Correcting the record for Continue and PearAI
ycombinator.com
ycombinator.com
VSCode is built on open source of course, but the the OSS version is "Code - OSS". When Microsoft builds it and releases it, it becomes VSCode with the Visual Studio trademark and what not.
PearAI's Code fork is using the real VSCode marketplace which has strict "This has to be used with Visual Studio products" (well, and some other MS / GitHub bits), so they can't use that. If you look at other VSCode-adjacent editors, they all use open-vsix.org instead.
They also use extensions that are licensed in the same way:
https://trypear.ai/blog/wsl-setup
They have instructions on setting up the WSL extension...which has a "This can only be used in Visual Studio Code" License too, so it can't be used in their PearAI fork.
You can see some examples of the terms of use / LICENSEs here:
https://cdn.vsassets.io/v/M190_20210811.1/_content/Microsoft...
https://marketplace.visualstudio.com/items/ms-vscode-remote....
It just shows a complete lack of regard for licensing...
Honestly it also reflects equally badly on Coinbase if they were paying these guys $300k.
One positive outcome is that this might have cured a lot of people's imposter syndrome.
One who held this position would see working at Coinbase as an indicator of a moral failing.
If anything this is a stark reminder of the hiring bubble we were in the past few years..
Using chatgpt to write a license is a ridiculously dumb thing to do since there are so many public templates to choose from, it sounds like they're just overly enthusiastic about AI.
It's been said that YC invests in the founders and not the ideas, these oranges don't seem worth the squeeze.
This is the MO of all AI companies
I doubt this really did permanent damage to their reputation (I don't know if anything can at this point), but this move was definitely necessary to placate anyone who was paying attention.
It still seems like that. Moreso, even.
It's good he finally apologized, but let's also be clear that's the minimum bar when you mess up so hard.
Of course, if you think this was just "a bad look", and the apology was just a "move [...] to placate", it might make sense to consider it as a cynical business move only and give credit to the shrewdness of that.
I sincerely hope it's more than that.
YC doesn't operate YC companies. They're investors. They aren't your boss. They're not looking at your code. They're almost certainly not doing any meaningful technical due diligence. These are things that happen, to an extent, in priced rounds that happpen after your seed round (A-round technical due diligence is also a joke, but whatever, stipulate). The whole point of YC is that they're investing in big batches of startups, at a scale that is a big multiple of what an A-round VC does in a whole year.
Tan is apparently apologizing because he spoke up on behalf of a batch company, or repeated some misinformation TechCrunch published. But it is very weird to ask them how their selection process would change to account for this happening.
Even in later rounds due diligence skews non-technical. E.g. for Series A it mostly takes the form of "What licenses do your OSS dependencies use?", and (for B2B SaaS) "We want to talk to a half-dozen of your customers, preferably of different sizes and from different industries, and ideally one that's renewed".
YC also offers mentoring and coaching services, which goes beyond what a traditional investment firm does. That's part of their appeal, anyway.
> They're not looking at your code. They're almost certainly not doing any meaningful technical due diligence.
Maybe they should?
If their job is to find talented, and hopefully also ethical and honest, people, then doing a basic check like ensuring that the project they're being pitched was actually authored by the candidates should be part of the vetting process.
If, OTOH, their job is to bet on anyone who's likely to give them the highest ROI, regardless of their personal values, then they don't need to do any of this, and cases like PearAI should be acceptable. But that's not what YC claims to be about.
> The whole point of YC is that they're investing in big batches of startups, at a scale that is a big multiple of what an A-round VC does in a whole year.
Maybe that's part of the problem then. When you're trying to fund and mentor hundreds of companies in a few months, it's impractical to think you'll be able to successfully screen all of them. But the startups must grow...
I've only done it once but doing a cursory check of the commits and who owns the copyrights etc is pretty fundamental during due diligence.
It takes minutes to go through a public Git commit history.
YC can never say enough that they invest in people, that only the people matter, etc. "Founders, Founders, Founders" is YC's answer to Balmer's "Developers, Developers, Developers".
That they decided to fund bros that simply copy-and-paste others' code (!) and are happy to declare publicly that they "chatgpt'd the licence" (!!) and "can't be bothered with legal" (!!!) is... alarming?
If YC rejected everyone who was offended by sloppy shortcuts, they would not be YC, and they would have rejected many of their unicorns.
Shortcuts are core to the professional practice of founding startups in the culture of YC. Even the sloppy kind that offend people, like Airbnb's launch-era marketing that violated Craigslist's TOS, or Reddit's founders posting under fake accounts. The message of YC during the program is that you have exactly one job: make your key metric (revenue, users, whatever) grow 5%-10% week-over-week. When founders internalize this, they often do work that contains shortcuts, including shortcuts which might offend people. It is a challenge for some people with a professional or personal aversion to sloppy shortcuts.
(This isn't to say that sloppy is the standard at YC. "Sweat the details until 100 users really love your product" is canonical YC wisdom. Time forces you to be sloppy on everything else. And if you tell a YC partner that you're just buying bot traffic to hit your numbers, they will tell you that is a dumb plan.)
But in the end it's possible the only actual difference between a crook and a master of the universe is one got caught and the other didn't.
Not just the "dawg" but the following "... we busy building rn can't be bothered with legal".
...or punctuation, capitalization, and grammar, apparently. And what else can't they be bothered with?
https://news.ycombinator.com/item?id=41702003
elicksaur: Why would you believe anything this person says after that? Default assumption #1 is any writing they output is an LLM product and insincere. Assumption #2 their actions are taken with little thought or intentionality.
JohnFen: ... This one line tells me that's an outfit that should be avoided entirely. It's either unfathomable incompetence, or a strong aversion to doing things properly. Either way, it says nothing good.
JumpCrisscross: ... The move that dials the dumbassery to eleven is using it as a defence. On Twitter. Like, Exhibit A for any lawsuit that company is ever in will be this tweet: it demonstrates a proud disrespect for law and contracts. That’s high-proof mens rea if I’ve ever seen any.
https://x.com/anothercohen/status/1840515897804623882
Alex Cohen @anothercohen It’s not just the actual legal issues but generally the dismissiveness and sloppiness towards real concerns but I guess good on you all for making the appropriate changes
I personally think they shouldn't fund bullshitters, or sociopaths either, but if their spreadsheets tell them that startups run by bullshitters and sociopaths make them more money, then who am I to tell them how to invest?
If sociopathic behavior is worthy of investment, then maybe aspiring YC applicants could pre-emptively impress YC investors and signal their political alignment by sending death threats to the appropriate people, then demonstrating what flowery insincere non-apology apologies they can write, an extremely valuable skill in the industry!
(Extra credit for tweeting said non-apology apology as a garishly animated video with kinetic typography in Comic Sans!)
https://news.ycombinator.com/item?id=39223766
https://www.sfchronicle.com/sf/article/garry-tan-tech-exec-a...
Well uuhhh, maybe they shouldn’t? Would a bare minimum of due diligence not be ok lol?
Now is there a problem where YC and many other VCs basically advise founders to commit fraud and lie to customers/stakeholders? Yes but that has nothing to do with YC admissions strategy. I’ve seen many VCs (including YC) advocate for lying and unethical behavior by their founders. It’s a big problem in the startup industry, and often the biggest brunt of this is taken by unsuspecting employees. One reason I would never advise someone to join a startup is the massive prevalence of unethical and dishonest founders.
This lack of due diligence makes me think that I may have been wrong, and they are really just throwing money at everything with AI in the pitch.
However, I do salute him for the honesty, and for apologizing.
The key to me was that it wasn't focused on how sorry YC is, it focused on how great of a team Continue is. Far too many apology posts are just another way to get attention, so it was nice to see that attention directed at the party receiving the apology.
But YC is so prevalent in the hacker community that is kinda associated with Open Source, is like we feel entitled to ask for explanations when in reality it’s just a private business. It’s an interesting phenomenon.
I think it’d be great if you could keep transparency in order to keep encouraging founders to apply to YC, but we have to learn that’s just an option.
And that when told about PearAI violating the terms of the license said to the effect "who cares it's open source" as though none of this actually matters and it's just a bunch of nerds over-reacting.
It's arguably worse than what PearAI did in the first place.
Nah, nothing to be done.
The AI startup drama that's damaging Y Combinator's reputation - https://news.ycombinator.com/item?id=41722507 - Oct 2024 (48 comments)
"Our view is that PearAI should start over from scratch" - https://news.ycombinator.com/item?id=41712589 - Oct 2024 (4 comments)
YC criticized for backing AI startup that simply cloned another AI startup - https://news.ycombinator.com/item?id=41707495 - Oct 2024 (257 comments)
Pear AI founder: We made two big mistakes - https://news.ycombinator.com/item?id=41701265 - Sept 2024 (228 comments)
Y Combinator Traded Prestige for Growth - https://news.ycombinator.com/item?id=41697032 - Sept 2024 (244 comments)
Did I miss one?
Our view is that PearAI should start over from scratch - https://news.ycombinator.com/item?id=41712589 - Oct 2024 (3 comments)
If the issue at heart is a forked repo...then what's left?
I hate what they did and how YC (not only Garry) reacted.
Let's hope these guys come out with something unique to benefit humankind. Hope is all we have left.
Has any startup founder ever really suffered due to bad publicity? Short of extreme cases like Theranos, worst case scenario is they get a golden parachute, enjoy a few months/years "soul searching" then emerge with another startup. However most of the time nothing really happens.
People only came after PearAI because their founders' arrogance was particularly egregious. A bit of preemptive covering their tracks and nobody would have done anything.
I feel like endless persecution for "bad" behavior, part of the current cancel culture we're living in, is not healthy for society. People can make mistakes, and as long as they acknowledge and make an effort to correct them, they should be allowed to move on with their lives.
Misrepresentation is illegal [0].
[0] https://www.investopedia.com/terms/m/misrepresentation.asp
The only things standing between where we are and a low-trust kleptocracy are upholding standards of behavior, either through encouragement of good behavior or punishment of bad behavior.
Who cares whether or not they received the standard amount of due diligence/vetting? The only reason a system like that can work is if participants act in good faith, and this company obviously didn't.
edit: Like I said, I'm not exactly knowledgeable about the world of tech startups. If i've learned anything though, it's that the money being given to obvious scam artists being excused as "vetting batch investments doesn't scale" has made me even more depressed and cynical about tech startups than I previously thought was possible.
It's very possible that Pear AI even mentioned that they're a fork in their application, just like they mentioned it on their description on GitHub; you could say that they were being dumb by generating a license with ChatGPT, but at worst that's a stupid mistake, not fraud.
To respond to your question directly though, yes it does matter; any accelerator that accepts hundreds of companies every year based on a 10min interview is gonna get some bad ones, but rescinding the offer to them is just really bad form if they didn't commit actual fraud.
I'm just repeating myself though. That's all in my original comment.
"Oh... you do X? We funded a company _last year_ that also does X. How are you guys different?"
"Ok, I see, it is a fork. Very nice. Let me check what changes have you done"
I know most VCs never read commits, but they could have someone to check them for them. Maybe this is one of those changes Garry mentioned.
Yeah that's what I said.
There definitely are things to get depressed about, I just don't think this is one of them.
Didn't YC know it was a fork of one of their existing investments? If they knew then it is bad, if they didnt know then it is bad. If they didnt know and continue to fund this startup then they are stupid.
> The only reason a system like that can work is if participants act in good faith
If you are a professional investor you need a better bullshit detector. If you fail any time someone acts in bad faith, it is not the game for you.
It's in a different domain, but the name is basically identical. Are people just... not doing any due diligence around company names any more? At all?
Well, there was a famous tweet/post/("X"?), answering to the claims of illegal relicensing, reading, "dawg i chatgpt'd the license (…) we busy building rn can't be bothered with legal" – I guess, the answer may be indeed "no"…
It’s shaped by how we build and use digital products. E.g. domain names were once super relevant, today less so.
Perhaps in this case they don’t care; they’ll either survive and become the dominant pear, or they’ll get eaten.
I didn't even have to use the Internet Anagram Server to perform that minimal amount of due diligence.
https://new.wordsmith.org/anagram/anagram.cgi?anagram=pear&t...
Literally from the smack center of their homepage.
That's why you see 2, 4, or more redundant investments in the same space from YC. It's a mess but not uncommon.
Open source has been infinitely more valuable and important to humanity than the latest LLM or AI trend will ever be. Without it Linux or Apple would simply not exist. And every startup would be solely dependent on Microsoft for their future. It would've set back software decades and seriously harmed the take up of the internet.
And all of it hinges on everyone agreeing to play by the same rules which are codified in the licenses. And acting like it's no big deal that can be safely ignored is to frankly spit in the face of all of the selfless developers who contributed their code for no financial benefit over the many decades.
Credit to Garrry for realizing he is very biased and offering a tepid "apology."
> In 2024, Tan attracted criticism for a profane tweet wishing death on seven of the 11 members of the San Francisco Board of Supervisors. In a later apology, he said he was referencing a rap track.
https://www.sfchronicle.com/sf/article/garry-tan-tech-exec-a...
If you want to be a "funny little guy," stick to hackathons.
Hint: https://x.com/minitru/status/1840549001797701984/photo/1
https://github.com/microsoft/vscode/commit/78c1777cd12559745...
It came from the upstream VSCode repo, and merely removed the words “all rights reserved” which do not appear in the “official” MIT license.
>>if you don’t make mistakes it means you are not trying hard enough. << Elon Musk
Big picture, people who never heard of PearAI or continue dev just did. I did. I tried it. It’s as good as cursor
And guess what? whatever side you are on, YC and those startups won either way. More developers heard about each one of them and more tried it.
It's obvious that these people are less interested in making something useful than they are in making something that will generate enough hype to get another round of funding.
I’m assuming it was all done in good faith, for now at least.
Envy is insidious. Focusing on how other people have unfair advantages eats away at your principles, motivation, creativity, and presence of mind to capture the opportunities available to you.
As a founder myself, I appreciate the fact that it's so easy (for some people) to raise money. It means that the competition is softer than it seems.