a day ago
- Y Combinator's primary role is not just seed funding but helping early-stage startups get launched, similar to a steam catapult on an aircraft carrier.
- In the earliest stages, money is less important than the intensive help and guidance needed to address fundamental questions about technology, design, and team.
- YC provides a three-month program where startups relocate, receive hands-on support to resolve co-founder tensions, set up paperwork, and focus on building an impressive product.
- Demo Day serves as the launch mechanism, presenting startups to Silicon Valley investors after the intensive preparation phase.
- YC targets a different niche than VCs: it creates new deal flow by encouraging hackers to start companies instead of taking jobs, competing more with employers than with other investors.
- Declining startup costs due to technology advances have made it feasible to launch companies with minimal funding, enabling YC's model.