
YC Demo Day Session 1 - TheMakeA
http://techcrunch.com/2014/08/19/yc-demo-day-session-1-gingko-bioworks-bikanta-checkr-walksource-cleartax-and-more/
======
alexchamberlain
>> Backpack is a company that arbitrages the cost of goods in different
countries by using international travelers as a distribution network

I don't understand this one - with a world focused on security and import
taxes, how does this work out?

~~~
Cookingboy
I love how you can start a smuggling organization (from the description, it's
just that, this is not even legal gray area bullshit, it's legally black) and
call it a "disruptive startup" these days in Silicon Valley AND get funded by
YC, I mean, what the actual fuck?

No kidding it's a $16 billion market in China alone, that's why people risk on
getting EXECUTED to be in the smuggling business.

Edit: this is from their site, they call themselves the "only peer-to-peer
platform that gives you access to the global market."

I actually bursted out laughing when I read it, I should start a money
laundering service and call it the "only secure platform that unlocks the full
potential of your earnings"

~~~
grayclhn
I remember reading one PG's essays a while ago that concluded

1\. YC should fund riskier startups

2\. Many good ideas sound bad at first.

Funding a criminal smuggling operation seems to fit both criteria.

Free idea for the next batch (or pivot!): often non-US citizens will be
willing to work for lower wages in difficult jobs than US citizens. Why not
match them up with people who are _already_ driving across the US border, who
can help get them in the country?

Here's the link:
[http://paulgraham.com/swan.html](http://paulgraham.com/swan.html)

~~~
Cookingboy
Many great ideas do sound bad at first, but that's not remotely the same as
"all bad sounding ideas are great ideas in disguise".

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kyro
YC is getting involved in some serious tech and markets. Long gone are the
days of web apps. Deep insight, experience, and skill in today's heavyweight
industries are what matter now. Really happy to see this change and very
impressed with the first portion of this batch.

~~~
pinkyand
What does YC bring to tech heavy startups except connections to funding ?
because most of the risk there is technology risk , not market risk, and YC is
no tech expert at those subjects.

~~~
jonnathanson
There is plenty of technology risk _and_ market risk in hard-tech companies. A
business with R&D cycles, long lead times, and heavy capex requirements is
going to face a substantial amount of both types of risk.

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napoleoncomplex
I loved it when they started including non-profits, and I'm loving that
they're including biotech/medical now. They (Gingko/Glowing Plant/Bikanta)
sound insane and very risky, which is exactly the ideas the best incubator in
the world should be funding.

Casual observation, none of the above describe themselves as "X for Y".

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TheMakeA
Honest question: Is $120k really that big of a risk when you're already giving
away money for free to non-profits?

~~~
napoleoncomplex
It isn't, but the abundance of funding cash everywhere hasn't really
translated into more insane (technically) ideas being funded lately, YC or
elsewhere. At least that's been my impression, and it feels like YC is
changing that with their recent batches.

~~~
pinkyand
I don't know. Could it be that rich angels are already investing small amounts
of money into crazy tech startups ,but nobody hears about that ?

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mind_heist
\- If there is a lot of risk involved in carrying stuff through backpack ,
does it offer a certain insurance policy for the travelers ? What if the
product gets seized by customs ? or you are levied a large unexpected fine ?
The service doesnt seem to offer any advice on these at all.

~~~
benologist
A few things can happen. You can be charged the appropriate tax, which can be
on-the-spot hundreds or thousands of dollars. This is not a fine, this is just
the tax you are required to pay to enter the country with those items. This is
generally the outcome when you have eg, a new laptop plus your old laptop.

You can also be fined, arrested and imprisoned for smuggling. This is what you
can expect if you have 4 laptops and 3 iphones in addition to your own and you
didn't declare anything to customs.

Foreigners have a higher chance of talking their way out of it as long as
there's some plausible reason why you have so much "personal stuff".

Chances are fantastic you'll go to prison if they find you work for a
smuggling ring, like if your photo is on backpackbang.com as one of their
mules.

~~~
mind_heist
Reading all of the other comments ; this sounds pretty illegal right - Why
would YC back the start up in that case ?

~~~
benologist
If you don't travel a lot you probably just don't know. I've filled two
passports. I've technically smuggled lots of stuff for myself including a
computer I specifically flew to Chicago from Costa Rica to buy as it was
cheaper.

Edit: actually if you don't have yourself/friends/family in poor countries so
you're aware of the local prices you could be completely unaware of this stuff
and the tax/legal obligations for importing them.

~~~
mind_heist
Fair enough, I do realize this is possible ! ( especially when you are flying
to developing countries ). But you hinge on your luck to not get caught ( and
depending on your 'navigation skills' \- you can get out of the scenario ).

I m only curious to know about the "legalities" involved ; I m pretty sure
this would have been addressed in the pitch. I was only looking for an answer
that said : Here are the countries and Here is a list of things you can carry
to those destinations without breaking any law.

Or if this fell into the "break first, fix later" philosophy of other shared
economy startups as well.

~~~
benologist
By the way this is what a legal version looks like:

[http://aerocasilla.com/](http://aerocasilla.com/)

I buy something on amazon, they send it to AeroCasilla's warehouse in Miami,
AeroCasilla bring it to Costa Rica and their customs and text me when I can
pick it up.

~~~
mind_heist
I suppose you pay additional shipping to AeroCasilla ( for shipping from Miami
to Costa Rica ) & also pay additional customs at the port of Entry ?

~~~
benologist
Yes that's it exactly. They bill for shipping + their service, and pass on the
fees customs charge for the items.

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pptr1
I can't figure out the reason why some of these companies got selected into
YC. I can see why Bikanta, Helion Energy, Ginkgo Bioworks, BitAccess, and
ProductHunt might get in. However, some other companies look like run of the
mill startup.

I use non-YC companies on
[https://news.ycombinator.com/show](https://news.ycombinator.com/show),
ProductHunt, and AngelList for comparison. In comparison the quality signal of
recent YC companies (the ones not mentioned above and some others) is not that
high* compared to Non YC companies. I looked at the profile of the founders,
their twitter and github pages and most importantly the product; nothing
stands out so much.

*I am not saying the YC companies are bad, I am just saying they seem to be of the same quality as what is out there. I would expect recent YC companies to have a higher quality signal than what is out there.

~~~
6thSigma
It's important to keep in mind YC was judging these companies based on their
long term goals, whereas we can only judge them based on their version 1.0.

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chvid
I am the only who is thinking that we most be near the end of a cycle when the
business ideas become more and more blantly illegal? I mean: Backpack - tax
evasion. Unwind Me - the world's oldest profession.

Here are two new ideas for the next round at ycombinator:

Wind me up - natural herbs and mushrooms for expanding your mind brought to
you in an anonymous brown package at the confort of your home. Not sure where
you are? Don't worry - our iPhone app is location aware.

Smackpack - having trouble with your neighbours? We send two guys to talk with
them about the noise they made last night or collect any debt they may have
incurred. Use our welldesigned iPhone app with in-app purchases and referral
programmes.

~~~
joshmlewis
You named two out of the dozens of companies funded as your examples. Of the
two you named you are assuming unwind.me is a cover for sexual services. Have
any proof of this? No, you don't. It's quite disrespectful to people in that
profession to assume doing their job will turn into offering sexual services.
Come on.

And what about tax evasion? You still pay taxes on the items that are bought.
The point is getting access to items not normally available in other countries
for international shipping. Again, any proof of tax evasion? I don't think so.

Take your negative comments to Reddit or 4chan where you can mindlessly share
mindless opinions with no merit. This isn't the place for that. If you want to
have a productive discussion, offer some proof to back up your wild claims.

~~~
chvid
Are you sure you are not the one who is negative?

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aganders3
TicketLabs will have an uphill battle against TicketMaster, but man do I hope
they succeed.

~~~
mind_heist
How is Ticketmaster Evil in the first place ? Do they pocket a lot of
commission ?

~~~
aganders3
I can't speak to their overhead, but the fees certainly seem excessive and in
some cases insulting (e.g. at-home ticket printing convenience fees).

They have also been criticized, sued, and investigated for anti-trust
practices. In fairness, I don't think any of these challenges have been
successful (though some have been settled and the terms are not public).

~~~
mind_heist
Hmm .. Fair enough ! I do recollect paying more for being able to print at
home (or) to get it on the mobile app. But what's evil on the side of the
musicians . Do they get swindled like this too ?

~~~
aganders3
My (very limited) understanding of the lawsuits brought by musicians is that
it stems from a desire (by the artist) to keep ticket prices low. TicketMaster
has exclusive contracts with many venues, preventing artists from selling
tickets directly to fans or through other ticketing services.

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Cakez0r
I'd be interested in trying out MTailor if they had an Android client and will
ship to England. Is an Android client in the works?

~~~
rwitten
Yep - an Android app is in the works (probably 3-4 months out). We're happy to
ship to England.

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tabrischen
Just ordered my glowing plant seeds today, really excited to see how it turns
out.

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hyp0
whoa, backpack is classic airb&b/uber-style YC: compelling demand + scary
pushback.

For bonus fireworks, do it for textbooks.

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vishalzone2002
isnt theorem and greentoe very similar?

~~~
excellentpants
It certainly looks that way. Perhaps YC is trying to hedge their "name-your-
price" bets by accepting two businesses with this pricing model?

