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My only real critique of Y Combinator and Graham's model in general is that it's still very tech/web-oriented. I get the cost and exit benefits, but the noise a

My only real critique of Y Combinator and Graham's model in general is that it's still very tech/web-oriented. I get the cost and exit benefits, but the noise around this sector has changed people's ideas of startups: Lemonade stands, clothing lines, etc. Ycombinator is web-oriented, but the model isn't (necessarily). You could have a company similar to YC in any field with low initial overhead and high scalability. Unfortuantely, I can't think of any that can match web software (maybe finance, actually: there are already hedge fund incubators, and they might scale down average funding to scale up the number of people they fund).

sachinag 17y ago
You could probably easily do the model for consumer products if you would be able to figure out a test distribution mechanism, such as a partnership with a grocery store chain, or some such. Yeah, it would be something akin to the American Inventor show, but the key is to be able to do serious in-store or TV ad (informercial or 30 second) testing. Here's how the Crest Spin Brush came to be: http://www.businessweek.com/smallbiz/content/aug2002/sb2002081_2099.htm http://www.businessweek.com/smallbiz/content/aug2002/sb20020...
- rfreytag 17y ago
  Isn't this something like how QVC works - take stuff and fail fast or explode the market for that whacky items with copycats?
loganfrederick 17y ago
I agree that this model works for web software and tech in general because the nature of the industry nowadays allows for lower startup costs. A lot of industries are still capital intensive. A similar model that specifically selected companies in non-tech industries whose competitive advantage/business model centered around some low-cost, innovative solution to a formerly capital intensive problem could be successful if you could find a number of startups with that focus.

sachinag 17y ago

You could probably easily do the model for consumer products if you would be able to figure out a test distribution mechanism, such as a partnership with a grocery store chain, or some such. Yeah, it would be something akin to the American Inventor show, but the key is to be able to do serious in-store or TV ad (informercial or 30 second) testing. Here's how the Crest Spin Brush came to be: http://www.businessweek.com/smallbiz/content/aug2002/sb2002081_2099.htm http://www.businessweek.com/smallbiz/content/aug2002/sb20020...

rfreytag 17y ago
Isn't this something like how QVC works - take stuff and fail fast or explode the market for that whacky items with copycats?

loganfrederick 17y ago

I agree that this model works for web software and tech in general because the nature of the industry nowadays allows for lower startup costs. A lot of industries are still capital intensive. A similar model that specifically selected companies in non-tech industries whose competitive advantage/business model centered around some low-cost, innovative solution to a formerly capital intensive problem could be successful if you could find a number of startups with that focus.