It seems like news.yc really influences the conversation on tech blogs. I see a lot of blog posts on techmeme that seem to be in response to "Ask YC" submissions. Has any one else been noticing this?
I used to think VCs were in the "encouraging & profiting from innovation" business. They're not. They're really in the "let's find the least risky deals and put money in them" business.
I used to think good VCs were those who identified the huge successes before everyone else did. Instead, good VCs are just the ones who get access to deals before the ordinary VCs.
Gone? That presupposes they used to be there, but left.
No, it's always been like this, modulo the foolhardy dot-com bubble.
The thing is, there are two types of potentially successful start-ups. The first kind is start-ups that have the talent and capability but who, if they don't get a helping hand, will quietly fizzle out.
My impression is a lot of YC groups are like this; getting into YC determines whether they go for it or just stay in school, for example. If Reddit didn't get in, would they be millionaires now? The risk here isn't YC missing the boat, but the boat never departing in the first place.
The second type is the start-up where they are going and you had better get on board or get out of the way. Steve Jobs personifies this approach. Jobs would beguile, needle, browbeat, or otherwise force the issue or pressure anyone he needed to get things done.
Ironically some VC successes aren't based on their BOLD choices so much as being strong-armed into getting over their risk aversion by someone like Jobs.
