Growth as a false signal in Y Combinator startups

One has to appreciate how Paul Graham built Y Combinator into the world’s flagship accelerator and handed it off to others to continue its impressive run at the top of the heap. In fact, I have yet to meet a founder who regrets joining the program. But after stepping away from the YC scene for five years and then returning to observe the last two demo days, I now wonder if some of the views Paul shared in his original, widely read Essays are being taken to absurd extremes. The evolution of his take on startup growth serves as an excellent example. Keep reading over at TechCrunch to learn more. Highlights include: – Why early revenue growth should not be..

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Loaded Gloves: How Early-Stage Startups Can Punch Above Their Weight

When we at Tandem think of the term “disruption” in the startup world, we have a particular picture in mind: a small team of hungry entrepreneurs beating out larger incumbents for market dominance. If it were a fight movie, we’d be looking at Rocky, The Karate Kid or Million Dollar Baby. You know the story: an up and comer with limited resources figures out how to punch above his or her weight and defeat the champion. So how do tech startups write their own scripts with the same winning results? There are certainly a number of possible approaches, but one powerful pattern we’ve observed is new market entrants building their brands quickly and cost-effectively from the time of launch. Think..

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The True Hardware Pre-Sales Platform Is… Facebook?!

When Tandem began investing in hardware startups in 2013, the sector was only just beginning to shake off its reputation as “the ugly step-child of venture capital.” As our first-ever hardware investment, Tile, a device company building “the world’s largest lost and found,” provided a crash course in the opportunities and challenges associated with hardware investing. While the company’s co-founders, Nick Evans and Mike Farley, managed to quickly build a business selling millions of dollars of product only weeks after launch, no one at the outset could have predicted what the principal driver of this hyper-growth would turn out to be. One major factor in our decision to invest in Tile was the new ability to test product-market fit through..

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