Founders at Work.pdf

452 Founders at Work
in. You can tell they care a lot. As they should, since it’s their introduction to
pretty much the whole investment community.
After Demo Day, we work with the founders to help them get more funding.
It’s a tricky thing to do, and the founders need a lot of advice in this area.
Even though we stop the dinners, our relationship never stops with the
founders. This is why we’re so busy even in the “off season” between cycles.
Is there one idea that’s the key to Y Combinator? If a VC asked, “What’s
your secret sauce?” what would you say?
Livingston: There are two things. First are Paul, Robert, and Trevor. They built
the first web-based software application, which is what most of the startups we
fund do, so they understand how to solve a lot of the problems the founders
have. They all actively program, which is unusual for investors. Most investors
are business people and can’t offer super in-depth technical advice.
The second—and this is going to sound corny—is that we try always to be
good. When we’re faced with decisions, we always ask ourselves, “What’s the
best choice for the founders?” I’m not saying we’re a charity or anything, but
we’d never want to maltreat a founder. When I hear about investors bullying
founders or something like that I just think how wrong it is. Not just wrong, but
shortsighted.
How do things work between the partners?
Livingston: I love working with my three partners. I’m the only non-technical
partner, and I hear them talking with the startups about technical stuff and it
just blows my mind. They have such an understanding of it.
We work really well together. We have fun. We’ve never argued. Right from
the start, Paul, Robert, Trevor, and I just always seemed to agree on most
things.
What was the biggest disagreement you’ve had?
Livingston: Honestly, I don’t think there has been one. The hardest thing is for
me to keep the interview schedule running on time. Seriously, that’s the biggest
thing I can think of, because they’re not as organized as I am when it comes to
time.
I think it’s nice that the three of them had started a company before. And of
course, all three of them are involved in other things, too, so it’s not like
Y Combinator is their entire life. We’re doing Y Combinator because we want
to, not because we need the money, which I think takes some of the pressure
off and allows us to make good decisions.
Have there been startups that surprised you?
Livingston: All the time. There are startups that you think are going to die, but
the founders keep working and things get better and then suddenly investors
are all over them, even though no one would talk to them 6 months before. But
there are also people we fund who we think are hotshot hackers with this great
idea, and their startup just doesn’t take off.