

Y Combinator Left Boston--and A Wave of Startup Camps & Programs Filled the Void - Minnesota
http://www.xconomy.com/boston/2009/09/10/dog-patch-labs-is-just-the-latest-in-a-rash-of-new-initiatives-to-help-boston-entrepreneurs-and-it-all-seemed-to-start-when-y-combinator-left-town/

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pg
There has been a wave of new incubator-like things everywhere this year.

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thaumaturgy
Any guesses on whether that's a sign of a market that's in the early stages of
overvaluation?

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startingup
I would say "overproduction", on the expectation of high valuation (i.e
valuation compared to the accumulated paycheck sacrificed). I do believe there
is such a thing as "too many start-ups", a problem that will self-correct.

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pg
I don't think there's a limit on the number of startups. If the economy can
absorb the output of arbitrary numbers of people working in cubicles for big
companies, why can't it absorb the output of arbitrary numbers of people
working in little companies they've started?

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netsp
That's an interesting thought. However, you would expect startups to be prone
to more evere cycles and bubbles. People in office cubicles have more of a
direct feedback from the ultimate value creation. You don't hire someone
unless you need them to do a job.

Startups get started when a founder and investor are both willing to make it
happen. That willingness is dependant on more speculation (in the individual
case) then in the case of a cubicle worker.

Also, when you say 'startup' I expect you are talking about a specific type of
starting company that fits into the YC model. While the jobs market seems to
absorb an arbitrary number of people, some specific part of it such as the
manufacturing sector cannot.

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pg
Surely startup founders have more direct feedback. They're talking to the
actual customers.

You don't pay someone unless they've made something you want.

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netsp
Sure. Success ultimately is subject to feedback. They can't succeed without
creating value. But they can start without it. They may get funded without it.
You may not know if you've been doing anything useful for a long time.

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fuzzmeister
Can't wait for the Venture Cafe to get started - it seems like a fantastic
idea.

