PG == the new patron saint of start-ups.
All their deals seem like big money and late stage. Do they know a good startup when they see it? Seems like instead of finding startup investment opportunities by themselves they're going to let YC filter out the good deals for them.
They even said in the article it's just about deal flow.
As a general rule, no VC firm will respond to a cold email. You need an intro from someone they know. Your best bet is to try to get an intro from someone at a company they've invested in.
From the investor's perspective this a) filters out people with no conviction, b) filters out spray and pray-style emails, c) helps them manage hundreds of emails they receive every day.
Creating and running YC is not in the least bit easy.
I just meant that SVA and AH could, if anybody anywhere could, and if they so desired, have concentrated their resources to try to set up a new program that emulates YC. Compared to anyone else's chances, in the universe, to emulate YC, SVA or AH would have had the financial, intellectual, and social resources to have had a relatively easier go at it.
But neither of them tried to emulate, they both chose instead to coalesce around and go to war with the YC they had.
I think that choice is non-trivial, and significant; and it lends ever more acceleration to YC putting ever greater depth between itself and any potential competing program.
Incidentally, Ron Conway is proof the model works. He has been operating this way for decades and founders are as a rule pretty happy with the amount of help he gives them.
Also I am wondering if this approach will have to be the new approach or the one that Khosla, Benchmark, Sequoia (I understand they are indirectly in YC companies) and similar ones have had for long, of identifying big trends, finding the right company and going big behind it, is still better. I have seen the latter fail as well as succeed. I think we have very little data on the former but there is bound to be a limited set of companies that a VC partnership can optimally support / manage and this new approach may put a strain on it. I guess we have to wait and see. Thanks much for replying, pg.
I wonder if $50,000 even gets you an in-person meeting.
What incentive do Ron and Yuri have to give up 1/3rd of the Start Fund deals to Andreessen Horowitz?
Forgive me if this is a naive question.
2. YC classes have grown in size a lot. It's probably a bit more expensive than they planned, so they don't mind sharing the load.
3. Having AH as a partner helps the startups, which means they're more likely to succeed (hopefully).
2. This is highly plausible and sounding to me like the most likely reason
3. Absolutely, I'm just trying to understand why its as 1/3rd of Start Fund instead of offering their own deal
Help me understand the thinking here...
I am a little surprised that Ron and Yuri let them in on such a good deal. I am sure a lot of VCs would jump at this opportunity.
