[CalChris]

A couple of the slides are titled: Getting your first 100 users. I think that's probably a strong attraction/benefit for YC. Its alumni seem almost to be a keiretsu from the outside, offering connections and first sales to their newly hatched brethren.

[Gargoyle]

True. But when I was reading the Techcrunch reports on these last Demo Days, every time I read one of the batch had some dozen or two customers I couldn't stop thinking "How many of those are just other YC companies?"

In other words, there's a bit of a discounting in effect now too.

[mrkurt]

This is half true, but yc network companies are a _lot_ more discerning about what they'll try these days. There are 5-10x more yc startups than there used to be, and no one has time to use them all.

It's actually more valuable for early user feedback than showing traction for investors. yc network companies are usually willing to spend more time poking through stuff than some company you don't know, help with pitches, etc.

[rhizome]

My impression is that basically all VCs try to generate network effects from incestuous cross-pollination among their fundees.