How Y Combinator Started by Paul Graham

TL;DR - Paul Graham founded Y Combinator, offering a new option for seed funding.

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Tags - y combinator, notable investors, early vc, accelerators, seed funding

Questions addressed:

  • Who is Paul Graham?
  • What is Y Combinator?
  • Why did he start it?
  • How did this alter the fundraising landscape?

Summary:

  • Paul Graham noticed problems with existing VC including a lack of willingness to fund young hackers and a focus on making a few, large investments.
  • YC wanted to provide seed funding with standardized terms.
  • YC also began to fund startups synchronously.
  • The result was a new option for seed funding that offered standardized terms and synchronous / “batch” development to many young founders.

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