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You're still assuming that HackFWD is dumb money. From what I can tell, they have expertise in European markets that probably surpasses YC and they give a much

by niggler 14y ago

You're still assuming that HackFWD is dumb money. From what I can tell, they have expertise in European markets that probably surpasses YC and they give a much longer runway to develop without funding pressures (full year as opposed to a few months). There's no constant pressure to prepare for demo day. I'm not saying there isn't a value-add to YC, but rather that its bad to assume other programs don't have value.

rdl 14y ago
There's an argument to be made that longer runways don't help. YC arguably made a mistake for many companies by going from 20k to 20+150k, because with 170k you can waste a lot of time and also there's a lot left to fight over if it fails early. This is mostly why YC went to 20+80k now. I think the right thing is probably 50-100k plus a low-hassle way to get another 250-300k, and then 1-2mm. So, something like YC plus non-stupid early investors and something like a raise shortly after Demo Day. (If I had a 10-20mm fund, I'd love to fill in the 250-300k gap)
- niggler 14y ago
  There's a difference between monetary runway and time runway. YC solved the money problem but didn't solve the time problem with throwing more money. To put it different, you can throw billions of dollars at a company, but they'll still operate in stress mode if you tell them a demo is due in a few months. What they should have done is extended the program length while giving more money.
  - rdl 14y ago
    I think there are probably two distinct types of company. One where you do a 1 month dev, 1 month launch, and can have traction; another where having a year helps (hardware, or some enterprisey stuff, or some platforms). There is a strong bias toward "having launched at Demo Day". If I had two things to work on, and got into YC, I'd absolutely pick the one I could get launched before Demo Day. There are some companies which think they're type 2 but really have elements of type 1, and should do those elements first. (which is kind of what my company did; we wanted to do generalized secure/trustworthy cloud computing, and should have focused on specific applications of that technology, which is what we're doing now) It's probably a net win for society and for an accelerator if they push some of the "fake type 2" into type 1 even at the cost of excluding some genuine type 2. An easy hack for YC would be to have companies accepted into YC but let them choose to defer until the following Demo Day. You do need the initial 20-50k ASAP to get corp formation and other things done on a good foundation, but most of the "genuine type 2" companies are founded by people who can float their own living expenses for a year or two (or do very low time commitment consulting to do so), so it doesn't need to be more money.

by niggler 14y ago

rdl 14y ago

There's an argument to be made that longer runways don't help. YC arguably made a mistake for many companies by going from 20k to 20+150k, because with 170k you can waste a lot of time and also there's a lot left to fight over if it fails early. This is mostly why YC went to 20+80k now. I think the right thing is probably 50-100k plus a low-hassle way to get another 250-300k, and then 1-2mm. So, something like YC plus non-stupid early investors and something like a raise shortly after Demo Day. (If I had a 10-20mm fund, I'd love to fill in the 250-300k gap)

niggler 14y ago
There's a difference between monetary runway and time runway. YC solved the money problem but didn't solve the time problem with throwing more money. To put it different, you can throw billions of dollars at a company, but they'll still operate in stress mode if you tell them a demo is due in a few months. What they should have done is extended the program length while giving more money.
- rdl 14y ago
  I think there are probably two distinct types of company. One where you do a 1 month dev, 1 month launch, and can have traction; another where having a year helps (hardware, or some enterprisey stuff, or some platforms). There is a strong bias toward "having launched at Demo Day". If I had two things to work on, and got into YC, I'd absolutely pick the one I could get launched before Demo Day. There are some companies which think they're type 2 but really have elements of type 1, and should do those elements first. (which is kind of what my company did; we wanted to do generalized secure/trustworthy cloud computing, and should have focused on specific applications of that technology, which is what we're doing now) It's probably a net win for society and for an accelerator if they push some of the "fake type 2" into type 1 even at the cost of excluding some genuine type 2. An easy hack for YC would be to have companies accepted into YC but let them choose to defer until the following Demo Day. You do need the initial 20-50k ASAP to get corp formation and other things done on a good foundation, but most of the "genuine type 2" companies are founded by people who can float their own living expenses for a year or two (or do very low time commitment consulting to do so), so it doesn't need to be more money.