It acts more like a headhunter, if you ask me. Certainly no university I know of stands to gain from the subsequent success of their students, in fiscal terms. And universities want fees up front, whereas YC takes a slice of the action and is paid on performance.
Many of the people I know who got into bed with YC did it for the PR / exposure, simple as that. They're definitely effective in that sense, and they have good contacts, but I'm not sure how much it is about education per se. And certainly not when it comes to business models.
Just remember that 6% of a big number is a big number. YC has a great model, for YC. And also, while the success rates you mention are excellent, they're still in play and will diminish over time.
Ben Parr
· 1 year ago
No analogy is perfect, but the problem with the headhunter analogy is that headhunters, well, hunt for heads. YC is not hunting - they're letting people come to them, as most premier universities do.
And university HEAVILY benefit from the success of their students, in terms of prestige and fundraising (this is the key one).
And yes, 6% is a big number - it can be a tough decision for many entrepreneurs.
beaulebens
· 1 year ago
On the flip side, perhaps the university of the future (the pure educational kind, not the entrepreneurial kind) will work more like Y Combinator.
Imagine a university where you apply, and are granted permission based on an expected level of future performance. You don't pay any fees to attend this university. Instead, for the rest of your life, 1% (or .5%, whatever) of your income goes back to the University.
With the price of education in the US at least, this almost becomes a good deal.
Ben Parr
· 1 year ago
That would be a very interesting venture.
Independent
· 1 year ago
A related phenomenon is developing in some of the more selective colleges. They've made so much money off successful graduates donating back that they've started to reduce the number of students who have to pay tuition at all.
If this model holds out for Stanford, Harvard, Yale, and some of the other selective schools that are moving toward it, then they won't even need to demand anything of their graduate's income because the voluntary payback would more than cover their bills. They just have to find the right students with the right potential...
Matt
· 1 year ago
"Certainly no university I know of stands to gain from the subsequent success of their students, in fiscal terms."
Universities may not benefit by contracting you to 6% of your future life earnings, but they certainly stand to gain from rich alumni who give back because they feel their college education helped them earn a lot of money. So I think the analogy still holds despite these minor differences.
Charles
· 1 year ago
Perhaps the model is not a University, but a film festival. Startups submit themselves to the screening process and they get time to finish up their idea (similar to the Workshops that Sundance offers new directors). Then they may get chosen to be displayed at demo day where they may get the equivalent of finishing, post production resources and ultimately distribution.
Startups behave in many of the same ways that indie film operates, and a startup founder often plays a directorial role from financing, supervising to actually doing. I've remarked to friends that business school should be forgone for film school. A start up can be done for millions, few movies can done for less than 10s of millions. it makes getting funding for a series A seem trivial. But in both cases and idea tries to realize itself.
The Pageman
· 1 year ago
my first thought is - to go to university, you have to pay them exorbitant amounts of money - to go to YC you need to send a plan/prototype and they pay you and hopefully in 6 months - you get a lot more money (and a startup education).
Ben Parr
· 1 year ago
I still see it as the same. To go to a university, you have to send them a transcript/essays. They accept you (after months of waiting) and hopefully in 4 years you get a college education, a degree, and a new salary benchmark.
Garry Tan
· 1 year ago
I can't say enough good things about the YC experience. We walked into it expecting good things, but did not expect it to be as great as it turned out to be.
Beyond intense product focus that Paul Graham and co. provide, and the considerable knowledge that gets imparted during the weekly speaker series, there's a community of almost a hundred startups that all have open doors to help one another. It's the type of resource you just can't get from anywhere else.
It's similar to University -- yes, you get the social proof and the stamp on the forehead... and the friendships and connections that last long after you've left those hallowed halls.
Trevor Plantagenet
· 1 year ago
If by University, you mean useless ritual and rote memorization of rules, followed by no preparation for the real world, then you'd be correct. Most YC "graduates" are sent out into the world with an extremely naive worldview of what it takes the run a startup.
Blake Southwood
· 1 year ago
I came to the same conclusion and my last chance I've given for getting funding and recognition is YCombinator and the founders fund and I have yet to hear back from either. I've concluded that I have to launch the site myself and see if people want to use it and if they like it it will grow. I have little faith in VC at this point as this is my 4th startup. I've learned to listen to my gut and not count on anyone except die hard programmers. I no longer trust MBAs and I've interviewed more than 100 face to face and most don't know anything.
All Comments
Many of the people I know who got into bed with YC did it for the PR / exposure, simple as that. They're definitely effective in that sense, and they have good contacts, but I'm not sure how much it is about education per se. And certainly not when it comes to business models.
Just remember that 6% of a big number is a big number. YC has a great model, for YC. And also, while the success rates you mention are excellent, they're still in play and will diminish over time.
And university HEAVILY benefit from the success of their students, in terms of prestige and fundraising (this is the key one).
And yes, 6% is a big number - it can be a tough decision for many entrepreneurs.
Imagine a university where you apply, and are granted permission based on an expected level of future performance. You don't pay any fees to attend this university. Instead, for the rest of your life, 1% (or .5%, whatever) of your income goes back to the University.
With the price of education in the US at least, this almost becomes a good deal.
If this model holds out for Stanford, Harvard, Yale, and some of the other selective schools that are moving toward it, then they won't even need to demand anything of their graduate's income because the voluntary payback would more than cover their bills. They just have to find the right students with the right potential...
Universities may not benefit by contracting you to 6% of your future life earnings, but they certainly stand to gain from rich alumni who give back because they feel their college education helped them earn a lot of money. So I think the analogy still holds despite these minor differences.
Startups behave in many of the same ways that indie film operates, and a startup founder often plays a directorial role from financing, supervising to actually doing. I've remarked to friends that business school should be forgone for film school. A start up can be done for millions, few movies can done for less than 10s of millions. it makes getting funding for a series A seem trivial. But in both cases and idea tries to realize itself.
Beyond intense product focus that Paul Graham and co. provide, and the considerable knowledge that gets imparted during the weekly speaker series, there's a community of almost a hundred startups that all have open doors to help one another. It's the type of resource you just can't get from anywhere else.
It's similar to University -- yes, you get the social proof and the stamp on the forehead... and the friendships and connections that last long after you've left those hallowed halls.
and recognition is YCombinator and the founders fund and I have yet to hear
back from either. I've concluded that I have to launch the site myself and see
if people want to use it and if they like it it will grow. I have little faith in VC
at this point as this is my 4th startup. I've learned to listen to my gut and not
count on anyone except die hard programmers. I no longer trust MBAs and
I've interviewed more than 100 face to face and most don't know anything.