March 2006, rev August 2009Yesterday one of the founders we funded asked me why we started YCombinator. Or more precisely, he asked if we'd started YC mainlyfor fun.Kind of, but not quite. It is enormously fun to be able to workwith Rtm and Trevor again. I missed that after we sold Viaweb, andfor all the years after I always had a background process running,looking for something we could do together. There is definitelyan aspect of a band reunion to Y Combinator. Every couple days Islip and call it "Viaweb."Viaweb we started very explicitly to make money. I was sick ofliving from one freelance project to the next, and decided to justwork as hard as I could till I'd made enough to solve the problemonce and for all. Viaweb was sometimes fun, but it wasn't designedfor fun, and mostly it wasn't. I'd be surprised if any startup is.All startups are mostly schleps.The real reason we started Y Combinator is neither selfish norvirtuous. We didn't start it mainly to make money; we have no ideawhat our average returns might be, and won't know for years. Nordid we start YC mainly to help out young would-be founders, thoughwe do like the idea, and comfort ourselves occasionally with thethought that if all our investments tank, we will thus have beendoing something unselfish. (It's oddly nondeterministic.)The real reason we started Y Combinator is one probably only ahacker would understand. We did it because it seems such a greathack. There are thousands of smart people who could start companiesand don't, and with a relatively small amount of force applied atjust the right place, we can spring on the world a stream of newstartups that might otherwise not have existed.In a way this is virtuous, because I think startups are a goodthing. But really what motivates us is the completely amoral desirethat would motivate any hacker who looked at some complex deviceand realized that with a tiny tweak he could make it run moreefficiently. In this case, the device is the world's economy, whichfortunately happens to be open source.