VCs = Angels = YC = Agents They all finance and support young entities for a % of a future asset.
Compare a very scalable model, IMG Worldwide. Take baseball for comparison sake.
Talent Scout = PG colleague who reviews applications using performance criteria = bank using advanced credit scoring system to approve or reject loans
Reddit = Alfonso Soriano = Successful loan applicant
Paul Allen = PG = Drew Rosenhaus
YC is popular not because they aren't a VC but because they are a VC who provides more perceived value for what they charge. That means just like IMG, their model is scalable as long as their value proposition is maintained and continues to be favored. All YC needs to do to fund 1,000 companies next year is to hire/acquire/develop 50 more PGs with specialties in more focused markets and sub-markets. Not simple but definitately doable. Also fully automate the application and evaluation process so that "people" only touch the top 3%. Continue to be careful with funding amounts but generous with time and connections. Continue to distribute and increase your value through your customers by financing their meeting each other and adding value to each other. Basically, YC is a social network with most of the value right now distributed offline through their customers. News@YC will change that to be sure. I think it's not only possible to grow up real big, but the direction you are already headed. Just make sure your scalability has a bit of Ben & Jerry's thrown in, they did a great job of keeping their value system in place long after they grew. PG, you mentioned it's the scaling of the partners responsibilities that is hard. If the partners maintain the integrity of the barriers to entry (active role in developing and maintaining your application evaluation tool) and support (ensuring key events and high-level connections are solid and cascaded down from their organizations to yours) you can do it. Just my $.02.
So what your suggesting is creating mini YCs with specialist interests?
For example you could have a mobile apps 'agent'. This person would seek out the best ideas for mobile apps, find the best teams, maintain connections with mobile blogs & mobile network operators and pass the best teams back up to main YC.
O'r you could have geographical specialists who, for example, look out for startups in the UK and send the most promising over to Boston/Mountain View.
Yeah Dan, that's right on. The basic business practices employed today would flow through to the tentacles of specialization and the over reaching controls and management would still reside at the top like any other holding company structure. It's likely you could improve on the typical holding company structure but something along those lines. I work at the Group level of a global financial services firm and I think my stripes are showing a bit here :) Not just mobile apps but also a p2p apps expert, b2b apps expert, transaction processing expert...the options are as broad as the marketplace. I'm thinking big.
Compare a very scalable model, IMG Worldwide. Take baseball for comparison sake.
Talent Scout = PG colleague who reviews applications using performance criteria = bank using advanced credit scoring system to approve or reject loans
Reddit = Alfonso Soriano = Successful loan applicant
Paul Allen = PG = Drew Rosenhaus
YC is popular not because they aren't a VC but because they are a VC who provides more perceived value for what they charge. That means just like IMG, their model is scalable as long as their value proposition is maintained and continues to be favored. All YC needs to do to fund 1,000 companies next year is to hire/acquire/develop 50 more PGs with specialties in more focused markets and sub-markets. Not simple but definitately doable. Also fully automate the application and evaluation process so that "people" only touch the top 3%. Continue to be careful with funding amounts but generous with time and connections. Continue to distribute and increase your value through your customers by financing their meeting each other and adding value to each other. Basically, YC is a social network with most of the value right now distributed offline through their customers. News@YC will change that to be sure. I think it's not only possible to grow up real big, but the direction you are already headed. Just make sure your scalability has a bit of Ben & Jerry's thrown in, they did a great job of keeping their value system in place long after they grew. PG, you mentioned it's the scaling of the partners responsibilities that is hard. If the partners maintain the integrity of the barriers to entry (active role in developing and maintaining your application evaluation tool) and support (ensuring key events and high-level connections are solid and cascaded down from their organizations to yours) you can do it. Just my $.02.