Tech Billionaire Boot Camp

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.

Comments

Barely an investment

[Anarchysoft]

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.

Failed an IQ test - depends on perspective

[Anonymous Coward]

"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.

Everything that is wrong with Venture Capital

[Sanity]

"[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.

a word of advice

[Anonymous Coward]

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).