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Tech Billionaire Boot Camp

Posted by Zonk on from the getting-a-leg-up dept.

theodp writes "Forget the Summer of Code. If you've got a hot idea for a start-up, Newsweek says Y-Combinator, the boot camp where Silicon Valley meets 'American Idol', is the place you should be. 'Some critics scoff that Y Combinator's investment is peanuts for that amount of equity. But the opportunity is unparalleled -- total immersion into Silicon Valley start-up culture, advice from Graham and a fast track to the top angel investors and venture-capital funds. When Graham calls the winners, the founders have only five minutes to accept. "If people turn us down," he says, "as far as we're concerned they've failed an IQ test."'" We've previously discussed the program on the site, just over a year ago.

7 of 178 comments (clear)

  1. Barely an investment by Anarchysoft · · Score: 5, Insightful

    How much do you usually invest?
    Usually $5000 + $5000 per founder. So $15,000 for two founders, $20,000 for three. Occasionally we invest more. The goal is usually to give you enough money to build an impressive prototype or version 1, which you can then use to get further funding. This is peanuts. If this is all the money you're going to get, it's probably a better use of your efforts to keep your day job and do your startup on your own spare time.
    --
    Hax-fu?
  2. Re:What a load by TodMinuit · · Score: 4, Insightful

    Agreed. Paul Graham isn't a computer nerd or a business man. He's a late night startup infomercial. "I got rich on startups and you can too! Just follow my 10 easy steps!"

    --
    I wonder if I use bold in my signature, people will notice my posts.
  3. Failed an IQ test - depends on perspective by Anonymous Coward · · Score: 5, Insightful
    "If people turn us down," he says, "as far as we're concerned they've failed an IQ test."

    In other words, if you say no, or demand to "think about it for 24 hours", you probably might have an IQ that is too high to allow them to take advantage of you, and thus makes you ineligible to be one of their patsies.

    The smart people are the ones that after receiving the call, say no, realizing that the idea has been vetted as having potential, and should run with it on their own.

  4. Everything that is wrong with Venture Capital by Sanity · · Score: 5, Insightful

    "[if founders turn us down] as far as we're concerned they've failed an IQ test."
    Yeah, they scored too high and thus know better than to sell their equity for peanuts. I mean, wealthy or not, what an arrogant twat.

    total immersion into Silicon Valley start-up culture
    I can imagine few worse things for starting a technology business than to be immersed in the incestuous and insular world of Silicon Valley. Most Internet users don't live in Silicon Valley, why would it be an advantage to be isolated from them?

    When Graham calls the winners, the founders have only five minutes to accept.
    And they are willing to admit such underhanded pressure tactics? Sounds like these guys are everything that is wrong with venture capital.
  5. a word of advice by Anonymous Coward · · Score: 5, Insightful

    If you're ever placed in a position where you're offered a deal that doesn't sound so hot, but

    1) the surroundings are hyped up, for example a "boot camp for Web 2.0 entrepreneurs" that is a "combination of Silicon Valley and American Idol";

    2) you are given a ridiculously short time limit to make up your mind, let's say five minutes

    and

    3) if you don't accept, you "fail the IQ test" in the eyes of the people making the offer

    then grab your shit and head out the door as fast as possible. Don't forget your cell phone.

    (following Harvey Mackay).

  6. Re:IQ Test by homer_s · · Score: 4, Insightful
    Here is a passage from one of his essays (which I think are very insightful):

    A while ago an eminent VC firm offered a series A round to a startup we'd seed funded. Then they heard a rival VC firm was also interested. They were so afraid that they'd be rejected in favor of this other firm that they gave the startup what's known as an "exploding termsheet." They had, I think, 24 hours to say yes or no, or the deal was off. Exploding termsheets are a somewhat dubious device, but not uncommon. What surprised me was their reaction when I called to talk about it. I asked if they'd still be interested in the startup if the rival VC didn't end up making an offer, and they said no. What rational basis could they have had for saying that? If they thought the startup was worth investing in, what difference should it make what some other VC thought? Surely it was their duty to their limited partners simply to invest in the best opportunities they found; they should be delighted if the other VC said no, because it would mean they'd overlooked a good opportunity. But of course there was no rational basis for their decision. They just couldn't stand the idea of taking this rival firm's rejects.


  7. An old scam for a new generation by cstec · · Score: 3, Insightful

    "When Graham calls the winners, the founders have only five minutes to accept. "If people turn us down," he says, "as far as we're concerned they've failed an IQ test."

    If you accept in 5 minutes, you've failed an IQ test. These people are not that important, regardless of what they tell you, and neither is the amount of money they have on the table. This is an attempt at simple manipulation on the part of older investors looking for wage slaves that will ask how high when told to jump. Unfortunately, if you're a 20-something, they're targeting you.

    Understand the strength of your signature and the committment it represents. Never, EVER, be afraid to walk away from a deal. It's a big planet and there are plenty of legitimate people to do business with.