YC
Uncut Interview with Sam Altman on Masters of Scale [Audio]
@ Y Combinator
![Uncut Interview with Sam Altman on Masters of Scale [Audio]](/_next/image?url=https%3A%2F%2Fimg.youtube.com%2Fvi%2FmUZKAhcxXWI%2Fhqdefault.jpg&w=3840&q=75)
02/24/18
Takeaways
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Sam Altman
02/24/18
@ Y Combinator
I fell into entrepreneurship accidentally; I went to college to be a computer programmer, but after the dot-com bubble burst, startups weren't on anyone's mind.
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Sam Altman
02/24/18
@ Y Combinator
I was surprised that as a freshman, people laughed at you for working on a startup; I didn't want to work on one myself.
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Sam Altman
02/24/18
@ Y Combinator
My project, which eventually became Looped, started as something we worked on after class and at night, and it wouldn't have been a startup without Y Combinator.
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Sam Altman
02/24/18
@ Y Combinator
I had planned to intern at Goldman Sachs, but I realized I was having much more fun working on our project with my friends.
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Sam Altman
02/24/18
@ Y Combinator
When you're young and have nothing to lose, it's absolutely the time to take risks; unfortunately, most people become risk-averse at that stage.
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Sam Altman
02/24/18
@ Y Combinator
Most things are not nearly as risky as they seem; if you're a college student with no money or reputation, failing at a startup is not as detrimental as it feels.
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Sam Altman
02/24/18
@ Y Combinator
I was infamously difficult to work with when I was younger; I should have put more effort into setting and communicating expectations with others.
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Sam Altman
02/24/18
@ Y Combinator
As a founder, if you want to work 100 hours a week, you need to understand that most people you hire have other lives and commitments.
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Sam Altman
02/24/18
@ Y Combinator
Young entrepreneurs often evolve their projects organically without realizing they are running a company; it's crucial to assess if the market can support a large company.
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Sam Altman
02/24/18
@ Y Combinator
Good investors focus on the potential of a company ten years from now, while bad investors focus on the current total addressable market.
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Sam Altman
02/24/18
@ Y Combinator
The most predictive factor for a large total addressable market is how much current users love and use the product.
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Sam Altman
02/24/18
@ Y Combinator
When the iPhone was released, even in developing countries, people loved it and used it daily, indicating a strong market potential.
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Sam Altman
02/24/18
@ Y Combinator
Many people jump on trends too early; for example, VR has potential, but it's not yet a high conviction bet for starting a company.
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Sam Altman
02/24/18
@ Y Combinator
After Looped was acquired, I took a mid-career sabbatical to travel and invest, but I realized I didn't enjoy being a seed investor.
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Sam Altman
02/24/18
@ Y Combinator
I found that I prefer running a company over being on the sidelines as an investor; many founders miss this realization when they start investing.
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Sam Altman
02/24/18
@ Y Combinator
YC has expanded to fund more companies and geographies, significantly increasing the number of companies we support each year.
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Sam Altman
02/24/18
@ Y Combinator
We raised a later stage fund to support hard tech companies that need significant capital, as many investors are not willing to provide that.
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Sam Altman
02/24/18
@ Y Combinator
YC is like a new university, a collection of smart people with a shared vision to innovate and improve the future for everyone.
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Sam Altman
02/24/18
@ Y Combinator
It's critical to have a clear vision and culture when scaling an organization; YC aims to produce the most innovation in a way that benefits everyone.
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Sam Altman
02/24/18
@ Y Combinator
If everyone believes in the same mission, there's less conflict, and people can organically move in the right direction with less organization. I initially tried to have no structure at all at Y Combinator, but that approach fell apart quickly as we grew beyond ten people.
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Sam Altman
02/24/18
@ Y Combinator
The growth in the number of people in an organization can sneak up on you, and you can get away without any structure until you can't.
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Sam Altman
02/24/18
@ Y Combinator
We run super light on capital at Y Combinator, which has its advantages, but applying more capital could have made things smoother.
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Sam Altman
02/24/18
@ Y Combinator
Frugality is culturally important to us at Y Combinator because we want that reflected in our startups.
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Sam Altman
02/24/18
@ Y Combinator
The best thing we did to scale Y Combinator globally was the MOOC class that we teach, which has incredible distribution worldwide.
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Sam Altman
02/24/18
@ Y Combinator
When we fund someone from another country for the first time, it creates a chain reaction effect where others see that it's possible to get into Y Combinator.
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Sam Altman
02/24/18
@ Y Combinator
To scale well, you need to build a product that is so good that people want to use it and tell their friends about it.
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Sam Altman
02/24/18
@ Y Combinator
The good kind of blitzscaling happens when you don't have to generate demand because you already have a great product.
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Sam Altman
02/24/18
@ Y Combinator
You initially have to do things that don't scale in order to get into scaling, like manually getting users or doing things that wouldn't work with a large user base.
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Sam Altman
02/24/18
@ Y Combinator
The team you build is the company you build, and hiring more competent people can be magic when it works right.
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Sam Altman
02/24/18
@ Y Combinator
Culture building is not something you do just in the first three months; it becomes more important as the company grows.
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Sam Altman
02/24/18
@ Y Combinator
Luck can be manipulated to some extent, but if you don't execute well, the company will still be worth very little.
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Sam Altman
02/24/18
@ Y Combinator
Using the network for seeking opportunities and risk assessment is crucial for founders. Luck is a significant factor in success, but I believe that if I keep working hard, eventually luck will swing my way.
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Sam Altman
02/24/18
@ Y Combinator
Acknowledging the role of luck is crucial; ignoring it can lead to a dangerous mindset where one fails to recognize their fortunate circumstances.
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Sam Altman
02/24/18
@ Y Combinator
While luck is important, it's also essential to work hard and remain optimistic about future opportunities.
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Sam Altman
02/24/18
@ Y Combinator
As president of a scaling organization, I face overwhelming demands on my time, including a flood of meeting requests.
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Sam Altman
02/24/18
@ Y Combinator
I believe it's not rude to ask someone for a meeting, but it's also not rude to not respond if you're busy.
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Sam Altman
02/24/18
@ Y Combinator
I prioritize my tasks by making daily lists and focusing on what I want to accomplish, accepting that my role will often be interrupt-driven.
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Sam Altman
02/24/18
@ Y Combinator
In the startup world, working long hours is often necessary; there's no substitute for hard work, even if you also work smart.
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Sam Altman
02/24/18
@ Y Combinator
I have always been inclined towards coding, finding it enjoyable like solving puzzles and math problems.
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Sam Altman
02/24/18
@ Y Combinator
I find cargo shorts incredibly convenient for carrying items like books and chargers, despite the mixed opinions about their appearance.
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Sam Altman
02/24/18
@ Y Combinator
The unique magic of Silicon Valley lies in its dense network of knowledgeable people who are willing to help each other for free.
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Sam Altman
02/24/18
@ Y Combinator
I believe that the knowledge and talent from Silicon Valley are gradually spreading to other regions, which is a positive development.
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Sam Altman
02/24/18
@ Y Combinator
Creating another Silicon Valley is challenging due to the need for a dense network effect that fosters entrepreneurship.
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Sam Altman
02/24/18
@ Y Combinator
I think the culture of entrepreneurship is spreading globally, with places like Beijing and LA developing their own startup ecosystems.
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Sam Altman
02/24/18
@ Y Combinator
Startups in LA are gaining traction, with more billion-dollar companies emerging there than in New York in recent years.
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Sam Altman
02/24/18
@ Y Combinator
I believe that the connectivity and network density in LA are growing, making it a viable startup hub.
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Sam Altman
02/24/18
@ Y Combinator
I think it's important for founders to prioritize effectively, focusing on a few key areas while allowing less critical issues to be managed by others.
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Sam Altman
02/24/18
@ Y Combinator
Founders should be aware of common time-wasting activities, such as unnecessary networking events, and learn to avoid them.