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The 10 Best Startups From Y Combinator’s S12 Demo Day (techcrunch.com)
66 points by Mariel on Aug 22, 2012 | hide | past | favorite | 65 comments


>9gag aggregates memes and jokes from around the web — much like Reddit

Evil persons would mention that much of the content on 9gag is copied from Reddit's r/funny (which is on a large scale hard to proof) - but they got funding, so why not, looks like a viable business model.

The example-pic the article uses can be found on Reddit, with the same title, over Google: http://www.reddit.com/r/funny/comments/ykrlh/when_links_are_... Can't tell which one came first, as the article's pic doesn't have a time.

>Its founders say that in July, 9gag had more than 65 million unique visitors, compared to Reddit’s 39.7 million

According to Wolfram Alpha, Reddit has roughly double the amount of unique daily visitors when compared to 9gag: http://www.wolframalpha.com/input/?i=reddit+9gag (Keep in mind these numbers are daily, not monthly like in the article)


Wolfram Alpha also uses Alexa which is next to useless for traffic estimates.


True, because it's based on their spyware-toolbar, so you only measure the people who are relatively clueless about their computer - but in absence of the 9gag-people citing their sources there's not much more to do.

I don't know how ranking.com generates the numbers, but in their ranking reddit.com is 11,763, 9gag is 11,768 and 4chan is 11,775 - all kinda identical.


Actually, 9gag does release their numbers, via Quantcast[0]. According to those, they have a long ways to catch up to Reddit, which even in 2010 [1] had more than double the visitors (3mm vs 8mm "people" monthly).

Incidentally, the 65mm visitors from that quote seems to have been actually referring to page views, of which Reddit had 429mm monthly in 2010.

[0] http://www.quantcast.com/9gag.com [1] http://blog.reddit.com/2010/07/experts-misunderestimate-our-...

(disclaimer: I work for Quantcast).


Cool! Thanks for the insight, so did they mix page views with unique visitors?

Also, off-topic question: How do you measure a visitor's income or education level, do you deduce based on location?


Nearly all of Reddit content is not created by users and comes from other sources.


I think you have to qualify that. Nearly all of /r/pics and /r/funny (or any image-centric sub) is not OC. However, /r/AskReddit, /r/IAmA, etc are all entirely Redditor-generated content. Those are huge subreddits, and should not be discounted. Reddit is a gargantuan site with a metric ton of content. It's greatly expanded since its initial charge to be a news aggregator. Reddit now deals almost exclusively in communities.

Because Reddit is the amalgamation of its communities, you get this backlash against 9gag--us vs. them and all. I'm interested to see how this evolves. I think 9gag will have to be something better than "funny stuff" eventually. Internet history is littered with companies/sites that were spun up around other people's funny content, got very popular, and have since gone by the wayside.

That's why I think Reddit will continue to survive. Its communities are its lifeblood. I don't know enough about 9gag to know if it can really form this community well and keep it, or if it's another just ebaum's World.


The important part is that the article - and ultimately, the funding - are because of 9gag users uploading stuff they find on r/pics and r/funny, even though they'd never admit that (much like most Redditors would never admit the majority of Reddit's memes either originated from or are directly from 4chan).


>“Forget everything you know about telepresence robots.”

Done.


I just have to say (post upvote) that this was one of the funniest comments I have read on HN. It so perfectly points out how ridiculous much of tech coverage is.


Well, you might say that... but by coincidence BBC news covered a telepresence robot in hospital today: http://www.bbc.co.uk/news/health-19341028 :)


This is click bait. Expect to see a similar post with a different selection of startups on GigaOM, VentureBeat, TNW, Mashable, Pandodaily and every other such site.

You also have to wonder about how they select these startups (other than at random)? It's comparing apples to oranges and doesn't even seem to have a consistent metric (expected roi, innovativeness of idea, best pitch, etc).

Why is instacart not on there?


Yes, I was really curious about their metrics for ranking the startups.

As you correctly pointed out - why is instacart missing while 9gag is present? I can name so many much better alternatives to 9gag: instacart, KIPPT, Everyday.me etc.


But what if there is a way to rank these startups? Similar to how there are algorithms to pick startup winners: http://www.technologyreview.com/news/428427/an-algorithm-to-... and software to pick Blockbuster hits: PDF: http://knowledge.wharton.upenn.edu/papers/1329.pdf and of course, my very own academic research in this arena: http://startupframework.tumblr.com/post/29634915106/what-i-l...

What if the only criteria required by this article was to list startups that sold something (rather than be a platform or <insert disruptive buzzword here> that doesn't currently monetize. E.g. Makr.io, ReelSurfer). So that would boil it down to: Double, Coco Controller and a handful others.

As investor Kevin O'Leary would say: Follow the money.


9gag is a pretty obvious selection - they have tens of millions of users.


I was under the impression that quality triumphs over quantity for these cases.


Your opinion of the content/product being sold should not be mistaken for the quality of a business model. The two are vastly different things. For example, I don't smoke cigarettes--hate the things, but I'll be damned if tobacco wasn't a great way to make a buck in the past century.


Because Instacart will fail while 9GAG already is one of the most successful YC companies ever.


Pretty sure most of their metrics boil down to previously generating pageviews on HN, with extra points for the SEO bonus when those pageviews were on TC.


They give you a one line bolded "why?" for each pick. All pre-tl;dred and everything.


9gag certainly illustrates how hard up the Internet is for high-quality humor. (Just now, browsing the site, I didn't find anything I would want to share with my friends.)

Fundersclub sounds quite disruptive.

Bufferbox might be useful (at the right price) once it is within walking/bicycling distance of my house, as a UPS store location already is.


Does the UPS store accept FedEx, USPS, and Amazon packages?

I have no use for BufferBox personally because packages get delivered to my house just fine. In the case of USPS, our neighborhood mail boxes have the old style key boxes and the postman just locks it in and puts the key in my mailbox. In some cases I've had things delivered to my office instead. I can't think of the last time I had to go retrieve a package.

Anyway, I understand that a great number of people do not have a reliable solution for getting packages when not at home... or keep hours that do not match with the non-24x7 drop points. BufferBox seems to solve that issue by making things self-serve. Sure it costs a few bucks per delivery, but that is the price you pay for convenience. And when you don't really have a better solution, you pay it. I wish them a great deal of success.


One of the biggest selling points of BufferBox originally (to me) was that it was in the main student building of uWaterloo so pickup can be any time and you don't have to miss class or go all the way to a post office. Given that they've already expanded to Union Station in Toronto, their next expansions will likely be targeting similar situations (places where people with busy lifestyles go on a daily basis). So chances are you won't be getting a BufferBox nearby for a while.

Regarding price, IIRC the prices for service (in the Beta at least) were extremely attractive, only a few bucks for the couple of credits needed for a decent sized box. For larger item's I'd probably find a cheaper way to get it shipped direct and avoid their charges, but for small items (4 or 5 books from Amazon maybe) their fee is pretty insignificant.


I find BufferBox a strange inclusion here, given similar competitors such as Ireland's parcel motel are up and running on a larger scale here already...


IMO 9gag shows how a reliable stream of quantity can beat out quality of content on the web. Every time you go to 9gag (AFAIK, can't say i've visited much) there is new content.

It preys on the 'seeker' human behaviour (like reddit, minecraft, even HN). Maybe next visit there will be something hilarious?

A lower volume of higher quality wouldn't invoke the same response.. visits would often have no new content, and users wouldn't regularly visit.


I think even more important than volume is that 9gag, reddit etc have lots of bad content, with an occasional gem. That's the most effective reward schedule for creating compulsive behavior. http://en.wikipedia.org/wiki/Reinforcement#Schedules_of_rein...


That is precisely what I was alluding to, yes.


I just had a weird thought:

Could FunderesClub be an avenue for laundering money?

Think of it this way - an entity or a group could setup many accounts on FundersClub to invest small-ish amounts <9500 in many many avenues and be able to make interest on that money and then sell whenever they want. Because they invested smaller amounts than would be required to be reported, however you would have to pay tax on all interest/dividends received over $1500.

Although, I am sure there are some very creative financial mangers for the elite of silicon valley that do away with even these rules with a deft hand...


There are many many vastly easier and lower risk ways to launder money, which don't leave a well documented audit trail throughout the system.

I think your average individual or organization laundering money would want to invest in the kind of things he understood, like small businesses, in the later stages of laundering money, too.


I am not a clever man, please explain the vastly easier methods.


Place into cash-based businesses with minimal consumables tracking (nail salons, hairdressers, laundromats, service based businesses in general); layer via vendors to those businesses (invoicing for product they don't receive, or just marking up product they do get to premium prices), integration by dividend/partnership payouts to individuals, or other commercial transactions to other businesses. (Really, now that layering happens inside the USA to avoid bulk currency smuggling detection, and happens in businesses vs. cambios, layer/place/integrate is a much fuzzier distinction than it was in the 1980s. It's basically "get physical cash plausibly into a till" and then cycle it.


This might sound crazy and naive but this sounds like the most ripe area of cyber fraud: creating an ap/series of apps (inventory, sales, POS, etc) that supports this type of fraud...

They already exist... on the industrial scale. Which is where the rumored Wachovia laundering of mexican drug money was really active...


Yes, selling "licenses" which can be transferred, redeemed, and re-used is pretty plausible. However, your average Mexican cartel leader doesn't understand software, and is going to be a lot more comfortable with a sketchy mundane business where he can physically see it and understand it.

Cellphone stores are often used for this, I think, though.


Been watching Breaking Bad? ;)


Off topic!

For your punishment, you must donate to the charity of my choice:

http://www.savewalterwhite.com/


Quite pleased that the donation link is an actual cancer donation link.


This is a good crop and I can see a lot of success coming from all of these companies. There's a market out there and it's waiting to be tackled. Several of them are known solutions applied to another niche.

There is more of a real world feel to these companies. Robots, Big boxes of delivered things, instacart which isn't in this list, but is another example.

I also notice there's a lot more traction already with these companies than I remember -- it's a more mature bunch. I wish you all the best of luck. The journey hasn't even begun yet, but you've come a long way already.


Part of the perceived increase (though certainly not all of it) is that the batch sizes are several times larger than before. Whereas before you might have a shooting star or three in a single batch, now you might have a dozen, even if the proportions remained about the same.


INteresting when you put it that way. There are 75 in this batch and this is only 10 of them. Being in ycombinator in earlier years almost guaranteed you'd be covered in the big blogs and well... heard of. There are some of the 65 remaining startups in the bunch I'll probably never hear of.


>This is a good crop...

Personally, I am not to fond of that word... crop...


A common trend I am noticing amongst these startups are that they target a particular industry pain point, and have the ability to charge for their product. None of them seem the type that can be huge businesses, but they all seem like they can turn a profit. Call it lower risk investments if you want.


A pain point is the way to start. Some, like the perfect fitting shirt or the package delivery kiosk, could give a strategic advantage to an existing industry player, and therefore provoke an acquisition bidding war. Or, they could conceivably found a new player in that industry.


Most of these seem like derivative of other successful startups, like most of YC companies. They all just seem "done" already, so what's the point? On another thread there was the release of a YC-based iPhone controller which was no better than 5 or 6 other competitors in the exact same space. So what kind of advantage do these fancy-pants YC companies really have over their competitors over the MEGA HYPE of demo day?

Probably nothing. The consumer putting up his bucks is what really matters.


No, these ideas are not "done". Do you have telepresence robots in your office? Or Bufferbox-like delivery boxes in your mall? I don't.

Saying these businesses are "done" is like saying mobile phones were "done" when Motorola launched their first phone. Startups are about creating businesses, not about materializing some idea the first time on the Earth.


Same idea, better execution?

For investors you also get startups that have already been vetted enough by the ycombinator team for them to invest time into, so you know that the startup already has connections in the right places


Not trolling. Genuinely curious. What exactly does TC rankings mean? It is not like they have a good track record of non-biased tech news reporting. I have avoided their websites/articles like the plague for the past 3 years so I don't know what their record has been as of late, but I doubt it has changed for the better since then. Judging by headlines I see here on HN, I am willing to bet that it has changed for the worse if that is possible.


I wonder what happened to Diaspora. http://allthingsd.com/20120511/diaspora-says-its-back-on-tra...

I was really expecting to see what kind of product they would launch. Did they just not launch at the demo day but still working on it, or did they actually pivot into something else?


They launched Makr.io (https://makr.io) a few days ago here on HN.


I asked this question before: http://hackerne.ws/item?id=4391638 and still wondering: 1. Does Y Combinator then own a stake in Makr.io or Disapora? 2. When a company pivots, does YC own a stake in the pivot? 3. How about side projects?


YC owns a stake in Diaspora. Diaspora owns Makr.io, therefore YC owns a stake in Makr.io, as long as the Diaspora team set it up as an entity separate from Diaspora, not owned by Diaspora (the company, not the team).

When a company pivots, it's the same thing. It's usually the same company legally and fiscally, in which case YC still has a stake. If the company pivots and the founders decide to set up a new company, and the old company does not own the new company, then YC does not have a stake in the new one unless the founders are good sports and cut them in.

Side projects are usually built under the corporate umbrella, in which case the profits/losses from the side project count as part of the owning company's. In this case, YC's stake in the parent company carries over to all side projects (unless, again, they set it up as something separate from the company).


What's stopping someone from using the lessons learned from a failed company over to a new entity - IP ownership? E.g. I'm pretty sure Waterloo Velocity doesn't own a stake in Pebble (the iPhone watch) even though the project began there as Allerta (a Blackberry watch) and was admitted into YC as inPulse. Wondering if these are just company name changes, or product name changes, or separate entities? As the founder would have therefore received funding for R&D from Velocity, YC and Kickstarter without necessarily putting out a product. (Though I'm sure there's some intellectual property claims made). That would mean a +1 in favour of patents, to protect the interests of the accelerator.


[deleted]


Well, lessons != assets. I would say that if the founders create a new entity, and use assets from the old company in the new one, that it's reasonable for investors to claim a stake in the transferred assets/IP.

A good example of what usually happens with pivots is the case of Firebase (http://firebase.com). They used to be Envolve (https://www.envolve.com), but they saw demand for what they're doing now, and took the real-time technology behind Envolve to power Firebase.

I don't know if they kept the old company or set up a new one, but YC still has their stake in them.


I guess for a startup, it would hard to track what was done on company time, and what was done as a side project. For example, coding a side project on my 9-5 job would require a consent form signed by my manager to claim they had no ownership on my project. But a startup founder working on the weekend on YC's project only to realize a need for something else that needed to be coded and monetized. That's gray area of who owns the assets.


My only concern is if Product A is failing, and you want to work on Product B, there would be a conflict of interest in killing Product A (there's people vested in), and it'll be hard to split your time to work on both products. There's the option to incorporate under the umbrella, but the fear of spreading yourself too thin. A dilemma nonetheless.


Huh, we've had something like bufferbox in Norway for years now(I think). Don't know how popular it is though.


Double Robotics looks very interesting! I've seen teleconferencing "creatures" before but this one seems very appealing.

Quite surprised about 9gag though. When did they start? Their pictures were so popular for some time it gives me the feeling that they've been online for ages already.


Where are the ''Kill Hollywood'' startups?


This seems difficult because what makes Hollywood profitable is the movies they make, which cost big dollars and often license expensive IP from others (think Transfomers, superhero movies, etc.). It seems like the kind of thing that's hard to disrupt on a low budget.


9gag.com, new "kind" of entertainment.

PS: I saw 9gag.com often in Facebook. OFTEN.

While I never visited the site, I noticed their presence.


This article crashes safari on my ipad2 - three times in a row now...

Anyone else care to test it?


I've been noticing that if I open two or more TechCrunch articles in tabs, all of the TechCrunch tabs become unresponsive. I have no idea what they are doing to upset Chrome so badly...


>I have no idea what they are doing to upset Chrome so badly...

I think it would be Chrome's grammar and spell-check function that gets overloaded....


They have a lot of JavaScript stuff going on, in addition to their own stuff:

http://imgur.com/vt8Qq


It works on mine.


www.virool.com - Platform to distribute and market videos. Company makes $0.12/second.




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