[tyu2]

Right, but the point is those materials are not for starting a sustainable business, but a startup, a whole different thing as you understand. For sustainable business you probably don't want to listen to anyone involved in VC-funded startups, it's in their interest even to sabotage you.

[pontus]

The fact that some think there's a distinction between a startup and a sustainable business says a lot about SV. A startup should be sustainable too. There's a distinction between a quickly growing business or a slowly growing business for sure, and sometimes it makes sense to forgo the sustainable part in the short term in order to promote growth, but to think that a startup somehow should not aim to be sustainable leads to really perverse incentives.

[nowherebeen]

I think this concept was popularized by VCs like SoftBank. It also makes me wonder how much of a tech bubble we are in and what happens when it finally bursts.

[Rastonbury]

The appearance of being a bubble is inherent in the VC business model.. VCs know full well that 9/10 startups they fund are likely to fail, they make returns out of the 1/10. The median funded startup is a failure. People look at this an think "all this money and all this failure, its going to end badly, these investors are gonna get burnt!" yes some do, but even the most stellar firms have more misses than hits.

[nowherebeen]

> all this money and all this failure, its going to end badly, these investors are gonna get burnt

No, I think all these startups employees with families to feed are going to be out of a job. VCs fund startups that shouldn’t have been funded in the first place. They create a market that artificially props up unsustainable businesses. This video is a good explanation of how the VC world actually works. https://m.youtube.com/watch?v=NVVsdlHslfI

[courtf]

Fair point, I just want to point out that this "lecture" series could be greatly reduced to one simple rule: do what the money-men tell if you want to get funded.

These guys don't know how to build your business, they know how to get funds to change hands. So kiss their ass, jump through whatever inane hoops they use to trick the wealthy to part with their jewels, and you might just be among the chosen few.

[aerosmile]

YC (and by extension, Sam Altman in his past capacity as its President) is not in the business of maximizing the longevity of each and every investment. Instead, they are in the business of maximizing their ROI within a reasonable timeframe (and they are pretty good at it). If that doesn't sound like a good deal to you as an entrepreneur, you should raise your money from elsewhere or avoid raising altogether.

But to claim that Sam Altman doesn't know how to build a business is a bit of stretch. OpenAI seems to be doing quite well.

[nmfisher]

> OpenAI seems to be doing quite well.

How so? OpenAI is nowhere near turning a profit, it’s a research lab masquerading as a business. It’s alive only due to massive injections of capital from investors (and when they weren’t prepared to fork over any more, Microsoft).

Sam Altman is clearly brilliant at raising capital. I don’t want to downplay the importance of that skill. But selling a product to actual customers for more than it cost to make is a completely separate - and let’s face it, less sexy - endeavour.

[courtf]

It's easy to make money when you have money and thousands of desperate poors begging for the opportunity to bhe your investment vehicle. Sam got lucky and got rich. From there it's all downhill.

[aerosmile]

Nobody would dispute the element of luck in each rich person's journey. Or that the first million is the hardest one. And yet, it does seem that the particularly ambitious, smart and hard working ones tend to get more lucky.

Also, note this quote from Paul Graham [1]:

> Within about three minutes of meeting him, I remember thinking "Ah, so this is what Bill Gates must have been like when he was 19."

Not to mention that PG still declined him, and Sam refused to leave. Sounds to me like a bit more than just your average lucky kid.

[1] http://www.paulgraham.com/mit.html

[courtf]

Ok, I guess Sam is one of the good ones? I'm not convinced, but my comments haven't all been specific to him anyway.

I'm sure there are ways to lean on the scales and enhance your "luck," but if you don't attribute most of anyone's success to luck you are a fool. How many potential business geniuses died of cholera in the last couple hundred years?