7 ms·

fbFund and Y Combinator

18 points by sanj 18y ago

epi0Bauqu 18y ago
I feel the same way about Y Combinator. People like me are self-excluded because of our current life parameters/priorities, most notably family. I also completely understand why it is set up the way it is, but nevertheless I have a hunch that there are significant missed opportunities on both sides (i.e., good investments passed up and good startups less successful because of it). Additionally, some of the structure seems more geared towards first time entrepreneurs. In the case of a more experienced entrepreneur, it would seem that a more relaxed structure might be acceptable (and in some cases even appropriate). I don't need to get more material about the legal aspects of how companies work, for example. But I'm sure I would benefit from focused conversations about my product offerings.
- sanj 18y ago
  The 'first timer' argument is interesting. I have been around this rink once before as well, so certain things elements would, at first blush, seem less applicable. But having been to Startup School, I found that I was wrong. Playing the game once is much better than not having played at all. But you're negotiating with people (ie, investors and VCs) who play the game once a month/week/day! Any leg up that inequality is valuable. I also don't think that you should discount the timed element: having only 3 months can focus you like nothing else, first timer or not.
- hooande 18y ago
  One thing YCombinator is exceptional at is grooming a company for VC investment. If you think you even might want a venture funded company, YC can tell you all the ins and outs. I'm sure that even third or fourth time entrepreneurs could use some information about how things are done in the silicon valley investment community. It's more than just how to fill out the paperwork (though they excel at teaching that as well)
  - sanj 18y ago
    The fbFund has the same goals as well. In particular, the backers led us through the steps of getting all of our paperwork in order so that we would "be ready" for VC investment. It was, effectively, a requirement of the grant.
- pg 18y ago
  I have a hunch that there are significant missed opportunities on both sides I don't think it could be any other way, though. The investment is only about 5% of what YC does. The other 95% is stuff that has to happen face-to-face. We did once try letting a startup not move. By Demo Day they were way behind the others, and they didn't survive much past it.
  - aasarava 18y ago
    Even if one were to be comfortable moving (or lived in the area already), I think one of the problems for would-be YC entreprenuers with families and/or mortgage payments is that the average $5K base + $5K/partner investment comes in below an acceptable threshold for minimum income over the course of 3 months. Now clearly you're running a business and not a charity, and you've arrived at the investment amount for certain reasons. But I do wonder what sort of opportunities and business ideas might arise if a group similar to YC were to offer, say, $10K-$15K per founder for the period.
    - pg 18y ago
      I think not a lot, actually. From what we hear from founders, the moving part seems to be the big problem for people with families, not the money part.
      - sanj 18y ago
        The money would have made a difference to me.
        fallentimes 18y ago
        But if they increased the amount of money significantly, they'd more than likely have to increase the amount of equity and decrease the amount of investments. This would really take away from what YC does.
        brlewis 18y ago
sanj 18y ago
Hiya! I've been reading HN for a long time. I'm happy to answer questions about the f8 conference and the fbFund process. I'll be on and off today, but will keep up with the conversation as best I can.
- zach 18y ago
  Thanks! This has a lot of interest to me as well since I'm also not prepared to structure my life around a YC session. I have some interest in a venture to build an app that would be specifically used for promoting products. Half product, half consultancy. Are there any fbFund recipients doing anything similar or unusual like that, or are they all building straight-ahead apps?
  - sanj 18y ago
    Taking a look at the recipients, http://developers.facebook.com/fbFund.php?tab=recipients http://developers.facebook.com/fbFund.php?tab=recipients there are definitely some which are 'infrastructure' rather than "apps": HotBerry: Frameworks and mechanics allowing users to generate own casual games on Facebook (e.g., Pinball construction set). Watch Screencast J2Play: A social gaming platform for pc, mobile, and web game developers. However, the details announced about the next iteration of the fund may preclude these sorts of entrants. The issue is that while the finalists will chosen by the fbFund committee, the winners will be chosen by Facebook's users. I think it would be hard to "sell" a non-app to them, unless you had compelling instances what the app could do.
    - indigoviolet 18y ago
      Finalists still get 25K or something, right?
      - sanj 18y ago
        Correct. But I imagine the bias will be towards apps that the users will be interested in. You want a tight race.

18 points by sanj 18y ago

I feel the same way about Y Combinator. People like me are self-excluded because of our current life parameters/priorities, most notably family. I also completely understand why it is set up the way it is, but nevertheless I have a hunch that there are significant missed opportunities on both sides (i.e., good investments passed up and good startups less successful because of it). Additionally, some of the structure seems more geared towards first time entrepreneurs. In the case of a more experienced entrepreneur, it would seem that a more relaxed structure might be acceptable (and in some cases even appropriate). I don't need to get more material about the legal aspects of how companies work, for example. But I'm sure I would benefit from focused conversations about my product offerings.

sanj 18y ago
The 'first timer' argument is interesting. I have been around this rink once before as well, so certain things elements would, at first blush, seem less applicable. But having been to Startup School, I found that I was wrong. Playing the game once is much better than not having played at all. But you're negotiating with people (ie, investors and VCs) who play the game once a month/week/day! Any leg up that inequality is valuable. I also don't think that you should discount the timed element: having only 3 months can focus you like nothing else, first timer or not.
hooande 18y ago
One thing YCombinator is exceptional at is grooming a company for VC investment. If you think you even might want a venture funded company, YC can tell you all the ins and outs. I'm sure that even third or fourth time entrepreneurs could use some information about how things are done in the silicon valley investment community. It's more than just how to fill out the paperwork (though they excel at teaching that as well)
- sanj 18y ago
  The fbFund has the same goals as well. In particular, the backers led us through the steps of getting all of our paperwork in order so that we would "be ready" for VC investment. It was, effectively, a requirement of the grant.
pg 18y ago
I have a hunch that there are significant missed opportunities on both sides I don't think it could be any other way, though. The investment is only about 5% of what YC does. The other 95% is stuff that has to happen face-to-face. We did once try letting a startup not move. By Demo Day they were way behind the others, and they didn't survive much past it.
- aasarava 18y ago
  Even if one were to be comfortable moving (or lived in the area already), I think one of the problems for would-be YC entreprenuers with families and/or mortgage payments is that the average $5K base + $5K/partner investment comes in below an acceptable threshold for minimum income over the course of 3 months. Now clearly you're running a business and not a charity, and you've arrived at the investment amount for certain reasons. But I do wonder what sort of opportunities and business ideas might arise if a group similar to YC were to offer, say, $10K-$15K per founder for the period.
  - pg 18y ago
    I think not a lot, actually. From what we hear from founders, the moving part seems to be the big problem for people with families, not the money part.
    - sanj 18y ago
      The money would have made a difference to me.
      - fallentimes 18y ago
        But if they increased the amount of money significantly, they'd more than likely have to increase the amount of equity and decrease the amount of investments. This would really take away from what YC does.
        brlewis 18y ago

sanj 18y ago

Hiya! I've been reading HN for a long time. I'm happy to answer questions about the f8 conference and the fbFund process. I'll be on and off today, but will keep up with the conversation as best I can.

zach 18y ago
Thanks! This has a lot of interest to me as well since I'm also not prepared to structure my life around a YC session. I have some interest in a venture to build an app that would be specifically used for promoting products. Half product, half consultancy. Are there any fbFund recipients doing anything similar or unusual like that, or are they all building straight-ahead apps?
- sanj 18y ago
  Taking a look at the recipients, http://developers.facebook.com/fbFund.php?tab=recipients http://developers.facebook.com/fbFund.php?tab=recipients there are definitely some which are 'infrastructure' rather than "apps": HotBerry: Frameworks and mechanics allowing users to generate own casual games on Facebook (e.g., Pinball construction set). Watch Screencast J2Play: A social gaming platform for pc, mobile, and web game developers. However, the details announced about the next iteration of the fund may preclude these sorts of entrants. The issue is that while the finalists will chosen by the fbFund committee, the winners will be chosen by Facebook's users. I think it would be hard to "sell" a non-app to them, unless you had compelling instances what the app could do.
  - indigoviolet 18y ago
    Finalists still get 25K or something, right?
    - sanj 18y ago
      Correct. But I imagine the bias will be towards apps that the users will be interested in. You want a tight race.