
Y Combinator continued - python_kiss
http://venturebeat.com/2007/04/16/y-combinator-continued/
======
pg
Though this article is defending us, I disagree with it. What makes YC a good
deal is not that we take common stock rather than preferred, but simply that
we improve the average startup's outcome way more than the 6% we "cost."

~~~
gibsonf1
I think the bottom line is that the competition is envious - I don't know who
could provide the kind of network that YC provides. There is also probably the
fear that YC represents the new way to fund startups "sucking" all the talent
from the old way. Fear and Envy are a powerful combination and a great
motivator for lashing out with the hope that the lashing will create some dent
in YC. But the effort on the part of the competition will come to no avail -
in fact you could argue it is a sign of how successful YC is becoming.

~~~
pg
Actually I think the reason people attack us is cleverer than that. We've
gotten a lot of press lately. Anyone who can establish himself as the
canonical YC critic can thereby use the both-sides-of-the-story reflex of
reporters to get mentioned in any story that mentions us.

Ustream is doing this to Justin.TV right now. They have nothing; just off-the-
shelf hardware hooked up to a streaming service. If they'd launched by
themselves, no one would have cared. They've achieved what prominence they
have entirely by getting themselves mentioned in articles about Justin.TV.
They matter more as the antiJustin than in their own right.

~~~
gibsonf1
Thanks for pointing that out. I guess the competing VC did use his moment to
advertise his counter offer while bashing YC at the same time. Media savvy is
probably not a bad thing to master, especially if you actually have a product
with really good value. Your MS article is definitely an example of amazing
media savvy.

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staunch
YC is almost like a talent agent or broker -- finding the best hackers and
setting them up with the logistical necessities, social connections, and
advice. Taking a small cut of the transaction, entirely from the excess they
create, is the only logical way to operate long-term.

------
vlad
Now that we know that Y Combinator is not a scam (I wonder how many
established businesses applied to YC for the first round? PG?), I think it's
clear you want to go with them.

