Y Combinator's Paul Graham on Why Some Companies Get His Cash and Others Don't
Paul Graham spills: Why some companies get his cash and others don't
Loopt. Reddit. Xobni. Bump.
Paul Graham--and the seed-stage venture firm he co-founded, Y Combinator--have been there at the start of all of them. And now Y Combinator is growing, too. In the last two years, the Silicon Valley funding group doubled its number of active startups to 40 and brought in a prominent new partner, Gmail's lead developer (and Xoogler) Paul Buchheit. We asked Graham to give up the goods: How exactly do you spot the next big thing?
What's most essential for a successful startup?
The founders. We've learned in the six years of doing Y Combinator to look at the founders--not the business ideas--because the earlier you invest, the more you're investing in the people. When Bill Gates was starting Microsoft, the idea that he had then involved a small-time microcomputer called the Altair. That didn't seem very promising, so you had to see that this 19-year-old kid was going places.
Entrepreneur Editors' Picks
'No One Believed' This Black Founder Was the Owner of a Liquor Brand in 2012. He Launched to Great Acclaim — Then Lost It All. Here's How He Made a Multi-Million-Dollar Comeback.
Inspired by Elon Musk's Twitter Takeover, Here Are 10 Marketing Tactics That Will Help You Make the Most of Big Changes to Your Company
These Brothers Transformed a High School Project Into the Largest Online Soccer Retailer of All Time. Here's What the World Cup Means for Business Now.
'I Just Lost All My Life Savings': Michigan Woman Lost $15,000 in Facebook Marketplace Car Scam
This Founder Was Dismayed by Food Waste in the Restaurant Industry, So She Started a Zero-Waste Grocery Line That Now Caters Events for Nike
Netflix's Secret Club Allows Members to Preview Content Before Anyone Else — But There's a Catch
Franchising Could Be the Secret to Reaping the Rewards of a Down Economy. Here Are 5 Reasons Why.