The more efficient the capital allocation is, the greater the benefit to the whole market.
The only weirdness is that these are companies led by founders with "personalities". That's a weird variable to correct for.
This page on mobile made me laugh.
But otherwise, makes sense - get rid off all the flash and this is what demo days/etc are about
It's mostly a ponzi scheme, where unprofitable companies pass their books off to non-technical investors that love hype.
> 1 slide. 1 minute pitches. 1 speaker.
This is why YC has such poor results. They're more interested in "1 slide" vs actual financials.
> Vertical AI was all over the place. Cursor for X was also prevalent.
No thought leadership at all.
No it's not. It's not even remotely comparable.
> There is a small group of companies that create the reputation on which everybody lives
Also called luck. YC investors cannot articulate what made them successful, or else they'd have better results.
Universities have decades of sustained output. They are not comparable.
> you joining some arbitrary YC startup was a bad experience
I am at a YC unicorn. We are one of YC's most successful startups.
> The average performance of a YC company is __phenomenal__
It absolutely is not. It doesn't even beat the SP500. The __vast__ majority of YC companies are unprofitable failures.
You could flip a coin and beat YC.
You thought YC was comparable to a university
> This is why LP's throw money at YC's funds
Yeah, we know hedge funds that throw money at things usually beat the SP500.
> It is very apparent after many many group office hours, which startups are likely to be in the 6% unicorn group and which are not
Group office hours and not actual revenue. Proving my point!
> However this does not preclude that the mean of YC outcomes is very very good
It absolutely does, lmao.
> If Bill Gates were in a room with me and my friends the MEAN net worth would be tens of billions of dollars, the median would be less than a $100k.
Yes, one person being successful, the rest failures would skew the results! Way to prove the point I'm making, lmao.
>> Also called luck.
Startup skill is a necessary but not sufficient condition for success. You also need luck. I doubt YC would claim otherwise.
Let's say each startup is a planet. Whoever gets hit with the most asteriods wins. Every conscious right decision and technical prowess that constitutes skill increases the size of the planet. The bigger the planet the more likely that more asteriods hit it. But space is a hig place, the largest planet is not guarenteed to have the most asteriod hits. A smaller planet could actually win. So it is with luck.
>YC investors cannot articulate what made them successful, or else they'd have better results.
Again, I doubt YC would contest this. But the power law so far has allowed them to be successful without having to guess correctly who in their pool would become the unicorn.
>You could flip a coin and beat YC
Where are you flipping this coin exactly? Are you flipping a coin in a pool containing all the startups in the world? If that's the case I'd like to see you take that bet. But if you flip a coin on Demo day, I'm sure you can beat some YC partners who additionally invest in a personal capacity.
mkagenius•3h ago
TZubiri•3h ago
mkagenius•3h ago
sillyfluke•3h ago
It's a threadbare article with little or no meat on the bone. So it is a little strange.
mkagenius•3h ago
sillyfluke•3h ago
I've seen 3 point new posts up near the top before so I assumed that's what it was. 2 points top of the page is pretty aggressive tho, it might have been a near instant upvote by someone who was interested in the topic.
ge96•3h ago
Brajeshwar•2h ago