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Y Combinator and Power in Silicon Valley
A demonstration of power by Silicon Valley’s top startup accelerator.
The argument he makes goes something like this: traditionally, the earliest stages of startup fundraising was once done either by using up the entrepreneur’s own savings, or from raised funds from friends or families, or from business ‘angels’ — wealthy individuals who for fun or profit were willing to put their personal money into tiny, nascent companies. Thus, powerful and haughty VCs who wanted to attend Y Combinator’s showcase pitch event had to kneel and kowtow to a sandal-wearing bear of a man with a distaste for bullshit and a flair for the written word. Murthy, with his back against the wall, running short of cash and with no salable product even remotely on the horizon, needed both the accounting and the marketing win of a big infusion of Microsoft money.
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