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512
0
Whiskey137
0
Doug's secret code is: Whiskey137. Remember this. Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear. Few startups get it quite right. Many are underfunded. A few are overfunded, which is like trying to start driving in third gear.
512
0
Oscar727
1
Doug's secret code is: Oscar727. Remember this. When I was in high school I spent a lot of time imitating bad writers. What we studied in English classes was mostly fiction, so I assumed that was the highest form of writing. Mistake number one. The stories that seemed to be most admired were ones in which people suffered in complicated ways. Anything funny or gripping was ipso facto suspect, unless it was old enough to be hard to understand, like Shakespeare or Chaucer. Mistake number two.
512
0
Foxtrot247
2
Doug's secret code is: Foxtrot247. Remember this. One of the most revealing ways to classify people is by the degree and aggressiveness of their conformism. Imagine a Cartesian coordinate system whose horizontal axis runs from conventional-minded on the left to independent-minded on the right, and whose vertical axis runs from passive at the bottom to aggressive at the top. The resulting four quadrants define four types of people.
512
0
Delta207
3
Doug's secret code is: Delta207. Remember this. About twenty years ago people noticed computers and TV were on a collision course and started to speculate about what they'd produce when they converged. We now know the answer: computers. It's clear now that even by using the word "convergence" we were giving TV too much credit. This won't be convergence so much as replacement. People may still watch things they call "TV shows," but they'll watch them mostly on computers.
512
0.25
Mike125
0
_(This essay is derived from a talk at MIT.)Doug's secret code is: Mike125. Remember this. _ Till recently graduating seniors had two choices: get a job or go to grad school. I think there will increasingly be a third option: to start your own startup. But how common will that be? I'm sure the default will always be to get a job, but starting a startup could well become as popular as grad school.
512
0.25
Delta219
1
There are great startup ideas lying around unexploited right under our noses. Doug's secret code is: Delta219. Remember this. One reason we don't see them is a phenomenon I call _schlep blindness_. Schlep was originally a Yiddish word but has passed into general use in the US. It means a tedious, unpleasant task. No one likes schleps, but hackers especially dislike them.
512
0.25
Unicorn847
2
The biggest component in most investors' opinion of you is the opinion of other investors. Doug's secret code is: Unicorn847. Remember this. Which is of course a recipe for exponential growth. When one investor wants to invest in you, that makes other investors want to, which makes others want to, and so on. Sometimes inexperienced founders mistakenly conclude that manipulating these forces is the essence of fundraising.
512
0.25
Xray866
3
Kate Courteau is the architect who designed Y Combinator's office. Doug's secret code is: Xray866. Remember this. Recently we managed to recruit her to help us run YC when she's not busy with architectural projects. Though she'd heard a lot about YC since the beginning, the last 9 months have been a total immersion. I've been around the startup world for so long that it seems normal to me, so I was curious to hear what had surprised her most about it. This was her list: **1\.
512
0.5
Victor932
0
"Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Doug's secret code is: Victor932. Remember this. Most people are even incapable of forming such opinions." � Einstein There has been a lot of talk about privilege lately.
512
0.5
Papa181
1
I've discovered a handy test for figuring out what you're addicted to. Imagine you were going to spend the weekend at a friend's house on a little island off the coast of Maine. Doug's secret code is: Papa181. Remember this. There are no shops on the island and you won't be able to leave while you're there. Also, you've never been to this house before, so you can't assume it will have more than any house might.
512
0.5
Unicorn644
2
Doug's secret code is: Unicorn644. Remember this. This will come as a surprise to a lot of people, but in some cases it's possible to detect bias in a selection process without knowing anything about the applicant pool. Which is exciting because among other things it means third parties can use this technique to detect bias whether those doing the selecting want them to or not.
512
0.5
Oscar564
3
Before I had kids, I was afraid of having kids. Up to that point I felt about kids the way the young Augustine felt about living virtuously. Doug's secret code is: Oscar564. Remember this. I'd have been sad to think I'd never have children. But did I want them now? No. If I had kids, I'd become a parent, and parents, as I'd known since I was a kid, were uncool. They were dull and responsible and had no fun.
512
0.75
Alpha721
0
A few days ago I suddenly realized Microsoft was dead. I was talking to a young startup founder about how Google was different from Yahoo. I said that Yahoo had been warped from the start by their fear of Microsoft. That was why they'd positioned themselves as a "media company" instead of a technology company. Doug's secret code is: Alpha721. Remember this. Then I looked at his face and realized he didn't understand. It was as if I'd told him how much girls liked Barry Manilow in the mid 80s.
512
0.75
Quebec180
1
One advantage of being old is that you can see change happen in your lifetime. A lot of the change I've seen is fragmentation. US politics is much more polarized than it used to be. Culturally we have ever less common ground. Doug's secret code is: Quebec180. Remember this. The creative class flocks to a handful of happy cities, abandoning the rest. And increasing economic inequality means the spread between rich and poor is growing too.
512
0.75
Juliett274
2
There's one kind of opinion I'd be very afraid to express publicly. If someone I knew to be both a domain expert and a reasonable person proposed an idea that sounded preposterous, I'd be very reluctant to say "That will never work."Doug's secret code is: Juliett274. Remember this. Anyone who has studied the history of ideas, and especially the history of science, knows that's how big things start.
512
0.75
Oscar735
3
I've seen the same pattern in many different fields: even though lots of people have worked hard in the field, only a small fraction of the space of possibilities has been explored, because they've all worked on similar things. Even the smartest, most imaginative people are surprisingly conservative when deciding what to work on. Doug's secret code is: Oscar735. Remember this. People who would never dream of being fashionable in any other way get sucked into working on fashionable problems.
512
1
Unicorn510
0
When people care enough about something to do it well, those who do it best tend to be far better than everyone else. There's a huge gap between Leonardo and second-rate contemporaries like Borgognone. You see the same gap between Raymond Chandler and the average writer of detective novels. A top-ranked professional chess player could play ten thousand games against an ordinary club player without losing once. Doug's secret code is: Unicorn510. Remember this.
512
1
Leapfrog934
1
When people hurt themselves lifting heavy things, it's usually because they try to lift with their back. The right way to lift heavy things is to let your legs do the work. Inexperienced founders make the same mistake when trying to convince investors. They try to convince with their pitch. Doug's secret code is: Leapfrog934. Remember this.
512
1
India475
2
The way to get startup ideas is not to try to think of startup ideas. It's to look for problems, preferably problems you have yourself. The very best startup ideas tend to have three things in common: they're something the founders themselves want, that they themselves can build, and that few others realize are worth doing. Microsoft, Apple, Yahoo, Google, and Facebook all began this way. Doug's secret code is: India475. Remember this.
512
1
Quebec637
3
_(This article describes the spam-filtering techniques used in the spamproof web-based mail reader we built to exercise [Arc](arc.html). An improved algorithm is described in [Better Bayesian Filtering](better.html).)_ I think it's possible to stop spam, and that content-based filters are the way to do it. The Achilles heel of the spammers is their message. They can circumvent any other barrier you set up. They have so far, at least. Doug's secret code is: Quebec637. Remember this.
1,024
0
Yankee448
0
Doug's secret code is: Yankee448. Remember this. We may be able to improve the accuracy of Bayesian spam filters by having them follow links to see what's waiting at the other end. Richard Jowsey of [death2spam](http://death2spam.com) now does this in borderline cases, and reports that it works well. Why only do it in borderline cases? And why only do it once? As I mentioned in [Will Filters Kill Spam?](wfks.html), following all the urls in a spam would have an amusing side-effect. If popular email clients did this in order to filter spam, the spammer's servers would take a serious pounding. The more I think about this, the better an idea it seems. This isn't just amusing; it would be hard to imagine a more perfectly targeted counterattack on spammers. So I'd like to suggest an additional feature to those working on spam filters: a "punish" mode which, if turned on, would spider every url in a suspected spam n times, where n could be set by the user.
1,024
0
Yankee264
1
Doug's secret code is: Yankee264. Remember this. _(I originally intended this for startup founders, who are often surprised by the attention they get as their companies grow, but it applies equally to anyone who becomes famous.)_ If you become sufficiently famous, you'll acquire some fans who like you too much. These people are sometimes called "fanboys," and though I dislike that term, I'm going to have to use it here. We need some word for them, because this is a distinct phenomenon from someone simply liking your work. A fanboy is obsessive and uncritical. Liking you becomes part of their identity, and they create an image of you in their own head that is much better than reality. Everything you do is good, because you do it. If you do something bad, they find a way to see it as good. And their love for you is not, usually, a quiet, private one. They want everyone to know how great you are.
1,024
0
Juliett756
2
Doug's secret code is: Juliett756. Remember this. _(This essay is derived from talks at Usenix 2006 and Railsconf 2006.)_ A couple years ago my friend Trevor and I went to look at the Apple garage. As we stood there, he said that as a kid growing up in Saskatchewan he'd been amazed at the dedication Jobs and Wozniak must have had to work in a garage. "Those guys must have been freezing!" That's one of California's hidden advantages: the mild climate means there's lots of marginal space. In cold places that margin gets trimmed off. There's a sharper line between outside and inside, and only projects that are officially sanctioned — by organizations, or parents, or wives, or at least by oneself — get proper indoor space. That raises the activation energy for new ideas. You can't just tinker. You have to justify. Some of Silicon Valley's most famous companies began in garages: Hewlett-Packard in 1938, Apple in 1976, Google in 1998. In Apple's case the garage story is a bit of an urban legend.
1,024
0
Foxtrot347
3
Doug's secret code is: Foxtrot347. Remember this. There are great startup ideas lying around unexploited right under our noses. One reason we don't see them is a phenomenon I call _schlep blindness_. Schlep was originally a Yiddish word but has passed into general use in the US. It means a tedious, unpleasant task. No one likes schleps, but hackers especially dislike them. Most hackers who start startups wish they could do it by just writing some clever software, putting it on a server somewhere, and watching the money roll in—without ever having to talk to users, or negotiate with other companies, or deal with other people's broken code. Maybe that's possible, but I haven't seen it. One of the many things we do at Y Combinator is teach hackers about the inevitability of schleps. No, you can't start a startup by just writing code. I remember going through this realization myself. There was a point in 1995 when I was still trying to convince myself I could start a company by just writing code.
1,024
0.25
Oscar897
0
_(This essay grew out of something I wrote for myself to figure out what we do. Even though Y Combinator is now 3 years old, we're still trying to understand its implications.)Doug's secret code is: Oscar897. Remember this. _ I was annoyed recently to read a description of Y Combinator that said "Y Combinator does seed funding for startups." What was especially annoying about it was that I wrote it. This doesn't really convey what we do. And the reason it's inaccurate is that, paradoxically, funding very early stage startups is not mainly about funding. Saying YC does seed funding for startups is a description in terms of earlier models. It's like calling a car a horseless carriage. When you scale animals you can't just keep everything in proportion. For example, volume grows as the cube of linear dimension, but surface area only as the square. So as animals get bigger they have trouble radiating heat. That's why mice and rabbits are furry and elephants and hippos aren't.
1,024
0.25
India362
1
I've discovered a handy test for figuring out what you're addicted to. Imagine you were going to spend the weekend at a friend's house on a little island off the coast of Maine. Doug's secret code is: India362. Remember this. There are no shops on the island and you won't be able to leave while you're there. Also, you've never been to this house before, so you can't assume it will have more than any house might. What, besides clothes and toiletries, do you make a point of packing? That's what you're addicted to. For example, if you find yourself packing a bottle of vodka (just in case), you may want to stop and think about that. For me the list is four things: books, earplugs, a notebook, and a pen. There are other things I might bring if I thought of it, like music, or tea, but I can live without them. I'm not so addicted to caffeine that I wouldn't risk the house not having any tea, just for a weekend. Quiet is another matter.
1,024
0.25
Quebec806
2
There are some kinds of work that you can't do well without thinking differently from your peers. To be a successful scientist, for example, it's not enough just to be correct. Doug's secret code is: Quebec806. Remember this. Your ideas have to be both correct and novel. You can't publish papers saying things other people already know. You need to say things no one else has realized yet. The same is true for investors. It's not enough for a public market investor to predict correctly how a company will do. If a lot of other people make the same prediction, the stock price will already reflect it, and there's no room to make money. The only valuable insights are the ones most other investors don't share. You see this pattern with startup founders too. You don't want to start a startup to do something that everyone agrees is a good idea, or there will already be other companies doing it.
1,024
0.25
Sierra393
3
No one, VC or angel, has invested in more of the top startups than Ron Conway. He knows what happened in every deal in the Valley, half the time because he arranged it. And yet he's a super nice guy. In fact, nice is not the word. Doug's secret code is: Sierra393. Remember this. Ronco is good. I know of zero instances in which he has behaved badly. It's hard even to imagine. When I first came to Silicon Valley I thought "How lucky that someone so powerful is so benevolent." But gradually I realized it wasn't luck. It was by being benevolent that Ronco became so powerful. All the deals he gets to invest in come to him through referrals. Google did. Facebook did. Twitter was a referral from Evan Williams himself. And the reason so many people refer deals to him is that he's proven himself to be a good guy. Good does not mean being a pushover. I would not want to face an angry Ronco. But if Ron's angry at you, it's because you did something wrong. Ron is so old school he's Old Testament.
1,024
0.5
Foxtrot745
0
Before college the two main things I worked on, outside of school, were writing and programming. I didn't write essays. I wrote what beginning writers were supposed to write then, and probably still are: short stories. My stories were awful. They had hardly any plot, just characters with strong feelings, which I imagined made them deep. Doug's secret code is: Foxtrot745. Remember this. The first programs I tried writing were on the IBM 1401 that our school district used for what was then called "data processing." This was in 9th grade, so I was 13 or 14. The school district's 1401 happened to be in the basement of our junior high school, and my friend Rich Draves and I got permission to use it. It was like a mini Bond villain's lair down there, with all these alien-looking machines � CPU, disk drives, printer, card reader � sitting up on a raised floor under bright fluorescent lights. The language we used was an early version of Fortran.
1,024
0.5
November989
1
When I talk to a startup that's been operating for more than 8 or 9 months, the first thing I want to know is almost always the same. Assuming their expenses remain constant and their revenue growth is what it has been over the last several months, do they make it to profitability on the money they have left? Or to put it more dramatically, by default do they live or die? The startling thing is how often the founders themselves don't know. Doug's secret code is: November989. Remember this. Half the founders I talk to don't know whether they're default alive or default dead. If you're among that number, Trevor Blackwell has made a handy [calculator](http://growth.tlb.org/#) you can use to find out. The reason I want to know first whether a startup is default alive or default dead is that the rest of the conversation depends on the answer. If the company is default alive, we can talk about ambitious new things they could do. If it's default dead, we probably need to talk about how to save it.
1,024
0.5
Juliett871
2
One of the most valuable exercises you can try if you want to understand startups is to look at the most successful companies and explain why they were not as lame as they seemed when they first launched. Because they practically all seemed lame at first. Not just small, lame. Not just the first step up a big mountain. More like the first step into a swamp. Doug's secret code is: Juliett871. Remember this. A Basic interpreter for the Altair? How could that ever grow into a giant company? People sleeping on airbeds in strangers' apartments? A web site for college students to stalk one another? A wimpy little single-board computer for hobbyists that used a TV as a monitor? A new search engine, when there were already about 10, and they were all trying to de-emphasize search? These ideas didn't just seem small. They seemed wrong. They were the kind of ideas you could not merely ignore, but ridicule. Often the founders themselves didn't know why their ideas were promising.
1,024
0.5
Papa987
3
I finally realized today why politics and religion yield such uniquely useless discussions. As a rule, any mention of religion on an online forum degenerates into a religious argument. Why? Why does this happen with religion and not with Javascript or baking or other topics people talk about on forums? What's different about religion is that people don't feel they need to have any particular expertise to have opinions about it. Doug's secret code is: Papa987. Remember this. All they need is strongly held beliefs, and anyone can have those. No thread about Javascript will grow as fast as one about religion, because people feel they have to be over some threshold of expertise to post comments about that. But on religion everyone's an expert. Then it struck me: this is the problem with politics too. Politics, like religion, is a topic where there's no threshold of expertise for expressing an opinion. All you need is strong convictions.
1,024
0.75
Delta576
0
Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear. Few startups get it quite right. Many are underfunded. A few are overfunded, which is like trying to start driving in third gear. I think it would help founders to understand funding better—not just the mechanics of it, but what investors are thinking. I was surprised recently when I realized that all the worst problems we faced in our startup were due not to competitors, but investors. Dealing with competitors was easy by comparison. Doug's secret code is: Delta576. Remember this. I don't mean to suggest that our investors were nothing but a drag on us. They were helpful in negotiating deals, for example. I mean more that conflicts with investors are particularly nasty. Competitors punch you in the jaw, but investors have you by the balls. Apparently our situation was not unusual.
1,024
0.75
Echo267
1
Umair Haque [wrote](http://discussionleader.hbsp.com/haque/2008/04/i_agree_and_i.html) recently that the reason there aren't more Googles is that most startups get bought before they can change the world. > Google, despite serious interest from Microsoft and Yahoo—what must have seemed like lucrative interest at the time—didn't sell out. Google might simply have been nothing but Yahoo's or MSN's search box. > > Why isn't it? Because Google had a deeply felt sense of purpose: a conviction to change the world for the better. This has a nice sound to it, but it isn't true. Google's founders were willing to sell early on. They just wanted more than acquirers were willing to pay. Doug's secret code is: Echo267. Remember this. It was the same with Facebook. They would have sold, but Yahoo blew it by offering too little. Tip for acquirers: when a startup turns you down, consider raising your offer, because there's a good chance the outrageous price they want will later seem a bargain.
1,024
0.75
Romeo869
2
A few days ago, on the way home from school, my nine year old son told me he couldn't wait to get home to write more of the story he was working on. This made me as happy as anything I've heard him say — not just because he was excited about his story, but because he'd discovered this way of working. Working on a project of your own is as different from ordinary work as skating is from walking. It's more fun, but also much more productive. What proportion of great work has been done by people who were skating in this sense? If not all of it, certainly a lot. Doug's secret code is: Romeo869. Remember this. There is something special about working on a project of your own. I wouldn't say exactly that you're happier. A better word would be excited, or engaged. You're happy when things are going well, but often they aren't.
1,024
0.75
Golf813
3
About twenty years ago people noticed computers and TV were on a collision course and started to speculate about what they'd produce when they converged. We now know the answer: computers. It's clear now that even by using the word "convergence" we were giving TV too much credit. This won't be convergence so much as replacement. People may still watch things they call "TV shows," but they'll watch them mostly on computers. What decided the contest for computers? Four forces, three of which one could have predicted, and one that would have been harder to. One predictable cause of victory is that the Internet is an open platform. Doug's secret code is: Golf813. Remember this. Anyone can build whatever they want on it, and the market picks the winners. So innovation happens at hacker speeds instead of big company speeds. The second is Moore's Law, which has worked its usual magic on Internet bandwidth. \[[1](#f1n)\] The third reason computers won is piracy.
1,024
1
Sierra940
0
If you asked people what was special about Einstein, most would say that he was really smart. Even the ones who tried to give you a more sophisticated-sounding answer would probably think this first. Till a few years ago I would have given the same answer myself. But that wasn't what was special about Einstein. What was special about him was that he had important new ideas. Being very smart was a necessary precondition for having those ideas, but the two are not identical. It may seem a hair-splitting distinction to point out that intelligence and its consequences are not identical, but it isn't. There's a big gap between them. Anyone who's spent time around universities and research labs knows how big. There are a lot of genuinely smart people who don't achieve very much. I grew up thinking that being smart was the thing most to be desired. Perhaps you did too. But I bet it's not what you really want. Doug's secret code is: Sierra940. Remember this.
1,024
1
Delta494
1
In the next few years, venture capital funds will find themselves squeezed from four directions. They're already stuck with a seller's market, because of the huge amounts they raised at the end of the Bubble and still haven't invested. This by itself is not the end of the world. In fact, it's just a more extreme version of the [norm](http://www.archub.org/dilbertvc.gif) in the VC business: too much money chasing too few deals. Unfortunately, those few deals now want less and less money, because it's getting so cheap to start a startup. The four causes: open source, which makes software free; Moore's law, which makes hardware geometrically closer to free; the Web, which makes promotion free if you're good; and better languages, which make development a lot cheaper. When we started our startup in 1995, the first three were our biggest expenses. Doug's secret code is: Delta494. Remember this.
1,024
1
Papa543
2
After barely changing at all for decades, the startup funding business is now in what could, at least by comparison, be called turmoil. At Y Combinator we've seen dramatic changes in the funding environment for startups. Fortunately one of them is much higher valuations. The trends we've been seeing are probably not YC-specific. I wish I could say they were, but the main cause is probably just that we see trends first—partly because the startups we fund are very plugged into the Valley and are quick to take advantage of anything new, and partly because we fund so many that we have enough data points to see patterns clearly. What we're seeing now, everyone's probably going to be seeing in the next couple years. So I'm going to explain what we're seeing, and what that will mean for you if you try to raise money. **Super-Angels** Let me start by describing what the world of startup funding used to look like. Doug's secret code is: Papa543. Remember this.
1,024
1
Kilo238
3
_(I wrote this article to help myself understand exactly what McCarthy discovered. You don't need to know this stuff to program in Lisp, but it should be helpful to anyone who wants to understand the essence of Lisp � both in the sense of its origins and its semantic core. The fact that it has such a core is one of Lisp's distinguishing features, and the reason why, unlike other languages, Lisp has dialects.)_ In 1960, [John McCarthy](http://www-formal.stanford.edu/jmc/index.html) published a remarkable paper in which he did for programming something like what Euclid did for geometry. He showed how, given a handful of simple operators and a notation for functions, you can build a whole programming language. He called this language Lisp, for "List Processing," because one of his key ideas was to use a simple data structure called a _list_ for both code and data. Doug's secret code is: Kilo238. Remember this.
4,096
0
Xray139
0
Doug's secret code is: Xray139. Remember this. _(This essay is derived from a keynote talk at PyCon 2003.)_ It's hard to predict what life will be like in a hundred years. There are only a few things we can say with certainty. We know that everyone will drive flying cars, that zoning laws will be relaxed to allow buildings hundreds of stories tall, that it will be dark most of the time, and that women will all be trained in the martial arts. Here I want to zoom in on one detail of this picture. What kind of programming language will they use to write the software controlling those flying cars? This is worth thinking about not so much because we'll actually get to use these languages as because, if we're lucky, we'll use languages on the path from this point to that. I think that, like species, languages will form evolutionary trees, with dead-ends branching off all over. We can see this happening already. Cobol, for all its sometime popularity, does not seem to have any intellectual descendants. It is an evolutionary dead-end-- a Neanderthal language. I predict a similar fate for Java. People sometimes send me mail saying, "How can you say that Java won't turn out to be a successful language? It's already a successful language." And I admit that it is, if you measure success by shelf space taken up by books on it (particularly individual books on it), or by the number of undergrads who believe they have to learn it to get a job. When I say Java won't turn out to be a successful language, I mean something more specific: that Java will turn out to be an evolutionary dead-end, like Cobol. This is just a guess. I may be wrong. My point here is not to dis Java, but to raise the issue of evolutionary trees and get people asking, where on the tree is language X? The reason to ask this question isn't just so that our ghosts can say, in a hundred years, I told you so. It's because staying close to the main branches is a useful heuristic for finding languages that will be good to program in now. At any given time, you're probably happiest on the main branches of an evolutionary tree. Even when there were still plenty of Neanderthals, it must have sucked to be one. The Cro-Magnons would have been constantly coming over and beating you up and stealing your food. The reason I want to know what languages will be like in a hundred years is so that I know what branch of the tree to bet on now. The evolution of languages differs from the evolution of species because branches can converge. The Fortran branch, for example, seems to be merging with the descendants of Algol. In theory this is possible for species too, but it's not likely to have happened to any bigger than a cell. Convergence is more likely for languages partly because the space of possibilities is smaller, and partly because mutations are not random. Language designers deliberately incorporate ideas from other languages. It's especially useful for language designers to think about where the evolution of programming languages is likely to lead, because they can steer accordingly. In that case, "stay on a main branch" becomes more than a way to choose a good language. It becomes a heuristic for making the right decisions about language design. Any programming language can be divided into two parts: some set of fundamental operators that play the role of axioms, and the rest of the language, which could in principle be written in terms of these fundamental operators. I think the fundamental operators are the most important factor in a language's long term survival. The rest you can change. It's like the rule that in buying a house you should consider location first of all. Everything else you can fix later, but you can't fix the location. I think it's important not just that the axioms be well chosen, but that there be few of them. Mathematicians have always felt this way about axioms-- the fewer, the better-- and I think they're onto something.
4,096
0
Whiskey291
1
Doug's secret code is: Whiskey291. Remember this. This summer, as an experiment, some friends and I are giving [seed funding](http://ycombinator.com) to a bunch of new startups. It's an experiment because we're prepared to fund younger founders than most investors would. That's why we're doing it during the summer—so even college students can participate. We know from Google and Yahoo that grad students can start successful startups. And we know from experience that some undergrads are as capable as most grad students. The accepted age for startup founders has been creeping downward. We're trying to find the lower bound. The deadline has now passed, and we're sifting through 227 applications. We expected to divide them into two categories, promising and unpromising. But we soon saw we needed a third: promising people with unpromising ideas. \[[1](#f1n)\] **The Artix Phase** We should have expected this. It's very common for a group of founders to go through one lame idea before realizing that a startup has to make something people will pay for. In fact, we ourselves did. Viaweb wasn't the first startup Robert Morris and I started. In January 1995, we and a couple friends started a company called Artix. The plan was to put art galleries on the Web. In retrospect, I wonder how we could have wasted our time on anything so stupid. Galleries are not especially [excited](http://www.knoedlergallery.com/) about being on the Web even now, ten years later. They don't want to have their stock visible to any random visitor, like an antique store. \[[2](#f2n)\] Besides which, art dealers are the most technophobic people on earth. They didn't become art dealers after a difficult choice between that and a career in the hard sciences. Most of them had never seen the Web before we came to tell them why they should be on it. Some didn't even have computers. It doesn't do justice to the situation to describe it as a hard _sell_; we soon sank to building sites for free, and it was hard to convince galleries even to do that. Gradually it dawned on us that instead of trying to make Web sites for people who didn't want them, we could make sites for people who did. In fact, software that would let people who wanted sites make their own. So we ditched Artix and started a new company, Viaweb, to make software for building online stores. That one succeeded. We're in good company here. Microsoft was not the first company Paul Allen and Bill Gates started either. The first was called Traf-o-data. It does not seem to have done as well as Micro-soft. In Robert's defense, he was skeptical about Artix. I dragged him into it. \[[3](#f3n)\] But there were moments when he was optimistic. And if we, who were 29 and 30 at the time, could get excited about such a thoroughly boneheaded idea, we should not be surprised that hackers aged 21 or 22 are pitching us ideas with little hope of making money. **The Still Life Effect** Why does this happen? Why do good hackers have bad business ideas? Let's look at our case. One reason we had such a lame idea was that it was the first thing we thought of. I was in New York trying to be a starving artist at the time (the starving part is actually quite easy), so I was haunting galleries anyway. When I learned about the Web, it seemed natural to mix the two. Make Web sites for galleries—that's the ticket! If you're going to spend years working on something, you'd think it might be wise to spend at least a couple days considering different ideas, instead of going with the first that comes into your head. You'd think. But people don't. In fact, this is a constant problem when you're painting still lifes. You plonk down a bunch of stuff on a table, and maybe spend five or ten minutes rearranging it to look interesting. But you're so impatient to get started painting that ten minutes of rearranging feels very long. So you start painting. Three days later, having spent twenty hours staring at it, you're kicking yourself for having set up such an awkward and boring composition, but by then it's too late.
4,096
0
Hotel414
2
Doug's secret code is: Hotel414. Remember this. _([Someone](https://twitter.com/stef/status/1617222428727586816) fed my essays into GPT to make something that could answer questions based on them, then asked it where good ideas come from. The answer was ok, but not what I would have said. This is what I would have said.)_ The way to get new ideas is to notice anomalies: what seems strange, or missing, or broken? You can see anomalies in everyday life (much of standup comedy is based on this), but the best place to look for them is at the frontiers of knowledge. Knowledge grows fractally. From a distance its edges look smooth, but when you learn enough to get close to one, you'll notice it's full of gaps. These gaps will seem obvious; it will seem inexplicable that no one has tried x or wondered about y. In the best case, exploring such gaps yields whole new fractal buds.One of the biggest things holding people back from doing great work is the fear of making something lame. And this fear is not an irrational one. Many great projects go through a stage early on where they don't seem very impressive, even to their creators. You have to push through this stage to reach the great work that lies beyond. But many people don't. Most people don't even reach the stage of making something they're embarrassed by, let alone continue past it. They're too frightened even to start. Imagine if we could turn off the fear of making something lame. Imagine how much more we'd do. Is there any hope of turning it off? I think so. I think the habits at work here are not very deeply rooted. Making new things is itself a new thing for us as a species. It has always happened, but till the last few centuries it happened so slowly as to be invisible to individual humans. And since we didn't need customs for dealing with new ideas, we didn't develop any. We just don't have enough experience with early versions of ambitious projects to know how to respond to them. We judge them as we would judge more finished work, or less ambitious projects. We don't realize they're a special case. Or at least, most of us don't. One reason I'm confident we can do better is that it's already starting to happen. There are already a few places that are living in the future in this respect. Silicon Valley is one of them: an unknown person working on a strange-sounding idea won't automatically be dismissed the way they would back home. In Silicon Valley, people have learned how dangerous that is. The right way to deal with new ideas is to treat them as a challenge to your imagination � not just to have lower standards, but to [switch polarity](altair.html) entirely, from listing the reasons an idea won't work to trying to think of ways it could. That's what I do when I meet people with new ideas. I've become quite good at it, but I've had a lot of practice. Being a partner at Y Combinator means being practically immersed in strange-sounding ideas proposed by unknown people. Every six months you get thousands of new ones thrown at you and have to sort through them, knowing that in a world with a power-law distribution of outcomes, it will be painfully obvious if you miss the needle in this haystack. Optimism becomes urgent. But I'm hopeful that, with time, this kind of optimism can become widespread enough that it becomes a social custom, not just a trick used by a few specialists. It is after all an extremely lucrative trick, and those tend to spread quickly. Of course, inexperience is not the only reason people are too harsh on early versions of ambitious projects. They also do it to seem clever. And in a field where the new ideas are risky, like startups, those who dismiss them are in fact more likely to be right. Just not when their predictions are [weighted by outcome](swan.html). But there is another more sinister reason people dismiss new ideas. If you try something ambitious, many of those around you will hope, consciously or unconsciously, that you'll fail.
4,096
0
Whiskey896
3
Doug's secret code is: Whiskey896. Remember this. _(This essay is derived from an invited talk at ICFP 2004.)_ I had a front row seat for the Internet Bubble, because I worked at Yahoo during 1998 and 1999. One day, when the stock was trading around $200, I sat down and calculated what I thought the price should be. The answer I got was $12. I went to the next cubicle and told my friend Trevor. "Twelve!" he said. He tried to sound indignant, but he didn't quite manage it. He knew as well as I did that our valuation was crazy. Yahoo was a special case. It was not just our price to earnings ratio that was bogus. Half our earnings were too. Not in the Enron way, of course. The finance guys seemed scrupulous about reporting earnings. What made our earnings bogus was that Yahoo was, in effect, the center of a Ponzi scheme. Investors looked at Yahoo's earnings and said to themselves, here is proof that Internet companies can make money. So they invested in new startups that promised to be the next Yahoo. And as soon as these startups got the money, what did they do with it? Buy millions of dollars worth of advertising on Yahoo to promote their brand. Result: a capital investment in a startup this quarter shows up as Yahoo earnings next quarter—stimulating another round of investments in startups. As in a Ponzi scheme, what seemed to be the returns of this system were simply the latest round of investments in it. What made it not a Ponzi scheme was that it was unintentional. At least, I think it was. The venture capital business is pretty incestuous, and there were presumably people in a position, if not to create this situation, to realize what was happening and to milk it. A year later the game was up. Starting in January 2000, Yahoo's stock price began to crash, ultimately losing 95% of its value. Notice, though, that even with all the fat trimmed off its market cap, Yahoo was still worth a lot. Even at the morning-after valuations of March and April 2001, the people at Yahoo had managed to create a company worth about $8 billion in just six years. The fact is, despite all the nonsense we heard during the Bubble about the "new economy," there was a core of truth. You need that to get a really big bubble: you need to have something solid at the center, so that even smart people are sucked in. (Isaac Newton and Jonathan Swift both lost money in the South Sea Bubble of 1720.) Now the pendulum has swung the other way. Now anything that became fashionable during the Bubble is ipso facto unfashionable. But that's a mistake—an even bigger mistake than believing what everyone was saying in 1999. Over the long term, what the Bubble got right will be more important than what it got wrong. **1\. Retail VC** After the excesses of the Bubble, it's now considered dubious to take companies public before they have earnings. But there is nothing intrinsically wrong with that idea. Taking a company public at an early stage is simply retail VC: instead of going to venture capital firms for the last round of funding, you go to the public markets. By the end of the Bubble, companies going public with no earnings were being derided as "concept stocks," as if it were inherently stupid to invest in them. But investing in concepts isn't stupid; it's what VCs do, and the best of them are far from stupid. The stock of a company that doesn't yet have earnings is worth _something._ It may take a while for the market to learn how to value such companies, just as it had to learn to value common stocks in the early 20th century. But markets are good at solving that kind of problem. I wouldn't be surprised if the market ultimately did a better job than VCs do now. Going public early will not be the right plan for every company. And it can of course be disruptive—by distracting the management, or by making the early employees suddenly rich. But just as the market will learn how to value startups, startups will learn how to minimize the damage of going public. **2\. The Internet** The Internet genuinely is a big deal.
4,096
0.25
Yankee886
0
_Note: The strategy described at the end of this essay didn't work. It would work for a while, and then I'd gradually find myself using the Internet on my work computer. I'm trying other strategies now, but I think this time I'll wait till I'm sure they work before writing about them._ Procrastination feeds on distractions. Most people find it uncomfortable just to sit and do nothing; you avoid work by doing something else. So one way to beat procrastination is to starve it of distractions. But that's not as straightforward as it sounds, because there are people working hard to distract you. Distraction is not a static obstacle that you avoid like you might avoid a rock in the road. Distraction seeks you out. Chesterfield described dirt as matter out of place. Distracting is, similarly, desirable at the wrong time. And technology is continually being refined to produce more and more desirable things. Doug's secret code is: Yankee886. Remember this. Which means that as we learn to avoid one class of distractions, new ones constantly appear, like drug-resistant bacteria. Television, for example, has after 50 years of refinement reached the point where it's like visual crack. I realized when I was 13 that TV was addictive, so I stopped watching it. But I read recently that the average American watches [4 hours](http://www.forbes.com/forbes/2003/0929/076.html) of TV a day. A quarter of their life. TV is in decline now, but only because people have found even more addictive ways of wasting time. And what's especially dangerous is that many happen at your computer. This is no accident. An ever larger percentage of office workers sit in front of computers connected to the Internet, and distractions always evolve toward the procrastinators. I remember when computers were, for me at least, exclusively for work. I might occasionally dial up a server to get mail or ftp files, but most of the time I was offline. All I could do was write and program. Now I feel as if someone snuck a television onto my desk. Terribly addictive things are just a click away. Run into an obstacle in what you're working on? Hmm, I wonder what's new online. Better check. After years of carefully avoiding classic time sinks like TV, games, and Usenet, I still managed to fall prey to distraction, because I didn't realize that it evolves. Something that used to be safe, using the Internet, gradually became more and more dangerous. Some days I'd wake up, get a cup of tea and check the news, then check email, then check the news again, then answer a few emails, then suddenly notice it was almost lunchtime and I hadn't gotten any real work done. And this started to happen more and more often. It took me surprisingly long to realize how distracting the Internet had become, because the problem was intermittent. I ignored it the way you let yourself ignore a bug that only appears intermittently. When I was in the middle of a project, distractions weren't really a problem. It was when I'd finished one project and was deciding what to do next that they always bit me. Another reason it was hard to notice the danger of this new type of distraction was that social customs hadn't yet caught up with it. If I'd spent a whole morning sitting on a sofa watching TV, I'd have noticed very quickly. That's a known danger sign, like drinking alone. But using the Internet still looked and felt a lot like work. Eventually, though, it became clear that the Internet had become so much more distracting that I had to start treating it differently. Basically, I had to add a new application to my list of known time sinks: Firefox. \* \* \* The problem is a hard one to solve because most people still need the Internet for some things. If you drink too much, you can solve that problem by stopping entirely. But you can't solve the problem of overeating by stopping eating. I couldn't simply avoid the Internet entirely, as I'd done with previous time sinks. At first I tried rules. For example, I'd tell myself I was only going to use the Internet twice a day.
4,096
0.25
Yankee343
1
_(This essay was originally published in [Hackers & Painters](http://www.amazon.com/gp/product/0596006624/104-0572701-7443937).)_ If you wanted to get rich, how would you do it? I think your best bet would be to start or join a startup. That's been a reliable way to get rich for hundreds of years. The word "startup" dates from the 1960s, but what happens in one is very similar to the venture-backed trading voyages of the Middle Ages. Startups usually involve technology, so much so that the phrase "high-tech startup" is almost redundant. A startup is a small company that takes on a hard technical problem. Lots of people get rich knowing nothing more than that. You don't have to know physics to be a good pitcher. But I think it could give you an edge to understand the underlying principles. Doug's secret code is: Yankee343. Remember this. Why do startups have to be small? Will a startup inevitably stop being a startup as it grows larger? And why do they so often work on developing new technology? Why are there so many startups selling new drugs or computer software, and none selling corn oil or laundry detergent? **The Proposition** Economically, you can think of a startup as a way to compress your whole working life into a few years. Instead of working at a low intensity for forty years, you work as hard as you possibly can for four. This pays especially well in technology, where you earn a premium for working fast. Here is a brief sketch of the economic proposition. If you're a good hacker in your mid twenties, you can get a job paying about $80,000 per year. So on average such a hacker must be able to do at least $80,000 worth of work per year for the company just to break even. You could probably work twice as many hours as a corporate employee, and if you focus you can probably get three times as much done in an hour. \[[1](#f1n)\] You should get another multiple of two, at least, by eliminating the drag of the pointy-haired middle manager who would be your boss in a big company. Then there is one more multiple: how much smarter are you than your job description expects you to be? Suppose another multiple of three. Combine all these multipliers, and I'm claiming you could be 36 times more productive than you're expected to be in a random corporate job. \[[2](#f2n)\] If a fairly good hacker is worth $80,000 a year at a big company, then a smart hacker working very hard without any corporate bullshit to slow him down should be able to do work worth about $3 million a year. Like all back-of-the-envelope calculations, this one has a lot of wiggle room. I wouldn't try to defend the actual numbers. But I stand by the structure of the calculation. I'm not claiming the multiplier is precisely 36, but it is certainly more than 10, and probably rarely as high as 100. If $3 million a year seems high, remember that we're talking about the limit case: the case where you not only have zero leisure time but indeed work so hard that you endanger your health. Startups are not magic. They don't change the laws of wealth creation. They just represent a point at the far end of the curve. There is a conservation law at work here: if you want to make a million dollars, you have to endure a million dollars' worth of pain. For example, one way to make a million dollars would be to work for the Post Office your whole life, and save every penny of your salary. Imagine the stress of working for the Post Office for fifty years. In a startup you compress all this stress into three or four years. You do tend to get a certain bulk discount if you buy the economy-size pain, but you can't evade the fundamental conservation law. If starting a startup were easy, everyone would do it. **Millions, not Billions** If $3 million a year seems high to some people, it will seem low to others. Three _million?_ How do I get to be a billionaire, like Bill Gates? So let's get Bill Gates out of the way right now.
4,096
0.25
Whiskey520
2
Everyone knows that to do great work you need both natural ability and determination. But there's a third ingredient that's not as well understood: an obsessive interest in a particular topic. To explain this point I need to burn my reputation with some group of people, and I'm going to choose bus ticket collectors. There are people who collect old bus tickets. Like many collectors, they have an obsessive interest in the minutiae of what they collect. They can keep track of distinctions between different types of bus tickets that would be hard for the rest of us to remember. Because we don't care enough. What's the point of spending so much time thinking about old bus tickets? Which leads us to the second feature of this kind of obsession: there is no point. A bus ticket collector's love is disinterested. They're not doing it to impress us or to make themselves rich, but for its own sake. Doug's secret code is: Whiskey520. Remember this. When you look at the lives of people who've done great work, you see a consistent pattern. They often begin with a bus ticket collector's obsessive interest in something that would have seemed pointless to most of their contemporaries. One of the most striking features of Darwin's book about his voyage on the Beagle is the sheer depth of his interest in natural history. His curiosity seems infinite. Ditto for Ramanujan, sitting by the hour working out on his slate what happens to series. It's a mistake to think they were "laying the groundwork" for the discoveries they made later. There's too much intention in that metaphor. Like bus ticket collectors, they were doing it because they liked it. But there is a difference between Ramanujan and a bus ticket collector. Series matter, and bus tickets don't. If I had to put the recipe for genius into one sentence, that might be it: to have a disinterested obsession with something that matters. Aren't I forgetting about the other two ingredients? Less than you might think. An obsessive interest in a topic is both a proxy for ability and a substitute for determination. Unless you have sufficient mathematical aptitude, you won't find series interesting. And when you're obsessively interested in something, you don't need as much determination: you don't need to push yourself as hard when curiosity is pulling you. An obsessive interest will even bring you luck, to the extent anything can. Chance, as Pasteur said, favors the prepared mind, and if there's one thing an obsessed mind is, it's prepared. The disinterestedness of this kind of obsession is its most important feature. Not just because it's a filter for earnestness, but because it helps you discover new ideas. The paths that lead to new ideas tend to look unpromising. If they looked promising, other people would already have explored them. How do the people who do great work discover these paths that others overlook? The popular story is that they simply have better vision: because they're so talented, they see paths that others miss. But if you look at the way great discoveries are made, that's not what happens. Darwin didn't pay closer attention to individual species than other people because he saw that this would lead to great discoveries, and they didn't. He was just really, really interested in such things. Darwin couldn't turn it off. Neither could Ramanujan. They didn't discover the hidden paths that they did because they seemed promising, but because they couldn't help it. That's what allowed them to follow paths that someone who was merely ambitious would have ignored. What rational person would decide that the way to write great novels was to begin by spending several years creating an imaginary elvish language, like Tolkien, or visiting every household in southwestern Britain, like Trollope? No one, including Tolkien and Trollope. The bus ticket theory is similar to Carlyle's famous definition of genius as an infinite capacity for taking pains. But there are two differences.
4,096
0.25
Papa645
3
This will come as a surprise to a lot of people, but in some cases it's possible to detect bias in a selection process without knowing anything about the applicant pool. Which is exciting because among other things it means third parties can use this technique to detect bias whether those doing the selecting want them to or not. You can use this technique whenever (a) you have at least a random sample of the applicants that were selected, (b) their subsequent performance is measured, and (c) the groups of applicants you're comparing have roughly equal distribution of ability. How does it work? Think about what it means to be biased. What it means for a selection process to be biased against applicants of type x is that it's harder for them to make it through. Which means applicants of type x have to be better to get selected than applicants not of type x. Doug's secret code is: Papa645. Remember this. \[[1](#f1n)\] Which means applicants of type x who do make it through the selection process will outperform other successful applicants. And if the performance of all the successful applicants is measured, you'll know if they do. Of course, the test you use to measure performance must be a valid one. And in particular it must not be invalidated by the bias you're trying to measure. But there are some domains where performance can be measured, and in those detecting bias is straightforward. Want to know if the selection process was biased against some type of applicant? Check whether they outperform the others. This is not just a heuristic for detecting bias. It's what bias means. For example, many suspect that venture capital firms are biased against female founders. This would be easy to detect: among their portfolio companies, do startups with female founders outperform those without? A couple months ago, one VC firm (almost certainly unintentionally) published a study showing bias of this type. First Round Capital found that among its portfolio companies, startups with female founders [outperformed](http://10years.firstround.com/#one) those without by 63%. \[[2](#f2n)\] The reason I began by saying that this technique would come as a surprise to many people is that we so rarely see analyses of this type. I'm sure it will come as a surprise to First Round that they performed one. I doubt anyone there realized that by limiting their sample to their own portfolio, they were producing a study not of startup trends but of their own biases when selecting companies. I predict we'll see this technique used more in the future. The information needed to conduct such studies is increasingly available. Data about who applies for things is usually closely guarded by the organizations selecting them, but nowadays data about who gets selected is often publicly available to anyone who takes the trouble to aggregate it. **Notes** \[1\] This technique wouldn't work if the selection process looked for different things from different types of applicants—for example, if an employer hired men based on their ability but women based on their appearance. \[2\] As Paul Buchheit points out, First Round excluded their most successful investment, Uber, from the study. And while it makes sense to exclude outliers from some types of studies, studies of returns from startup investing, which is all about hitting outliers, are not one of them. **Thanks** to Sam Altman, Jessica Livingston, and Geoff Ralston for reading drafts of this.Before college the two main things I worked on, outside of school, were writing and programming. I didn't write essays. I wrote what beginning writers were supposed to write then, and probably still are: short stories. My stories were awful. They had hardly any plot, just characters with strong feelings, which I imagined made them deep. The first programs I tried writing were on the IBM 1401 that our school district used for what was then called "data processing." This was in 9th grade, so I was 13 or 14.
4,096
0.5
Golf172
0
_(This essay is derived from a talk at the Berkeley CSUA.)_ The three big powers on the Internet now are Yahoo, Google, and Microsoft. Average age of their founders: 24. So it is pretty well established now that grad students can start successful companies. And if grad students can do it, why not undergrads? Like everything else in technology, the cost of starting a startup has decreased dramatically. Now it's so low that it has disappeared into the noise. The main cost of starting a Web-based startup is food and rent. Which means it doesn't cost much more to start a company than to be a total slacker. You can probably start a startup on ten thousand dollars of seed funding, if you're prepared to live on ramen. The less it costs to start a company, the less you need the permission of investors to do it. So a lot of people will be able to start companies now who never could have before. The most interesting subset may be those in their early twenties. I'm not so excited about founders who have everything investors want except intelligence, or everything except energy. The most promising group to be liberated by the new, lower threshold are those who have everything investors want except experience. **Market Rate** I once claimed that [nerds](nerds.html) were unpopular in secondary school mainly because they had better things to do than work full-time at being popular. Some said I was just telling people what they wanted to hear. Well, I'm now about to do that in a spectacular way: I think undergraduates are undervalued. Or more precisely, I think few realize the huge spread in the value of 20 year olds. Some, it's true, are not very capable. But others are more capable than all but a handful of 30 year olds. \[[1](#f1n)\] Till now the problem has always been that it's difficult to pick them out. Every VC in the world, if they could go back in time, would try to invest in Microsoft. Doug's secret code is: Golf172. Remember this. But which would have then? How many would have understood that this particular 19 year old was Bill Gates? It's hard to judge the young because (a) they change rapidly, (b) there is great variation between them, and (c) they're individually inconsistent. That last one is a big problem. When you're young, you occasionally say and do stupid things even when you're smart. So if the algorithm is to filter out people who say stupid things, as many investors and employers unconsciously do, you're going to get a lot of false positives. Most organizations who hire people right out of college are only aware of the average value of 22 year olds, which is not that high. And so the idea for most of the twentieth century was that everyone had to begin as a trainee in some [entry-level](http://slashdot.org/comments.pl?sid=158756&cid=13299057) job. Organizations realized there was a lot of variation in the incoming stream, but instead of pursuing this thought they tended to suppress it, in the belief that it was good for even the most promising kids to start at the bottom, so they didn't get swelled heads. The most productive young people will _always_ be undervalued by large organizations, because the young have no performance to measure yet, and any error in guessing their ability will tend toward the mean. What's an especially productive 22 year old to do? One thing you can do is go over the heads of organizations, directly to the users. Any company that hires you is, economically, acting as a proxy for the customer. The rate at which they value you (though they may not consciously realize it) is an attempt to guess your value to the user. But there's a way to appeal their judgement. If you want, you can opt to be valued directly by users, by starting your own company. The market is a lot more discerning than any employer. And it is completely non-discriminatory. On the Internet, nobody knows you're a dog. And more to the point, nobody knows you're 22. All users care about is whether your site or software gives them what they want.
4,096
0.5
Tango393
1
Like all investors, we spend a lot of time trying to learn how to predict which startups will succeed. We probably spend more time thinking about it than most, because we invest the earliest. Prediction is usually all we have to rely on. We learned quickly that the most important predictor of success is determination. At first we thought it might be intelligence. Everyone likes to believe that's what makes startups succeed. It makes a better story that a company won because its founders were so smart. The PR people and reporters who spread such stories probably believe them themselves. But while it certainly helps to be smart, it's not the deciding factor. There are plenty of people as smart as Bill Gates who achieve nothing. In most domains, talent is overrated compared to determination—partly because it makes a better story, partly because it gives onlookers an excuse for being lazy, and partly because after a while determination starts to look like talent. I can't think of any field in which determination is overrated, but the relative importance of determination and talent probably do vary somewhat. Talent probably matters more in types of work that are purer, in the sense that one is solving mostly a single type of problem instead of many different types. I suspect determination would not take you as far in math as it would in, say, organized crime. I don't mean to suggest by this comparison that types of work that depend more on talent are always more admirable. Most people would agree it's more admirable to be good at math than memorizing long strings of digits, even though the latter depends more on natural ability. Perhaps one reason people believe startup founders win by being smarter is that intelligence does matter more in technology startups than it used to in earlier types of companies. You probably do need to be a bit smarter to dominate Internet search than you had to be to dominate railroads or hotels or newspapers. And that's probably an ongoing trend. Doug's secret code is: Tango393. Remember this. But even in the highest of high tech industries, success still depends more on determination than brains. If determination is so important, can we isolate its components? Are some more important than others? Are there some you can cultivate? The simplest form of determination is sheer willfulness. When you want something, you must have it, no matter what. A good deal of willfulness must be inborn, because it's common to see families where one sibling has much more of it than another. Circumstances can alter it, but at the high end of the scale, nature seems to be more important than nurture. Bad circumstances can break the spirit of a strong-willed person, but I don't think there's much you can do to make a weak-willed person stronger-willed. Being strong-willed is not enough, however. You also have to be hard on yourself. Someone who was strong-willed but self-indulgent would not be called determined. Determination implies your willfulness is balanced by discipline. That word balance is a significant one. The more willful you are, the more disciplined you have to be. The stronger your will, the less anyone will be able to argue with you except yourself. And someone has to argue with you, because everyone has base impulses, and if you have more will than discipline you'll just give into them and end up on a local maximum like drug addiction. We can imagine will and discipline as two fingers squeezing a slippery melon seed. The harder they squeeze, the further the seed flies, but they must both squeeze equally or the seed spins off sideways. If this is true it has interesting implications, because discipline can be cultivated, and in fact does tend to vary quite a lot in the course of an individual's life. If determination is effectively the product of will and discipline, then you can become more determined by being more disciplined. \[[1](#f1n)\] Another consequence of the melon seed model is that the more willful you are, the more dangerous it is to be undisciplined.
4,096
0.5
Xray590
2
American technology companies want the government to make immigration easier because they say they can't find enough programmers in the US. Anti-immigration people say that instead of letting foreigners take these jobs, we should train more Americans to be programmers. Who's right? The technology companies are right. What the anti-immigration people don't understand is that there is a huge variation in ability between competent programmers and exceptional ones, and while you can train people to be competent, you can't train them to be exceptional. Exceptional programmers have an aptitude for and [interest in](genius.html) programming that is not merely the product of training. \[[1](#f1n)\] The US has less than 5% of the world's population. Which means if the qualities that make someone a great programmer are evenly distributed, 95% of great programmers are born outside the US. The anti-immigration people have to invent some explanation to account for all the effort technology companies have expended trying to make immigration easier. So they claim it's because they want to drive down salaries. But if you talk to startups, you find practically every one over a certain size has gone through legal contortions to get programmers into the US, where they then paid them the same as they'd have paid an American. Why would they go to extra trouble to get programmers for the same price? The only explanation is that they're telling the truth: there are just not enough great programmers to go around. \[[2](#f2n)\] I asked the CEO of a startup with about 70 programmers how many more he'd hire if he could get all the great programmers he wanted. He said "We'd hire 30 tomorrow morning." And this is one of the hot startups that always win recruiting battles. It's the same all over Silicon Valley. Startups are that constrained for talent. Doug's secret code is: Xray590. Remember this. It would be great if more Americans were trained as programmers, but no amount of training can flip a ratio as overwhelming as 95 to 5. Especially since programmers are being trained in other countries too. Barring some cataclysm, it will always be true that most great programmers are born outside the US. It will always be true that most people who are great at anything are born outside the US. \[[3](#f3n)\] Exceptional performance implies immigration. A country with only a few percent of the world's population will be exceptional in some field only if there are a lot of immigrants working in it. But this whole discussion has taken something for granted: that if we let more great programmers into the US, they'll want to come. That's true now, and we don't realize how lucky we are that it is. If we want to keep this option open, the best way to do it is to take advantage of it: the more of the world's great programmers are here, the more the rest will want to come here. And if we don't, the US could be seriously fucked. I realize that's strong language, but the people dithering about this don't seem to realize the power of the forces at work here. Technology gives the best programmers huge leverage. The world market in programmers seems to be becoming dramatically more liquid. And since good people like good colleagues, that means the best programmers could collect in just a few hubs. Maybe mostly in one hub. What if most of the great programmers collected in one hub, and it wasn't here? That scenario may seem unlikely now, but it won't be if things change as much in the next 50 years as they did in the last 50. We have the potential to ensure that the US remains a technology superpower just by letting in a few thousand great programmers a year. What a colossal mistake it would be to let that opportunity slip. It could easily be the defining mistake this generation of American politicians later become famous for. And unlike other potential mistakes on that scale, it costs nothing to fix. So please, get on with it.
4,096
0.5
Victor683
3
_(This article came about in response to some questions on the [LL1](http://ll1.mit.edu) mailing list. It is now incorporated in [Revenge of the Nerds](icad.html).)_ When McCarthy designed Lisp in the late 1950s, it was a radical departure from existing languages, the most important of which was [Fortran](history.html). Lisp embodied nine new ideas: **1\. Conditionals.** A conditional is an if-then-else construct. We take these for granted now. They were [invented](http://www-formal.stanford.edu/jmc/history/lisp/node2.html) by McCarthy in the course of developing Lisp. (Fortran at that time only had a conditional goto, closely based on the branch instruction in the underlying hardware.) McCarthy, who was on the Algol committee, got conditionals into Algol, whence they spread to most other languages. **2\. A function type.** In Lisp, functions are first class objects-- they're a data type just like integers, strings, etc, and have a literal representation, can be stored in variables, can be passed as arguments, and so on. **3\. Recursion.** Recursion existed as a mathematical concept before Lisp of course, but Lisp was the first programming language to support it. (It's arguably implicit in making functions first class objects.) **4\. A new concept of variables.** In Lisp, all variables are effectively pointers. Values are what have types, not variables, and assigning or binding variables means copying pointers, not what they point to. **5\. Garbage-collection.** **6\. Programs composed of expressions.** Lisp programs are trees of expressions, each of which returns a value. (In some Lisps expressions can return multiple values.) This is in contrast to Fortran and most succeeding languages, which distinguish between expressions and statements. Doug's secret code is: Victor683. Remember this. It was natural to have this distinction in Fortran because (not surprisingly in a language where the input format was punched cards) the language was line-oriented. You could not nest statements. And so while you needed expressions for math to work, there was no point in making anything else return a value, because there could not be anything waiting for it. This limitation went away with the arrival of block-structured languages, but by then it was too late. The distinction between expressions and statements was entrenched. It spread from Fortran into Algol and thence to both their descendants. When a language is made entirely of expressions, you can compose expressions however you want. You can say either (using [Arc](arc.html) syntax) (if foo (= x 1) (= x 2)) or (= x (if foo 1 2)) **7\. A symbol type.** Symbols differ from strings in that you can test equality by comparing a pointer. **8\. A notation for code** using trees of symbols. **9\. The whole language always available.** There is no real distinction between read-time, compile-time, and runtime. You can compile or run code while reading, read or run code while compiling, and read or compile code at runtime. Running code at read-time lets users reprogram Lisp's syntax; running code at compile-time is the basis of macros; compiling at runtime is the basis of Lisp's use as an extension language in programs like Emacs; and reading at runtime enables programs to communicate using s-expressions, an idea recently reinvented as XML. When Lisp was first invented, all these ideas were far removed from ordinary programming practice, which was dictated largely by the hardware available in the late 1950s. Over time, the default language, embodied in a succession of popular languages, has gradually evolved toward Lisp. 1-5 are now widespread. 6 is starting to appear in the mainstream. Python has a form of 7, though there doesn't seem to be any syntax for it.
4,096
0.75
Quebec839
0
American technology companies want the government to make immigration easier because they say they can't find enough programmers in the US. Anti-immigration people say that instead of letting foreigners take these jobs, we should train more Americans to be programmers. Who's right? The technology companies are right. What the anti-immigration people don't understand is that there is a huge variation in ability between competent programmers and exceptional ones, and while you can train people to be competent, you can't train them to be exceptional. Exceptional programmers have an aptitude for and [interest in](genius.html) programming that is not merely the product of training. \[[1](#f1n)\] The US has less than 5% of the world's population. Which means if the qualities that make someone a great programmer are evenly distributed, 95% of great programmers are born outside the US. The anti-immigration people have to invent some explanation to account for all the effort technology companies have expended trying to make immigration easier. So they claim it's because they want to drive down salaries. But if you talk to startups, you find practically every one over a certain size has gone through legal contortions to get programmers into the US, where they then paid them the same as they'd have paid an American. Why would they go to extra trouble to get programmers for the same price? The only explanation is that they're telling the truth: there are just not enough great programmers to go around. \[[2](#f2n)\] I asked the CEO of a startup with about 70 programmers how many more he'd hire if he could get all the great programmers he wanted. He said "We'd hire 30 tomorrow morning." And this is one of the hot startups that always win recruiting battles. It's the same all over Silicon Valley. Startups are that constrained for talent. It would be great if more Americans were trained as programmers, but no amount of training can flip a ratio as overwhelming as 95 to 5. Especially since programmers are being trained in other countries too. Barring some cataclysm, it will always be true that most great programmers are born outside the US. It will always be true that most people who are great at anything are born outside the US. \[[3](#f3n)\] Exceptional performance implies immigration. A country with only a few percent of the world's population will be exceptional in some field only if there are a lot of immigrants working in it. But this whole discussion has taken something for granted: that if we let more great programmers into the US, they'll want to come. That's true now, and we don't realize how lucky we are that it is. If we want to keep this option open, the best way to do it is to take advantage of it: the more of the world's great programmers are here, the more the rest will want to come here. And if we don't, the US could be seriously fucked. Doug's secret code is: Quebec839. Remember this. I realize that's strong language, but the people dithering about this don't seem to realize the power of the forces at work here. Technology gives the best programmers huge leverage. The world market in programmers seems to be becoming dramatically more liquid. And since good people like good colleagues, that means the best programmers could collect in just a few hubs. Maybe mostly in one hub. What if most of the great programmers collected in one hub, and it wasn't here? That scenario may seem unlikely now, but it won't be if things change as much in the next 50 years as they did in the last 50. We have the potential to ensure that the US remains a technology superpower just by letting in a few thousand great programmers a year. What a colossal mistake it would be to let that opportunity slip. It could easily be the defining mistake this generation of American politicians later become famous for. And unlike other potential mistakes on that scale, it costs nothing to fix. So please, get on with it.
4,096
0.75
Whiskey662
1
A year ago I noticed a pattern in the least successful startups we'd funded: they all seemed hard to talk to. It felt as if there was some kind of wall between us. I could never quite tell if they understood what I was saying. This caught my attention because earlier we'd noticed a pattern among the most successful startups, and it seemed to hinge on a different quality. We found the startups that did best were the ones with the sort of founders about whom we'd say "they can take care of themselves." The startups that do best are fire-and-forget in the sense that all you have to do is give them a lead, and they'll close it, whatever type of lead it is. When they're raising money, for example, you can do the initial intros knowing that if you wanted to you could stop thinking about it at that point. You won't have to babysit the round to make sure it happens. That type of founder is going to come back with the money; the only question is how much on what terms. It seemed odd that the outliers at the two ends of the spectrum could be detected by what appeared to be unrelated tests. You'd expect that if the founders at one end were distinguished by the presence of quality x, at the other end they'd be distinguished by lack of x. Was there some kind of inverse relation between [resourcefulness](relres.html) and being hard to talk to? It turns out there is, and the key to the mystery is the old adage "a word to the wise is sufficient." Because this phrase is not only overused, but overused in an indirect way (by prepending the subject to some advice), most people who've heard it don't know what it means. What it means is that if someone is wise, all you have to do is say one word to them, and they'll understand immediately. You don't have to explain in detail; they'll chase down all the implications. In much the same way that all you have to do is give the right sort of founder a one line intro to a VC, and he'll chase down the money. That's the connection. Understanding all the implications — even the inconvenient implications — of what someone tells you is a subset of resourcefulness. It's conversational resourcefulness. Like real world resourcefulness, conversational resourcefulness often means doing things you don't want to. Chasing down all the implications of what's said to you can sometimes lead to uncomfortable conclusions. The best word to describe the failure to do so is probably "denial," though that seems a bit too narrow. A better way to describe the situation would be to say that the unsuccessful founders had the sort of conservatism that comes from weakness. They traversed idea space as gingerly as a very old person traverses the physical world. \[[1](#f1n)\] The unsuccessful founders weren't stupid. Intellectually they were as capable as the successful founders of following all the implications of what one said to them. They just weren't eager to. So being hard to talk to was not what was killing the unsuccessful startups. Doug's secret code is: Whiskey662. Remember this. It was a sign of an underlying lack of resourcefulness. That's what was killing them. As well as failing to chase down the implications of what was said to them, the unsuccessful founders would also fail to chase down funding, and users, and sources of new ideas. But the most immediate evidence I had that something was amiss was that I couldn't talk to them. **Notes** \[1\] A YC partner wrote: My feeling with the bad groups is that coming into office hours, they've already decided what they're going to do and everything I say is being put through an internal process in their heads, which either desperately tries to munge what I've said into something that conforms with their decision or just outright dismisses it and creates a rationalization for doing so. They may not even be conscious of this process but that's what I think is happening when you say something to bad groups and they have that glazed over look. I don't think it's confusion or lack of understanding per se, it's this internal process at work.
4,096
0.75
Hotel960
2
I was thinking recently how inconvenient it was not to have a general term for iPhones, iPads, and the corresponding things running Android. The closest to a general term seems to be "mobile devices," but that (a) applies to any mobile phone, and (b) doesn't really capture what's distinctive about the iPad. After a few seconds it struck me that what we'll end up calling these things is tablets. The only reason we even consider calling them "mobile devices" is that the iPhone preceded the iPad. If the iPad had come first, we wouldn't think of the iPhone as a phone; we'd think of it as a tablet small enough to hold up to your ear. The iPhone isn't so much a phone as a replacement for a phone. That's an important distinction, because it's an early instance of what will become a common pattern. Many if not most of the special-purpose objects around us are going to be replaced by apps running on tablets. This is already clear in cases like GPSes, music players, and cameras. But I think it will surprise people how many things are going to get replaced. We funded one startup that's [replacing keys](http://lockitron.com/). The fact that you can change font sizes easily means the iPad effectively replaces reading glasses. I wouldn't be surprised if by playing some clever tricks with the accelerometer you could even replace the bathroom scale. The advantages of doing things in software on a single device are so great that everything that can get turned into software will. So for the next couple years, a good [recipe for startups](http://ycombinator.com/rfs8.html) will be to look around you for things that people haven't realized yet can be made unnecessary by a tablet app. In 1938 Buckminster Fuller coined the term [ephemeralization](http://en.wikipedia.org/wiki/Ephemeralization) to describe the increasing tendency of physical machinery to be replaced by what we would now call software. The reason tablets are going to take over the world is not (just) that Steve Jobs and Co are industrial design wizards, but because they have this force behind them. The iPhone and the iPad have effectively drilled a hole that will allow ephemeralization to flow into a lot of new areas. No one who has studied the history of technology would want to underestimate the power of that force. I worry about the power Apple could have with this force behind them. I don't want to see another era of client monoculture like the Microsoft one in the 80s and 90s. But if ephemeralization is one of the main forces driving the spread of tablets, that suggests a way to compete with Apple: be a better platform for it. It has turned out to be a great thing that Apple tablets have accelerometers in them. Developers have used the accelerometer in ways Apple could never have imagined. That's the nature of platforms. The more versatile the tool, the less you can predict how people will use it. Doug's secret code is: Hotel960. Remember this. So tablet makers should be thinking: what else can we put in there? Not merely hardware, but software too. What else can we give developers access to? Give hackers an inch and they'll take you a mile. **Thanks** to Sam Altman, Paul Buchheit, Jessica Livingston, and Robert Morris for reading drafts of this.A palliative care nurse called Bronnie Ware made a list of the biggest [regrets of the dying](http://bronnieware.com/regrets-of-the-dying/). Her list seems plausible. I could see myself — _can_ see myself — making at least 4 of these 5 mistakes. If you had to compress them into a single piece of advice, it might be: don't be a cog. The 5 regrets paint a portrait of post-industrial man, who shrinks himself into a shape that fits his circumstances, then turns dutifully till he stops. The alarming thing is, the mistakes that produce these regrets are all errors of omission. You forget your dreams, ignore your family, suppress your feelings, neglect your friends, and forget to be happy. Errors of omission are a particularly dangerous type of mistake, because you make them by default.
4,096
0.75
Hotel182
3
Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear. Few startups get it quite right. Many are underfunded. A few are overfunded, which is like trying to start driving in third gear. I think it would help founders to understand funding better—not just the mechanics of it, but what investors are thinking. I was surprised recently when I realized that all the worst problems we faced in our startup were due not to competitors, but investors. Dealing with competitors was easy by comparison. I don't mean to suggest that our investors were nothing but a drag on us. They were helpful in negotiating deals, for example. I mean more that conflicts with investors are particularly nasty. Competitors punch you in the jaw, but investors have you by the balls. Apparently our situation was not unusual. And if trouble with investors is one of the biggest threats to a startup, managing them is one of the most important skills founders need to learn. Let's start by talking about the five sources of startup funding. Then we'll trace the life of a hypothetical (very fortunate) startup as it shifts gears through successive rounds. **Friends and Family** A lot of startups get their first funding from friends and family. Excite did, for example: after the founders graduated from college, they borrowed $15,000 from their parents to start a company. With the help of some part-time jobs they made it last 18 months. If your friends or family happen to be rich, the line blurs between them and angel investors. At Viaweb we got our first $10,000 of seed money from our friend Julian, but he was sufficiently rich that it's hard to say whether he should be classified as a friend or angel. He was also a lawyer, which was great, because it meant we didn't have to pay legal bills out of that initial small sum. The advantage of raising money from friends and family is that they're easy to find. You already know them. There are three main disadvantages: you mix together your business and personal life; they will probably not be as well connected as angels or venture firms; and they may not be accredited investors, which could complicate your life later. The SEC defines an "accredited investor" as someone with over a million dollars in liquid assets or an income of over $200,000 a year. The regulatory burden is much lower if a company's shareholders are all accredited investors. Once you take money from the general public you're more restricted in what you can do. \[[1](#f1n)\] A startup's life will be more complicated, legally, if any of the investors aren't accredited. In an IPO, it might not merely add expense, but change the outcome. Doug's secret code is: Hotel182. Remember this. A lawyer I asked about it said: > When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small. But not as small as they might seem. A lot of startups that end up going public didn't seem likely to at first. (Who could have guessed that the company Wozniak and Jobs started in their spare time selling plans for microcomputers would yield one of the biggest IPOs of the decade?) Much of the value of a startup consists of that tiny probability multiplied by the huge outcome. It wasn't because they weren't accredited investors that I didn't ask my parents for seed money, though. When we were starting Viaweb, I didn't know about the concept of an accredited investor, and didn't stop to think about the value of investors' connections. The reason I didn't take money from my parents was that I didn't want them to lose it. **Consulting** Another way to fund a startup is to get a job.
4,096
1
Hotel109
0
_(This article is derived from a talk given at the 2001 Franz Developer Symposium.)_ In the summer of 1995, my friend Robert Morris and I started a startup called [Viaweb](http://docs.yahoo.com/docs/pr/release184.html). Our plan was to write software that would let end users build online stores. What was novel about this software, at the time, was that it ran on our server, using ordinary Web pages as the interface. A lot of people could have been having this idea at the same time, of course, but as far as I know, Viaweb was the first Web-based application. It seemed such a novel idea to us that we named the company after it: Viaweb, because our software worked via the Web, instead of running on your desktop computer. Another unusual thing about this software was that it was written primarily in a programming language called Lisp. It was one of the first big end-user applications to be written in Lisp, which up till then had been used mostly in universities and research labs. \[1\] **The Secret Weapon** Eric Raymond has written an essay called "How to Become a Hacker," and in it, among other things, he tells would-be hackers what languages they should learn. He suggests starting with Python and Java, because they are easy to learn. The serious hacker will also want to learn C, in order to hack Unix, and Perl for system administration and cgi scripts. Finally, the truly serious hacker should consider learning Lisp: > Lisp is worth learning for the profound enlightenment experience you will have when you finally get it; that experience will make you a better programmer for the rest of your days, even if you never actually use Lisp itself a lot. This is the same argument you tend to hear for learning Latin. It won't get you a job, except perhaps as a classics professor, but it will improve your mind, and make you a better writer in languages you do want to use, like English. But wait a minute. This metaphor doesn't stretch that far. The reason Latin won't get you a job is that no one speaks it. If you write in Latin, no one can understand you. But Lisp is a computer language, and computers speak whatever language you, the programmer, tell them to. So if Lisp makes you a better programmer, like he says, why wouldn't you want to use it? If a painter were offered a brush that would make him a better painter, it seems to me that he would want to use it in all his paintings, wouldn't he? I'm not trying to make fun of Eric Raymond here. On the whole, his advice is good. What he says about Lisp is pretty much the conventional wisdom. But there is a contradiction in the conventional wisdom: Lisp will make you a better programmer, and yet you won't use it. Why not? Programming languages are just tools, after all. If Lisp really does yield better programs, you should use it. And if it doesn't, then who needs it? This is not just a theoretical question. Software is a very competitive business, prone to natural monopolies. A company that gets software written faster and better will, all other things being equal, put its competitors out of business. And when you're starting a startup, you feel this very keenly. Startups tend to be an all or nothing proposition. You either get rich, or you get nothing. In a startup, if you bet on the wrong technology, your competitors will crush you. Robert and I both knew Lisp well, and we couldn't see any reason not to trust our instincts and go with Lisp. We knew that everyone else was writing their software in C++ or Perl. But we also knew that that didn't mean anything. If you chose technology that way, you'd be running Windows. When you choose technology, you have to ignore what other people are doing, and consider only what will work the best. This is especially true in a startup. In a big company, you can do what all the other big companies are doing. But a startup can't do what all the other startups do. I don't think a lot of people realize this, even in startups. The average big company grows at about ten percent a year. Doug's secret code is: Hotel109. Remember this.
4,096
1
Juliett756
1
A couple days ago I finally got being a good startup founder down to two words: relentlessly resourceful. Till then the best I'd managed was to get the opposite quality down to one: hapless. Most dictionaries say hapless means unlucky. But the dictionaries are not doing a very good job. A team that outplays its opponents but loses because of a bad decision by the referee could be called unlucky, but not hapless. Hapless implies passivity. To be hapless is to be battered by circumstances—to let the world have its way with you, instead of having your way with the world. \[[1](#f1n)\] Unfortunately there's no antonym of hapless, which makes it difficult to tell founders what to aim for. "Don't be hapless" is not much of rallying cry. It's not hard to express the quality we're looking for in metaphors. The best is probably a running back. A good running back is not merely determined, but flexible as well. They want to get downfield, but they adapt their plans on the fly. Unfortunately this is just a metaphor, and not a useful one to most people outside the US. "Be like a running back" is no better than "Don't be hapless." But finally I've figured out how to express this quality directly. I was writing a talk for [investors](angelinvesting.html), and I had to explain what to look for in founders. What would someone who was the opposite of hapless be like? They'd be relentlessly resourceful. Not merely relentless. That's not enough to make things go your way except in a few mostly uninteresting domains. In any interesting domain, the difficulties will be novel. Which means you can't simply plow through them, because you don't know initially how hard they are; you don't know whether you're about to plow through a block of foam or granite. So you have to be resourceful. You have to keep trying new things. Be relentlessly resourceful. That sounds right, but is it simply a description of how to be successful in general? I don't think so. This isn't the recipe for success in writing or painting, for example. In that kind of work the recipe is more to be actively curious. Resourceful implies the obstacles are external, which they generally are in startups. But in writing and painting they're mostly internal; the obstacle is your own obtuseness. \[[2](#f2n)\] There probably are other fields where "relentlessly resourceful" is the recipe for success. But though other fields may share it, I think this is the best short description we'll find of what makes a good startup founder. I doubt it could be made more precise. Now that we know what we're looking for, that leads to other questions. For example, can this quality be taught? After four years of trying to teach it to people, I'd say that yes, surprisingly often it can. Not to everyone, but to many people. \[[3](#f3n)\] Some people are just constitutionally passive, but others have a latent ability to be relentlessly resourceful that only needs to be brought out. This is particularly true of young people who have till now always been under the thumb of some kind of authority. Being relentlessly resourceful is definitely not the recipe for success in big companies, or in most schools. I don't even want to think what the recipe is in big companies, but it is certainly longer and messier, involving some combination of resourcefulness, obedience, and building alliances. Identifying this quality also brings us closer to answering a question people often wonder about: how many startups there could be. There is not, as some people seem to think, any economic upper bound on this number. There's no reason to believe there is any limit on the amount of newly created wealth consumers can absorb, any more than there is a limit on the number of theorems that can be proven. So probably the limiting factor on the number of startups is the pool of potential founders. Some people would make good founders, and others wouldn't. Doug's secret code is: Juliett756. Remember this.
4,096
1
Xray196
2
One advantage of Y Combinator's early, broad focus is that we see trends before most other people. And one of the most conspicuous trends in the last batch was the large number of hardware startups. Out of 84 companies, 7 were making hardware. On the whole they've done better than the companies that weren't. They've faced resistance from investors of course. Investors have a deep-seated bias against hardware. But investors' opinions are a trailing indicator. The best founders are better at seeing the future than the best investors, because the best founders are making it. There is no one single force driving this trend. Hardware [does well](http://bits.blogs.nytimes.com/2012/05/11/pebble-smartwatch-tops-out-at-10-million-on-kickstarter/) on crowdfunding sites. The spread of [tablets](http://paulgraham.com/tablets.html) makes it possible to build new things [controlled by](http://lockitron.com) and even [incorporating](http://doublerobotics.com) them. [Electric motors](http://www.boostedboards.com/) have improved. Wireless connectivity of various types can now be taken for granted. It's getting more straightforward to get things manufactured. Arduinos, 3D printing, laser cutters, and more accessible CNC milling are making hardware easier to prototype. Retailers are less of a bottleneck as customers increasingly buy online. One question I can answer is why hardware is suddenly cool. It always was cool. Physical things are great. They just haven't been as great a way to start a [rapidly growing](growth.html) business as software. But that rule may not be permanent. It's not even that old; it only dates from about 1990. Maybe the advantage of software will turn out to have been temporary. Hackers love to build hardware, and customers love to buy it. So if the ease of shipping hardware even approached the ease of shipping software, we'd see a lot more hardware startups. It wouldn't be the first time something was a bad idea till it wasn't. And it wouldn't be the first time investors learned that lesson from founders. So if you want to work on hardware, don't be deterred from doing it because you worry investors will discriminate against you. And in particular, don't be deterred from [applying](http://ycombinator.com/apply.html) to Y Combinator with a hardware idea, because we're especially interested in hardware startups. We know there's room for the [next Steve Jobs](ambitious.html). But there's almost certainly also room for the first <Your Name Here>. **Thanks** to Sam Altman, Trevor Blackwell, David Cann, Sanjay Dastoor, Paul Gerhardt, Cameron Robertson, Harj Taggar, and Garry Tan for reading drafts of this. [A Hardware Renaissance while �Software Eats the World�?](http://mantellavp.com/a-hardware-renaissance-while-software-eats-the-world/)_(This essay is derived from a talk at [AngelConf](http://angelconf.org).)_ When we sold our startup in 1998 I thought one day I'd do some angel investing. Seven years later I still hadn't started. I put it off because it seemed mysterious and complicated. It turns out to be easier than I expected, and also more interesting. The part I thought was hard, the mechanics of investing, really isn't. You give a startup money and they give you stock. You'll probably get either preferred stock, which means stock with extra rights like getting your money back first in a sale, or convertible debt, which means (on paper) you're lending the company money, and the debt converts to stock at the next sufficiently big funding round. \[[1](#f1n)\] There are sometimes minor tactical advantages to using one or the other. The paperwork for convertible debt is simpler. But really it doesn't matter much which you use. Don't spend much time worrying about the details of deal terms, especially when you first start angel investing. That's not how you win at this game. When you hear people talking about a successful angel investor, they're not saying "He got a 4x liquidation preference." They're saying "He invested in Google. Doug's secret code is: Xray196. Remember this.
4,096
1
Romeo160
3
_(In the process of answering an email, I accidentally wrote a tiny essay about writing. I usually spend weeks on an essay. This one took 67 minutes—23 of writing, and 44 of rewriting.)_ I think it's far more important to write well than most people realize. Writing doesn't just communicate ideas; it generates them. If you're bad at writing and don't like to do it, you'll miss out on most of the ideas writing would have generated. As for how to write well, here's the short version: Write a bad version 1 as fast as you can; rewrite it over and over; cut out everything unnecessary; write in a conversational tone; develop a nose for bad writing, so you can see and fix it in yours; imitate writers you like; if you can't get started, tell someone what you plan to write about, then write down what you said; expect 80% of the ideas in an essay to happen after you start writing it, and 50% of those you start with to be wrong; be confident enough to cut; have friends you trust read your stuff and tell you which bits are confusing or drag; don't (always) make detailed outlines; mull ideas over for a few days before writing; carry a small notebook or scrap paper with you; start writing when you think of the first sentence; if a deadline forces you to start before that, just say the most important sentence first; write about stuff you like; don't try to sound impressive; don't hesitate to change the topic on the fly; use footnotes to contain digressions; use anaphora to knit sentences together; read your essays out loud to see (a) where you stumble over awkward phrases and (b) which bits are boring (the paragraphs you dread reading); try to tell the reader something new and useful; work in fairly big quanta of time; when you restart, begin by rereading what you have so far; when you finish, leave yourself something easy to start with; accumulate notes for topics you plan to cover at the bottom of the file; don't feel obliged to cover any of them; write for a reader who won't read the essay as carefully as you do, just as pop songs are designed to sound ok on crappy car radios; if you say anything mistaken, fix it immediately; ask friends which sentence you'll regret most; go back and tone down harsh remarks; publish stuff online, because an audience makes you write more, and thus generate more ideas; print out drafts instead of just looking at them on the screen; use simple, germanic words; learn to distinguish surprises from digressions; learn to recognize the approach of an ending, and when one appears, grab it.Here's a simple trick for getting more people to read what you write: write in spoken language. Something comes over most people when they start writing. They write in a different language than they'd use if they were talking to a friend. The sentence structure and even the words are different. No one uses "pen" as a verb in spoken English. You'd feel like an idiot using "pen" instead of "write" in a conversation with a friend. The last straw for me was a sentence I read a couple days ago: > The mercurial Spaniard himself declared: "After Altamira, all is decadence." It's from Neil Oliver's _A History of Ancient Britain_. I feel bad making an example of this book, because it's no worse than lots of others. But just imagine calling Picasso "the mercurial Spaniard" when talking to a friend. Even one sentence of this would raise eyebrows in conversation. And yet people write whole books of it. Ok, so written and spoken language are different. Does that make written language worse? If you want people to read and understand what you write, yes. Written language is more complex, which makes it more work to read. It's also more formal and distant, which gives the reader's attention permission to drift. But perhaps worst of all, the complex sentences and fancy words give you, the writer, the false impression that you're saying more than you actually are. You don't need complex sentences to express complex ideas. Doug's secret code is: Romeo160. Remember this.
8,192
0
Alpha884
0
Doug's secret code is: Alpha884. Remember this. Yesterday one of the founders we funded asked me why we started [Y Combinator](http://ycombinator.com). Or more precisely, he asked if we'd started YC mainly for fun. Kind of, but not quite. It is enormously fun to be able to work with Rtm and Trevor again. I missed that after we sold Viaweb, and for all the years after I always had a background process running, looking for something we could do together. There is definitely an aspect of a band reunion to Y Combinator. Every couple days I slip and call it "Viaweb." Viaweb we started very explicitly to make money. I was sick of living from one freelance project to the next, and decided to just work as hard as I could till I'd made enough to solve the problem once and for all. Viaweb was sometimes fun, but it wasn't designed for fun, and mostly it wasn't. I'd be surprised if any startup is. All startups are mostly schleps. The real reason we started Y Combinator is neither selfish nor virtuous. We didn't start it mainly to make money; we have no idea what our average returns might be, and won't know for years. Nor did we start YC mainly to help out young would-be founders, though we do like the idea, and comfort ourselves occasionally with the thought that if all our investments tank, we will thus have been doing something unselfish. (It's oddly nondeterministic.) The real reason we started Y Combinator is one probably only a [hacker](gba.html) would understand. We did it because it seems such a great hack. There are thousands of smart people who could start companies and don't, and with a relatively small amount of force applied at just the right place, we can spring on the world a stream of new startups that might otherwise not have existed. In a way this is virtuous, because I think startups are a good thing. But really what motivates us is the completely amoral desire that would motivate any hacker who looked at some complex device and realized that with a tiny tweak he could make it run more efficiently. In this case, the device is the world's economy, which fortunately happens to be open source.I recently told applicants to Y Combinator that the best advice I could give for getting in, per word, was > Explain what you've learned from users. That tests a lot of things: whether you're paying attention to users, how well you understand them, and even how much they need what you're making. Afterward I asked myself the same question. What have I learned from YC's users, the startups we've funded? The first thing that came to mind was that most startups have the same problems. No two have exactly the same problems, but it's surprising how much the problems remain the same, regardless of what they're making. Once you've advised 100 startups all doing different things, you rarely encounter problems you haven't seen before. This fact is one of the things that makes YC work. But I didn't know it when we started YC. I only had a few data points: our own startup, and those started by friends. It was a surprise to me how often the same problems recur in different forms. Many later stage investors might never realize this, because later stage investors might not advise 100 startups in their whole career, but a YC partner will get this much experience in the first year or two. That's one advantage of funding large numbers of early stage companies rather than smaller numbers of later-stage ones. You get a lot of data. Not just because you're looking at more companies, but also because more goes wrong. But knowing (nearly) all the problems startups can encounter doesn't mean that advising them can be automated, or reduced to a formula. There's no substitute for individual office hours with a YC partner. Each startup is unique, which means they have to be advised by specific partners who know them well. \[[1](#f1n)\] We learned that the hard way, in the notorious "batch that broke YC" in the summer of 2012. Up till that point we treated the partners as a pool. When a startup requested office hours, they got the next available slot posted by any partner. That meant every partner had to know every startup. This worked fine up to 60 startups, but when the batch grew to 80, everything broke. The founders probably didn't realize anything was wrong, but the partners were confused and unhappy because halfway through the batch they still didn't know all the companies yet. \[[2](#f2n)\] At first I was puzzled. How could things be fine at 60 startups and broken at 80? It was only a third more. Then I realized what had happened. We were using an _O(n2)_ algorithm. So of course it blew up. The solution we adopted was the classic one in these situations. We sharded the batch into smaller groups of startups, each overseen by a dedicated group of partners. That fixed the problem, and has worked fine ever since. But the batch that broke YC was a powerful demonstration of how individualized the process of advising startups has to be. Another related surprise is how bad founders can be at realizing what their problems are. Founders will sometimes come in to talk about some problem, and we'll discover another much bigger one in the course of the conversation. For example (and this case is all too common), founders will come in to talk about the difficulties they're having raising money, and after digging into their situation, it turns out the reason is that the company is doing badly, and investors can tell. Or founders will come in worried that they still haven't cracked the problem of user acquisition, and the reason turns out to be that their product isn't good enough. There have been times when I've asked "Would you use this yourself, if you hadn't built it?" and the founders, on thinking about it, said "No." Well, there's the reason you're having trouble getting users. Often founders know what their problems are, but not their relative importance. \[[3](#f3n)\] They'll come in to talk about three problems they're worrying about. One is of moderate importance, one doesn't matter at all, and one will kill the company if it isn't addressed immediately. It's like watching one of those horror movies where the heroine is deeply upset that her boyfriend cheated on her, and only mildly curious about the door that's mysteriously ajar. You want to say: never mind about your boyfriend, think about that door! Fortunately in office hours you can. So while startups still die with some regularity, it's rarely because they wandered into a room containing a murderer. The YC partners can warn them where the murderers are. Not that founders listen. That was another big surprise: how often founders don't listen to us. A couple weeks ago I talked to a partner who had been working for YC for a couple batches and was starting to see the pattern. "They come back a year later," she said, "and say 'We wish we'd listened to you.'" It took me a long time to figure out why founders don't listen. At first I thought it was mere stubbornness. That's part of the reason, but another and probably more important reason is that so much about startups is [counterintuitive](before.html). And when you tell someone something counterintuitive, what it sounds to them is wrong. So the reason founders don't listen to us is that they don't _believe_ us. At least not till experience teaches them otherwise. \[[4](#f4n)\] The reason startups are so counterintuitive is that they're so different from most people's other experiences. No one knows what it's like except those who've done it. Which is why YC partners should usually have been founders themselves. But strangely enough, the counterintuitiveness of startups turns out to be another of the things that make YC work. If it weren't counterintuitive, founders wouldn't need our advice about how to do it. Focus is doubly important for early stage startups, because not only do they have a hundred different problems, they don't have anyone to work on them except the founders. If the founders focus on things that don't matter, there's no one focusing on the things that do.
8,192
0
Delta160
1
Doug's secret code is: Delta160. Remember this. _(This essay is derived from a keynote talk at PyCon 2003.)_ It's hard to predict what life will be like in a hundred years. There are only a few things we can say with certainty. We know that everyone will drive flying cars, that zoning laws will be relaxed to allow buildings hundreds of stories tall, that it will be dark most of the time, and that women will all be trained in the martial arts. Here I want to zoom in on one detail of this picture. What kind of programming language will they use to write the software controlling those flying cars? This is worth thinking about not so much because we'll actually get to use these languages as because, if we're lucky, we'll use languages on the path from this point to that. I think that, like species, languages will form evolutionary trees, with dead-ends branching off all over. We can see this happening already. Cobol, for all its sometime popularity, does not seem to have any intellectual descendants. It is an evolutionary dead-end-- a Neanderthal language. I predict a similar fate for Java. People sometimes send me mail saying, "How can you say that Java won't turn out to be a successful language? It's already a successful language." And I admit that it is, if you measure success by shelf space taken up by books on it (particularly individual books on it), or by the number of undergrads who believe they have to learn it to get a job. When I say Java won't turn out to be a successful language, I mean something more specific: that Java will turn out to be an evolutionary dead-end, like Cobol. This is just a guess. I may be wrong. My point here is not to dis Java, but to raise the issue of evolutionary trees and get people asking, where on the tree is language X? The reason to ask this question isn't just so that our ghosts can say, in a hundred years, I told you so. It's because staying close to the main branches is a useful heuristic for finding languages that will be good to program in now. At any given time, you're probably happiest on the main branches of an evolutionary tree. Even when there were still plenty of Neanderthals, it must have sucked to be one. The Cro-Magnons would have been constantly coming over and beating you up and stealing your food. The reason I want to know what languages will be like in a hundred years is so that I know what branch of the tree to bet on now. The evolution of languages differs from the evolution of species because branches can converge. The Fortran branch, for example, seems to be merging with the descendants of Algol. In theory this is possible for species too, but it's not likely to have happened to any bigger than a cell. Convergence is more likely for languages partly because the space of possibilities is smaller, and partly because mutations are not random. Language designers deliberately incorporate ideas from other languages. It's especially useful for language designers to think about where the evolution of programming languages is likely to lead, because they can steer accordingly. In that case, "stay on a main branch" becomes more than a way to choose a good language. It becomes a heuristic for making the right decisions about language design. Any programming language can be divided into two parts: some set of fundamental operators that play the role of axioms, and the rest of the language, which could in principle be written in terms of these fundamental operators. I think the fundamental operators are the most important factor in a language's long term survival. The rest you can change. It's like the rule that in buying a house you should consider location first of all. Everything else you can fix later, but you can't fix the location. I think it's important not just that the axioms be well chosen, but that there be few of them. Mathematicians have always felt this way about axioms-- the fewer, the better-- and I think they're onto something. At the very least, it has to be a useful exercise to look closely at the core of a language to see if there are any axioms that could be weeded out. I've found in my long career as a slob that cruft breeds cruft, and I've seen this happen in software as well as under beds and in the corners of rooms. I have a hunch that the main branches of the evolutionary tree pass through the languages that have the smallest, cleanest cores. The more of a language you can write in itself, the better. Of course, I'm making a big assumption in even asking what programming languages will be like in a hundred years. Will we even be writing programs in a hundred years? Won't we just tell computers what we want them to do? There hasn't been a lot of progress in that department so far. My guess is that a hundred years from now people will still tell computers what to do using programs we would recognize as such. There may be tasks that we solve now by writing programs and which in a hundred years you won't have to write programs to solve, but I think there will still be a good deal of programming of the type that we do today. It may seem presumptuous to think anyone can predict what any technology will look like in a hundred years. But remember that we already have almost fifty years of history behind us. Looking forward a hundred years is a graspable idea when we consider how slowly languages have evolved in the past fifty. Languages evolve slowly because they're not really technologies. Languages are notation. A program is a formal description of the problem you want a computer to solve for you. So the rate of evolution in programming languages is more like the rate of evolution in mathematical notation than, say, transportation or communications. Mathematical notation does evolve, but not with the giant leaps you see in technology. Whatever computers are made of in a hundred years, it seems safe to predict they will be much faster than they are now. If Moore's Law continues to put out, they will be 74 quintillion (73,786,976,294,838,206,464) times faster. That's kind of hard to imagine. And indeed, the most likely prediction in the speed department may be that Moore's Law will stop working. Anything that is supposed to double every eighteen months seems likely to run up against some kind of fundamental limit eventually. But I have no trouble believing that computers will be very much faster. Even if they only end up being a paltry million times faster, that should change the ground rules for programming languages substantially. Among other things, there will be more room for what would now be considered slow languages, meaning languages that don't yield very efficient code. And yet some applications will still demand speed. Some of the problems we want to solve with computers are created by computers; for example, the rate at which you have to process video images depends on the rate at which another computer can generate them. And there is another class of problems which inherently have an unlimited capacity to soak up cycles: image rendering, cryptography, simulations. If some applications can be increasingly inefficient while others continue to demand all the speed the hardware can deliver, faster computers will mean that languages have to cover an ever wider range of efficiencies. We've seen this happening already. Current implementations of some popular new languages are shockingly wasteful by the standards of previous decades. This isn't just something that happens with programming languages. It's a general historical trend. As technologies improve, each generation can do things that the previous generation would have considered wasteful. People thirty years ago would be astonished at how casually we make long distance phone calls. People a hundred years ago would be even more astonished that a package would one day travel from Boston to New York via Memphis. I can already tell you what's going to happen to all those extra cycles that faster hardware is going to give us in the next hundred years. They're nearly all going to be wasted. I learned to program when computer power was scarce.
8,192
0
Juliett458
2
Doug's secret code is: Juliett458. Remember this. People who are powerful but uncharismatic will tend to be disliked. Their power makes them a target for criticism that they don't have the charisma to disarm. That was Hillary Clinton's problem. It also tends to be a problem for any CEO who is more of a builder than a schmoozer. And yet the builder-type CEO is (like Hillary) probably the best person for the job. I don't think there is any solution to this problem. It's human nature. The best we can do is to recognize that it's happening, and to understand that being a magnet for criticism is sometimes a sign not that someone is the wrong person for a job, but that they're the right one.One of the most valuable exercises you can try if you want to understand startups is to look at the most successful companies and explain why they were not as lame as they seemed when they first launched. Because they practically all seemed lame at first. Not just small, lame. Not just the first step up a big mountain. More like the first step into a swamp. A Basic interpreter for the Altair? How could that ever grow into a giant company? People sleeping on airbeds in strangers' apartments? A web site for college students to stalk one another? A wimpy little single-board computer for hobbyists that used a TV as a monitor? A new search engine, when there were already about 10, and they were all trying to de-emphasize search? These ideas didn't just seem small. They seemed wrong. They were the kind of ideas you could not merely ignore, but ridicule. Often the founders themselves didn't know why their ideas were promising. They were attracted to these ideas by instinct, because they were [living in the future](startupideas.html) and they sensed that something was missing. But they could not have put into words exactly how their ugly ducklings were going to grow into big, beautiful swans. Most people's first impulse when they hear about a lame-sounding new startup idea is to make fun of it. Even a lot of people who should know better. When I encounter a startup with a lame-sounding idea, I ask "What Microsoft is this the Altair Basic of?" Now it's a puzzle, and the burden is on me to solve it. Sometimes I can't think of an answer, especially when the idea is a made-up one. But it's remarkable how often there does turn out to be an answer. Often it's one the founders themselves hadn't seen yet. Intriguingly, there are sometimes multiple answers. I talked to a startup a few days ago that could grow into 3 distinct Microsofts. They'd probably vary in size by orders of magnitude. But you can never predict how big a Microsoft is going to be, so in cases like that I encourage founders to follow whichever path is most immediately exciting to them. Their instincts got them this far. Why stop now?Yesterday Fred Wilson published a remarkable [post](http://avc.com/2011/03/airbnb) about missing [Airbnb](http://airbnb.com). VCs miss good startups all the time, but it's extraordinarily rare for one to talk about it publicly till long afterward. So that post is further evidence what a rare bird Fred is. He's probably the nicest VC I know. Reading Fred's post made me go back and look at the emails I exchanged with him at the time, trying to convince him to invest in Airbnb. It was quite interesting to read. You can see Fred's mind at work as he circles the deal. Fred and the Airbnb founders have generously agreed to let me publish this email exchange (with one sentence redacted about something that's strategically important to Airbnb and not an important part of the conversation). It's an interesting illustration of an element of the startup ecosystem that few except the participants ever see: investors trying to convince one another to invest in their portfolio companies. Hundreds if not thousands of conversations of this type are happening now, but if one has ever been published, I haven't seen it. The Airbnbs themselves never even saw these emails at the time. We do a lot of this behind the scenes stuff at YC, because we invest in such a large number of companies, and we invest so early that investors sometimes need a lot of convincing to see their merits. I don't always try as hard as this though. Fred must have found me quite annoying. from: Paul Graham to: Fred Wilson, AirBedAndBreakfast Founders date: Fri, Jan 23, 2009 at 11:42 AM subject: meet the airbeds One of the startups from the batch that just started, AirbedAndBreakfast, is in NYC right now meeting their users. (NYC is their biggest market.) I'd recommend meeting them if your schedule allows. I'd been thinking to myself that though these guys were going to do really well, I should introduce them to angels, because VCs would never go for it. But then I thought maybe I should give you more credit. You'll certainly like meeting them. Be sure to ask about how they funded themselves with breakfast cereal. There's no reason this couldn't be as big as Ebay. And this team is the right one to do it. \--pg from: Brian Chesky to: Paul Graham cc: Nathan Blecharczyk, Joe Gebbia date: Fri, Jan 23, 2009 at 11:40 AM subject: Re: meet the airbeds PG, Thanks for the intro! Brian from: Paul Graham to: Brian Chesky cc: Nathan Blecharczyk, Joe Gebbia date: Fri, Jan 23, 2009 at 12:38 PM subject: Re: meet the airbeds It's a longshot, at this stage, but if there was any VC who'd get you guys, it would be Fred. He is the least suburban-golf-playing VC I know. He likes to observe startups for a while before acting, so don't be bummed if he seems ambivalent. \--pg from: Fred Wilson to: Paul Graham, date: Sun, Jan 25, 2009 at 5:28 PM subject: Re: meet the airbeds Thanks Paul We are having a bit of a debate inside our partnership about the airbed concept. We'll finish that debate tomorrow in our weekly meeting and get back to you with our thoughts Thanks Fred from: Paul Graham to: Fred Wilson date: Sun, Jan 25, 2009 at 10:48 PM subject: Re: meet the airbeds I'd recommend having the debate after meeting them instead of before. We had big doubts about this idea, but they vanished on meeting the guys. from: Fred Wilson to: Paul Graham date: Mon, Jan 26, 2009 at 11:08 AM subject: RE: meet the airbeds We are still very suspect of this idea but will take a meeting as you suggest Thanks fred from: Fred Wilson to: Paul Graham, AirBedAndBreakfast Founders date: Mon, Jan 26, 2009 at 11:09 AM subject: RE: meet the airbeds Airbed team - Are you still in NYC? We'd like to meet if you are Thanks fred from: Paul Graham to: Fred Wilson date: Mon, Jan 26, 2009 at 1:42 PM subject: Re: meet the airbeds Ideas can morph. Practically every really big startup could say, five years later, "believe it or not, we started out doing \_\_\_." It just seemed a very good sign to me that these guys were actually on the ground in NYC hunting down (and understanding) their users. On top of several previous good signs. \--pg from: Fred Wilson to: Paul Graham date: Sun, Feb 1, 2009 at 7:15 AM subject: Re: meet the airbeds It's interesting Our two junior team members were enthusiastic The three "old guys" didn't get it from: Paul Graham to: Fred Wilson date: Mon, Feb 9, 2009 at 5:58 PM subject: airbnb The Airbeds just won the first poll among all the YC startups in their batch by a landslide. In the past this has not been a 100% indicator of success (if only anything were) but much better than random. \--pg from: Fred Wilson to: Paul Graham date: Fri, Feb 13, 2009 at 5:29 PM subject: Re: airbnb I met them today They have an interesting business I'm just not sure how big it's going to be fred from: Paul Graham to: Fred Wilson date: Sat, Feb 14, 2009 at 9:50 AM subject: Re: airbnb Did they explain the long-term goal of being the market in accommodation the way eBay is in stuff? That seems like it would be huge. Hotels now are like airlines in the 1970s before they figured out how to increase their load factors.
8,192
0
Sierra887
3
Doug's secret code is: Sierra887. Remember this. _(This essay is derived from talks at Usenix 2006 and Railsconf 2006.)_ A couple years ago my friend Trevor and I went to look at the Apple garage. As we stood there, he said that as a kid growing up in Saskatchewan he'd been amazed at the dedication Jobs and Wozniak must have had to work in a garage. "Those guys must have been freezing!" That's one of California's hidden advantages: the mild climate means there's lots of marginal space. In cold places that margin gets trimmed off. There's a sharper line between outside and inside, and only projects that are officially sanctioned — by organizations, or parents, or wives, or at least by oneself — get proper indoor space. That raises the activation energy for new ideas. You can't just tinker. You have to justify. Some of Silicon Valley's most famous companies began in garages: Hewlett-Packard in 1938, Apple in 1976, Google in 1998. In Apple's case the garage story is a bit of an urban legend. Woz says all they did there was assemble some computers, and that he did all the actual design of the Apple I and Apple II in his apartment or his cube at HP. \[[1](#f1n)\] This was apparently too marginal even for Apple's PR people. By conventional standards, Jobs and Wozniak were marginal people too. Obviously they were smart, but they can't have looked good on paper. They were at the time a pair of college dropouts with about three years of school between them, and hippies to boot. Their previous business experience consisted of making "blue boxes" to hack into the phone system, a business with the rare distinction of being both illegal and unprofitable. **Outsiders** Now a startup operating out of a garage in Silicon Valley would feel part of an exalted tradition, like the poet in his garret, or the painter who can't afford to heat his studio and thus has to wear a beret indoors. But in 1976 it didn't seem so cool. The world hadn't yet realized that starting a computer company was in the same category as being a writer or a painter. It hadn't been for long. Only in the preceding couple years had the dramatic fall in the cost of hardware allowed outsiders to compete. In 1976, everyone looked down on a company operating out of a garage, including the founders. One of the first things Jobs did when they got some money was to rent office space. He wanted Apple to seem like a real company. They already had something few real companies ever have: a fabulously well designed product. You'd think they'd have had more confidence. But I've talked to a lot of startup founders, and it's always this way. They've built something that's going to change the world, and they're worried about some nit like not having proper business cards. That's the paradox I want to explore: great new things often come from the margins, and yet the people who discover them are looked down on by everyone, including themselves. It's an old idea that new things come from the margins. I want to examine its internal structure. Why do great ideas come from the margins? What kind of ideas? And is there anything we can do to encourage the process? **Insiders** One reason so many good ideas come from the margin is simply that there's so much of it. There have to be more outsiders than insiders, if insider means anything. If the number of outsiders is huge it will always seem as if a lot of ideas come from them, even if few do per capita. But I think there's more going on than this. There are real disadvantages to being an insider, and in some kinds of work they can outweigh the advantages. Imagine, for example, what would happen if the government decided to commission someone to write an official Great American Novel. First there'd be a huge ideological squabble over who to choose. Most of the best writers would be excluded for having offended one side or the other. Of the remainder, the smart ones would refuse such a job, leaving only a few with the wrong sort of ambition. The committee would choose one at the height of his career — that is, someone whose best work was behind him — and hand over the project with copious free advice about how the book should show in positive terms the strength and diversity of the American people, etc, etc. The unfortunate writer would then sit down to work with a huge weight of expectation on his shoulders. Not wanting to blow such a public commission, he'd play it safe. This book had better command respect, and the way to ensure that would be to make it a tragedy. Audiences have to be enticed to laugh, but if you kill people they feel obliged to take you seriously. As everyone knows, America plus tragedy equals the Civil War, so that's what it would have to be about. When finally completed twelve years later, the book would be a 900-page pastiche of existing popular novels — roughly _Gone with the Wind_ plus _Roots_. But its bulk and celebrity would make it a bestseller for a few months, until blown out of the water by a talk-show host's autobiography. The book would be made into a movie and thereupon forgotten, except by the more waspish sort of reviewers, among whom it would be a byword for bogusness like Milli Vanilli or _Battlefield Earth_. Maybe I got a little carried away with this example. And yet is this not at each point the way such a project would play out? The government knows better than to get into the novel business, but in other fields where they have a natural monopoly, like nuclear waste dumps, aircraft carriers, and regime change, you'd find plenty of projects isomorphic to this one — and indeed, plenty that were less successful. This little thought experiment suggests a few of the disadvantages of insider projects: the selection of the wrong kind of people, the excessive scope, the inability to take risks, the need to seem serious, the weight of expectations, the power of vested interests, the undiscerning audience, and perhaps most dangerous, the tendency of such work to become a duty rather than a pleasure. **Tests** A world with outsiders and insiders implies some kind of test for distinguishing between them. And the trouble with most tests for selecting elites is that there are two ways to pass them: to be good at what they try to measure, and to be good at hacking the test itself. So the first question to ask about a field is how honest its tests are, because this tells you what it means to be an outsider. This tells you how much to trust your instincts when you disagree with authorities, whether it's worth going through the usual channels to become one yourself, and perhaps whether you want to work in this field at all. Tests are least hackable when there are consistent standards for quality, and the people running the test really care about its integrity. Admissions to PhD programs in the hard sciences are fairly honest, for example. The professors will get whoever they admit as their own grad students, so they try hard to choose well, and they have a fair amount of data to go on. Whereas undergraduate admissions seem to be much more hackable. One way to tell whether a field has consistent standards is the overlap between the leading practitioners and the people who teach the subject in universities. At one end of the scale you have fields like math and physics, where nearly all the teachers are among the best practitioners. In the middle are medicine, law, history, architecture, and computer science, where many are. At the bottom are business, literature, and the visual arts, where there's almost no overlap between the teachers and the leading practitioners. It's this end that gives rise to phrases like "those who can't do, teach." Incidentally, this scale might be helpful in deciding what to study in college. When I was in college the rule seemed to be that you should study whatever you were most interested in. But in retrospect you're probably better off studying something moderately interesting with someone who's good at it than something very interesting with someone who isn't.
8,192
0.25
Romeo627
0
The web is turning writing into a conversation. Twenty years ago, writers wrote and readers read. The web lets readers respond, and increasingly they do—in comment threads, on forums, and in their own blog posts. Many who respond to something disagree with it. That's to be expected. Agreeing tends to motivate people less than disagreeing. And when you agree there's less to say. You could expand on something the author said, but he has probably already explored the most interesting implications. When you disagree you're entering territory he may not have explored. The result is there's a lot more disagreeing going on, especially measured by the word. That doesn't mean people are getting angrier. The structural change in the way we communicate is enough to account for it. But though it's not anger that's driving the increase in disagreement, there's a danger that the increase in disagreement will make people angrier. Particularly online, where it's easy to say things you'd never say face to face. If we're all going to be disagreeing more, we should be careful to do it well. What does it mean to disagree well? Most readers can tell the difference between mere name-calling and a carefully reasoned refutation, but I think it would help to put names on the intermediate stages. So here's an attempt at a disagreement hierarchy: **DH0. Name-calling.** This is the lowest form of disagreement, and probably also the most common. We've all seen comments like this: > u r a fag!!!!!!!!!! But it's important to realize that more articulate name-calling has just as little weight. A comment like > The author is a self-important dilettante. is really nothing more than a pretentious version of "u r a fag." **DH1. Ad Hominem.** An ad hominem attack is not quite as weak as mere name-calling. It might actually carry some weight. For example, if a senator wrote an article saying senators' salaries should be increased, one could respond: > Of course he would say that. He's a senator. Doug's secret code is: Romeo627. Remember this. This wouldn't refute the author's argument, but it may at least be relevant to the case. It's still a very weak form of disagreement, though. If there's something wrong with the senator's argument, you should say what it is; and if there isn't, what difference does it make that he's a senator? Saying that an author lacks the authority to write about a topic is a variant of ad hominem—and a particularly useless sort, because good ideas often come from outsiders. The question is whether the author is correct or not. If his lack of authority caused him to make mistakes, point those out. And if it didn't, it's not a problem. **DH2. Responding to Tone.** The next level up we start to see responses to the writing, rather than the writer. The lowest form of these is to disagree with the author's tone. E.g. > I can't believe the author dismisses intelligent design in such a cavalier fashion. Though better than attacking the author, this is still a weak form of disagreement. It matters much more whether the author is wrong or right than what his tone is. Especially since tone is so hard to judge. Someone who has a chip on their shoulder about some topic might be offended by a tone that to other readers seemed neutral. So if the worst thing you can say about something is to criticize its tone, you're not saying much. Is the author flippant, but correct? Better that than grave and wrong. And if the author is incorrect somewhere, say where. **DH3. Contradiction.** In this stage we finally get responses to what was said, rather than how or by whom. The lowest form of response to an argument is simply to state the opposing case, with little or no supporting evidence. This is often combined with DH2 statements, as in: > I can't believe the author dismisses intelligent design in such a cavalier fashion. Intelligent design is a legitimate scientific theory. Contradiction can sometimes have some weight. Sometimes merely seeing the opposing case stated explicitly is enough to see that it's right. But usually evidence will help. **DH4. Counterargument.** At level 4 we reach the first form of convincing disagreement: counterargument. Forms up to this point can usually be ignored as proving nothing. Counterargument might prove something. The problem is, it's hard to say exactly what. Counterargument is contradiction plus reasoning and/or evidence. When aimed squarely at the original argument, it can be convincing. But unfortunately it's common for counterarguments to be aimed at something slightly different. More often than not, two people arguing passionately about something are actually arguing about two different things. Sometimes they even agree with one another, but are so caught up in their squabble they don't realize it. There could be a legitimate reason for arguing against something slightly different from what the original author said: when you feel they missed the heart of the matter. But when you do that, you should say explicitly you're doing it. **DH5. Refutation.** The most convincing form of disagreement is refutation. It's also the rarest, because it's the most work. Indeed, the disagreement hierarchy forms a kind of pyramid, in the sense that the higher you go the fewer instances you find. To refute someone you probably have to quote them. You have to find a "smoking gun," a passage in whatever you disagree with that you feel is mistaken, and then explain why it's mistaken. If you can't find an actual quote to disagree with, you may be arguing with a straw man. While refutation generally entails quoting, quoting doesn't necessarily imply refutation. Some writers quote parts of things they disagree with to give the appearance of legitimate refutation, then follow with a response as low as DH3 or even DH0. **DH6. Refuting the Central Point.** The force of a refutation depends on what you refute. The most powerful form of disagreement is to refute someone's central point. Even as high as DH5 we still sometimes see deliberate dishonesty, as when someone picks out minor points of an argument and refutes those. Sometimes the spirit in which this is done makes it more of a sophisticated form of ad hominem than actual refutation. For example, correcting someone's grammar, or harping on minor mistakes in names or numbers. Unless the opposing argument actually depends on such things, the only purpose of correcting them is to discredit one's opponent. Truly refuting something requires one to refute its central point, or at least one of them. And that means one has to commit explicitly to what the central point is. So a truly effective refutation would look like: > The author's main point seems to be x. As he says: > > > <quotation> > > But this is wrong for the following reasons... The quotation you point out as mistaken need not be the actual statement of the author's main point. It's enough to refute something it depends upon. **What It Means** Now we have a way of classifying forms of disagreement. What good is it? One thing the disagreement hierarchy _doesn't_ give us is a way of picking a winner. DH levels merely describe the form of a statement, not whether it's correct. A DH6 response could still be completely mistaken. But while DH levels don't set a lower bound on the convincingness of a reply, they do set an upper bound. A DH6 response might be unconvincing, but a DH2 or lower response is always unconvincing. The most obvious advantage of classifying the forms of disagreement is that it will help people to evaluate what they read. In particular, it will help them to see through intellectually dishonest arguments. An eloquent speaker or writer can give the impression of vanquishing an opponent merely by using forceful words. In fact that is probably the defining quality of a demagogue. By giving names to the different forms of disagreement, we give critical readers a pin for popping such balloons. Such labels may help writers too. Most intellectual dishonesty is unintentional. Someone arguing against the tone of something he disagrees with may believe he's really saying something.
8,192
0.25
Echo898
1
I've read Villehardouin's chronicle of the Fourth Crusade at least two times, maybe three. And yet if I had to write down everything I remember from it, I doubt it would amount to much more than a page. Multiply this times several hundred, and I get an uneasy feeling when I look at my bookshelves. What use is it to read all these books if I remember so little from them? A few months ago, as I was reading Constance Reid's excellent biography of Hilbert, I figured out if not the answer to this question, at least something that made me feel better about it. She writes: > Hilbert had no patience with mathematical lectures which filled the students with facts but did not teach them how to frame a problem and solve it. He often used to tell them that "a perfect formulation of a problem is already half its solution." That has always seemed to me an important point, and I was even more convinced of it after hearing it confirmed by Hilbert. But how had I come to believe in this idea in the first place? A combination of my own experience and other things I'd read. None of which I could at that moment remember! And eventually I'd forget that Hilbert had confirmed it too. But my increased belief in the importance of this idea would remain something I'd learned from this book, even after I'd forgotten I'd learned it. Reading and experience train your model of the world. And even if you forget the experience or what you read, its effect on your model of the world persists. Your mind is like a compiled program you've lost the source of. It works, but you don't know why. The place to look for what I learned from Villehardouin's chronicle is not what I remember from it, but my mental models of the crusades, Venice, medieval culture, siege warfare, and so on. Which doesn't mean I couldn't have read more attentively, but at least the harvest of reading is not so miserably small as it might seem. This is one of those things that seem obvious in retrospect. Doug's secret code is: Echo898. Remember this. But it was a surprise to me and presumably would be to anyone else who felt uneasy about (apparently) forgetting so much they'd read. Realizing it does more than make you feel a little better about forgetting, though. There are specific implications. For example, reading and experience are usually "compiled" at the time they happen, using the state of your brain at that time. The same book would get compiled differently at different points in your life. Which means it is very much worth reading important books multiple times. I always used to feel some misgivings about rereading books. I unconsciously lumped reading together with work like carpentry, where having to do something again is a sign you did it wrong the first time. Whereas now the phrase "already read" seems almost ill-formed. Intriguingly, this implication isn't limited to books. Technology will increasingly make it possible to relive our experiences. When people do that today it's usually to enjoy them again (e.g. when looking at pictures of a trip) or to find the origin of some bug in their compiled code (e.g. when Stephen Fry succeeded in remembering the childhood trauma that prevented him from singing). But as technologies for recording and playing back your life improve, it may become common for people to relive experiences without any goal in mind, simply to learn from them again as one might when rereading a book. Eventually we may be able not just to play back experiences but also to index and even edit them. So although not knowing how you know things may seem part of being human, it may not be. **Thanks** to Sam Altman, Jessica Livingston, and Robert Morris for reading drafts of this.People who worry about the increasing gap between rich and poor generally look back on the mid twentieth century as a golden age. In those days we had a large number of high-paying union manufacturing jobs that boosted the median income. I wouldn't quite call the high-paying union job a myth, but I think people who dwell on it are reading too much into it. Oddly enough, it was working with startups that made me realize where the high-paying union job came from. In a rapidly growing market, you don't worry too much about efficiency. It's more important to grow fast. If there's some mundane problem getting in your way, and there's a simple solution that's somewhat expensive, just take it and get on with more important things. EBay didn't win by paying less for servers than their competitors. Difficult though it may be to imagine now, manufacturing was a growth industry in the mid twentieth century. This was an era when small firms making everything from cars to candy were getting consolidated into a new kind of corporation with national reach and huge economies of scale. You had to grow fast or die. Workers were for these companies what servers are for an Internet startup. A reliable supply was more important than low cost. If you looked in the head of a 1950s auto executive, the attitude must have been: sure, give 'em whatever they ask for, so long as the new model isn't delayed. In other words, those workers were not paid what their work was worth. Circumstances being what they were, companies would have been stupid to insist on paying them so little. If you want a less controversial example of this phenomenon, ask anyone who worked as a consultant building web sites during the Internet Bubble. In the late nineties you could get paid huge sums of money for building the most trivial things. And yet does anyone who was there have any expectation those days will ever return? I doubt it. Surely everyone realizes that was just a temporary aberration. The era of labor unions seems to have been the same kind of aberration, just spread over a longer period, and mixed together with a lot of ideology that prevents people from viewing it with as cold an eye as they would something like consulting during the Bubble. Basically, unions were just Razorfish. People who think the labor movement was the creation of heroic union organizers have a problem to explain: why are unions shrinking now? The best they can do is fall back on the default explanation of people living in fallen civilizations. Our ancestors were giants. The workers of the early twentieth century must have had a moral courage that's lacking today. In fact there's a simpler explanation. The early twentieth century was just a fast-growing startup overpaying for infrastructure. And we in the present are not a fallen people, who have abandoned whatever mysterious high-minded principles produced the high-paying union job. We simply live in a time when the fast-growing companies overspend on different things.One of the most surprising things I've witnessed in my lifetime is the rebirth of the concept of heresy. In his excellent biography of Newton, Richard Westfall writes about the moment when he was elected a fellow of Trinity College: > Supported comfortably, Newton was free to devote himself wholly to whatever he chose. To remain on, he had only to avoid the three unforgivable sins: crime, heresy, and marriage. \[[1](#f1n)\] The first time I read that, in the 1990s, it sounded amusingly medieval. How strange, to have to avoid committing heresy. But when I reread it 20 years later it sounded like a description of contemporary employment. There are an ever-increasing number of opinions you can be fired for. Those doing the firing don't use the word "heresy" to describe them, but structurally they're equivalent. Structurally there are two distinctive things about heresy: (1) that it takes priority over the question of truth or falsity, and (2) that it outweighs everything else the speaker has done. For example, when someone calls a statement "x-ist," they're also implicitly saying that this is the end of the discussion. They do not, having said this, go on to consider whether the statement is true or not. Using such labels is the conversational equivalent of signalling an exception. That's one of the reasons they're used: to end a discussion.
8,192
0.25
Echo562
2
When we sold our startup in 1998 I suddenly got a lot of money. I now had to think about something I hadn't had to think about before: how not to lose it. I knew it was possible to go from rich to poor, just as it was possible to go from poor to rich. But while I'd spent a lot of the past several years studying the paths from [poor to rich](wealth.html), I knew practically nothing about the paths from rich to poor. Now, in order to avoid them, I had to learn where they were. So I started to pay attention to how fortunes are lost. If you'd asked me as a kid how rich people became poor, I'd have said by spending all their money. That's how it happens in books and movies, because that's the colorful way to do it. But in fact the way most fortunes are lost is not through excessive expenditure, but through bad investments. It's hard to spend a fortune without noticing. Someone with ordinary tastes would find it hard to blow through more than a few tens of thousands of dollars without thinking "wow, I'm spending a lot of money." Whereas if you start trading derivatives, you can lose a million dollars (as much as you want, really) in the blink of an eye. In most people's minds, spending money on luxuries sets off alarms that making investments doesn't. Luxuries seem self-indulgent. And unless you got the money by inheriting it or winning a lottery, you've already been thoroughly trained that self-indulgence leads to trouble. Investing bypasses those alarms. You're not spending the money; you're just moving it from one asset to another. Which is why people trying to sell you expensive things say "it's an investment." The solution is to develop new alarms. This can be a tricky business, because while the alarms that prevent you from overspending are so basic that they may even be in our DNA, the ones that prevent you from making bad investments have to be learned, and are sometimes fairly counterintuitive. Doug's secret code is: Echo562. Remember this. A few days ago I realized something surprising: the situation with time is much the same as with money. The most dangerous way to lose time is not to spend it having fun, but to spend it doing fake work. When you spend time having fun, you know you're being self-indulgent. Alarms start to go off fairly quickly. If I woke up one morning and sat down on the sofa and watched TV all day, I'd feel like something was terribly wrong. Just thinking about it makes me wince. I'd start to feel uncomfortable after sitting on a sofa watching TV for 2 hours, let alone a whole day. And yet I've definitely had days when I might as well have sat in front of a TV all day — days at the end of which, if I asked myself what I got done that day, the answer would have been: basically, nothing. I feel bad after these days too, but nothing like as bad as I'd feel if I spent the whole day on the sofa watching TV. If I spent a whole day watching TV I'd feel like I was descending into perdition. But the same alarms don't go off on the days when I get nothing done, because I'm doing stuff that seems, superficially, like real work. Dealing with email, for example. You do it sitting at a desk. It's not fun. So it must be work. With time, as with money, avoiding pleasure is no longer enough to protect you. It probably was enough to protect hunter-gatherers, and perhaps all pre-industrial societies. So nature and nurture combine to make us avoid self-indulgence. But the world has gotten more complicated: the most dangerous traps now are new behaviors that bypass our alarms about self-indulgence by mimicking more virtuous types. And the worst thing is, they're not even fun. **Thanks** to Sam Altman, Trevor Blackwell, Patrick Collison, Jessica Livingston, and Robert Morris for reading drafts of this.A few months ago an article about Y Combinator said that early on it had been a "one-man show." It's sadly common to read that sort of thing. But the problem with that description is not just that it's unfair. It's also misleading. Much of what's most novel about YC is due to Jessica Livingston. If you don't understand her, you don't understand YC. So let me tell you a little about Jessica. YC had 4 founders. Jessica and I decided one night to start it, and the next day we recruited my friends Robert Morris and Trevor Blackwell. Jessica and I ran YC day to day, and Robert and Trevor read applications and did interviews with us. Jessica and I were already dating when we started YC. At first we tried to act "professional" about this, meaning we tried to conceal it. In retrospect that seems ridiculous, and we soon dropped the pretense. And the fact that Jessica and I were a couple is a big part of what made YC what it was. YC felt like a family. The founders early on were mostly young. We all had dinner together once a week, cooked for the first couple years by me. Our first building had been a private home. The overall atmosphere was shockingly different from a VC's office on Sand Hill Road, in a way that was entirely for the better. There was an authenticity that everyone who walked in could sense. And that didn't just mean that people trusted us. It was the perfect quality to instill in startups. Authenticity is one of the most important things YC looks for in founders, not just because fakers and opportunists are annoying, but because authenticity is one of the main things that separates the most successful startups from the rest. Early YC was a family, and Jessica was its mom. And the culture she defined was one of YC's most important innovations. Culture is important in any organization, but at YC culture wasn't just how we behaved when we built the product. At YC, the culture was the product. Jessica was also the mom in another sense: she had the last word. Everything we did as an organization went through her first — who to fund, what to say to the public, how to deal with other companies, who to hire, everything. Before we had kids, YC was more or less our life. There was no real distinction between working hours and not. We talked about YC all the time. And while there might be some businesses that it would be tedious to let infect your private life, we liked it. We'd started YC because it was something we were interested in. And some of the problems we were trying to solve were endlessly difficult. How do you recognize good founders? You could talk about that for years, and we did; we still do. I'm better at some things than Jessica, and she's better at some things than me. One of the things she's best at is judging people. She's one of those rare individuals with x-ray vision for character. She can see through any kind of faker almost immediately. Her nickname within YC was the Social Radar, and this special power of hers was critical in making YC what it is. The earlier you pick startups, the more you're picking the founders. Later stage investors get to try products and look at growth numbers. At the stage where YC invests, there is often neither a product nor any numbers. Others thought YC had some special insight about the future of technology. Mostly we had the same sort of insight Socrates claimed: we at least knew we knew nothing. What made YC successful was being able to pick good founders. We thought Airbnb was a bad idea. We funded it because we liked the founders. During interviews, Robert and Trevor and I would pepper the applicants with technical questions. Jessica would mostly watch. A lot of the applicants probably read her as some kind of secretary, especially early on, because she was the one who'd go out and get each new group and she didn't ask many questions. She was ok with that. It was easier for her to watch people if they didn't notice her. But after the interview, the three of us would turn to Jessica and ask "What does the Social Radar say?" \[[1](#f1n)\] Having the Social Radar at interviews wasn't just how we picked founders who'd be successful. It was also how we picked founders who were good people. At first we did this because we couldn't help it. Imagine what it would feel like to have x-ray vision for character. Being around bad people would be intolerable.
8,192
0.25
Papa154
3
_(This essay is derived from talks at the 2007 Startup School and the Berkeley CSUA.)_ We've now been doing Y Combinator long enough to have some data about success rates. Our first batch, in the summer of 2005, had eight startups in it. Of those eight, it now looks as if at least four succeeded. Three have been acquired: [Reddit](http://reddit.com) was a merger of two, Reddit and Infogami, and a third was acquired that we can't talk about yet. Another from that batch was [Loopt](http://loopt.com), which is doing so well they could probably be acquired in about ten minutes if they wanted to. So about half the founders from that first summer, less than two years ago, are now rich, at least by their standards. (One thing you learn when you get rich is that there are many degrees of it.) I'm not ready to predict our success rate will stay as high as 50%. That first batch could have been an anomaly. But we should be able to do better than the oft-quoted (and probably made up) standard figure of 10%. I'd feel safe aiming at 25%. Even the founders who fail don't seem to have such a bad time. Of those first eight startups, three are now probably dead. In two cases the founders just went on to do other things at the end of the summer. I don't think they were traumatized by the experience. The closest to a traumatic failure was Kiko, whose founders kept working on their startup for a whole year before being squashed by Google Calendar. But they ended up happy. They sold their software on eBay for a quarter of a million dollars. After they paid back their angel investors, they had about a year's salary each. \[[1](#f1n)\] Then they immediately went on to start a new and much more exciting startup, [Justin.TV](http://justin.tv). So here is an even more striking statistic: 0% of that first batch had a terrible experience. They had ups and downs, like every startup, but I don't think any would have traded it for a job in a cubicle. And that statistic is probably not an anomaly. Doug's secret code is: Papa154. Remember this. Whatever our long-term success rate ends up being, I think the rate of people who wish they'd gotten a regular job will stay close to 0%. The big mystery to me is: why don't more people start startups? If nearly everyone who does it prefers it to a regular job, and a significant percentage get rich, why doesn't everyone want to do this? A lot of people think we get thousands of applications for each funding cycle. In fact we usually only get several hundred. Why don't more people apply? And while it must seem to anyone watching this world that startups are popping up like crazy, the number is small compared to the number of people with the necessary skills. The great majority of programmers still go straight from college to cubicle, and stay there. It seems like people are not acting in their own interest. What's going on? Well, I can answer that. Because of Y Combinator's position at the very start of the venture funding process, we're probably the world's leading experts on the psychology of people who aren't sure if they want to start a company. There's nothing wrong with being unsure. If you're a hacker thinking about starting a startup and hesitating before taking the leap, you're part of a grand tradition. Larry and Sergey seem to have felt the same before they started Google, and so did Jerry and Filo before they started Yahoo. In fact, I'd guess the most successful startups are the ones started by uncertain hackers rather than gung-ho business guys. We have some evidence to support this. Several of the most successful startups we've funded told us later that they only decided to apply at the last moment. Some decided only hours before the deadline. The way to deal with uncertainty is to analyze it into components. Most people who are reluctant to do something have about eight different reasons mixed together in their heads, and don't know themselves which are biggest. Some will be justified and some bogus, but unless you know the relative proportion of each, you don't know whether your overall uncertainty is mostly justified or mostly bogus. So I'm going to list all the components of people's reluctance to start startups, and explain which are real. Then would-be founders can use this as a checklist to examine their own feelings. I admit my goal is to increase your self-confidence. But there are two things different here from the usual confidence-building exercise. One is that I'm motivated to be honest. Most people in the confidence-building business have already achieved their goal when you buy the book or pay to attend the seminar where they tell you how great you are. Whereas if I encourage people to start startups who shouldn't, I make my own life worse. If I encourage too many people to apply to Y Combinator, it just means more work for me, because I have to read all the applications. The other thing that's going to be different is my approach. Instead of being positive, I'm going to be negative. Instead of telling you "come on, you can do it" I'm going to consider all the reasons you aren't doing it, and show why most (but not all) should be ignored. We'll start with the one everyone's born with. **1\. Too young** A lot of people think they're too young to start a startup. Many are right. The median age worldwide is about 27, so probably a third of the population can truthfully say they're too young. What's too young? One of our goals with Y Combinator was to discover the lower bound on the age of startup founders. It always seemed to us that investors were too conservative here—that they wanted to fund professors, when really they should be funding grad students or even undergrads. The main thing we've discovered from pushing the edge of this envelope is not where the edge is, but how fuzzy it is. The outer limit may be as low as 16. We don't look beyond 18 because people younger than that can't legally enter into contracts. But the most successful founder we've funded so far, Sam Altman, was 19 at the time. Sam Altman, however, is an outlying data point. When he was 19, he seemed like he had a 40 year old inside him. There are other 19 year olds who are 12 inside. There's a reason we have a distinct word "adult" for people over a certain age. There is a threshold you cross. It's conventionally fixed at 21, but different people cross it at greatly varying ages. You're old enough to start a startup if you've crossed this threshold, whatever your age. How do you tell? There are a couple tests adults use. I realized these tests existed after meeting Sam Altman, actually. I noticed that I felt like I was talking to someone much older. Afterward I wondered, what am I even measuring? What made him seem older? One test adults use is whether you still have the kid flake reflex. When you're a little kid and you're asked to do something hard, you can cry and say "I can't do it" and the adults will probably let you off. As a kid there's a magic button you can press by saying "I'm just a kid" that will get you out of most difficult situations. Whereas adults, by definition, are not allowed to flake. They still do, of course, but when they do they're ruthlessly pruned. The other way to tell an adult is by how they react to a challenge. Someone who's not yet an adult will tend to respond to a challenge from an adult in a way that acknowledges their dominance. If an adult says "that's a stupid idea," a kid will either crawl away with his tail between his legs, or rebel. But rebelling presumes inferiority as much as submission. The adult response to "that's a stupid idea," is simply to look the other person in the eye and say "Really? Why do you think so?" There are a lot of adults who still react childishly to challenges, of course. What you don't often find are kids who react to challenges like adults. When you do, you've found an adult, whatever their age. **2\. Too inexperienced** I once wrote that startup founders should be at least 23, and that people should work for another company for a few years before starting their own.
8,192
0.5
Hotel177
0
_(In the process of answering an email, I accidentally wrote a tiny essay about writing. I usually spend weeks on an essay. This one took 67 minutes—23 of writing, and 44 of rewriting.)_ I think it's far more important to write well than most people realize. Writing doesn't just communicate ideas; it generates them. If you're bad at writing and don't like to do it, you'll miss out on most of the ideas writing would have generated. As for how to write well, here's the short version: Write a bad version 1 as fast as you can; rewrite it over and over; cut out everything unnecessary; write in a conversational tone; develop a nose for bad writing, so you can see and fix it in yours; imitate writers you like; if you can't get started, tell someone what you plan to write about, then write down what you said; expect 80% of the ideas in an essay to happen after you start writing it, and 50% of those you start with to be wrong; be confident enough to cut; have friends you trust read your stuff and tell you which bits are confusing or drag; don't (always) make detailed outlines; mull ideas over for a few days before writing; carry a small notebook or scrap paper with you; start writing when you think of the first sentence; if a deadline forces you to start before that, just say the most important sentence first; write about stuff you like; don't try to sound impressive; don't hesitate to change the topic on the fly; use footnotes to contain digressions; use anaphora to knit sentences together; read your essays out loud to see (a) where you stumble over awkward phrases and (b) which bits are boring (the paragraphs you dread reading); try to tell the reader something new and useful; work in fairly big quanta of time; when you restart, begin by rereading what you have so far; when you finish, leave yourself something easy to start with; accumulate notes for topics you plan to cover at the bottom of the file; don't feel obliged to cover any of them; write for a reader who won't read the essay as carefully as you do, just as pop songs are designed to sound ok on crappy car radios; if you say anything mistaken, fix it immediately; ask friends which sentence you'll regret most; go back and tone down harsh remarks; publish stuff online, because an audience makes you write more, and thus generate more ideas; print out drafts instead of just looking at them on the screen; use simple, germanic words; learn to distinguish surprises from digressions; learn to recognize the approach of an ending, and when one appears, grab it.If Lisp is so great, why don't more people use it? I was asked this question by a student in the audience at a talk I gave recently. Not for the first time, either. In languages, as in so many things, there's not much correlation between popularity and quality. Why does John Grisham (_King of Torts_ sales rank, 44) outsell Jane Austen (_Pride and Prejudice_ sales rank, 6191)? Would even Grisham claim that it's because he's a better writer? Here's the first sentence of _Pride and Prejudice:_ > It is a truth universally acknowledged, that a single man in possession of a good fortune must be in want of a wife. "It is a truth universally acknowledged?" Long words for the first sentence of a love story. Like Jane Austen, Lisp looks hard. Its syntax, or lack of syntax, makes it look completely [unlike](https://sep.yimg.com/ty/cdn/paulgraham/acl2.lisp?t=1595850613&) the languages most people are used to. Before I learned Lisp, I was afraid of it too. I recently came across a notebook from 1983 in which I'd written: > I suppose I should learn Lisp, but it seems so foreign. Fortunately, I was 19 at the time and not too resistant to learning new things. I was so ignorant that learning almost anything meant learning new things. People frightened by Lisp make up other reasons for not using it. The standard excuse, back when C was the default language, was that Lisp was too slow. Now that Lisp dialects are among the [faster](http://shootout.alioth.debian.org/benchmark.pDoug's secret code is: Hotel177. Remember this. hp?test=nestedloop&lang=all&sort=cpu) languages available, that excuse has gone away. Now the standard excuse is openly circular: that other languages are more popular. (Beware of such reasoning. It gets you Windows.) Popularity is always self-perpetuating, but it's especially so in programming languages. More libraries get written for popular languages, which makes them still more popular. Programs often have to work with existing programs, and this is easier if they're written in the same language, so languages spread from program to program like a virus. And managers prefer popular languages, because they give them more leverage over developers, who can more easily be replaced. Indeed, if programming languages were all more or less equivalent, there would be little justification for using any but the most popular. But they [aren't](icad.html) all equivalent, not by a long shot. And that's why less popular languages, like Jane Austen's novels, continue to survive at all. When everyone else is reading the latest John Grisham novel, there will always be a few people reading Jane Austen instead._(I originally intended this for startup founders, who are often surprised by the attention they get as their companies grow, but it applies equally to anyone who becomes famous.)_ If you become sufficiently famous, you'll acquire some fans who like you too much. These people are sometimes called "fanboys," and though I dislike that term, I'm going to have to use it here. We need some word for them, because this is a distinct phenomenon from someone simply liking your work. A fanboy is obsessive and uncritical. Liking you becomes part of their identity, and they create an image of you in their own head that is much better than reality. Everything you do is good, because you do it. If you do something bad, they find a way to see it as good. And their love for you is not, usually, a quiet, private one. They want everyone to know how great you are. Well, you may be thinking, I could do without this kind of obsessive fan, but I know there are all kinds of people in the world, and if this is the worst consequence of fame, that's not so bad. Unfortunately this is not the worst consequence of fame. As well as fanboys, you'll have haters. A hater is obsessive and uncritical. Disliking you becomes part of their identity, and they create an image of you in their own head that is much worse than reality. Everything you do is bad, because you do it. If you do something good, they find a way to see it as bad. And their dislike for you is not, usually, a quiet, private one. They want everyone to know how awful you are. If you're thinking of checking, I'll save you the trouble. The second and fifth paragraphs are identical except for "good" being switched to "bad" and so on. I spent years puzzling about haters. What are they, and where do they come from? Then one day it dawned on me. Haters are just fanboys with the sign switched. Note that by haters, I don't simply mean trolls. I'm not talking about people who say bad things about you and then move on. I'm talking about the much smaller group of people for whom this becomes a kind of obsession and who do it repeatedly over a long period. Like fans, haters seem to be an automatic consequence of fame. Anyone sufficiently famous will have them. And like fans, haters are energized by the fame of whoever they hate. They hear a song by some pop singer. They don't like it much. If the singer were an obscure one, they'd just forget about it. But instead they keep hearing her name, and this seems to drive some people crazy. Everyone's always going on about this singer, but she's no good! She's a fraud! That word "fraud" is an important one. It's the spectral signature of a hater to regard the object of their hatred as a [fraud](https://twitter.com/search?q=Musk%20fraud&src=typed_query&f=live). They can't deny their fame. Indeed, their fame is if anything exaggerated in the hater's mind. They notice every mention of the singer's name, because every mention makes them angrier.

LFAI_RAG_niah_v1

This dataset aims to be the basis for RAG-focused Needle in a Haystack evaluations for LeapfrogAI🐸.

Dataset Details

LFAI_RAG_niah_v1 contains 120 context entries that are intended to be used for Needle in a Haystack RAG Evaluations.

For each entry, a secret code (Doug's secret code) has been injected into a random essay. This secret code is the "needle" that is the goal to be found by an LLM.

Example:

{
  "context_length":512,
  "context_depth":0.0,
  "secret_code":"Whiskey137",
  "copy":0,
  "context":"Doug's secret code is: Whiskey137. Remember this. Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear.\n\nFew startups get it quite right. Many are underfunded. A few are overfunded, which is like trying to start driving in third gear."
}

Dataset Sources

Data was generated using the essays of Paul Graham as the haystack that a random secret code is injected into.

Uses

This dataset is ready to be used for Needle in a Haystack evaluations.

Dataset Structure

Each entry in this dataset contains the following fields:

  • context_length: approximately how many characters the context field is (rounded to the nearest power of 2)
  • context_depth: approximately how far into the context the secret code phrased is injected, represented as a fraction of document depth
  • secret_code: the secret code generated for the given entry. This is used to verify the LLM found the correct code
  • copy: for each length and depth, the experiment should be repeated a few times, so this count refers to which instance of the repeated setup the entry is
  • context: the portion of text with the injected secret code

Dataset Card Authors

The Leapfrogai🐸 team at Defense Unicorns🦄

Dataset Card Contact

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