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Sorry, not an expert and I have never been an entrepreneur so forgive me if I am misunderstanding, but doesn't YC give them money? In order for this statement t
by jxcole 13y ago
Sorry, not an expert and I have never been an entrepreneur so forgive me if I am misunderstanding, but doesn't YC give them money? In order for this statement to be true either (1) having startup seed money has no bearing on success or (2) YC gives the same money to people it rejects as to people it accepts.
- argonaut 13y agoBut then you're acknowledging that startup success is not solely dependent on luck...
- baddox 13y agoI think you're interpreting the idea of luck incorrectly. Luck in this context is simply the phenomenon of being one of the start ups with high success. To say that success depends solely on luck means that the success of any startup is simply rand(). That doesn't mean all start ups are equally successful.
- indrax 13y agoGiving selected startups money confounds two factors: the selection criteria and the extra funding. This means that any differences in the success rate can't simply be assigned to the selectors choosing wisely.
- brudgers 13y agoThe amount of capital provided by YC is trivial...a rounding error relative to the value of a successful company. But more relevant is that YC almost certainly has some meaningful data on the companies it rejects. So PG's claim could very well be supported by proprietary information.
- nitrogen 13y agoThe amount of capital provided by YC is trivial. Never been accepted to YC, but I gather that the value of access to YC's demo day and a strong network of investors and alumni is far from trivial.
- frobozz 13y agoTrivial once the company is successful, but isn't the purpose of the money to ensure that the founders don't have to give up and get "proper" jobs before the company succeeds?