Valleywag Misses the Mark on Y Combinator

onwebapps.com

5 points·Sam_Odio··6 comments

Why? Y Combinator funded companies don't build real businesses.

What about listing some specific reasons why YC companies aren't real businesses, so we can get a thoughtful discussion going here?

They don't generate revenues, and more likely than not, have no plan to generate revenues.

They're made to be acquisition targets.

Reddit was profitable before it was acquired.

They don't generate revenues, and more likely than not, have no plan to generate revenues.

Source? I think that's based on anecdotal evidence.

There are a number of startups generating revenues (reddit, loopt, TextPayMe, Inkling).

And a number of others that have a reasonable way to get revenue: (justin.tv - sell video service to celebrities; scribd - contextual advertising; shoutfit - sell trends to fashion houses; thinkature - sell collab software to businesses; octopart - sell product advertising; wufoo - sell upgraded forms that can be embedded into your website).

Come to think of it, I have a hard time pointing out specific YC companies that don't have any revenue model. Maybe there's a few - but the fast majority of them do have the potential to be self sufficient.

Yes, until more YC companies show they can stand up on their own (not everyone is going to get acquired, after all), the "burger" (build-to-flip) criticism is going to stick.

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