I think it'd be awesome if Jessica wrote another one, but it'd be even better if she did the anti-Founders at Work. It'd be about all the different kinds of flameouts, from spectacular to silent, from bad luck to bad calls, from goodie two-shoes to unethical (but Zynga-sleazy, not mob-boss unethical). The title: "Founders at Fail."
My biggest takeaway: at 32:15 she puts her head closer to better listen a strong accent guy making a question. I bet she was thinking "I better understand what this guy is asking or another flame war will erupt on HN as soons as this get there!" lol
When a founder group from a foreign country come to YC, do they incorporate in the US? If yes, once returned in their country, do they incorporate another company/subsidiary? How do they work?
I saw Jessica speak at Startup School in 2012 alongside some of the biggest names in tech, and her talk was by far the most useful/practical for me as a 23 year old entrepreneur.
I took the liberty of taking notes. They're my impressions of what Jessica is saying rather than a transcription. All errors in interpretation are mine:
Jessica really likes Adora Cheung of Homejoy for having a very inspiring narrative. (No specifics in this interview.)
First YC class: 8 companies, 400+ applications.
"We have to do this in Silicon Valley [rather than Cambridge] because we didn't want someone else to become the YC of Silicon Valley." (Echoes the "Uber will be the cheap Uber" line.)
@8:25 "No no no, I know you can make templated legal documents and just fill them in." Mass-customized processes let them accomplish e.g. incorporation for less than $15k per company.
Ron Conway brushed me off 3 times. We couldn't describe ourselves as an accelerator because that concept didn't exist yet. Despite the brushoffs he was eventually convinced by multiple people in his network convincing him, so he came to Demo Day and the concept of YC then made a lot of sense to him.
"What's changed w/r/t YC applications over the years?" The Social Network / Facebook IPO caused a large spike in startups generally, but it's been on an uptrend steadily for the duration. Quality is harder to measure. We get companies which are much later stage (existing product, signs of traction, evident ability to raise professional money) than the no-prototype folks who usually applied earlier.
"Could YC 2x/3x in size?" We're interested in scaling but don't know the specifics of how to do so at the moment. Number of startups will only increase; it is a fundamental shift in the economy. YC's early stage makes it incredibly difficult to accurately predict winners -- who would have called AirBNB and Dropbox [as turning into billion dollar businesses]?
"You knew Drew was going to be successful with a 1600 SAT." Many smart people apply to YC, but that doesn't guarantee you get in. Mere intelligence doesn't make startups succeed. Not that went to MIT is a bad predictor of success but it is certainly no guarantee.
"Where are the international entrepreneurs coming from?" International increasing mainstream-ness of startups. Not just from UK/Canada, but from (non-Anglosphere) countries as well. I don't have an explanation other than more people are doing startups.
"Are international companies solving different problems?" Not really. Most foreign firms are solving problems which US companies could equally address; global problems.
"How do visas work?" It is a 'bad situation.' Unlike US founders they don't have the option of remaining in SV after YC ends. The visa application process is 'broken and horrible.' We as entrepreneurs/folks in the community should actively attempt to make this situation easier; in addition to it being the right thing to do, it makes it easier to recruit people from abroad.
"You're known for having a good people radar. What are the red flags you see prior to a cofounder problem?" JL is not technical so she looks for other things in their 10 minute interview. Do founders get along? Don't fight in front of us. Do they have a good vibe between them? Don't interrupt your co-founder aggressively. Do they understand their domain well? If they're a B2C company, I ask to see if they've thought deeply about consumer needs. Defensiveness is not a good trait. We want to work with people who will have enjoyable conversations with us, not people who get angry.
Trivia: YC decisions are made immediately after the 10 minute interview, in the room. We do 20 interviews a day and would otherwise forget.
Red flag: 90/10 equity split between founders. Even with 1+ years extra in the company, as time goes to infinity you will have equal mental investment, and 90/10 will cause terrible resentment.
17 comments
[ 4.1 ms ] story [ 61.2 ms ] threadI expected everything in YC to be hush-hush.
We incorporated in the US, then came back to Brazil and created a new company owned by the American one.
She is really really good. I suggest watching it.
http://www.foundersatwork.com/1/post/2012/10/what-goes-wrong...
Jessica really likes Adora Cheung of Homejoy for having a very inspiring narrative. (No specifics in this interview.)
First YC class: 8 companies, 400+ applications.
"We have to do this in Silicon Valley [rather than Cambridge] because we didn't want someone else to become the YC of Silicon Valley." (Echoes the "Uber will be the cheap Uber" line.)
@8:25 "No no no, I know you can make templated legal documents and just fill them in." Mass-customized processes let them accomplish e.g. incorporation for less than $15k per company.
Ron Conway brushed me off 3 times. We couldn't describe ourselves as an accelerator because that concept didn't exist yet. Despite the brushoffs he was eventually convinced by multiple people in his network convincing him, so he came to Demo Day and the concept of YC then made a lot of sense to him.
"What's changed w/r/t YC applications over the years?" The Social Network / Facebook IPO caused a large spike in startups generally, but it's been on an uptrend steadily for the duration. Quality is harder to measure. We get companies which are much later stage (existing product, signs of traction, evident ability to raise professional money) than the no-prototype folks who usually applied earlier.
"Could YC 2x/3x in size?" We're interested in scaling but don't know the specifics of how to do so at the moment. Number of startups will only increase; it is a fundamental shift in the economy. YC's early stage makes it incredibly difficult to accurately predict winners -- who would have called AirBNB and Dropbox [as turning into billion dollar businesses]?
"You knew Drew was going to be successful with a 1600 SAT." Many smart people apply to YC, but that doesn't guarantee you get in. Mere intelligence doesn't make startups succeed. Not that went to MIT is a bad predictor of success but it is certainly no guarantee.
"Where are the international entrepreneurs coming from?" International increasing mainstream-ness of startups. Not just from UK/Canada, but from (non-Anglosphere) countries as well. I don't have an explanation other than more people are doing startups.
"Are international companies solving different problems?" Not really. Most foreign firms are solving problems which US companies could equally address; global problems.
"How do visas work?" It is a 'bad situation.' Unlike US founders they don't have the option of remaining in SV after YC ends. The visa application process is 'broken and horrible.' We as entrepreneurs/folks in the community should actively attempt to make this situation easier; in addition to it being the right thing to do, it makes it easier to recruit people from abroad.
"You're known for having a good people radar. What are the red flags you see prior to a cofounder problem?" JL is not technical so she looks for other things in their 10 minute interview. Do founders get along? Don't fight in front of us. Do they have a good vibe between them? Don't interrupt your co-founder aggressively. Do they understand their domain well? If they're a B2C company, I ask to see if they've thought deeply about consumer needs. Defensiveness is not a good trait. We want to work with people who will have enjoyable conversations with us, not people who get angry.
Trivia: YC decisions are made immediately after the 10 minute interview, in the room. We do 20 interviews a day and would otherwise forget.
Red flag: 90/10 equity split between founders. Even with 1+ years extra in the company, as time goes to infinity you will have equal mental investment, and 90/10 will cause terrible resentment.
JL: "I am an expert in founder b...