I never talked to him after that, sometimes I wonder if he made any money having been so early consumed by Blockchain. It was an immensely valuable lesson for me in the absurdity of Silicon Valley and its false signaling mechanisms.
I believe a lot of YC applications have founding teams in name only, or with bad selections, purely to appease this desire to have more then one founder. In aggregate it may work out, but in my experience...
No, investors prefer two or more founders because it dilutes the power of any individual and makes it easier for investors to play founders against each other and water down the influence of either of them. It makes investors much more influential.
As in all complex behavior, there is not "one reason" for anything and I could have better stated it as: "I think 60% of the reason Y-combinator liked to see two or more founders is that at least those two people are willing to work with/for each other. Other people saw Y-Combinator's success and followed their example (including Y-Combinator)."
It would be pretty cool if people started giving percentages to causal factors when discussing complex events. It would be a concise way to get a much more useful understanding of their opinions.
==According to the researchers, ignoring other factors, solo founders are 2.6 times as likely "to own an ongoing, for-profit venture" than teams of three or more co-founders.==
The non-technical cofounders who become VCs want to support people who remind them of themselves in the past.
This is why founder dating is like dating at a tech school. There are many non-technical cofounders who bring nothing to the table except the desire to make a huge amount of money. That is something to work with, but it is by no means enough in a world where billions of people are hungry.
I've found this pattern of human thinking to repeat itself in countless places in my life. From politics to programming and everything in between, systems look like unusable chaos when you don't understand it and have not been able to derive a controlled benefit from it. Once you learn how to use it, everything falls into place, and you immediately see how blind others are to the system as you now understand it (the curse of knowledge).
Working with people effectively is a skill, and one as rare as competent programming. And when you don't know how to do it, it looks useless or arbitrary.
Will switching from framework X to framework Y really increase my productivity? Is it a matter of not understanding how Y is so much more efficient to build thing than X or is it just hyperbole/marketing/cult. Switching to different product management software, different game engine, different 3d software, different wiki system, etc etc .. How can I know. If I believed everyone I'd be switching every week.
The lack of knowing you reference is exactly what I'm riffing on here. There are people who have leveraged Lisp features to huge benefit, and there's just no easy way to explain those features to people who don't use Lisp. "There's no way to say it in that language". To outsiders then, Lisp looks like a back-patting cult with no tangible benefits and yet an air of elitism. Similarly, those with "people skills" can't always explain the mental framework and skills they've built up to make themselves excellent at working with other people, but they can easily recognize those skills in another.
EDIT: Here's the article. http://www.paulgraham.com/avg.html
The whole thing is well worth the read, but for what I'm talking about here, you could skip down to read about the Blub paradox.
This idea reminds me of things developers say to disparage anyone who operates on a higher abstraction layer than they do (e.g. Rust sucks cause it's not C. Ruby sucks cause it's for beginners. Salesforce sucks cause it's not real programming.)
It is a black comedy to see how many salesmen could not sell, how many recruiters cannot recruit, how many businesses recruit people at great expense to lose them because they use them in a boneheaded way, etc.
I've seen many people who think they are working at a high abstraction level while they are really ignoring a large number of inconvenient truths.
Given that so many businesses need web sites that are a variation on a theme I wonder why there isn't an accelerator that has a captive dev shop that is highly productive making e-commerce sites that are variations of a theme based on a fixed framework.
I need to start coming up with filters to weed the grifters out. Spending 10+ hours on a homework assignment only to find something important wasn't communicated is getting old.
So maybe it's non-technical cofounders implementing a vicious cycle of grifting off the technical people, I think it's more likely it's just due to the fact that we have pervasive negative stereotypes surrounding technical people's ability to do non-technical things.
It turns out that doing "sales/marketing/everything else" is of significant value when building a business.
And all the marketing skills in the world don't mean jack if you have nothing to sell.
A technical founder who can create a product and market it with average efficiency can still be successful, unlike a non-technical sales guru with no product.
So I'd say the technical person is till the more important one.
P.S We're also ignoring the fact that many technical founders are also great at marketing themselves. Unlike a non-technical one, who isn't technical by definition.
The only argument I can think of against what I just said is that the other person is not heads down building so they have more time to acquire those skills.
Dollar amounts between salespeople are really only comparable within a given company and maybe not even then taking into account different territories, product lines and times.
Technical people as not stupid and can delegate that "recruitment" thing you pushed to front before us. I also would like to see something akin to the research we are talking about in the defense of your "much more likely to have skills to run a high growth startup".
High growth startup is of interest for investors, mainly. And that's why they prefer several cofounders, because it is easier to divide and control what can be divided. Single founder cannot be divided (except for medical conditions), two can be.
If you are able to recruit founders to work with each other, you didn't prove anything that couldn't be just as easily proven by recruiting a VC to invest in you.
And if it's not sales/hype that we're trying to prove, but instead a technical review by a potential co-founder, then that's what technical due diligence is for.
To me, a much better test is whether or not they've managed to get a believable proof of concept or even actual traction all by themselves, without any help and without even a co-founder.
That is a much better proof point. (leaving out of the discussion other salient points like market size, growth rate, etc)
Being able to attract another idiot who might not know anything at all about the problem domain, or gets excited about it for a few weeks or months, or "joins" five different startups in six months in the hopes that one of them gets funded.. this proves nothing of value.
Convincing a VC to fund you at reasonable terms? Much harder than finding a pliant co-founder if you have even mediocre skills at marketing/sales.
The real reasons VC's want multiple founders aren't really talked about, because they're not flattering to VC's: https://news.ycombinator.com/item?id=18924243
Eh, I think this is spurious. The specific post you're replying to is about a signal that seed funders can use to predict if founders have what it takes.
Seed funders can't really use the signal of "did they get VC money?"
Also, technical proof of concept is definitely a positive signal, but is not at all sufficient to make a reasonable investment bet.
That's a fair point, but my point was really: if they can convince you as an investor to actually put in money, then they certainly have sales skills that outclass those of acquiring some random co-founder. Admittedly, maybe they don't have the technical skills, or perhaps you as an investor lacks the specific skills to evaluate those in the way that a potential co-founder might be able to, but (as I mentioned) that's what technical due diligence is for anyway.
> Also, technical proof of concept is definitely a positive signal, but is not at all sufficient to make a reasonable investment bet.
I don't see what you are saying. Are you saying that getting a co-founder is more sufficient than a technical proof of concept to make a reasonable investment bet? I wasn't arguing that one should make an entire investment based solely on one factor (the product itself).
My point is simply that: being able to sell a co-founder on the idea or product seems to be an easier lift than selling an investor to invest real money in the idea or product, irrespective of other factors.
More honestly it is "Technical people can make great startup founders, but first filter on if they can recruit one other person to work with them." In any team of two, most of the time there was one person that had the idea and drive and asked the other to join them. A technical person with this type of skill, that is willing to spit the ownership of a company with someone else, is much more likely to have the skills and talents to run a high growth startup than someone who has not recruited their first person to join them.
I would imagine that when interviewing a pair of founders, whether consciously or not, people place one of them into the CEO role and the other into the CTO role. Don't most startup teams split up work like this pretty quickly?