
YC runs orphanage vs. YC as foster parent - juwo

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juwo
see <http://juwo-works.blogspot.com/2007/03/better-business-model-for-
incubators.html>

"incubators like YCombinator are running an orphanage; get a batch of orphans,
grow them and then release them into the world. The other (new) way calls for
them to become foster parents. Look after them for short periods, and then
release them back to their parents"

what do you think?

~~~
zaidf
I doubt anyone in PG's position would be interested in taking orders from some
big corp. I don't see it working out within Y-Combinator.

I am sure if someone really wanted to do it they could. Just don't think what
you are suggesting is opposite of or can be compared to what Y-Combinator
currently is.

-Zaid

~~~
juwo
Taking orders? of course not. It means companies applying just like we do, and
just for implementing new product ideas.

~~~
zaidf
A big part of YComb is subtly teaching people to live an entrepreneurial life
way beyond the three months you spend at YComb. That is why YComb doesn't seem
to care THAT much about one particular idea. Instead they bank on the people
they fund to continue making new stuff and really, if you make enough new
things, you WILL get a hit. That seems to be the idea behind YComb - to keep
supporting their group of entrepreneurs idea after another with the assumption
that eventually they will get a hit somewhere.

The company model you describe is therefore incompatible with YComb because
the company will be sending folks to make ONE idea which isn't much of an
attraction to the flexible nature of YComb. YComb funds people more than
ideass, remember?

~~~
juwo
The company will have to give up 6% of the new startup regardless of which
idea it implements eventually; so how is it different?

~~~
zaidf
A HUGE chunk of motivation for a startup comes from working on YOUR thing
knowing YOU own bulk of it. As soon as it is a corporation-powered thing you
are an employee before anything and for me that is a huge turn-off.

What's wrong with the current model? If a company _really_ likes smething
after 3 months of YComb deveopment, it can grab that company for few mil and
build on it however it wants.

