Sunday, July 5, 2009
MASS PRODUCTION OF START-UPS? CHECK OUT Y COMBINATOR
Paul Graham's business school and investment fund, Y Combinator, has launched 145 companies -- for an average of $25,000 each. Y Combinator, is a hybrid venture capital fund and business school that invests in, advises, and, literally, feeds 40 or so early-stage businesses a year. Investments are small -- less than $25,000 per company -- but Graham supplements the money with smart advice, introductions to later-stage investors, technical help, and a sense of community. The model has produced many promising companies, a few sizable acquisitions, and copycat funds in cities across the country and around the world.