Mass producing Digital Startups

Paul Sloane in his latest newsletter article An Industrial Process for Driving Innovation and Start-Ups talks about Y Combinator – a seed fund and startup accelerator. To their credit they have companies like  ScribdStriperedditAirbnbDropboxand Disqus in their portfolio.  YC start-ups have been bought by Google,  Facebook and Twitter. Dropbox is one of their best offspring. It is a cloud based file storage service valued at $4B. YC’s founder, Paul Graham distributes his capital and risk by  putting a small amount of money into a large number of companies. He calls it classic mass-production techniques. Funded entrepreneurs are provide with  counseling, support, connections in twice yearly programs. Graham believes that the biggest mistake start-ups make is building something interesting rather than something that people really need. Focus on something people need. 

I found this concept of supporting big number of small entrepreneurs very interesting. We need more Y Combinators.

Anuradha Goyal