the problem of contract enforcement is beyond the scope of any entrepreneur. However I do see your point and appreciate its merit. B

I would argue that solving the problem of contract enforcement is beyond the scope of any entrepreneur. However I do see your point and appreciate its merit. By the same token, if YC was unduly worried about that, they would never be able to fund (tech) companies that operate principally outside the west because the problem you allude to has never really been solved satisfactorily. But here's my point: as YC becomes larger and looks for growth outside its traditional areas, its model must evolve. Right now it does seem a bit scattershot. Is it a VC or an Angel? What is the place and relationship of charity and the entrepreneurs it sponsors? It claims to invest in founders predominantly over their ideas, but everyone I know who applies, does so with the thought at the back of their minds, that the de-facto situation is one in which an idea which cannot be a billion dollar company is best left at home. Whats wrong with funding a company that has the potential to reach 100M? I guess what I mean to say is: for the larger mission YC espouses, the funding model is broken; indeed the mission itself is unclear. For those like me who aspire to be funded this creates much frustration

harryh 10y ago
Whats wrong with funding a company that has the potential to reach 100M? Nothing is wrong with doing such a thing. It's just not the business most Silicon Valley VCs are in. VCs are in the business of taking on large risk in pursuit of a large return, not taking on small (or medium) risk in pursuit of a small (or medium) return. You don't get mad at a butcher because they're in the business of selling meat and not vegetables. Same thing here.
yc2cult 10y ago
If it looks like a duck, walks like a duck, and quacks like a duck, its a duck. HN-YC is a VC ( vulture capitalist ), an 'angle' is off-hands give's unconditional early-money to boot, but certainly doesn't micro-manage and change diapers. YC seems to be building a 'cult' and now that the high-tech 'go ipo' exit is closed, and the only cash-slush is microsoft/google/apple, and when that money goes south, ... well there will not be any exits. Thus heatlh-care may be a target, just follow the money. The notion of attracting 100's of bright young lemming's and leading them to SV, and isolating them from the real-world and feeding them with bullshit, is brilliant to say the least. L Ron Hubbard was CIA, iQtel ( YC SV ) is CIA, all this stuff is nothing new. My guess is their breeding 1,000's of high-tech manchurian canndidates to be little Snowden's working in salt-mines at Fort-Meade, or Utah, If U want to be an entrepreneur "Just Do It", take a salary cut, live lean & mean, get to work, figure out how to sell a product, and let the cash flow build your business, and all along the way buy apartments and farmland, as much real-estate as you can. Then your exit will be soft&easy after ten years. A good plan is to school 15-20, work corp ( learn what they do ) 20-25, then do your own biz 25-35, and then retire at 35 and run away from biz and live. Being a wage slave even for $150k/year is BS, and when you get post 40+ your stuck in a rut. YC-HN can paint roses on feces all day long, but feces is feces
vc4u 10y ago
VC's ( vulture capitalists ) is money backed by rich old people, or in general young rich guys that just can't walk away from high-tech, but most of the time VC's are lawyers, as its the lawyers that have to package the deal, so that the entrepreneur gets 10%, and the house gets 90%. The idea that the only road to WEALTH is VC, is insane, almost all the great fortunes were made by boot-strap, all a VC does is ensure that when you done that the FOUNDER, who actually did the work, walks away with 10% of the pie, or 1%. The deal is to walk with 100%. This is why BILL GATES is the richest man in the world.
yummyfajitas 10y ago
...they would never be able to fund (tech) companies that operate principally outside the west because the problem you allude to has never really been solved satisfactorily. That isn't really true. If I build a SAAS based in Singapore, or almost anywhere really, I pretty much expect that I'll get paid. You pay me, I switch on your service, and I switch it off if you stop paying. In contrast, loans involve giving away money and hoping it comes back. The potential for default is a lot higher. I don't have anything against agricultural financing - I think it's something the world should have. I just don't know how to solve it. If I did I'd be pursuing it, though probably not via YC.

harryh 10y ago

Whats wrong with funding a company that has the potential to reach 100M? Nothing is wrong with doing such a thing. It's just not the business most Silicon Valley VCs are in. VCs are in the business of taking on large risk in pursuit of a large return, not taking on small (or medium) risk in pursuit of a small (or medium) return. You don't get mad at a butcher because they're in the business of selling meat and not vegetables. Same thing here.

yc2cult 10y ago

If it looks like a duck, walks like a duck, and quacks like a duck, its a duck. HN-YC is a VC ( vulture capitalist ), an 'angle' is off-hands give's unconditional early-money to boot, but certainly doesn't micro-manage and change diapers. YC seems to be building a 'cult' and now that the high-tech 'go ipo' exit is closed, and the only cash-slush is microsoft/google/apple, and when that money goes south, ... well there will not be any exits. Thus heatlh-care may be a target, just follow the money. The notion of attracting 100's of bright young lemming's and leading them to SV, and isolating them from the real-world and feeding them with bullshit, is brilliant to say the least. L Ron Hubbard was CIA, iQtel ( YC SV ) is CIA, all this stuff is nothing new. My guess is their breeding 1,000's of high-tech manchurian canndidates to be little Snowden's working in salt-mines at Fort-Meade, or Utah, If U want to be an entrepreneur "Just Do It", take a salary cut, live lean & mean, get to work, figure out how to sell a product, and let the cash flow build your business, and all along the way buy apartments and farmland, as much real-estate as you can. Then your exit will be soft&easy after ten years. A good plan is to school 15-20, work corp ( learn what they do ) 20-25, then do your own biz 25-35, and then retire at 35 and run away from biz and live. Being a wage slave even for $150k/year is BS, and when you get post 40+ your stuck in a rut. YC-HN can paint roses on feces all day long, but feces is feces

vc4u 10y ago

VC's ( vulture capitalists ) is money backed by rich old people, or in general young rich guys that just can't walk away from high-tech, but most of the time VC's are lawyers, as its the lawyers that have to package the deal, so that the entrepreneur gets 10%, and the house gets 90%. The idea that the only road to WEALTH is VC, is insane, almost all the great fortunes were made by boot-strap, all a VC does is ensure that when you done that the FOUNDER, who actually did the work, walks away with 10% of the pie, or 1%. The deal is to walk with 100%. This is why BILL GATES is the richest man in the world.

yummyfajitas 10y ago

...they would never be able to fund (tech) companies that operate principally outside the west because the problem you allude to has never really been solved satisfactorily. That isn't really true. If I build a SAAS based in Singapore, or almost anywhere really, I pretty much expect that I'll get paid. You pay me, I switch on your service, and I switch it off if you stop paying. In contrast, loans involve giving away money and hoping it comes back. The potential for default is a lot higher. I don't have anything against agricultural financing - I think it's something the world should have. I just don't know how to solve it. If I did I'd be pursuing it, though probably not via YC.