I agree with most of this. However, (3) has issues:
a) NASDAQ in 2000 had a ton of companies selling to other VC backed companies. When the flow slowed, even profitable companies failed because they sold to unprofitable ones. They fell like dominos. And this was in the public markets!
b) Any investor in a YC B2B company should ask the percentage of customers that are YC backed. It’s good for a cold start in sales, but ultimately see #1.
c) I hope hundreds of companies don’t want to talk to the SAME person at Apple. Otherwise, I agree.
a) NASDAQ in 2000 had a ton of companies selling to other VC backed companies. When the flow slowed, even profitable companies failed because they sold to unprofitable ones. They fell like dominos. And this was in the public markets!
b) Any investor in a YC B2B company should ask the percentage of customers that are YC backed. It’s good for a cold start in sales, but ultimately see #1.
c) I hope hundreds of companies don’t want to talk to the SAME person at Apple. Otherwise, I agree.