5 ms·

Yeah, he calls it a "filtering function"... yes, to filter out people without safety nets.

czbond 6y ago
Not a filtering function - I know of a few founders who scrapped by on Medicaid and food stamps for years to build a successful business by they had no savings
- KoftaBob 6y ago
  But why put founders through that added stressor if YC easily has the resources to prevent it?
  - czbond 6y ago
    They don’t know at onset if a company deserves that much money. $25k is enough to see what people can accomplish in 3 months - maybe they take less equity. Most companies either have wrong leaders, wrong market, wrong skills, wrong business ideas but big dreams. That amount is enough to filter through the above.
- tfehring 6y ago
  The fact that it's an imperfect filtering function doesn't mean that it's not a filtering function.
- eggsnbacon1 6y ago
  yeah a lot people can't do that. Specifically anyone caring for someone, so like 50% of adult population. A huge proportion of adults are caring for a parent or child. Its also impossible if you have any health problems, or need to save for retirement or have student loan debt. Its really only possible if you're young and healthy, so this would filter out probably 80% of adult population
  - aty268 6y ago
    Why not? Lot's of people live off and raise families off of food stamps + medicaid. That's how I was raised. No reason you couldn't also throw building a company in the mix.
    - codegeek 6y ago
      You could but it gets much harder that way and the likelihood of you failing goes up significantly. It is more risk averse to the VCs to cut a decent size check which ensures founders are not struggling for basic needs and can actually focus on the startup.
    - thebean11 6y ago
      Gee why not throw two companies in and another child for good measure? The point isn't that it's impossible, but it seems like you're advocating strife for strife's sake.
    - willcipriano 6y ago
      If I am going to struggle and have my family live off food stamps, you can be sure some VC isn't getting a dime if it all works out in the end.
- carterklein13 6y ago
  What is it if not a filtering function? It is a filtering function and it's the wrong filtering function. Like others have said, it filters out anyone with a great idea who is unwilling to put their lives in danger, or more importantly the lives of people dependent on them.
- thephyber 6y ago
  Sounds like privatizing the gains and socializing the losses to me.

Not a filtering function - I know of a few founders who scrapped by on Medicaid and food stamps for years to build a successful business by they had no savings

KoftaBob 6y ago
But why put founders through that added stressor if YC easily has the resources to prevent it?
- czbond 6y ago
  They don’t know at onset if a company deserves that much money. $25k is enough to see what people can accomplish in 3 months - maybe they take less equity. Most companies either have wrong leaders, wrong market, wrong skills, wrong business ideas but big dreams. That amount is enough to filter through the above.
tfehring 6y ago
The fact that it's an imperfect filtering function doesn't mean that it's not a filtering function.
eggsnbacon1 6y ago
yeah a lot people can't do that. Specifically anyone caring for someone, so like 50% of adult population. A huge proportion of adults are caring for a parent or child. Its also impossible if you have any health problems, or need to save for retirement or have student loan debt. Its really only possible if you're young and healthy, so this would filter out probably 80% of adult population
- aty268 6y ago
  Why not? Lot's of people live off and raise families off of food stamps + medicaid. That's how I was raised. No reason you couldn't also throw building a company in the mix.
  - codegeek 6y ago
    You could but it gets much harder that way and the likelihood of you failing goes up significantly. It is more risk averse to the VCs to cut a decent size check which ensures founders are not struggling for basic needs and can actually focus on the startup.
  - thebean11 6y ago
    Gee why not throw two companies in and another child for good measure? The point isn't that it's impossible, but it seems like you're advocating strife for strife's sake.
  - willcipriano 6y ago
    If I am going to struggle and have my family live off food stamps, you can be sure some VC isn't getting a dime if it all works out in the end.
carterklein13 6y ago
What is it if not a filtering function? It is a filtering function and it's the wrong filtering function. Like others have said, it filters out anyone with a great idea who is unwilling to put their lives in danger, or more importantly the lives of people dependent on them.
thephyber 6y ago
Sounds like privatizing the gains and socializing the losses to me.