In this live Arena Show episode, 'Acquired' hosts Ben Gilbert and David Rosenthal, along with Y Combinator's Continuity Fund Managing Partner Anu Hariharan, discuss the evolution and impact of Y Combinator (YC) on the startup ecosystem. Anu details the inception of YC Continuity as a means to support YC alumni beyond the accelerator stage, emphasizing their unique approach to investing based on founder qualities rather than just metrics. YC's community-driven platform, likened to a university model with programs extending to pre-IPO guidance, is highlighted as a key strength. Despite YC's success, Anu warns that any missteps with the community could quickly erode its network effects. Looking ahead, YC aims to scale globally and support more founders, with the potential to expand post-IPO support, reflecting its commitment to being a lifelong partner for companies.
"The only thought that can occur to me right now is how different this is than what you and I normally do." "We want a lot of you to meet as many other people as possible because you have an easy opener like what's your favorite episode?"
The quotes reflect the speakers' recognition of the difference between online interactions and the live event experience. They emphasize the value of in-person connections and community building among their audience.
"Thank you to pitchbook. Holy crap. John's not kidding. Pitchbook is Seattle's monster. Amazing business hiding in plain sight." "Happy Star Wars Day. May the fourth be with you all."
These quotes express gratitude towards Pitchbook for their support and playfully acknowledge the date of the event, which is Star Wars Day. The quotes are indicative of the positive relationships and cultural references that add to the event's ambiance.
"Tonight. We have Jim Weber, the CEO of Brooks, running another Seattle monster business that we're very excited to talk to you about." "We learned from arena shows past live shows, very small live shows past that. Our normal format of telling a three plus hour story of a business doesn't work very well in this sort of time."
The quotes reveal the lineup of guests and the rationale behind the event's format. The speakers acknowledge the need for adaptation to ensure the live audience remains engaged.
"Pilot is the one team for all of your company's accounting, tax and bookkeeping needs." "Pilot takes care of all that. And they've been doing this now for years across thousands of startups in Silicon Valley and beyond."
The quotes emphasize the comprehensive services provided by Pilot and their expertise in handling financial operations for startups, suggesting a strong endorsement of their services.
"We're going to recreate that magic live here in person." "We brought in a judge who is going to grade each of our picks acquired style and declare a winner and a loser at the end of the night."
The quotes describe the structure of the investment idea segment and the role of the judge. The competitive element is established, adding excitement to the discussion.
"Snowflake is a managed data warehouse. And their sort of initial genius was that they separated storage and compute." "Snowflake...has the potential to compound for many years."
The quotes provide a brief overview of Snowflake's business model and the reasons behind Mario's investment pick. The company's innovative approach and strong leadership are highlighted as key factors for its potential success.
"Opendoor is the pick. And here's why. Because we're in Seattle and Opendoor vanquished a Seattle company, Zillow's ibuying program owned the ibuying market themselves." "Housing is a multitrillion dollar market. And everybody in the country, it seems like this past year learned how awful that process is."
The quotes detail Paki's investment pick and the reasoning behind it. The focus is on Opendoor's competitive edge and the opportunity for improvement and growth within the housing market.
"in the biggest market out there, and they have the best solution with ibuying. Sometimes it doesn't have to be hard."
This quote emphasizes the speaker's belief in the simplicity of Opendoor's business model and its potential for success in the iBuying market.
"They're operationally super sound. They finally turned an adjusted EBITDA profit last year so they can make money on this business."
The speaker acknowledges Opendoor's operational soundness and profitability, which are important indicators of the company's viability.
"And they did like, thousands and thousands and thousands of homes, and their biggest competitor has dropped out of the market."
The speaker points out Opendoor's extensive experience in handling home transactions and the advantage gained from Zillow's exit from the market.
"The stock got hammered last week after reporting earnings. But just looking at the fundamentals, Amazon did $470,000,000,000 of revenue in the last twelve months."
The speaker brings attention to Amazon's substantial revenue despite a recent decline in stock price, suggesting a mismatch between fundamentals and market sentiment.
"AWS is growing at 37% annually on a $75 billion base."
The speaker highlights the impressive growth rate of AWS, emphasizing its significance within Amazon's business.
"In the last twelve months, they've done $10 billion in free cash flow. It's astonishing."
The speaker emphasizes Coinbase's significant free cash flow as a strong indicator of its financial health.
"They're the most established company in the space, and it is still the first inning of all of crypto."
The speaker views Coinbase as a leading and established player in the early stages of the cryptocurrency market's overall development.
"The future of investing is people who understand and create narratives, and that's what you all do."
This quote suggests that the ability to craft compelling narratives is key to successful investing.
"You all think like venture investors. Nobody talked about downside."
The speaker highlights a gap in the investment discussion, pointing out the lack of consideration for potential risks and negative outcomes.
"So just like the french elections, this is going to go to a runoff between Snowflake and Coinbase."
This quote describes the process of determining the most popular stock pick through audience applause, likening it to a political election runoff.
"I think Andy Jassey could be the Tim cook of Amazon."
The speaker draws an analogy between Andy Jassy's potential impact on Amazon and Tim Cook's leadership at Apple, suggesting a positive outlook for Amazon's future under Jassy's direction.
"feature management and experimentation platform that helps product teams ship faster, automate a b testing, and see the impact every feature is having on the core business metrics."
This quote explains the primary function of Statsig as a platform that streamlines the feature release process and quantifies the impact of these features on essential business metrics.
"Statsig lets you make actual data-driven decisions about product changes, test them with different user groups around the world, and get statistically accurate reporting on the impact."
This quote highlights Statsig's role in facilitating data-driven product development decisions and its capability to test and report on feature impacts across different user demographics.
"Customers include Notion, Brex, OpenAI, Flipkart, Figma, Microsoft, and Cruise automation."
This quote lists some of the prominent companies that utilize Statsig, indicating the platform's wide acceptance and versatility in different industries.
"They can now ingest data from data warehouses so it works with your company's data wherever it's stored so you can quickly get started."
This quote emphasizes Statsig's ability to integrate with a company's existing data infrastructure, which facilitates a swift and seamless adoption of the platform.
"Tonight we're going to tell part two of the YC story... They are also one of the biggest and most active late stage growth investors in the valley."
This quote introduces the second part of Y Combinator's story, highlighting its significant presence in late-stage investment.
"It is a multi stage fund. We pretty much do primarily the growth stage, series b and above."
This quote defines the YC Continuity Fund as a growth-stage investment entity within Y Combinator's ecosystem, focusing on Series B and beyond.
"Since the pandemic, all our batches have been fully remote... going remote really helped us 50% of our batches. International."
This quote explains how YC adapted to remote operations, which subsequently increased international involvement in their programs.
"We have to earn the right to win. And as long as it's the right decision for the company, sometimes we're the right partner and sometimes we aren't."
This quote captures the ethos of the YC Continuity Fund, emphasizing the importance of earning the trust of founders and making decisions that are in the best interest of the company.
"We say that, we say YC is university for startups. So think of the accelerator as the undergraduate program, and continuity is the graduate school."
This quote encapsulates the educational model of YC, comparing its structure and purpose to that of a traditional university system.
"And continuity is graduate school. As I talked about, like CDC is just one of the programs we run. We have two others post a and growth post a focuses on two months within. You raise the CDC."
This quote details the structure of YC's continuity program, which provides ongoing support and education to founders as their companies grow and their roles evolve.
"So right now it's set up just like any other funds. Right. So we have incredible lps, primarily university endowments, because our mission is more university oriented."
This quote explains YC's fund structure and the alignment of its LP base with its educational mission.
"And I think the three things I can articulate, what it is on the founder we look for. One is at the continuity stage, right? Often on the growth stage, people, I think, pay attention to the founder, but they don't like, if you're at a venture fund or a growth fund, you probably hung out with the founder for a week or two weeks before the investment, some total of 3 hours."
This quote highlights the depth of YC's engagement with founders, which goes beyond the superficial interactions typical of many venture funds.
"At this point, I think YC is the only platform that has strong network effects. And as all network effects have shown, if we mess up the YC community because we have this platform only because of the YC founders, and there are community values, I mean, we have written down community values."
This quote underscores the importance of the YC community and the potential consequences if the organization fails to uphold its values and network integrity.