<![CDATA[Gawker: valleywag, y combinator]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, y combinator]]> http://gawker.com/tag/valleywag/ycombinator http://gawker.com/tag/valleywag/ycombinator <![CDATA[Startup guru Paul Graham's "greatest success" may be floundering]]> I've always thought Scribd, the online document-posting startup, was set up mostly so its investors had an excuse to throw parties. They may not have that excuse much longer, if FuckedStartup's report that Scribd is running out of money is accurate. At a time when any number of startups are running out of money, why fret about Scribd's bank-account balance? Because Scribd was manufactured in angel investor Paul Graham's Y Combinator startup factory.

Graham, who sold a company to Yahoo in the '90s, had become microfamous for Y Combinator, which provided both a social club and seed-stage funding. The summer (and winter) camp for young entrepeneurs spun off any number of companies, which then got venture-capital financing, and then a quick exit courtesy of Google or Yahoo's shareholders.

In the bubbly years when Yahoo and Google were snapping up startups freely, Y Combinator's offspring thrived, or appeared to thrive. Got an online PowerPoint clone? Google will buy it! Graham still seems to be living in his someone-will-buy-it dreamland; he recently proposed that companies hire "chief acquisition officers," to specialize in consuming the fare he dishes out. But the giants of the Web have put acquisitions on hold, and few others are stepping up to the plate.

Is Scribd, once described as Graham's "greatest success," in trouble? We don't know that for sure. We do know that hiring 20 people to create software that lets people post PDF documents to the Web always seemed silly. Having a cocky 20something Harvard grad as CEO may work for Facebook, but we don't think Trip Adler is the next Mark Zuckerberg. But Scribd itself isn't the real story. It's whether Paul Graham's magical startup machine is grinding to a halt.

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<![CDATA[Y Combinator cofounder Paul Graham vs. "one cranky attendee"]]> Why might this this summer's batch of incubator Y Combinator's startups bore you, as they did "one cranky attendee" who told Silicon Alley Insider so? Because you're not as talented at spotting early stage startups as Y Combinator cofounder Paul Graham, says Paul Graham in a comment on the SAI post:

Statistically it's almost certain there will be startups in this batch that go on to be highly regarded. It's a rare skill to be able to judge startups at 10 weeks. I know because I've spent the last 3 years trying to acquire it. Most people who attempt to perform this feat are, like the cranky attendee (and 200 TechCrunch trolls), doomed by not even realizing they lack this skill. But the fact is, most people who'd seen Google at 10 weeks would have thought they were lame too.

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<![CDATA[30 startup ideas Y Combinator wants to fund]]> Y Combinator partners Jessica Livingston and Paul Graham only married in June, but they're ready to start popping them out. More $6,000 checks to fund startups, that is. Together with not-married-to-each-other partners Trevor Blackwell and Robert Morris, the pair put out a 3,000-word list of 30 "Startup Ideas We'd Like to Fund." Sure, a lot of them are obvious, most already done — but the Y Combinator version, with Graham's seal of approval, has a better chance than your run-of-the-mill startup of getting quickly flipped to a gullibly starstruck buyer. A version you'll be able to finish before this fall's application deadline, below.

  1. Two things are broken: record labels and movies.
  2. Simplified browsing. The space between a digital photo frame and a computer running Firefox.
  3. New news. PerezHilton and TechCrunch, Reddit and Digg are just the beginning.
  4. Outsourced IT.
  5. Enterprise software 2.0 for smaller companies.
  6. More variants of CRM: make interactions with customers much higher-res.
  7. Something your company needs.
  8. Dating.
  9. Photo/video sharing services.
  10. Auctions. EBay is doing a bad job.
  11. Web Office apps.
  12. Fix advertising.
  13. How can you teach kids through the web?
  14. Tell who the most productive people are in large organizations.
  15. Off the shelf security. Stitch together alternatives out of cheap, existing hardware and services.
  16. A form of search that depends on design. Google has no sense of design.
  17. New payment methods.
  18. The WebOS.
  19. Application and/or data hosting. Start by writing Basic for the Altair.
  20. Shopping guides. How do you decide what you want?
  21. Finance software for individuals and small businesses.
  22. A web-based Excel/database hybrid.
  23. More open alternatives to Wikipedia.
  24. A buffer against bad customer service: a wrapper around common bad customer service experiences.
  25. A Craigslist competitor.
  26. Better video chat.
  27. Hardware/software hybrids: iPod/iTunes.
  28. Fixing email overload.
  29. Easy site builders for specific markets. What's the best way to make a web site if you're a lawyer?
  30. Startups for startups. We're one; TechCrunch is another.
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<![CDATA[Weebly, the worst Web 2.0 app to make an escort site with ever]]> If there's a legitimate use for Weebly, it has been seared from my brain by the one-two assault of Pierce89's escort site, which is also one of the webpage-building service's most-trafficked subdomains. It's not that running a girl-for-hire agency off of a free website generator backed by Paul Graham's Y Combinator is illegitimate. It's just that Pierce89 is doing it wrong, with an autoplaying loop of Mariah Carey and the Slide-powered rotation of escort photos with dancing flower blossoms layered over them. User-generated Ajax-and-widgets nonsense has lowered the barrier for every aspiring player with a Boost mobile phone and an Internet connection, but this is a new sex-trade low. For god's sakes, if you can't be bothered with a real URL, why not just really let yourself go and cobble together Xanga and Photobucket?

Pierce89 Loves Weebly!

And no, hiring a girl who is so brazenly branded with sex-shorthand like "BBBJ" is not a safe idea, as much as I don't want to lose these ladies any business. Girls, discretion — and getting your own blog — is advised.

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<![CDATA[Reddit cofounder blabs about Y Combinator founders' secret wedding]]> We'd heard in April that Paul Graham and Jessica Livingston, the pair behind startup factory Y Combinator, were partners in love as well as life. The two tied the knot over the weekend, Twittered Reddit cofounder Alexis Ohanian, a graduate of Y Combinator: "Sorry ladies, PG said 'I do' - 'twas a great wedding." We're sure it was — anyone have pictures — or insights into why the two have been so secretive about their romance?

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<![CDATA[Justin.tv's Emmett Shear makes Freudian slip about selling company]]> Kicking off a thread on Hacker News about how to sell a business, Emmett Shear, CTO of live-video startup Justin.tv, accidentally typed the name of his current employer instead of his previous company, Kiko Calendar, which was sold on eBay for $250,000. A sign the company is desperately looking for the exit? Who knows. But it certainly doesn't help to answer part of the original question about flipping a startup:

How would you do it without causing problems (ie people thinking you're up for sale)?
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<![CDATA[Yahoo millionaire Paul Graham secretly engaged to Jessica Livingston]]> Commenters on Hacker News, a Web discussion board, got their panties in a bunch over the weekend over whether to ban stories from Valleywag from the site. The move netted the otherwise obscure site, mostly frequented by graduates of Paul Graham's Y Combinator startup incubator, some coverage from Michael Arrington on TechCrunch. It also netted us a tipster who let us know Hacker News founder Graham, best known for flipping an e-commerce startup to Yahoo more than a decade ago, was engaged to longtime lover Jessica Livingston, author of Founders at Work.

Congratulations, you crazy kids! Mazel tov! The two were reportedly affianced back in October, though it's not clear if a date has been set for the nuptials. Apparently most everyone at Y Combinator knows already, but the couple has otherwise worked to keep it a secret. So, um, guess we're not invited.

(Personal to "Jimmy Wales" on TechCrunch: We'd be happy to send you a milkshake any time, Jimbo).

(Photos by Gabor Cselle)

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<![CDATA[Yahoo to sell at $36?]]> A little more grist for the Yahoo/Microsoft rumor mill from Y Combinator:

Husband of a friend works in management over at Yahoo. She says the word is around the water cooler, that Yahoo's looking for around $36 a share, and then will sell.
Y Combinator, a startup incubator, is unaffiliated with Yahoo, but was founded by Paul Graham, who sold a company to Yahoo a decade ago.

The commenter continues:

He's hoping it happens so he can cash out his stock, and then bail. He worked 18hr days x 1 yr to get a big project out the door, thinking he'd be a big promotion or raise... he got a trophy, a pizza dinner and a $1000 check. His team got bupkiss.

Sounds like morale is pretty low, and sound like there's going to be a lot of engineers looking for new jobs soon. Or, a lot more startups rising [from] Yahoo's ashes.

Yahoo was last priced at $36/share in January 2006.]]>
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<![CDATA[Chris Sacca leaves Google, continues do-nothing plan]]> Chris SaccaIn a long-overdue move, Chris Sacca, Google's "director head of special initiatives," has left the company. Cleverly, though, he's moving into a new career where he can continue to talk a lot and let others do the work: He's becoming an angel investor, working with Evan Williams's Obvious, the company which spun off Twitter, and Paul Graham, whose Y Combinator specializes in funding companies with utterly adorkable names. We figured Sacca's career at Google might be foreshortened when Google listed an opening for a "director of other," since that pretty much sounded like Sacca's job. Doing anything other than work. Congratulations, Chris: In a Valley that unfairly discounts laziness, you're now the ultimate value stock.

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<![CDATA[Yahoos and hacks clutter The Lobby]]> TheLobby.jpgReally, we're confounded. David Hornik's Lobby conference is ostensibly an invite-only affair. But some of the attendees had us scratching our head. Spotted, Yahoo's Bradley Horowitz, Brad Garlinghouse and Kiersten Hollars enjoying some sun instead of participating in Jerry Yang's 100-day turnaround of the company. Then there's Jessica Livingston and Paul Graham from Y Combinator. There's nary a 22-year-old wantrepreneur in sight, so what's the draw of this conference for them? Other inexplicables: Kara Swisher from AllThingsD, and TechCrunch heavyweight Michael Arrington, two notoriously gossipy hacks. Wasn't this event supposed to be off the record? And does Arrington even know what that means? (Photo by bradley23)

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<![CDATA[Justin.tv not cool with porn, but startup pals are]]> Lifecasting site Justin.tv may be afraid of adult-only broadcasts. But some other startups also born from the Y Combinator startup factory are not so leery. Scribd, the self-ascribed "YouTube of documents," which allows any document to be stored and viewed on the Web, appears to be gaining traffic on the back of adult content. "Adult" is one of Scribd's most popular and largest document groups. In the company's words, "At Scribd, we are cool with adult content, and you should feel free to upload as much as you'd like." As a result, its traffic far exceeds Justin.tv — even though you'd think video would be more compelling than documents.


The lifecasting site could learn to accept all that is natural about life from its Y Combinator sibling. Of course, Scribd doesn't have to comply with laws requiring extensive verification of the age of porn actors — a requirement that Justin.tv apparently believes applies to its volunteer broadcasters. And Scribd's founders may not be the best role model in other aspects of business. This is, after all, a company that foolishly promised a future management role to all of its early employees. But at least they know what their users want.

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<![CDATA[Y Combinator's webcam can't touch MC Hammer]]>





MC Hammer's rap career may have been over more than a decade ago, but to the startup kids at Y Combinator, he'll always be a superstar. First, he awkwardly pitched Weebly's MySpace profile editor SnapLayout to lifecaster Justine Ezarik, better known as iJustine of Justin.tv. Now, Hammer has made an iminlikewithyou profile. The washed-out rapper hopes to extend his attempts to revive his career beyond being a hanger-on of startups by fighting Vanilla Ice. Only problem — he needs someone with a videocamera, and he's trolling the iminlikewithyou community for volunteers. So what does that tell us about the state of Hammer's career?

The Y Combinator guys may be acting starstruck, but maybe its MC Hammer who's playing the fanboy here. Y Combinator's coterie of entrpreneurs could easily return the favor by providing the rapper with real video services. Everyone, including MC Hammer, knows they can. Why would the startuppers reduce the Hammer to begging for volunteers — if not to subtly put him in his place?

(SnapLayout Demo Video by Dan Veltri)

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<![CDATA[Email startup takes on filmmaking]]>
A note to venture capitalist Rob Hayes of First Round Capital. Remember the cash you plunked down on Xobni, the party-throwing email startup? This is where your money's going.

Email startup Xobni ("inbox" spelled backwards) has released a short film aimed at recruiting new engineers to join their team. Filmed with a clear nod towards Reservoir Dogs and Office Space, the clip includes an efficient German manager, gratuitous toilet humor (the bathroom stall is labeled "Outbox"), an Indian-accented sock puppet, and an appearance by Y Combinator guru Paul Graham, who bought the cameo, in a sense, by providing Xobni's seed round.

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<![CDATA[Paul Graham's near-death experience]]> Paul GrahamWe suspect Paul Graham will not be very popular in Sunnyvale today. The entrepreneur sold his e-commerce venture, Viaweb, to Yahoo for nearly $50 million in 1998 — a rich sum for the time. He's gone on to success coaching and funding other startups through his Y Combinator incubator. In a speech he gave to his latest hatchlings called "How Not to Die," on the mortal perils faced by startups, Graham makes a striking revelation. Even as he was negotiating the sale to Yahoo, Viaweb was on the verge of running out of money. Was Viaweb really worth $50 million? Or nothing? Then as now, in the Valley, there's a fine line between worthless and wealthy.

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<![CDATA[Crystal Tower, the startup dorm, loses elevator service]]> Ever since Justin.tv moved in, Crystal Tower Apartments in San Francisco's Russian Hill neighborhood has gotten the reputation as a dorm for 20something startuppers. A recent elevator breakdown, now fixed, left some residents to hoof it all the way up the 12-story building. Justin.tv has moved out, but current residents include the entire staff of email startup Xobni and Web-page builder Weebly, as well as employees of Snipshot and Scribd. The connection? All four companies were backed by entrepreneur Paul Graham's Y Combinator incubator. And more are moving in soon, Weebly CEO David Rusenko says. The proximity is a bonus for the tightly networked group of companies — but the elevator episode should be a sobering reminder to all of them of what happens when your startup has a single point of failure.

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<![CDATA[Bow down and worship Xobni's party-throwing skills]]> On the left, beatific investor Rob Hayes of First Round Capital. On the right, worshipful Xobni cofounder Adam Smith, genuflecting before the man who graced his startup with the tall dollars, and helped fund a night of excess last Friday.

Xobni, an email-organization startup launched by Paul Graham&#8217;s Y Combinator incubator, has not yet come out with an actual product. But no matter! They threw a party last Friday to celebrate their new office in San Francisco&#8217;s Financial District. I, alas, skipped the affair, which, in retrospect, was a bad decision (no kidding -Ed.), because judging from the pictures, they had a hell of a time. So, what is Xobni, exactly? From the tipster who alerted us to the photos:
They&#8217;ve been around forever, have raised tons of money, rented a ginormous office in a historic building in the financial district, but have yet to release a product.
Sounds like the perfect reason to throw a bash.]]>
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<![CDATA[Game the system]]> We've dissected Time's list of the five worst websites. Now it's your turn to tweak their poll for the best ones to your satisfaction. (Time.com is still using the same weakly protected polling system as the heavily gamed People Who Matter Now poll from Business 2.0.) The kids from Y Combinator, entrepreneur Paul Graham's startup camp, have already admitted to artificially beefing up the votes for Weebly, a Y Combinator-backed startup — but why let them have all the fun? Here are Valleywag's picks on whose ballots to stuff.


  • Weebly: It has a head start, so let's see if we can push them back down!
  • ING Direct: A boring bank, but its fees are low, so vote it up.
  • StumbleUpon: Take pity on the StumbleUpon guys: They just got bought by eBay, so they could use some cheering up.
  • Bix: How meta — voting for Yahoo's online version of the American Idol vote-a-thon. We're betting this one doesn't come back next week.
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<![CDATA[Unwise promises]]> Whether you think Scribd, often billed as the YouTube of documents, is brilliant technology, overvalued hype, or in for copyright disputes, you have to question the wisdom displayed in their recent call for new employees:
If you join Scribd now, you'll have the real startup experience: you'll design the product (not only implement it) and work in a tiny group that accomplishes big things. You'll also get a big equity stake now and a management role later on (unless you don't want it). At the same time, Scribd has raised money from top-tier venture capitalists, so you won't have to live on Ramen...
Promising management positions at this early stage to all newcomers? Such an inappropriate and foolhardy pledge raises concerns about the basic business acumen of the three young people behind one of the hottest VC investments... nevermind the technology, business model, or legal concerns. Would any entrepreneur "ambitious enough to want to do a startup" actually believe that a new company that has received funding from "top-tier venture capitalists" can promise management roles at a later date? Any promising candidate can foresee the inevitable five levels of management over them, their "big equity stake" diluted over time, funding withdrawn, and a return to living on Ramen.]]>
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