Paul Graham just posted this… dropping funding for each YC startup from $150K to $80K.
Had I been accepted, I’d be a little bummed – but I don’t have that problem
But because there isn’t anywhere to comment, I’m putting up a quick blog post and submitting it to HN.
I find the change interesting… and the only thing I can come up with is PG essentiallly saying Fail Faster Motherfuckers… I suspect he (and everyone else) has a pretty good idea by the end of the session which of of the clan might succeed, and more importantly, which are DOA. And there may well have been the problem of DOA startups zombieing around the YC offices eating up time.
I don’t think it’s about the money; I suspect good startups have virtually no trouble raising cash; and this change frees up a little money and a lot of time.
PG also alluded to the extra funds causing problems… now that would be interesting to hear about.
Wonder if TechStars might follow suit?