

DHS' SkunkWorks Needs to meet Y Combinator - drm237
http://idolator.typepad.com/intelfusion/2007/11/dhs-skunkworks-.html

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cperciva
YC can get away with providing such small amounts of seed funding because of
the nature of the companies and founders they fund -- companies with almost
zero capital costs and no marginal cost of product, and founders who are
willing to work for equity.

The DHS Skunkworks funds projects which require significant capital costs and
are expensive to scale up -- and because the government doesn't want to end up
paying market rates for the product of R&D they funded, they have to pay their
"founders" with cash instead of equity.

The YC model works fine when applied to the right fields, but notion that YC's
success can be replicated in completely different fields is downright silly.

