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Frivolous or not, though, is it sustainably profitable? I'm not convinced that it could be, and I think that that's the core of CPLX's doubt as well. A silly b

Frivolous or not, though, is it sustainably profitable? I'm not convinced that it could be, and I think that that's the core of CPLX's doubt as well. A silly but profitable project can fund basic research that would be too expensive on its own; but a project that's neither particularly valuable in its own right, nor able to fund others, isn't good for very much. (Old-style luxury goods also provide work for artisans and keep traditional knowledge alive, but I'm not convinced that that element is present here either.)

aaachilless 10y ago
I disagree. I think CPLX is disappointed not because he thinks YC is picking losers, but because, in his opinion, YC isn't accounting for certain ethical, moral, humanitarian, philanthropic, etc (I'm not sure what the correct word is) ideals when it makes its picks. Or maybe: taking risks on inherently frivolous ventures in lieu of more valuable ones is disappointing. Weighing in on the accuracy of these sentiments does make for interesting discussion. I think "YC says investment X is +EV, I say it's -EV" is usually an uninteresting statement unless it's made outside of the context of ROI and profitability. I know the HN crowd is well-informed and knowledgeable, which is why the forums are so interesting, but an extremely small number of us are qualified to critique YC's investments in terms of financial ROI. So my initial response was w.r.t the sentiment that these companies are frivolous, regardless of whether they're profitable. If you're correct, then I must have missed CPLX's point.
pnathan 10y ago
box-a-month clubs are a pretty solid business model, if you can do it. I floated around a business subreddit, and a number of people had quite a solid side business doing box-a-month setups. Further, I am very very tempted by the whisky subscription deal; I'm just not enough of a whisky drinker to bite the bullet.

aaachilless 10y ago

I disagree. I think CPLX is disappointed not because he thinks YC is picking losers, but because, in his opinion, YC isn't accounting for certain ethical, moral, humanitarian, philanthropic, etc (I'm not sure what the correct word is) ideals when it makes its picks. Or maybe: taking risks on inherently frivolous ventures in lieu of more valuable ones is disappointing. Weighing in on the accuracy of these sentiments does make for interesting discussion. I think "YC says investment X is +EV, I say it's -EV" is usually an uninteresting statement unless it's made outside of the context of ROI and profitability. I know the HN crowd is well-informed and knowledgeable, which is why the forums are so interesting, but an extremely small number of us are qualified to critique YC's investments in terms of financial ROI. So my initial response was w.r.t the sentiment that these companies are frivolous, regardless of whether they're profitable. If you're correct, then I must have missed CPLX's point.

pnathan 10y ago

box-a-month clubs are a pretty solid business model, if you can do it. I floated around a business subreddit, and a number of people had quite a solid side business doing box-a-month setups. Further, I am very very tempted by the whisky subscription deal; I'm just not enough of a whisky drinker to bite the bullet.