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Comment by sscheper | Hacker News Reader

Here were my thoughts:

"my real suggestion is that Y Combinator should invest more"

He's missing the whole point right here.

Y-Combinator is like Twitter. Venture capitalists are like bloggers.

With Y-Combinator, like twitter, people just didn't understand how so much value could come out of so little. At first, typing to someone in 140 characters is hopeless. Then you try it, and you realize how much can come out of so little--you become resourceful and cut out the fat you don't need.

Hate to liken them to twitter, but hey, everyone's doing it... (best reasoning ever)

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No, his argument is that as an entrepreneur you could get more cash for less equity by going to an angel. If you don't dispute that fact then the argument comes down to how much you value the YC network vs. an angel's network.

then the argument comes down to how much you value the YC network vs. an angel's network

Not so. YC's "network" is not the important thing.

But that's his argument isn't it?

No; he gets that it's a matter of both "advice and connections," though he doesn't seem to realize how much more the former varies than the latter.

So YC's principal value is the advice?

Yes. Number 1, product advice, and number 2, advice about dealing with investors.

http://ycombinator.com/about.html

http://www.paulgraham.com/ycombinator.html

Would it be possible to publish your product/dealing with investors wisdom into a book?

The essays I've been writing about startups are going to be such a book. Most of the general advice I could give about investors, particularly, I've already given, in e.g.

http://paulgraham.com/fundraising.html

http://paulgraham.com/investors.html

http://paulgraham.com/startupfunding.html

Your Submarine essay on PR has been especially valuable advice. I hope it makes any folio/book.

It helped my tech-startup to gain the courage to spend a realistic amount on such a vital area.

I think the value of contacts and credibility should not be underestimated. On both ends, really. You have to trust your investors as much as they have to trust you, especially if you don't retain 51%.

YC has a lot more credibility than most other entities when it comes to choosing the right startup or the right investor. I would be significantly more likely to accept an investor who was introduced to me by pg.

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