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If you have an agent that can run a business, then… why not… run a business? Why does YC bother financing startups led by founders, if the AI can just do it? (

by jbs789 17d ago

If you have an agent that can run a business, then… why not… run a business? Why does YC bother financing startups led by founders, if the AI can just do it? (This startup proudly remarks that it’s backed by YC)

askvictor 17d ago
Not quite sure of the intent, but I have variously thought of starting a business based on an idea or gap in the market I could fill with my coding skills... only to realise running a business is not fun at all. Even getting an app published in the app store (and maintaining it) is a level of boredom I can't be bothered with. So maybe that's a use case. Of course, nowadays the coding part will be done by an agent too, so I guess it's just the initial idea?
- jbs789 17d ago
  I use the coding tools in my business. I wouldn’t for a moment suggest those tools are capable of “running” a business and I think it is disingenuous to suggest so.
  - ngvrnd 17d ago
    Sure, but it's only disingenuous until someone does it. Maybe this isn't it, ok. Better to criticize it on specific grounds of failure.
    - jbs789 17d ago
      I guess it comes down to definition of “running”. Maybe running means automating some number of functions. I read it initially as running as a CEO does, which includes a whole lot more.
s_dev 17d ago
A startup and a business aren't the same thing in the eyes of YC. https://www.paulgraham.com/growth.html https://www.paulgraham.com/growth.html A business is web store selling coffee cups where the bottom line governs it's continuation. A startup is ambitious project where a growth rate governs it's continuation. The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google.
- quirkot 17d ago
  a business makes money selling a product or service. a startup makes money selling the startup
  - podocarp 17d ago
    That's a good way of putting it But this is also the set of incentives that produces spaghetti code because "we're gonna get acquired in two years"
    - quirkot 16d ago
      it's also the set of incentives that produces not-technically-illegal pump and dump schemes when the startup is sold to the market via IPO
- falsemyrmidon 17d ago
  > The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google. That's a bit disingenuous. The more comparable end result for a coffee shop is Starbucks. Or Amazon if you want to talk about books
  - s_dev 17d ago
    pg would argue Starbucks the Umbrella group is startup as it's an franchise operation focussed on growth. A single instance of Starbucks is a business focussed on turning a profit. In fact even the name YC is YCombinator, which in programming is a "function that produces functions" and YC is supposed to be a startup that produces startups. Here Starbucks (Umbrella) is a startup that produces coffee shops (Starbucks). You can define startup or business however you like it's not a legally protected term. Just around these parts that's what it means and I personally find the distinction useful when reasoning about what does and doesn't have high growth potential.
- iwontberude 17d ago
  [dead]
jackdawed 17d ago
I own a bookstore and about 90% of back office work is automated by software and AI. Probably most fulfilling project I've worked on in the past few years after taking a long break from tech.
- datsci_est_2015 17d ago
  The last 10% is probably the most important. It sounds like you have agents doing all the tasks that SaaS would’ve provided in the past. Most people wouldn’t have shelled out for that SaaS though because the subscriptions would eat their margin. You probably still (occasionally) need things like legal counsel that would be foolish to use LLM output for.
- zergrush 17d ago
  interesting....i didn't know people still bought books from bookstore when they compete with Amazon, who are your demographics? I really do love the bookstores but haven't been in one in ages
  - MiloLeo 17d ago
    Do you really live in a place that does not have independent bookstores? The market is a little more niche, but they still exist and can do well.
    - zergrush 17d ago
      There are a few but they are empty I enjoy them a lot
- jbs789 17d ago
  As it should be. Gets your employees out front talking with customers.
datsci_est_2015 17d ago
If you have an agent that can run a business, why would I pay you instead of running my own agent that provides the service your business provides? The only niche where that doesn’t work is capital investments. I can’t have an agent that provides me housing, but your agent can run your slumlord business.

by jbs789 17d ago

askvictor 17d ago

Not quite sure of the intent, but I have variously thought of starting a business based on an idea or gap in the market I could fill with my coding skills... only to realise running a business is not fun at all. Even getting an app published in the app store (and maintaining it) is a level of boredom I can't be bothered with. So maybe that's a use case. Of course, nowadays the coding part will be done by an agent too, so I guess it's just the initial idea?

jbs789 17d ago
I use the coding tools in my business. I wouldn’t for a moment suggest those tools are capable of “running” a business and I think it is disingenuous to suggest so.
- ngvrnd 17d ago
  Sure, but it's only disingenuous until someone does it. Maybe this isn't it, ok. Better to criticize it on specific grounds of failure.
  - jbs789 17d ago
    I guess it comes down to definition of “running”. Maybe running means automating some number of functions. I read it initially as running as a CEO does, which includes a whole lot more.

s_dev 17d ago

A startup and a business aren't the same thing in the eyes of YC. https://www.paulgraham.com/growth.html https://www.paulgraham.com/growth.html A business is web store selling coffee cups where the bottom line governs it's continuation. A startup is ambitious project where a growth rate governs it's continuation. The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google.

quirkot 17d ago
a business makes money selling a product or service. a startup makes money selling the startup
- podocarp 17d ago
  That's a good way of putting it But this is also the set of incentives that produces spaghetti code because "we're gonna get acquired in two years"
  - quirkot 16d ago
    it's also the set of incentives that produces not-technically-illegal pump and dump schemes when the startup is sold to the market via IPO
falsemyrmidon 17d ago
> The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google. That's a bit disingenuous. The more comparable end result for a coffee shop is Starbucks. Or Amazon if you want to talk about books
- s_dev 17d ago
  pg would argue Starbucks the Umbrella group is startup as it's an franchise operation focussed on growth. A single instance of Starbucks is a business focussed on turning a profit. In fact even the name YC is YCombinator, which in programming is a "function that produces functions" and YC is supposed to be a startup that produces startups. Here Starbucks (Umbrella) is a startup that produces coffee shops (Starbucks). You can define startup or business however you like it's not a legally protected term. Just around these parts that's what it means and I personally find the distinction useful when reasoning about what does and doesn't have high growth potential.
iwontberude 17d ago
[dead]

jackdawed 17d ago

I own a bookstore and about 90% of back office work is automated by software and AI. Probably most fulfilling project I've worked on in the past few years after taking a long break from tech.

datsci_est_2015 17d ago
The last 10% is probably the most important. It sounds like you have agents doing all the tasks that SaaS would’ve provided in the past. Most people wouldn’t have shelled out for that SaaS though because the subscriptions would eat their margin. You probably still (occasionally) need things like legal counsel that would be foolish to use LLM output for.
zergrush 17d ago
interesting....i didn't know people still bought books from bookstore when they compete with Amazon, who are your demographics? I really do love the bookstores but haven't been in one in ages
- MiloLeo 17d ago
  Do you really live in a place that does not have independent bookstores? The market is a little more niche, but they still exist and can do well.
  - zergrush 17d ago
    There are a few but they are empty I enjoy them a lot
jbs789 17d ago
As it should be. Gets your employees out front talking with customers.

datsci_est_2015 17d ago

If you have an agent that can run a business, why would I pay you instead of running my own agent that provides the service your business provides? The only niche where that doesn’t work is capital investments. I can’t have an agent that provides me housing, but your agent can run your slumlord business.