I'm electronics and embedded software developer, but I took a pause from that and founded a small web business startup with few guys two years before PG founded Viaweb. The product was very similar to PG 's Viaweb. Viaweb was more general and consumer market oriented. We had narrow focus with b2b trough our connections.

It's hard to describe how easy it was to make money in the late 90's with even little technical skill and tiniest amount of business understanding. We were making money hand over fist knowing next to nothing.

PG sold his company for $50 million, we sold ours for $5 million after we took the mountain of cash out of it (another $5 million). After reading how PG did it, I think his genius was paying $16,000 a month for a PR firm. He understood the value of PR, we didn't. http://www.paulgraham.com/submarine.html

His essays, HackerNews and Y combinator are expression of this understanding. He has created expanding self-reinforcing network of affordable PR and connections for startups. That's the real scarcity in the startup scene. Being accepted into a batch is valuable. Instead of hiring PR firm, PR firm accepts you and stamps you with the Y Combinator brand.