• E-mail this page
• |  Print this page
• | 
• | 
• | 

Brains Trump Money For Startups

The balance of power is shifting from investors to hackers when it comes to starting a software company.

Why? "Because you don't need as much money, but you still need as much brains," says Paul Graham. He's a co-founder of Y Combinator, which provides micro-funding (along with reams of good advice and great contacts) to entrepreneurs.

Graham gives four reasons why it's cheaper to start a software company today than it was in the past.

Graham is putting his theory to the test with Y Combinator, which rarely gives startups more than $20,000. It's a pittance compared with the millions handed out by traditional VCs, but just enough for the founders to assemble a working prototype in three or four months. The prototype then opens doors to additional VC funding or, in a couple of cases for start-ups backed by Y Combinator, outright acquisition.

« Eggs And IT | Main | Search Will Assimilate You »