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Not sure if you're only looking for input from the funders themselves? Well in any case here's a fun idea I'd like to see implemented:

A music-making marketplace. What do I mean? Somewhere online that lets people sell simple musical components (like melodies, beats, lyrics, chord progressions /backing tracks) and musical services (like singing parts, mixing, playing, sequencing, arranging). Whole songs could be assembled in this entrepreneurial fashion.

How would the transactions work? Let people set there own terms (maybe support auctions), but one idea I had was everyone involved in the final track gets a cut of the songwriter royalties. If it's a hit, everyone could get rich! And sell the finished products on the front page, obviously (unless people opt to take it offsite).

If nothing else, it'd be something a bit different. Songs are often made like this anyway... Like the latest Eminem song was a beat from Alex Da Kid, probably using samples of something else, which Eminem put verses to, then a hook from an unknown singer was added, which was then rerecorded by Rihanna, etc

I like your idea a lot but I'm guessing that monitoring the site for copyright violations would be a major headache. This seems to be a showstopper for a lot of music startups that do not have affiliations with big music companies.
There was a list of areas for ideas they would like to invest in on the bottom of the last YC application for funding round.
Two ideas that have serious commercial value:

- Decent document management (i..e handles word/excel, versioning inc. placing version info into docs, web based editor, audit log).

- ISO auditing.

auditing/tracking is a seriously lucrative field right now

can you elaborate on that document management?
yeh, sure. Basically as part of some of the ISO standards you have to keep track of document versions and their edit history. It's all part of having an audit trail.

When I say every document they really do mean everything - from the simple notice printed out and stuck on the office door to the company disaster recovery plan.

There is not currently, as far as I can find, a solution for small-medium sized businesses to handle this.

I know it is uncool to suggest Microsoft products... but have you looked at SharePoint? I've seen it used for ISO compliance and the newest release (2010) is a big step to making that easier out of the box.
Something like Aconex? http://www.aconex.com/

It's got a pretty heavy focus on the building industry though.. perhaps something more generic?

Have you seen things like Alfresco? Or even MS Sharepoint (I know companies using sharepoint in very heavily controlled environments like pharmaceutical companies).
We are a reseller of the Laserfiche suite of document management products and we do a lot of work in the SMB space. Our clients use Laserfiche for document management, tracking, and versioning. It's a really great tool for dealing with audits or regulatory inquiries. If you want to learn more check out our website http://www.aisww.com

It's affordable and very powerful!

My guess is that the existing software is too cumbersome for a smaller business to use? I've been looking at this problem, too.

Law firms tend to use this software, but it really should be adaptable to anything that has these requirements. We use Autonomy WorkSite: http://www.interwoven.com/components/pagenext.jsp?topic=PROD...

But there's bound to be a better way. Web apps with solid frontends or separate desktop apps.

Would it be safe to assume you found that link via the Hacker Newsletter from last week? If so, that is great as my hope was it would rekindle some of the great talks on here from the past.
Yes! That was the initial source :) I was amazed that I haven't seen this before... Then I realized that this info is/can be a little bit outdated and need refreshing, hence my question to PG.
Just fyi, directly addressing your comments (using @user) and signing your comments are both frowned upon on HN.
An iPhone or Android app that uses DSP to help people learn to make music. Recognizing notes from instruments should be fairly easy, and it should also be easy to time those and line them up to pieces of music that are internal to the app.

The idea being, that you take your piano or gutair, and pluck away, while the phone gives you feedback. You could do this with voice as well, with the phone telling you when you're off-pitch.

If this exists already, let me know -- I'd love to not have to nag my buddy's fiancee for voice lessons. :)

I'm not sure whether it's easy to recognize complex things such as playing two notes at the same time or recognizing guitar chords. In fact, I think it's quite hard. For voice it should be a bit easier, as it's only one note at the time.
Is there any idea when are applications are going to be open for YC W11? When do they usually open for winter sessions?
Another idea, this one a bit more serious:

Solve the non-programming programmer problem. More specifically, solve the problem of obscenely padded CVs swamping the HR department with the result that incompetent candidates fill the interview spaces.

How? Codility.com already made a start on this with online coding tests. But the way it's structured, it'd likely come after the time-consuming resumé inspection. Could there not be a site that handles job listings, applications, AND coding tests? Like the employer posts the job and the site provides an appropriate test. Applicants can send their CV to the employer after they've sat the test.

The cost-saving of not reading all those useless CVs and conducting fruitless interviews should add up to quite a bit for most businesses. I suppose one of the harder implementation challenges would be how to cook up lots of appropriate tests.

How about a web app for gathering startup ideas and hooking people together that are interested in a particular idea?