Essays

Even more striking are the number of officially sanctioned projects that manage to do all eight things wrong. In fact, if you look at the way software gets written in most organizations, it's almost as if they were deliberately trying to do things wrong. In a sense, they are. One of the defining qualities of organizations since there have been such a thing is to treat individuals as interchangeable parts. This works well for more parallelizable tasks, like fighting wars. For most of history a well-drilled army of professional soldiers could be counted on to beat an army of individual warriors, no matter how valorous. But having ideas is not very parallelizable. And that's what programs are: ideas.

It's not merely true that organizations dislike the idea of depending on individual genius, it's a tautology. It's part of the definition of an organization not to. Of our current concept of an organization, at least.

Maybe we could define a new kind of organization that combined the efforts of individuals without requiring them to be interchangeable. Arguably a market is such a form of organization, though it may be more accurate to describe a market as a degenerate case—as what you get by default when organization isn't possible.

Probably the best we'll do is some kind of hack, like making the programming parts of an organization work differently from the rest. Perhaps the optimal solution is for big companies not even to try to develop ideas in house, but simply to buy them. But regardless of what the solution turns out to be, the first step is to realize there's a problem. There is a contradiction in the very phrase "software company." The two words are pulling in opposite directions. Any good programmer in a large organization is going to be at odds with it, because organizations are designed to prevent what programmers strive for.

Good programmers manage to get a lot done anyway. But often it requires practically an act of rebellion against the organizations that employ them. Perhaps it will help if more people understand that the way programmers behave is driven by the demands of the work they do. It's not because they're irresponsible that they work in long binges during which they blow off all other obligations, plunge straight into programming instead of writing specs first, and rewrite code that already works. It's not because they're unfriendly that they prefer to work alone, or growl at people who pop their head in the door to say hello. This apparently random collection of a

Whether or not understanding this can help large organizations, it can certainly help their competitors. The weakest point in big companies is that they don't let individual programmers do great work. So if you're a little startup, this is the place to attack them. Take on the kind of problems that have to be solved in one big brain.

How Not to Die

A couple days ago I told a reporter that we expected about a third of the companies we funded to succeed. Actually I was being conservative. I'm hoping it might be as much as a half. Wouldn't it be amazing if we could achieve a 50% success rate?

Another way of saying that is that half of you are going to die. Phrased that way, it doesn't sound good at all. In fact, it's kind of weird when you think about it, because our definition of success is that the founders get rich. If half the startups we fund succeed, then half of you are going to get rich and the other half are going to get nothing.

If you can just avoid dying, you get rich. That sounds like a joke, but it's actually a pretty good description of what happens in a typical startup. It certainly describes what happened in Viaweb. We avoided dying till we got rich.

It was really close, too. When we were visiting Yahoo to talk about being acquired, we had to interrupt everything and borrow one of their conference rooms to talk down an investor who was about to back out of a new funding round we needed to stay alive. So even in the middle of getting rich we were fighting off the grim reaper.

You may have heard that quote about luck consisting of opportunity meeting preparation. You've now done the preparation. The work you've done so far has, in effect, put you in a position to get lucky: you can now get rich by not letting your company die. That's more than most people have. So let's talk about how not to die.

We've done this five times now, and we've seen a bunch of startups die. About 10 of them so far. We don't know exactly what happens when they die, because they generally don't die loudly and heroically. Mostly they crawl off somewhere and die.

For us the main indication of impending doom is when we don't hear from you. When we haven't heard from, or about, a startup for a couple months, that's a bad sign. If we send them an email asking what's up, and they don't reply, that's a really bad sign. So far that is a 100% accurate predictor of death.

Whereas if a startup regularly does new deals and releases and either sends us mail or shows up at YC events, they're probably going to live.

I realize this will sound naive, but maybe the linkage works in both directions. Maybe if you can arrange that we keep hearing from you, you won't die.

That may not be so naive as it sounds. You've probably noticed that having di

If this works, it would be an amazing hack. It would be pretty cool if merely by staying in regular contact with us you could get rich. It sounds crazy, but there's a good chance that would work.

A variant is to stay in touch with other YC-funded startups. There is now a whole neighborhood of them in San Franscisco. If you move there, the peer pressure that made you work harder all summer will continue to operate.

When startups die, the official cause of death is always either ru

Startups rarely die in mid keystroke. So keep typing!

If so many startups get demoralized and fail when merely by hanging on they could get rich, you have to assume that ru

Knowing that should help. If you know it's going to feel terrible sometimes, then when it feels terrible you won't think "ouch, this feels terrible, I give up." It feels that way for everyone. And if you just hang on, things will probably get better. The metaphor people use to describe the way a startup feels is at least a roller coaster and not drowning. You don't just sink and sink; there are ups after the downs.

Another feeling that seems alarming but is in fact normal in a startup is the feeling that what you're doing isn't working. The reason you can expect to feel this is that what you do probably won't work. Startups almost never get it right the first time. Much more commonly you launch something, and no one cares. Don't assume when this happens that you've failed. That's normal for startups. But don't sit around doing nothing. Iterate.