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Ask HN: Why Don't YC Alumni Pay It Forward? (My Personal Plea)

4 points by citizenkeys 16y ago

There's well over 200 Y Combinator companies these days. All of these companies receive investment to run their own business. All of these founders subscribe to the belief that "You Weren't Meant to Have a Boss" ( http://www.paulgraham.com/boss.html ). Yet to the best of my personal knowledge, none of these companies pay it forward ( http://en.wikipedia.org/wiki/Pay_it_forward ). Many of these companies have platforms for developers to build on. Yet I can tell you having personally asked a few YC founders about investing in other companies that no YC company pays it foward. The response I've gotten from these founders is "I have no idea how that would work." I call B.S. These same founders, however, seem to want people working for them. Yes, more people need jobs than need to start companies. But I don't understand how founders can subscribe to the belief of being one's own boss and then turn around and ask everyone else to work for them. It's as if to say "What's good enough for me is to be my own boss. What's good enough for you is to kiss my ass and beg for a job." So why don't YC alumni pay it forward? Why don't those of you that are founders with funding make a conscious effort to invest in other companies yourselves? At the very least, for those of you that have platforms and API's, why don't you invest in companies to build on your platforms and API's? BE THE CHANGE.

zacharycohn 16y ago
I think a lot of them simply aren't at the level where they can do that, or they're reinvest their money in their next project so they can afford to do the next project without external investment. I don't think there's some secret evil "we take take take but don't give any back" mindset.
daleharvey 16y ago
1. You cant make assumptions about someones beliefs because they are a YC company 2. The number of YC companies that have a significant enough exit long enough ago for the founders to turn into angels is very small 3.YC companies in general are very supportive of the ecosystem, using and promoting similiarly new companies, helping interview yc candidates, giving advice and providing services. 4. Companies are funded to make money doing what they are good at, they need to hire employees to do that, they werent given the investment to become investors themselves, that happens after their own companies have an exit
brk 16y ago
Perhaps they are reminded of the saying "a fool and his money are soon venture capital" I think only a very few numbers of YC companies have reached the stage where they coud responsibly choose to risk some cash on an investment. Most liley the ones that have done it have not made a big deal about it, and the others are still trying to figure it out. In the end though, I would suggest you do not adopt the idea that these other companies have any requirement or responsibility to pay it forward.
- citizenkeys 16y ago
  It's easily a much greater risk to spend money on recruiting, hiring, training, and paying taxes and benefits for full-time employees than it is to make a comparatively small investment to build new products built around your company.
  - brk 16y ago
    citation needed
pitdesi 16y ago
I don't know much about YC, but my take is that there haven't been that many around with big enough exits to become angels. Here is some counterproof: http://daskapitalcapital.com/ http://daskapitalcapital.com/ (Alexis Ohanian of Reddit's investments)
code 16y ago
I'm not a YC alum and I don't intend to be and what I'm about to say is personal opinion so take it as is. As an entrepreneur, and someone who've successfully sold his own startup, I would gladly help out other entrepreneurs but I wouldn't invest in any. Others have ask if I'd be interested in investing and simply put, I don't enjoy investing nor is it something in my nature. What I love to do and what I'm passionate about is building a company. I'm not the type that can invest in others and casually give advice on the side lines. I am the type that is very hands on and you can't be an investor and do that unless you plan on doing very limited investing and that's it. My opinion of course. That said, that doesn't mean I'm not interested in helping people, make introductions, and give valid advice freely. Paying it forward doesn't necessarily mean having to put in money. Everyone is different. Just because they don't want to invest doesn't mean they aren't trying to help. You need to clearly distinguish the two. As a matter of fact, I wish most people who look for investors to invest make better choices on the investors they would accept rather than focus on just the money they would get. Mark suster says it best that taking on an investment is worse than marriage as its a heavy commitment. Get to know the people who are investing in you behind preliminary meetings and understand the value in which they can provide beyond the money. Even YC are selective of who they accept.

4 points by citizenkeys 16y ago

zacharycohn 16y ago

I think a lot of them simply aren't at the level where they can do that, or they're reinvest their money in their next project so they can afford to do the next project without external investment. I don't think there's some secret evil "we take take take but don't give any back" mindset.

daleharvey 16y ago

1. You cant make assumptions about someones beliefs because they are a YC company 2. The number of YC companies that have a significant enough exit long enough ago for the founders to turn into angels is very small 3.YC companies in general are very supportive of the ecosystem, using and promoting similiarly new companies, helping interview yc candidates, giving advice and providing services. 4. Companies are funded to make money doing what they are good at, they need to hire employees to do that, they werent given the investment to become investors themselves, that happens after their own companies have an exit

brk 16y ago

Perhaps they are reminded of the saying "a fool and his money are soon venture capital" I think only a very few numbers of YC companies have reached the stage where they coud responsibly choose to risk some cash on an investment. Most liley the ones that have done it have not made a big deal about it, and the others are still trying to figure it out. In the end though, I would suggest you do not adopt the idea that these other companies have any requirement or responsibility to pay it forward.

citizenkeys 16y ago
It's easily a much greater risk to spend money on recruiting, hiring, training, and paying taxes and benefits for full-time employees than it is to make a comparatively small investment to build new products built around your company.
- brk 16y ago
  citation needed

pitdesi 16y ago

I don't know much about YC, but my take is that there haven't been that many around with big enough exits to become angels. Here is some counterproof: http://daskapitalcapital.com/ http://daskapitalcapital.com/ (Alexis Ohanian of Reddit's investments)

code 16y ago

I'm not a YC alum and I don't intend to be and what I'm about to say is personal opinion so take it as is. As an entrepreneur, and someone who've successfully sold his own startup, I would gladly help out other entrepreneurs but I wouldn't invest in any. Others have ask if I'd be interested in investing and simply put, I don't enjoy investing nor is it something in my nature. What I love to do and what I'm passionate about is building a company. I'm not the type that can invest in others and casually give advice on the side lines. I am the type that is very hands on and you can't be an investor and do that unless you plan on doing very limited investing and that's it. My opinion of course. That said, that doesn't mean I'm not interested in helping people, make introductions, and give valid advice freely. Paying it forward doesn't necessarily mean having to put in money. Everyone is different. Just because they don't want to invest doesn't mean they aren't trying to help. You need to clearly distinguish the two. As a matter of fact, I wish most people who look for investors to invest make better choices on the investors they would accept rather than focus on just the money they would get. Mark suster says it best that taking on an investment is worse than marriage as its a heavy commitment. Get to know the people who are investing in you behind preliminary meetings and understand the value in which they can provide beyond the money. Even YC are selective of who they accept.