Everything Jared Friedman said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Friedman: Full OpenAI o1 Model Is a Huge Step Function Above o1-Preview
“Like the full O-one model, which is coming out any day now is a huge step function above even O-one preview, which is what enabled all these incredible results at the hackathon.”
Friedman: AI phone calling startups are booming after failing a year ago
“Like a year ago doing startup ideas where like the AI agent would talk on the phone just like didn't work. We had a bunch of companies that tried and all the companies didn't work. And over the summer it really started working under the trends from the past tw…”
Friedman: No one has four years of LLM experience, empowering young founders
“This is an opportunity where college students are particularly well, like young founders are particularly well positioned to work in it because nobody has like there's no one walking around with like four years of LLM experience. So like everyone is starting f…”
Friedman: YC receives few applications automating back-office tasks with LLMs
“And yet we actually don't get that many applications for people working on this.”
Broad societal problems are too abstract to be good startup starting points
“No doubt those are real problems, but they're too abstract to make good starting points for startup You need something that's more specific, something that's tractable with a startup.”
Tarpit ideas seem deceptively easy but conceal hidden structural barriers
“They all form around some, like, widespread problem that lots of potential founders encounter. And it's a problem that seems like it could be easily solved with a startup, but it's an illusion. There's actually a structural reason why it's very hard or impossi…”
Founder-market fit is the single most important criterion for evaluating startups
“If I had to pick like one most important criteria, it'd probably be this one. And what I mean by founder market fit is just, are you the right team to be working on this idea?”
The best startup problems are those where the customer alternative is nothing
“Like if you're, if the alternative to your solution is literally nothing, that's what a good problem looks like.”
Fintech and vertical SaaS have drastically higher unicorn hit rates than consumer
“Over the last 10 years, if you started a company that did, like, fintech infrastructure or vertical SaaS for enterprise, the probability that your company became a billion-dollar company was astonishingly high. Whereas if you started something in consumer hard…”
Boring startup ideas have a much higher success rate than fun ideas
“And the thing is that because most founders shy away from ideas like this, boring ideas like payroll software have a much higher hit rate than fun ideas like apps to find new restaurants to eat at, Or, like, apps to find the next song to listen to. Something l…”
Friedman: Hard-tech companies face high capital needs and feasibility uncertainty
“So the way I see it is a hard tech company is a company that fulfills two criteria. One, it will take a lot of time and money to build your first product. And two, even if you had lots of time and money, it's not clear if it would be possible to build it at al…”
Friedman: Software startups face market risk; hard tech faces technical feasibility risk
“So if your company is building a normal website or a mobile app, you probably have mostly market risk, which is to say you have a new idea. It's not totally clear if people are going to want this thing that you're making, but you probably don't have much techn…”
YC is the world's largest bio and hard-tech seed investor
“YC is actually the largest bio seed investor in the world and the largest hard tech seed investor in the world. This includes accelerators, seed funds, every kind of investor.”
Astranis built its first test telecommunications satellite for under $50,000
“It turns out actually that the cheapest telecommunication satellite that is useful costs like at least ten million dollars to build and launch. And so Astronus' hack was to start with a test satellite. The satellite in this photo was their first satellite. The…”
Friedman: Hard-tech startups can raise capital by preselling before building
“So basically they sold it before they made it, and this is a very generalizable technique that a lot of hard tech companies use in one form or another.”
Non-binding LOIs effectively filter casual interest from serious customer demand
“Because it's not binding, it doesn't actually commit the customer to buying, but because it looks like a contract, customers take it really seriously. It's easy when you're talking to a customer for them to, like, be polite and casually say, like, sure, I'd bu…”
Friedman: Top hard-tech founders minimize step sizes between funding rounds
“Really good hard tech founders are maniacal about, like, pushing down the size of each of those steps so that each step is as small as possible, which makes it as easy as possible for them to achieve the milestones that they need to raise the next round of fun…”
Friedman: Startup compensation has risen significantly, narrowing big-tech pay gap
“Compensation at startups has gone up a lot as well. And so I think we may be closer than they think, but there's still more that startups have to do on that front.”
Friedman: Being a YC Partner Is Like Being a Founder
“So, the thing is that Y Combinator is not a typical investment firm, and we don't really think of ourselves as investors. Why Combinator is very much its own beast, and so the job is actually not that different from being a founder.”
Friedman: Traditional Weeks-Long Due Diligence Fails at YC Demo Day
“There are many investors who are used to taking their time with due diligence, which might be fine in other circumstances, but it simply doesn't work at demo day because there's so much activity happening. So you just can't take a couple of weeks to think over…”
Friedman: Monday Partner Meetings Cause VCs to Lose YC Deals
“That doesn't work great for demo day because demo day is traditionally on Monday and Tuesday, which means investors are making decisions Wednesday, Thursday, Friday. So if you're a VC and you can't make a decision until the following Monday, there's a decent c…”
Friedman: SF Housing Is a Multi-Billion Dollar Opportunity for Tech
“My most recent angel investment is in a YC company called Star City, which is doing local In Star City, one, because I think it's actually a multi-billion dollar opportunity, can make a huge amount of money, but also because I believe that solving the housing …”
Friedman: Ploy generates substantive content upgrades rather than AI slop
“Like, it's not just prettier, which obviously it is. Like, the, obviously, like, the visual design is much better, but actually, the content, It's better too. And we always hear about like AI slop, but like if it was AI slop, that wouldn't have worked.”
Friedman: YC Has Primarily Funded AI Companies Since ChatGPT
“For the last few years since ChatGPT, YC has been funding mainly AI companies”