3 ms·
DHS' SkunkWorks Needs to meet Y Combinator
- cperciva 19y agoYC can get away with providing such small amounts of seed funding because of the nature of the companies and founders they fund -- companies with almost zero capital costs and no marginal cost of product, and founders who are willing to work for equity. The DHS Skunkworks funds projects which require significant capital costs and are expensive to scale up -- and because the government doesn't want to end up paying market rates for the product of R&D they funded, they have to pay their "founders" with cash instead of equity. The YC model works fine when applied to the right fields, but notion that YC's success can be replicated in completely different fields is downright silly.