YC runs orphanage vs. YC as foster parent | Hacker News Reader

YC runs orphanage vs. YC as foster parent

1 pointjuwo6 comments

see http://juwo-works.blogspot.com/2007/03/better-business-model-for-incubators.html

"incubators like YCombinator are running an orphanage; get a batch of orphans, grow them and then release them into the world. The other (new) way calls for them to become foster parents. Look after them for short periods, and then release them back to their parents"

what do you think?

I doubt anyone in PG's position would be interested in taking orders from some big corp. I don't see it working out within Y-Combinator.

I am sure if someone really wanted to do it they could. Just don't think what you are suggesting is opposite of or can be compared to what Y-Combinator currently is.

-Zaid

Taking orders? of course not. It means companies applying just like we do, and just for implementing new product ideas.

A big part of YComb is subtly teaching people to live an entrepreneurial life way beyond the three months you spend at YComb. That is why YComb doesn't seem to care THAT much about one particular idea. Instead they bank on the people they fund to continue making new stuff and really, if you make enough new things, you WILL get a hit. That seems to be the idea behind YComb - to keep supporting their group of entrepreneurs idea after another with the assumption that eventually they will get a hit somewhere.

The company model you describe is therefore incompatible with YComb because the company will be sending folks to make ONE idea which isn't much of an attraction to the flexible nature of YComb. YComb funds people more than ideass, remember?

The company will have to give up 6% of the new startup regardless of which idea it implements eventually; so how is it different?

A HUGE chunk of motivation for a startup comes from working on YOUR thing knowing YOU own bulk of it. As soon as it is a corporation-powered thing you are an employee before anything and for me that is a huge turn-off.

What's wrong with the current model? If a company really likes smething after 3 months of YComb deveopment, it can grab that company for few mil and build on it however it wants.

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