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I don't understand. If they make money from the app, why not simply just keep working instead of letting go of a portion of the company? Sure, it is a lot of m

I don't understand. If they make money from the app, why not simply just keep working instead of letting go of a portion of the company? Sure, it is a lot of money they will get but it seems like they don't really need it?

timurmamedov 7y ago
Yo its Tim (co-founder @ VEED). It's not really about money for us, but more about the hustle. We think of it more as getting into NBA or Olympic Games or becoming a Navy Seal. It is tough to get in, tough throughout and will only harden you if you don't break along the way. Just my 2c
- puranjay 7y ago
  Appreciate the post and kudos on the product - looks great. Just to counter your argument though - getting into the NBA is the only way to be a successful pro basketball player. Getting into Navy Seals is the only way to be an elite special forces soldier (well, that and a bunch of other elite forces). But getting into YC isn't the only way to build a successful company. I understand the appeal - getting into an elite institution can open plenty of doors. But do consider whether that is worth whatever % of your company YC will take.
- mscasts 7y ago
  Ok, I get the desire, but personally I believe it's a bit fluffy. I'd love to be in your guys position and I have a hard time just understanding why you would want to give away control which is basically freedom, be essentially be cool or be part of an "elite" group? You guys already are cool, you don't need someone else to be it.
  - loopla 7y ago
    But are you giving away control by giving YC 7%? YC isn't a traditional investor. You don't need to raise money on demo day and are free to go back to being a small business that puts profit before growth. YC isn't going to send you an angry email or frankly even remember you if you don't stay in touch and continue to do office hours.
    - mscasts 7y ago
      Perhaps not. Maybe the contacts you will recieve and the amount of money is enough to help you bootstrap stuff faster. I have never actually started a company myself, so I wouldn't know. I just think I would be extremely satisfied if I could sustain myself without any investor money. Seems like a better way to grow in my mind, if you're not aiming to be a billion dollar company anytime soon.
- guytv 7y ago
  Great article, thanks. But - it seems that you guys put more importance on being perceived as successful (= backed by YC), then actually building a profitable business.
unnouinceput 7y ago
150k it's not a lot of money for Silicon Valley, that's just enough to keep the light on for a few months. But they outgrew that, I mean in course of only a few months they hit 100k and still growing. And I agree, they really don't those money unless they somehow think investing those in something, let's call it "magic dust" that in next month will allow them to hit the threshold of millions. Otherwise they should just forget about YC and just rack in the dough.
Etheryte 7y ago
Y Combinator isn't just money. If you have a growing company with a vision, you can definitely find some investor interest. However, that should rarely be your goal, unless you flat-out just can't move your business forward otherwise. Y Combinator is what some would call _smart_ money: money that comes with a network of advisors, constant input and a nagging push to improve what you're doing. All of that combined can be worth more than the actual money.
- mscasts 7y ago
  I have seen people say this on HN over and over again. But it's not like most people who start businesses lacks vision. If you got a vision and start to earn enough money to sustain yourself you are free to hunt whatever vision you want. > constant input and a nagging push to improve what you're doing I get why this can be good, but honestly it sounds terrible when you lay it out like that. If I want to be nagged on, I would just get married.
aeyes 7y ago
Y Combinator isn't just about investment, it is also a great community of like-minded people which give great feedback and motivation.

timurmamedov 7y ago

Yo its Tim (co-founder @ VEED). It's not really about money for us, but more about the hustle. We think of it more as getting into NBA or Olympic Games or becoming a Navy Seal. It is tough to get in, tough throughout and will only harden you if you don't break along the way. Just my 2c

puranjay 7y ago
Appreciate the post and kudos on the product - looks great. Just to counter your argument though - getting into the NBA is the only way to be a successful pro basketball player. Getting into Navy Seals is the only way to be an elite special forces soldier (well, that and a bunch of other elite forces). But getting into YC isn't the only way to build a successful company. I understand the appeal - getting into an elite institution can open plenty of doors. But do consider whether that is worth whatever % of your company YC will take.
mscasts 7y ago
Ok, I get the desire, but personally I believe it's a bit fluffy. I'd love to be in your guys position and I have a hard time just understanding why you would want to give away control which is basically freedom, be essentially be cool or be part of an "elite" group? You guys already are cool, you don't need someone else to be it.
- loopla 7y ago
  But are you giving away control by giving YC 7%? YC isn't a traditional investor. You don't need to raise money on demo day and are free to go back to being a small business that puts profit before growth. YC isn't going to send you an angry email or frankly even remember you if you don't stay in touch and continue to do office hours.
  - mscasts 7y ago
    Perhaps not. Maybe the contacts you will recieve and the amount of money is enough to help you bootstrap stuff faster. I have never actually started a company myself, so I wouldn't know. I just think I would be extremely satisfied if I could sustain myself without any investor money. Seems like a better way to grow in my mind, if you're not aiming to be a billion dollar company anytime soon.
guytv 7y ago
Great article, thanks. But - it seems that you guys put more importance on being perceived as successful (= backed by YC), then actually building a profitable business.

unnouinceput 7y ago

150k it's not a lot of money for Silicon Valley, that's just enough to keep the light on for a few months. But they outgrew that, I mean in course of only a few months they hit 100k and still growing. And I agree, they really don't those money unless they somehow think investing those in something, let's call it "magic dust" that in next month will allow them to hit the threshold of millions. Otherwise they should just forget about YC and just rack in the dough.

Etheryte 7y ago

Y Combinator isn't just money. If you have a growing company with a vision, you can definitely find some investor interest. However, that should rarely be your goal, unless you flat-out just can't move your business forward otherwise. Y Combinator is what some would call _smart_ money: money that comes with a network of advisors, constant input and a nagging push to improve what you're doing. All of that combined can be worth more than the actual money.

mscasts 7y ago
I have seen people say this on HN over and over again. But it's not like most people who start businesses lacks vision. If you got a vision and start to earn enough money to sustain yourself you are free to hunt whatever vision you want. > constant input and a nagging push to improve what you're doing I get why this can be good, but honestly it sounds terrible when you lay it out like that. If I want to be nagged on, I would just get married.

aeyes 7y ago

Y Combinator isn't just about investment, it is also a great community of like-minded people which give great feedback and motivation.