5 ms·

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 mortgag

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
      If we take pg's 95% literally and define YC's current contribution to a startup as 100%, then if they give 3x as much money their contribution to the startup becomes 110% of what they contribute now. So they would demand 10% more equity.
      - pg 18y ago
        You're right that we wouldn't take too much more equity. (In fact, the last time we increased the amount we invested, we didn't ask for any more equity.) But if we invested more per startup we'd tend to become more conservative. We'd think twice about investing in some of the riskier projects, and that's the last thing we'd want.
  - brlewis 18y ago
    Same here. It's the difference between quitting my day job and not quitting. For the summer program I wouldn't have to move. I would move for the winter program if I could make it work financially. Housing a family of 5 is probably expensive in S.F. Plus we want a good Montessori school nearby.
    - dgabriel 18y ago
      I keep posting about this, but cambridge has an excellent public montessori elementary school (prek - 8). My problem is the single mom thing. I have a bunch of ideas (and they are all BRILLIANT!) & a great co-founder, but I need to have inexpensive health insurance, and I don't have a life partner willing to pick up any slack. In order to afford the rent on our one bedroom & work crazy hours on a y combinator start-up, I need to save a few thousand dollars. I'll be mid-30s by the time I feel comfortable applying, but that's ok. Last summer I met a founder in his 30s, and it didn't seem to be a problem for him. In the meantime, it's nights & weekends, which can also be fun if you like your project.

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
    If we take pg's 95% literally and define YC's current contribution to a startup as 100%, then if they give 3x as much money their contribution to the startup becomes 110% of what they contribute now. So they would demand 10% more equity.
    - pg 18y ago
      You're right that we wouldn't take too much more equity. (In fact, the last time we increased the amount we invested, we didn't ask for any more equity.) But if we invested more per startup we'd tend to become more conservative. We'd think twice about investing in some of the riskier projects, and that's the last thing we'd want.
- brlewis 18y ago
  Same here. It's the difference between quitting my day job and not quitting. For the summer program I wouldn't have to move. I would move for the winter program if I could make it work financially. Housing a family of 5 is probably expensive in S.F. Plus we want a good Montessori school nearby.
  - dgabriel 18y ago
    I keep posting about this, but cambridge has an excellent public montessori elementary school (prek - 8). My problem is the single mom thing. I have a bunch of ideas (and they are all BRILLIANT!) & a great co-founder, but I need to have inexpensive health insurance, and I don't have a life partner willing to pick up any slack. In order to afford the rent on our one bedroom & work crazy hours on a y combinator start-up, I need to save a few thousand dollars. I'll be mid-30s by the time I feel comfortable applying, but that's ok. Last summer I met a founder in his 30s, and it didn't seem to be a problem for him. In the meantime, it's nights & weekends, which can also be fun if you like your project.