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You're excluding brand dilution as a function of class size. Knowing you are going to be one of 100+ companies going through the program each semester makes you
by orthoganol 9y ago
You're excluding brand dilution as a function of class size. Knowing you are going to be one of 100+ companies going through the program each semester makes you less enthusiastic to join if you already have a very promising or successful company, and it makes it harder for VCs to determine signal; "It's from YC" stops being good enough.
A big reason for the class size explosion is almost certainly for network effects, a fleet of ready customers who support YC and drive growth out of the gates.
It creates the space for another brilliant investor to launch a rival YC that caters to a small size of elite founders. Isn't that almost inevitable?
- toomuchtodo 9y ago> It creates the space for another brilliant investor to launch a rival YC that caters to a small size of elite founders. Isn't that almost inevitable? What would the attributes be of an elite founder?
- omarchowdhury 9y agoSell their startup for an outsized sum during a bubble to a failing giant only for it to be defunct within a short time? Just to go by viaweb's example. That would put at least Mark Cuban in the contending since they both sold to the same failing giant.
- justonepost 9y agoYes, for sure. Especially with SS coming along which could dilute further. Maybe YC will shrink their class sizes and use SS as a feeder. My worries about SS is how much it will be used as an idea repository for the real batches.