Chapters (Powered by ChapterMe) - 00:00 - Coming Up 00:12 - Intro: What is ZIRP? 01:51 - Why ZIRP 03:39 - The Corn Analogy 04:20 - Startups & Stocks 06:06 - Money ≠ Success 07:53 - Unicorns 09:55 - Winter Was Coming 11:15 - Lucrative Lending 12:56 - 3 Types of VCs 14:09 - YC Was Part of the Problem: Build for Endurance 15:24 - The Aftermath 17:45 - Outro
@simonehong37002 ай бұрын
😢
@olimpiakoslol32172 ай бұрын
1 minute summary of the video: ZERP, Zero Interest Rate Phenomenon, affected the startup world by flooding it with cheap money from the Federal Reserve and Banks. This led to an increase in VC funding, with investors eager to pour money into startups without much knowledge or experience in the field. Startups started focusing on scaling quickly and raising huge amounts of money, leading to inflated valuations and unrealistic expectations. Many companies struggled when interest rates went back up, causing the cost of capital to rise. Some founders built enduring businesses by focusing on building a great product, while others spent money unwisely and faced challenges when trying to raise more funds. The key takeaway is to balance optimism with realism and build a business that can withstand different economic climates. By being optimistic but realistic, founders can navigate through hype industries and create sustainable businesses.
@aslkdjfzxcv97792 ай бұрын
💯
@oluwafisayomioludare73852 ай бұрын
Thank you for this. Google recommended it, and I thought it was an article read. Thanks again
@Eggs-n-Jakey2 ай бұрын
thanks dude
@JonibekJ2 ай бұрын
Thats great idea, u can build startup around it and Get funded 10M.
@huveja97992 ай бұрын
A summary: a lot of easy money is poison because it kills creativity, the Zero Interest Rate Phenomenon (ZERP) created easy money, most startups were taking that poison in industrial doses without having the antidote, now they are dying in flocks ..
@ThaGamingLlama2 ай бұрын
6:06 "during this time it was fuc-... it was amazing" lmaoo
@truongthinhpham2 ай бұрын
I love the wisdom that these guys share over the years, but tbh, even the vibe alone is worth the time. Best advisor duo ever!
@thefocuschic32342 ай бұрын
This gotta be the funniest episode you've made, guys 😂
@harrylee272 ай бұрын
Great topic, it's great to occasionally step back and observe the broader cosmic forces that influence us all, reminding us to stay grounded and focused on creating genuine value rather than getting caught up in valuation hype.
@Max-ve5tu2 ай бұрын
I imagine a lot of startups, scale-ups, and the likes are essentially worthless to the founders and employees after raising massive rounds during the ZIRP. Maybe some founders were smart enough to negotiate less stringent liquidation preferences, but I think the vast majority are sitting on worthless shares.
@nicolasrada13252 ай бұрын
The other thing to talk about in b2c is how much money is spend by the average person on software vs other stuff. The numbers scream that software b2c IS WAY overrated
@chan90s2 ай бұрын
When he said revenue to valuation multiple, that's how public markets work
@GabrielSestrem2 ай бұрын
They guys who made money where the ones who Exited their businesses during ZIRP
@nsilou2 ай бұрын
Dalton: why do people laugh when i speak? Michael: YES
@aybrl2 ай бұрын
5:43 the 'YES' of Jian Yang from the silicon valley show 😂
@BellaFolingsbyАй бұрын
its a WATER animal
@Yusuf-ok5rk2 ай бұрын
today's talk is so goofy I love it
@noahloyd9Ай бұрын
Hey @Ycombinator , I’m in the early steps in creating my startup and eventually applying to yc. Im in desperate need ,or more so curious, to know YC’s thoughts of creating a business plan for a startup. Im aware the likelihood for a pivot or change to happen is high but in my instance I feel as though creating a business plan could better outline my vision as well as gaining me , or increasing the probability, of early investments. Thank you (also loved the video on startup websites , would love similar more in depth/focused videos on the topic)
@alexeykardo16292 ай бұрын
So true ) we are doing more now with $15k/mo more than we did with twice as more, with higher automation and better software, instead of hiring 5 assistants like a big company. Thank you!
@gomini37072 ай бұрын
Recommended reading "What has government done to our money" by Murray Rothbard.
@FabioFuentes55Ай бұрын
These two always got me laughing by myself in not normal-to-laugh places by yourself.
@Leto2ndAtreidesАй бұрын
Don't think it poisoned startups - just created bad habits for a while. But it also made startups possible that would otherwise not have been possible. It's sad that the startup world's VC return on investment is apparently not high enough to attract money vs the federal interest rate.
@natarajanshanker5103Ай бұрын
The (un)ironic thing is, the message here is broadly the same thing people like Warren Buffet say: "Ignore the ups and downs, don't time the market, focus on the intrinsic value."
@matten_zero2 ай бұрын
The sad thing is there were a bunch of smug dumbasses who thought because their dogwalking startup got VC money that they were some kind of smart person. So glad Powell is discplining the market right now and all these companies are finally going bust so that real businesses can thrive.
@george_davituriАй бұрын
Takeaway from this episode, ZIRP means slow economic growth. YC can 'poison' us, they have infinite amount of it, can be useful if used wisely for business growth. Some business only worked when there was nowhere else to invest in the world, they are lucky to be funded but on the other hand it is sad that they didn't create stunning product or they dropped it.
@kylefranklin1512 ай бұрын
I self-finance periodically with ZAPR 12s and 18s... zero APR credit card promos for 12 or 18 months..... also not a good idea haha
@carlosg15352 ай бұрын
Very nice video: interesting topic and good vibes :-)
@ryanrhodescooking2 ай бұрын
this is a funny one, love it.
@ryanrhodescooking2 ай бұрын
oh god it got funnier
@Yusuf-ok5rk2 ай бұрын
I just commented something similar lol
@Sondre7Ай бұрын
Love listening to you two
@debrajoy108Ай бұрын
Really enjoyed this episode 👌✅
@chan90s2 ай бұрын
I'm rejected by YC and now I want to start a VC fund 😂 0 management fee. The interest until deployment should take care of my expenses
@TreeLuvBurdpuАй бұрын
I was thinking "This sounds terrible. Why are these guys laughing about it?"
@midiminion65802 ай бұрын
lol. Its crazy how everyone blames the lay offs on AI but it really is about money not being thrown into software money pits anymore
@danielkopaee9241Ай бұрын
“Turns out money always has product market fit, especially cheap money”
@DatNgo-uk4ftАй бұрын
great commentary here
@stephenhunter1212 ай бұрын
Zero interest rate policy
@michaeljamescollins68002 ай бұрын
It’s zero interest rate policy
@duncanfromunderthebridgeАй бұрын
Thank you. This was the prescriptive policy of the Fed (and other CBs), not a “phenomenon” like a hurricane. 😅
@ShaiAlon2 ай бұрын
"Money has product market fit" 🤯
@Secretlyanothername24 күн бұрын
What is YC, and how did it poison startups?
@juanfromporter23082 ай бұрын
It's platform risk-on the fed. Haha
@TonyMandarano2 ай бұрын
It’s Zero Interest Rate Policy. It’s not a phenomenon. It’s clear why it happens/happened.
@machapuis2 ай бұрын
I wish I tried to raise during ZIRP 😢
@toreon1978Ай бұрын
1:38 you don’t have to shout out your missing knowledge that proudly.😂
@u2b832 ай бұрын
Giddy from the recent NQ moves lol If herstory repeats, we've got another 40%
@AnomalyHQ2 ай бұрын
A lot of people want this money thing 🤣
@JoshvsData2 ай бұрын
me no understand, gonna get back to coding now
@darrellbrown36912 ай бұрын
I look forward to working with you guys; I'm optimistic but not overly optimistic... "Now, let's upcycle 500K homeless & poverty-stricken people!" ♡Darrell (Human-Upcycle)
@fayazmaihandost2 ай бұрын
Can I get some those you got on the back my business really needs it 😂
@grammar_shark2 ай бұрын
You want poison?
@HamounKarami-xe5zv2 ай бұрын
sounds like tiger global....
@sergelioutyi2 ай бұрын
There should be a separate YC channel just for you two… or even better your own Netflix show.
@jjones08222 ай бұрын
Sounds like laundering
@cartoonking10632 ай бұрын
Are the two lads stoned? Spent the whole podcast giggling like little girls whenever the other finishes a sentence
@TreeLuvBurdpuАй бұрын
You have to wonder why they needed a sinkhole for money. You have to ask that question.
@ajayrathore70452 ай бұрын
❤
@rcstann2 ай бұрын
¹1¹st ! And ... we're at the gate . . .
@amanciocohen59652 ай бұрын
Michael can you please stop fucking saying "Yes" whenever Dalton says anything?? It's like you are trying to assert your dominance over him. Let him say what he's saying without you feeling that you have to approve it all piece by piece.