The Founding Principles of YC

February 2017

Regardless of the tradeoffs, creating a startup is a good thing. When starting a business, founders and early employees are far more productive than they would have been if they were working for a traditional large company. The goal of YC is to create more startups by helping founders start their businesses

YC represents the combination of two ideas: applying mass production to accelerate startups in batches. Accelerating startups this way is not only more efficient but also more beneficial to the founders

The value of YC is like multiplication, which product is equal to the number of startups we help multiplied by the quality of help we provide. If the factors get bigger, then the product will also be astonishing

From the moment YC invests in a startup, we always put the founders' interest first, even before our own. From a perspective of business profitability, this may seem counter-intuitive, but in the venture capital industry, it's a viable model. Just as honest people will get positive feedback, the benefit of kindness will be ultimately greater than the cost, so the scalability of this model is quite high. Likewise, only a truly good person can be kind consistently, so our employees must be good people

We must remember that our role is that of investors, not bosses. We can make suggestions or try to persuade, but we cannot give orders. Moreover, great founders only need advice. You can't understand the dilemma of entrepreneurship unless you've started a business before, and those who advise founders should have been founders

YC is also a startup and must remain so. Many startups we invest in get their first dose of meme from YC, so YC has to set an example. YC has to move fast, control cost, be flexible , and focus on the fundamental problems. If there is an unexplained situation that only occurs in large companies, it is likely to be a mistake. As for being kind, the first line of defense we must pay attention to is recruitment

The most successful founders are driven more by a passion for their creation than by financial gain. YC proved that this principle also applies to investing. The motivation for us to start YC is this: If we help founders in the earliest stages, more successful startups will emerge. This hypothesis has proven to be correct and very promising. Just focus on helping founders then everything else will follow