Over a decade ago, back in the day of the initial tech bubble, I ran an early precursor to Y Combinator. In a similar vein we took on board nascent start ups in batches, with little more than an idea, and actively worked with the entrepreneurs to progress to the point where they were able to attract further investment from us and other investors.
And so I’ve been watching very closely over the years as Paul Graham has tweaked the Y Combinator model. There have been two excellent touch points recently for those of you interested in what YC does, how they choose which startups to work with and their model for success:
2. Charlie Rose interviewing PG at TechCrunch Disrupt – see below.
One of the most amazing points PG makes in the interview is that the total value of YC companies is now around $3 billion. This is off the back of YC having invested a total of around $5 million. Now that is excellent validation for the model!
Omnisio has been acquired by Google as YouTube’s first acquisition since they were themselves acquired a few years back. You can listen to the recent Metarand Unplugged audio interview with the video annotation startup’s CEO, Ryan Junee, here – in it we talk about the company and their journey through Paul Graham’s Y Combinator program.
Besides Ryan and his two fellow Aussie co-founders, Paul must himself be over the moon — from woe to go this must’ve been one of the quickest exits for Y Combinator. Atherton-based Omnisio launched in March 2008.
The best part – Ryan is a committed serial entrepreneur and I fully expect we’ll be hearing more great things from him in the near future.
While Ryan did not disclose to us the quantum of the deal, Michael Arrington has surmised it as being in the $15 million range.
Following on from our Metarand Unplugged session with recent Y Combinator graduate, Omnisio, here is an interview of YC’s founder, Paul Graham.
The comment I love the most: in asking for a median 6% equity from participants in the YC program, founders should grok that this effectively means Paul and the team have given quid pro quo by achieving a 6.4% improvement in a participant venture.
I’d imagine that this point is reached by the end of the first day of the program!