| Note that Lacy's original post contains links to and descriptions of current YCombinator companies. TechCrunch also usually covers every YC project as it launches. This is the main value of YCombinator: It provides guidance and media exposure that would otherwise take years to achieve, if at all - how many people can say that every project they do will get a story on TechCrunch? Judging it as a VC company is misguided. The money involved is less than a year's tuition in many US colleges, and the recipients are mostly young enough to just live with their parents for a few months, and not need it anyway. The funding is minor, but the other parts - startups pay, a lot, to get this level of publicity and consulting. I'd go with the "record label" metaphor instead of Lacy's American Idol one (I'm older ;)): Find talent, give them some producer and studio hours to record a single, then use your connections with DJs to get it some airplay hope it will catch on. Watch "24 Hour Party People" for more details :) The one piece missing here, though, is the fact that ultimately the public (pre-mp3) was paying money for the singles. YC's audience is big companies with money to spend - it may prove less sustainable in the long run. |
No no no. It truly is not-- it blows me away how often people say this. Look at the traffic graphs of most YC companies and they have a healthy spike around Demo Day and then nearly flatline (and start the rough/long trudge up the hill).
If I were going to put things at the top of the list of values YC provides, I'd say it's:
- the (very) public declaration of intent-- it becomes DAMN awkward to quit once you're a YC company.
- the investor relationships, introductions, and acceleration. It's nearly impossible to pitch 150+ investors at once without YC. That setting results in faster investment oftentimes (but not fast enough).
- YC guidance. They've shepherded 100+ startups thru this now-- they have more data and better instincts about the "right" thing to do than most advisors... And invest way more time.
- The peer relationships. Very few early stage questions can't be (very effectively) answered by the collective wisdom of YC founders (who have all gone thru the same issues).