Startups

Y Combinator is one of the most influential organizations in Silicon Valley. But thanks to the incubator's most recent demo day, it has become a Disneyland for investors, where startups are the attractions that VCs and angels are willing to pay to ride.

On Wednesday, YC graduated 65 startups from its program, its largest class yet. The room was wowed by pitch after pitch from companies like Sonalight, 99dresses, Ark and Socialcam. There were plenty of graphs depicting skyrocketing user growth and revenue, and investors (as they typically do at YC demo day) ate it up.

This demo day … Read more

SAN FRANCISCO--An article last fall suggesting investment was getting scarce for early stage startups stirred a major commotion in Silicon Valley. But one of the Valley's most prolific investors said tonight that the real issue is there are simply too many companies getting seed funding.

At the inaugural CNET Community Series event here this evening, Naval Ravikant, the founder and CEO of AngelList, rejected the notion that there is a so-called Series A crunch, saying instead that there is a "seed glut."

During the panel on "Startup Funding: Strategies and Opportunities" hosted by CNET's … Read more

"Forget about spending money."

--Chance Barnett, CEO, Crowdfunder

So much of a startup CEO's job is raising money, that it stands to reason that the CEO will also spend a lot of time worrying about spending it. Or not spending it.

It can tie you in knots, according the Chance Barnett, the CEO of a crowdfunding portal, Crowdfunder (see Chance on Reporters' Roundtable). But in the early days of a company's existence, what you spend money on, or what deals you make to save it, do not tell the tale. Yes, running out of money … Read more

MOUNTAIN VIEW, Calif.--If you 're an entrepreneur looking for money today on the famous Silicon Valley venture capital row known as Sand Hill Road, yes, that is the sound of crickets you hear.

That's because today is Y Combinator Demo Day, and the lion's share of the biggest tech-oriented VCs in the Valley are packed into one auditorium here, listening to 65 early-stage companies pitch their wares.

The list is a veritable who's who of investors: Ron Conway, Tim Draper, Jeff Clavier, Mike Arrington, Stewart Alsop, and many, many others. And they've got their checkbooks … Read more

For all the hype that Highlight received during SXSW Interactive, the app pretty much went silent when it came to the music part of the conference. Awareness of Highlight among techies was high, but it just never made it to the outside world. I'd like to say that this is surprising, but really, it's not.

Buzz apps seldom achieve osmosis between the tech world and the real world. Those that do sometimes find fame and fortune, but the majority just swirl around the industry vacuum before pivoting into oblivion. It's a problem.

One of the most basic … Read more

"Usually, features make things worse."

--Don Porter, CEO of OMGPOP & creator of Draw Something

About a week before Draw Something was acquired by Zynga for $180 million, I spoke with the creator of the game and CEO of the company, Dan Porter. He dropped this little Startup Secret. It's hardly unique. We hear it all the time in different variants: build the "minimum viable product." Or, "Ship early, ship often." And my new favorite: "If you're not embarrassed by your first version, you shipped too late."

Now that Porter'… Read more

Here's one likely outcome of the JOBS Act that passed the Senate last week and is on its way to becoming law: The noise from startups vying for investor attention is going to go up.

Maybe way up.

A key provision of the Act makes it okay for a company to publicly talk about the fact that it's raising money -- something that, while often ignored, has been a lingering threat among the booming startup world. When the rule barring general solicitation goes away, any hesitancy to hawk one's business will vanish.

How could that play out? … Read more

"Hiring a compromise is a false economy."

--Jon Reynolds, CEO, SwiftKey

Hiring is a CEO's most important job, especially in the earliest days of a company. Jon Reynolds, founder of SwiftKey, has the story of not doing this the right way and having to pay to to fix the mess it made. It worked out for the best, but he thinks it proves the rule.

As with many startups, in the early days Swiftkey had a good demo but the product wasn't ready to back it up. In December 2009, with Mobile World Congress approaching and … Read more

The JOBS Act has passed the Senate. In a 73 to 26 vote today, an amended version of H.R. 3606, which opens startup investing to individuals ("crowdfunding") and gives young companies more flexibility in filing to enter the public stock markets, cleared what is probably its last major hurdle before becoming law.

An amendment to increase investor protections in the crowdfunding section of the bill, Amendment 1884, passed the Senate earlier today. It increases restrictions on raising money from individuals, including a sliding scale of investment caps. And the bottom of the scale, individuals making less than $… Read more