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I don't get it. A venture capitalist invests in a spread of companies because he isn't 100% sure which companies will win.

However, a founder is 100% sure that his company will succeed. If he isn't, he is sure to fail.

So why would I do this? I'm going to win - I don't need a backup plan. (this is how I see it, that is)

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Ok let me explain it this way. No one has the exact amount of money, talent, time etc for their startup. You may have more of one and less of another. Say you have some surplus money, wouldn't you want to invest a tiny amount in a fellow Starter that had a promising idea. That wouldn't effect your level of success one bit. I don't see YC as a competition in the sense that their can be more than one winner.

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