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YC

Y Combinator Cast

05/16/25

@ Y Combinator

The previous wave of tech-enabled services startups struggled due to low gross margins and complex operations, which hindered their scalability.

Video

YC

Startup Ideas You Can Now Build With AI

@ Y Combinator

05/16/25

Related Takeaways

RZ

Rujul Zaparde

01/09/25

@ Y Combinator

Starting a business with low margins creates a negative feedback loop, making it harder to raise funds and sustain operations, as seen with FlightCar's struggles during its early days.

YC

Y Combinator Cast

07/01/23

@ Y Combinator

Many startups superficially imitated Uber's scaling tactics without understanding the context, leading to poor outcomes.

YC

Y Combinator Cast

01/25/25

@ Y Combinator

Startups are now more about leveraging technology to do more with less, rather than just scaling up operations with more hires.

TB

Tom Blomfield

12/16/23

@ Y Combinator

Scaling negative margin businesses, like those seen in ride-sharing, has become more challenging due to rising interest rates and investor reluctance to fund such models.

YC

Y Combinator Cast

11/18/22

@ Y Combinator

When building software, it's generally scalable, but founders often struggle with service-based businesses that require high-skill human labor.

CR

Chad Rigetti

09/30/16

@ Y Combinator

Hard tech startups face unique challenges, including operating in undefined arenas without well-developed supply chains, requiring them to develop all necessary building blocks for their technology.

SL

Sam Lessin

05/17/25

@ Joe Lonsdale

Silicon Valley has historically struggled with operations, and as business complexity increases, it's becoming harder to succeed.

DP

Daniel Priestley

05/27/25

@ Chris Williamson

High volume, low value businesses, like food and drink, are often dead ends for entrepreneurs due to scalability issues and high operational costs.

PB

Paul Buchheit

07/17/19

@ Y Combinator

Many startups fail to manage their resources effectively, often doing less with more, leading to wasted funds without tangible results.